Madeleine Wackernagel
BRITISH AEROSPACE (BAe), a front runner in the bidding to replace the ageing Impala trainers, is taking a 20% stake in Advanced Technologies & Engineering (ATE), which supplies the integrated avionics systems for the South African Air Force’s Pilatus “Astra” trainer and the Rooivalk attack helicopter.
The value of the shareholding was not disclosed, but Alan MacDonald, BAe managing director responsible for the Asean and Southern African regions, said the move fitted perfectly with the British company’s aim of building global partnerships.
“We’ve been talking to ATE for about three years; the synergies are obvious. A memorandum of understanding was signed last week, with the intention that we will help boost the company’s international marketing, as well as its skills base by giving them advanced projects to work on.”
BAe will transfer substantial contracts for systems integration work to its South African partners. It is also open to further investment: “ATE generates much of its investment itself, but if the need arises, we will support expansion with more capital.”
Both MacDonald and Jean-Marc Pizano, head of ATE, stressed the opportunities the alliance will provide for black empowerment and affirmative action. “Any contract we receive,” says Pizano, “can lead to a cascade of business across the breadth and depth of our extensive supplier network, which is mostly South African,” thereby boosting employment opportunities and skills transference.
MacDonald was keen to stress that the link- up was not related to its bid to secure the air force contract to replace the Impala aircraft, due to be finalised by March.
“Our aim is not just to sell products to this country but also to be good corporate citizens. Obviously we hope we will win the contract, but we also believe in this country and want to be part of its future growth.”
He warned of the dangers of sidelining the defence industry, despite the urgency of concentrating on more fundamental needs such as health and education.
“South Africa has tremendous capabilities, but is in danger of losing those skills and technological advances built up over so many years, which could undermine the industry. And the export opportunities are tremendous. So we plan to be part of that growth.”