Publication: Business Day Issued: Date: 2002-12-23 Reporter: John Fraser Editor:

Grintek-Saab Venture Wins R122m Contract

 

Publication  Business Day
Date 2002-12-23

Reporter

John Fraser

Web Link

www.bday.co.za

 

SA Defence electronics and telecommunications group Grintek has announced another success in a joint venture with Swedish multinational Saab, with the R122m sale of five self-protection electronic warfare kits for Swedish airforce helicopters.

The deal was negotiated by Avitronics, a joint venture between Grintek (51%) and Saab (49%), and it shows the success of Grintek's strategy of reaching new markets in the first world in partnership with first-world players.

"We have formed a joint promotions team, with members from both Saab and Grintek, and it took us a year to negotiate this deal," said Avitronics CE Ben Ash.

He said 80% of the research and development for the electronic warfare systems is South African, and about 80% of the work is expected to be done in SA.

"The Swedish airforce has just bought 18 new helicopters ( the new multirole helicopter, called the NH90) and our equipment will go into five," said Ash.

The equipment will identify threats to the aircraft, either if it is detected and its path is locked by radar or laser tracking devices, or if there is an approaching missile and the system then triggers a response in the form of infra-red flares, smoke or the use of a radar decoy.

Grintek researchers have worked hard to produce self-protection systems that are small enough to be used in helicopters, and has also developed the same technology for planes, ships and submarines.

"This was about our seventh foreign order," said Ash.

He said that despite the strengthening of the rand in the past few months, SA remained competitive in the supply of such equipment on orders, which tend to be invoiced in dollars.

Many of Avitronics' contracts have been linked to the government's arms for-investment offset programme.

Ash said recently that Avitronics had more than trebled its turnover in the past three years, "and we are now recognised as an international player".

Grintek CE Sybrand Grobbelaar said recently that Grintek had found its local demand for defence electronics equipment dwindling since the mid-90s and had therefore adopted a strategy of linking up with international players. He said the ensuing partnerships had given new credibility to the SA company.

With acknowledgements to John Fraser and Business Day.