Johannesburg - The local aerospace and electronics industry stood to benefit should BAE Systems-Saab win the tender to supply Poland with 48 new Gripen fighter aircraft, the company said this week.

The Polish government is expected to announce the winning bidder on December 27. BAE Systems-Saab is offering Poland similar aircraft to the 28 ordered by the South African defence ministry to renew its ageing fleet.

Through its obligations linked to purchase of Hawk and Gripen military aircraft, BAE Systems-Saab is providing $8.7 billion in economic benefits to the country. The offset programme, which is facilitated by the department of trade and industry, will continue until 2011.

Birns said the group had undertaken to place work in South Africa as part of their offset obligations. "Major parts of the aeroplanes, including the main landing gear and tail sections of the fuselages and vital communications systems fitted to each jet, would be built in South Africa if the Gripen bid is accepted ."

As a result of the offsets, local companies are manufacturing components for the Swedish and South African Gripens. These include the state-owned arms firm Denel, which produces rear fuselage sections of the Gripen.

BAE Systems and Saab jointly own Gripen International, which designs and manufactures the new fighter aircraft.

Last month the two multinationals spent R15 million to refurbish the MacArthur Bath complex in Port Elizabeth aimed at attracting tourists from the Nordic countries.

Solomon Khunou, the chief executive of Tourism Port Elizabeth, said the drive had resulted in 5 000 plane tickets and about 90 000 bed nights reserved for the new season.

With acknowledgement the Business Report.