Denel guns for R44bn in contracts

Tuesday, July 19, 2011

Pretoria - Denel is on track to generating income, with confirmed contracts in its order book already exceeding R21 billion, and prospects to the value of R44 billion being currently pursued.

Zwelakhe Ntshepe, Group Chief Executive of Business Development and Corporate Affairs, said their confirmed work includes the South African National Defence Force's contract, Project Hoefyster, for the delivery of a new-generation infantry combat vehicle.

He said the firm's prospects in the pipeline will significantly strengthen Denel's turnover and contribute to the turnaround process at the country's largest manufacturer of defence, security and aerostructure products.

Earlier this month, the state-owned company released its results, showing a net profit of R111 million - return from the black for the first time since 2001.

Ntshepe said contracts of about R5 billion were concluded shortly after year end, including the largest export order ever secured in Denel's history.

The company intends to grow the opportunities to R70 billion and ensure the conversion of at least R21 billion of this into confirmed orders over the next three years.

In the coming year alone, contracts to the value of R14 billion will be confirmed.

Denel's primary mandate is to provide strategic defence technology, products and services to the SANDF.