Germany-based global defence and civilian sensors group Hensoldt officially launched its new, consolidated South African subsidiary recently. The new company is Hensoldt South Africa, which combines the previously separate Hensoldt Optronics South Africa and GEW Technologies. “Consolidating GEW and Optronics under the Hensoldt brand is an important strategic step towards the future growth of our South African business,” affirmed Hensoldt CEO Thomas Müller. “We will leverage the power of the Hensoldt brand and our global footprint to open new market opportunities for our South African business.”

“This is a major step towards our Hensoldt South Africa growth strategy and the creation of a South African sensor solutions house,” highlighted Hensoldt executive board member Celia Pelaz. “We are committed to further investing in the growth of our South African footprint and support President [Cyril] Ramaphosa’s announced investment drive. Our experience in the country shows that international investment and cooperation that have been added to local infrastructure, skills and capacity are the perfect mix for business success and local economy [sic] growth.”

Hensoldt Optronics South Africa was, as its name stated, an internationally respected specialist in optronic systems, including laser rangefinders, airborne gimbals and submarine periscopes. GEW Technologies was also highly respected, but focused on electronic warfare and spectrum dominance systems.

These two precursor companies of Hensoldt South Africa had a combined annual turnover of more than R1.5-billion. Following the creation of the consolidated local subsidiary, the Hensoldt group plans to invest R500-million in South Africa. The aim is to double Hensoldt South Africa’s turnover and staff complement (which currently stands at 600 – all South Africans) over the next five years.

Hensoldt intends to expand its product line. While maintaining production of all its current products, it will add offerings in the fields of data links, identification of ‘friend or foe’ systems, radar, business development, and customer services. Further, it will enlarge its international markets. Target areas are Africa, Asia-Pacific, Europe, Latin America and the Middle East.

“We have the competence and capacity in South Africa to build a global organisation from the South African base,” asserted Hensoldt South Africa MD Rynier van der Watt. “[In terms of] our positioning . . . we are a sensor solutions house. We want to be the number one sensor solutions house in the world.”

The keynote address at the official launch of the new company was delivered by South African Aerospace, Maritime and Defence Industries Association executive director Simphiwe Hamilton. In it, he affirmed that South Africa is on the rebound. “It may not seem so at the moment,” he said. “We are [however] working very hard to rebuild the country.” The group is also working to rebuild its credibility with international investors.

The country’s problems were well known, he observed. One of these, as far as the local defence industry was concerned, was the inadequate defence budget. The sector was arguing for this to be increased.

“Our future, [however], can never be defined by these challenges,” he affirmed. The defence industry was a high-technology sector of the South African economy, but it must never forget national issues like poverty and inequality.

To stimulate the defence sector’s exports, the industry needed to encourage the South African authorities to enter into government-to-government agreements on defence sales. In addition, the local industry itself had to encourage more partnerships between local companies and international groups, like Hensholdt, while retaining their South African identity. (Hensoldt South Africa is partly owned by South African companies.)

Hamilton congratulated the Hensoldt group on the consolidation of its South African operations through the creation of Hensoldt South Africa. “This is a very bold and much appreciated vote of confidence in South Africa,” he said.