/ 29 November 2001

Aerosud signs contract with Boeing

ERIKA DE BEER, Pretoria | Thursday

SOUTH African company Aerosud on Wednesday signed a contract with Boeing to manufacture parts for a range of its aircraft.

This means Boeing jetliners with locally manufactured components will be flying from as far afield as Singapore, Texas and Europe.

The South African Airways fleet would also have these aircraft, Dr Walt Braithwaite, president of Boeing Africa, said at Aerosud’s new premises in Centurion.

Aerosud on Wednesday also signed a contract for the construction of its new manufacturing facility on a site adjacent to the Waterkloof Air Force base. The completion of the 8 000 square metre facility, scheduled for the end of April next year, would see its operations relocated from Midrand, Aerosud said.

It said the life expectancy of the initial Boeing-Aerosud contract was five years, with a renewal option for another five years.

The contract resulted from a strategic partnership agreement between Boeing and the Department of Trade and Industry to develop and assist in the continued growth of the South African economy and support the development of the local aviation industry.

The contract was expected to provide jobs for at least 100 new skilled and semi-skilled workers, many of them from a historically disadvantaged background, Braithwaite said.

Boeing would transfer technological expertise and provide on-site training. At present Boeing had over 3 000 suppliers.

Aerosud would be the first one in Africa.

Trade and Industry Minister Alec Erwin assured him that it would not be the last South African company to do so.

”Aerosud shows that South African companies can respond to internationally competitive conditions and can do it well.

”We have a competitive economy.”

There was a growing confidence among South African companies and enterprises to come out of their protected environments and enter the world market, the minister said.

”For a South African company the market must be the world from day one. We must have that attitude and we are beginning to see it.”

South Africa could supply virtually every component of manufactured products, Erwin said. ”We aspire to be a major manufacturing economy.”

Aerosud managing director Dr Paul Potgieter said: ”We are determined to reward the confidence displayed in us.”

The 11-year-old company was already involved in 15 international contracts and had growing relationships with seven international aircraft companies, he said.

Potgieter said Jet Aviation of Basel, Switzerland, recently chose Aerosud as a partner to design and manufacture interior units for the new Boeing 737 BBJ which Armscor bought on behalf of the SA Air Force to be used for intercontinental VIP transport.

Last week Aerosud was awarded a contract to supply galley units for another Boeing 737 BBJ for an international client, he said. -Sapa