Denel, the state arms manufacturer, will be manufacturing more of the parts used in the construction of Boeing commercial airliners, the two companies said at a function at Denel Aviation in Kempton Park on Wednesday.
”By virtue of having this facility now open to full production with the committed long-term investment from both sides, Denel is positioning itself to play its meaningful role in South Africa’s aerospace business,” Denel chief executive Victor Moche said.
”We find it heartening that Boeing selected Denel as sole supplier of certain parts for their airplanes,” he said.
Under a scheme signed in July 2002 as part of the offset obligations related to South African Airways buying a fleet of Boeing 737-800 aircraft, Denel started making components for the Boeing 747.
Offsets or ”industrial participation” is a scheme under which government entities ask foreign suppliers to invest in South Africa in exchange for winning tenders.
A further agreement was signed on Wednesday and a workshop to produce parts and components for the Boeing 737, 747, 767 and 777 series was officially opened.
The manufacturing cell, set up in a temperature-controlled hangar at the Denel facility, was moved by ship from a factory in Washington state in the United States.
”This manufacturing cell is testimony to the confidence Boeing has placed in Denel,” Moche said.
Denel Aviation sales manager for manufacturing Mike McKinnon said the plant and other machinery are a ”substantial investment” by Boeing in South Africa and move Denel’s relationship with the US aerospace giant beyond offset obligations.
Neither Denel nor Boeing disclosed the value of the deal.
McKinnon added that Denel will now be making 180 different Boeing components, the amount increasing to 330 by late next year.
The parts are all machined from high-grade aircraft aluminium, currently sourced from the US, on 19 computer numeric controlled milling and turning lathes, shot-peening machines and coordinate measuring plants.
Both Denel and Boeing officials believe the import of the metal is an anomaly that has to be addressed for initiatives such as the government’s advanced aerospace manufacturing strategy, similar to its highly successful motor-industry development programme.
Aircraft-grade aluminium is not at present available from South African aluminium smelters because of apparent low demand.
About 20 Denel technicians also received training certificates at Wednesday’s event, having completed courses offered by Boeing on the use of the machinery.
The director of business operations in the fabrication division of Boeing Commercial Airplanes, Jonathan Geiger, said his company’s focus is on quality, on-time delivery and the continuous reduction of costs.
”Denel had already proven itself as a worthwhile choice for Boeing,” Geiger said after signing the agreement with Denel’s group executive director for aerospace, Knox Msebenzi.
Witnessing was the director of corporate legal services in the Department of Public Enterprises, Tebogo Mphuti, the US Ambassador to South Africa, Cameron Hume, and senior officials from the two companies. — Sapa