A major local aerospace industry development initiative is coming back to life

23rd February 2018

By: Rebecca Campbell

Creamer Media Senior Deputy Editor

     

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The Centurion Aerospace Village (CAV), an initiative of the Department of Trade and Industry (DTI), is being revitalised after spending some years in the doldrums. The initiative dates back to 2006 and was formally opened in 2008, but, to date, has only had one tenant, local aeronautics enterprise AHRLAC.

“We hope to announce the conclusion of deals within the next six months. We can’t give any more details at the moment,” reports CAV CEO Lance Schultz. “Hopefully, we should have the [industrial] park fully subscribed over the next four years.”

The revitalisation process actually began 30 months or so ago, with a strategic decision by the DTI that the CAV had to be properly developed. “They decided that first the right team had to be brought in and the proper governance structures put in place,” he explains. “The mandate of the CAV is to establish a sustainable aeromechanical park and also to take into account the Industrial Revolution 4.0 – the Internet of Things and Big Data – with local companies currently gearing up for opportunities in advanced manufacturing. So, essentially, the CAV is a cluster programme focused on grouping like with like technologies in the aerospace. defence and advanced manufacturing sectors. In addition a lot of focus will be on attracting manufacturing capability using advanced manufacturing technology, and this is where we are seeing a lot of appetite from companies wishing to set up in the park in areas such as, but not limited to, laser additive manufacturing (3D Printing), titanium, and composite materials development.”

The plan for the CAV is aligned with those of major original-equipment manufacturers (OEMs) or top-tier integration companies. There will be a core of anchor tenants, complemented by ‘subtier’ manufacturing tenants supplying them with key high-technology inputs – a ‘hub-and-spoke’ arrangement. This concept creates opportunities for the development of small and medium-sized enterprises (SMEs). In consequence, the Village will probably contain a business incubator: its management is close to concluding the business case for such a facility within the park. A strategic priority for this incubator, and for the CAV as a whole, will be the development of black companies. The park is in advanced talks with a major integration company to support SME development.

“The mandate for the park has been and will be focused on advanced manufacturing for aerospace and defence,” he assures. “Some companies operate in aerospace and other advanced sectors, so some tenants may also do nonaerospace or nondefence work. We want to get critical mass at the CAV, so we will accept complementarities within allied value chains. But our focus at CAV is on defence and aerospace and we will never, never lose this focus.”

The development of the park is being done in phases. At the moment, Phase 1 of the bulk infrastructure is being installed, while, in parallel, the management is in talks with a number of potential tenants. These range from local SMEs to global OEMs. “We are currently in talks with an international aircraft manufacturer and they have recognised the potential of the South African aerospace sector to manufacture various products,” he points out. “The CAV is a likely home for such manufacturing. It is not a case of the international OEM directly investing in the CAV but rather it encouraging South African companies wishing to join its supply chain to base themselves in the park to ensure they are in a supportive environment with access to shared services. Of course, we have to provide the necessary infrastructure facilities within the required timeframes.”

And it is local companies that the CAV is looking to for its anchor tenants at this stage, not international ones, in tandem with aerospace and defence expansion plans – companies that are looking to expand their operations with new facilities or new products or both. There are already a number of local manufacturing companies supplying major international OEMs. And the growing order books for these OEMs from the world’s airlines and aircraft leasing companies are creating expansion opportunities for South African aerospace companies and opening space for the creation of new local companies in the sector. “A majority of the companies we are speaking to are not dependent on international investment, but can supply their own.”

The CAV still hopes to be able to access the ‘air side’ (runways) of the adjacent Air Force Base Waterkloof and has requested Ministerial intervention in support of this. Desktop studies have, however, been done on alternative ‘air access’ sites for the complex. The completed landside development phase (the first development phase of the CAV) will have a floor space of 54 000 m2, of which about 40% should be filled by SMEs, the incubator, and training facilities. “What the local aerospace industry needs is a competitive industrial park that provides world-class services and access to skills development and training,” avers Schultz.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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