TUESDAY, 11.00AM
DESPITE arms industry executives making dire warnings about job cuts and project closures following the latest defence budget cuts, Denel acting MD Seshi Chonco on Monday announced preliminary talks with three Mediterranean and Persian Gulf states regarding possible purchases of the Rooivalk combat helicopter.
Algeria, Turkey and Saudi Arabaia are reported to be interested, although continued negotiations rest on approval from the Cabinet’s Conventional Arms Control Committee. In addition, Chonco said, negotiations with Malaysia on a possible Rooivalk order are at the stage where the terms of the deal are being discussed.
Following the huge defence cutbacks in the last two Budgets, Chonco said Denel’s main challenge is to recgnise that the international market is key to the survival of local arms makers, not domestic budgets. However, he said support for the Rooivalk by the SA Air Force is critical to persuading potential foreign buyers of the usefulness of the system.