Publication: Business Day Issued: Date: 2003-05-12 Reporter: John Fraser

Reutech's Deal with Defence Giant Pays Off : Local Company Hooks Up with EADS

 

Publication 

Business Day

Date 2003-05-12

Author

John Fraser

Web Link

www.bday.co.za

 

A partnership with a global defence giant European Aeronautic Defence and Space company (EADS) has enabled SA defence firm Reutech Radar Systems (RRS) to not only secure important local contracts, but to become a supplier of subsystems for offshore projects.

The deal has ensured a future for the company in SA, and has enabled investment group Kgorong to be brought in as an empowerment investment. [of course - why else?]

RRS CE Piet Smit explained at the weekend that the company, which was part of the Reunert group, started up under Denel as a producer of highly mobile air defence radar systems for the SA defence forces in the mid-1980s.

It developed tracking radars, which were capable of locking onto targets and following them.

The partnership with EADS came in the late 1990s, with an order to provide optical tracking radars for four Corvette frigates which SA was purchasing from a German consortium as part of the multibillion rand arms for investment offset programme.

"At the time, EADS had no tracking radar systems," said Smit.

RRS had also won work with a Denel programme, which involved software development to integrate a number of defence systems, so that they could work together smoothly and effectively. [GBADS - the recently awarded Ground Based Air Defence System]

The first of four Corvettes each of which would have two optical tracking radar systems was expected to arrive at Simonstown to be fitted out in October or November. [actually one radar/optronic tracker (ORT) and one Electro-Optic Tracker (EOT), unless someone sneaked in another ORT. This should have been two ORTs, but the ceiling budget got taken up by ADS's CMS and "risk provisions"]

This was well after the planned arrival in February. The delay was caused because some suspect cables had to be removed and replaced. [this was a lot of cables - about 100 000 metres worth - plus quite a few other propulsion (Main Diesel Engine and Thrust Block as well as combat suite problems aside - including schedule problems with RRS's very own Tracker]

There were hopes that export orders for similar tracking radars might be forthcoming now that the SA-German partnership has proved that it can manufacture such high technology products. [manufacturing them is one thing, qualifying a tracking radar at sea in Sea State 5 with a realistic target is another]

"We haven't yet sold a system for export, but there are some good opportunities," said Smit. [this good, very good]

He said that although complete tracking units had not been exported yet, RRS had had "good successes" providing subsystems.

RRS marketing and sales executive Frank Müller said that EADS was well developed, so "we will move together to develop jointly the next generation of radar systems". [the next generation is phased-array, non-rotating radars. The Americans did this about 20 years ago]

He said that RRS had expertise in areas where EADS was not active. So the two partners could work together to offer a wider range of products.

Whereas an SA firm might find it difficult to be credible on the global stage, the link-up with EADS and ability to tap in to global marketing activities has given RRS access to new markets and new opportunities. [C²I² found it reasonably easy, with top-of-the-line products of course, to be "credible" is the hardest market of all, the United States Department of Defense]

"RRS gets technical and marketing support worldwide," he said. "The unique products produced in SA complete the EADS product range."

Muller said there was a possibility that in future EADS would seek a larger equity share in RRS, of which it currently holds 33%.

On the nonmilitary side, RRS has helped to develop the large telescope which is to be built in the Karoo.

Among other contributions, RRS was building a robot to track stars, which could be the most sophisticated robot in SA. [Is this a robot? a robot is capable of autonomous, independent response to stochastic events. Tracking a star doesn't sound like the job of a robot to me - but there's always the spin.]

And the telescope would able to detect a match being lit on the moon, should such an unlikely event occur there. [maybe, but RRS have nothing to do with the optics of the telescope]

Another Reunert subsidiary Acuo, which was a software development operation, was more involved in the commercial sector, in projects such as voice recognition software for surfing the web. [Hmmmmm!]

With acknowledgements to John Fraser and the Business Day.