Pretoria | Friday
AN agreement under which South Africa’s arms manufacturer Denel will get about R300-million per year for producing helicopter parts for AgustaWestland, an Italian company, was signed in Pretoria on Monday.
The licence production agreement provides for a phased multi-year programme for the manufacturing of 30 complete airframes, onboard systems, rotor blades and rotors for A109 and A119 Koala helicopters.
”We are delighted by this co-operation with AgustaWestland. It will allow us to enter the civil helicopter market in a meaningful way,” Denel chief executive Flip Botha said at the signing ceremony.
”The potential worldwide market can be as high as 30 of these helicopters per year. This translates into potential annual sales of around $90-million, in which Denel will receive a 30% share from Agusta, a component of AgustaWestland.
”Most importantly, this agreement will ensure retention of jobs and skills here, as well as the transfer of sophisticated aerospace technology from Agusta.”
Botha said Denel would be allowed both to manufacture and market the A109 and A119 helicopters in specified countries in South East Asia, the Middle East and Africa.
The agreement would also allow Denel to sell spare parts for A109 and A119 helicopters. AgustaWestland executive Johann Holdt said: ”The deal as a whole is exciting.”
Holdt said the two helicopter models had so much production commonality that Denel would be able to supply AgustaWestland with spares on a continuous basis.
”We have already identified clients in Africa and elsewhere, to whom we will supply both helicopters and spares utilising Denel,” Holdt said.
Botha also said the company was contracted by Agusta to manufacture 25 to 30 helicopters for the South African Air Force.
The helicopters are being manufactured at Denel Aviation’s facilities in Kempton Park.
A team of South African technicians and engineers from Denel were being trained at the Agusta facilities in Italy for this purpose. The first five helicopters would be built there.
He said as part of a product supply agreement for the A109 LUH light utility helicopter programme signed between the two companies in 1999, Denel was in the process of building 20 airframes for A109 military helicopters ordered by Sweden. – Sapa