Johannesburg - Defence group Denel said on Monday it had clinched a licence to produce and market Agusta helicopters, giving it access to the civil helicopter market.

CEO Flip Botha said the licence agreement with Italy's unlisted Agusta SpA would enable Denel to produce and market the A109 and A119 Koala helicopters in South Africa, as well as select countries in South East Asia, the Middle East, South America and Africa.

"The potential worldwide market could be as high as 30 of these helicopters per year," said Botha. "This translates into potential annual sales of around $90 million in which South Africa - and Denel - will share with Agusta."

Denel already has an Agusta contract to manufacture 25 helicopters for the South African Airforce.

With acknowledgement to News24.