British defence giant BAE Systems has awarded South African company Aerosud a $20-million (R137-million, €15,6-million) contract to make components for the European Eurofighter programme, the companies said.
The deal, concluded late on Thursday, satisfies part of a contract-offset obligation by BAE Systems under a 1999 multibillion-dollar contract for South Africa to buy 24 Hawk fighter trainers and 28 Gripen light fighters.
Under the contract for Eurofighter parts, set to run for at least six years, Pretoria-based Aerosud is to manufacture up to 3 500 detailed parts and minor assemblies for Eurofighter Typhoon, Europes biggest defence programme.
”While strengthening our partnership with Aerosud, this contract also illustrates BAE Systems ability to deliver new export business opportunities to South African industry, said BAE Systems’ South Africa chief executive Mike O’Callaghan.
”Not only are we fulfilling our industrial participation obligations arising from the Hawk and Gripen procurements, but this partnership goes much further, acting as a catalyst for growth in South Africas aerospace industry beyond the parameters for our IP programme,” he added.
South Africa’s Department of Trade and Industry has ambitious plans for an expanded domestic aviation industry based on a successful scheme to boost car exports.
Aerosud managing director and founder Paul Potgieter said the deal added to his company’s credibility and supported its ambition ”to become established as a strong, reliable and credible supplier of niche services and products in an increasingly competitive global market”.
The Eurofighter Typhoon was developed by BAE Systems, Alenia Aeronautica of Italy and the European EADS group and is touted as ”a cornerstone of Nato’s defence capability for the next 30 years”.
Up to 620 of the fighters have been ordered by Britain, Germany, Italy and Spain. – Sapa-AFP