Beleaguered micro-satellite manufacturer SunSpace would be absorbed into Denel Dynamics, with the department of science and technology paying R55-million for its intellectual property and tangible assets, the department said on Thursday.
It hoped the move to the unit of arms and munitions manufacturer Denel would be completed by the end of the year, and claimed the decision was recommended by the business rescue plan compiled by the SunSpace board by an external party.
This is hopefully the end of the drama surrounding the South African company, started by a group of Stellenbosch students. SunSpace has had a difficult and uncertain three years, filled with unfulfilled government promises and contracts that failed to materialise.
Space was identified as one of the department of science and technology's five grand challenges; the others are the bioeconomy, energy, climate change and human and social dynamics.
Satellite production has also been touted by both the departments of science and technology and trade and industry as a high-technology manufacturing niche that South Africa could exploit.
Cabinet purchases
In 2010 and 2011, Cabinet approved, in principle, the purchase of a 55% to 60% equity stake in the company, which was responsible for South Africa's R25-million pathfinder satellite Sumbandila.
But last year, Cabinet did an about-turn, saying that the government should not buy a stake in the insolvent company, but should rather try to absorb the skills. Initially, it was thought that SunSpace's new home would be the South African National Space Agency (Sansa).
But the agreement appears to be a compromise between Denel and Sansa, with the department saying that Sansa entered into an agreement with Denel Dynamics to house the SunSpace capacity.
"As part of a process of absorbing SunSpace's capability within an appropriate entity, the company's employees have been offered employment in the new business unit, and most of them [more than 80%] have accepted the offer, thus ensuring that key capabilities are retained," the department said.
Attempts to contact former SunSpace managing director Bart Cilliers were unsuccessful.