Publication: Cape Argus Issued: Date: 2002-11-13 Reporter: Samantha Enslin Editor:

Submarine Equipment to Set Sail

The German Submarine Consortium will take delivery of the first set of electrotechnical equipment built at the Siemens branch in Pinetown in the next few weeks.

The equipment will be used in submarines it is building for the South African navy.

Described as the brains and nervous system of the submarines, the switchboard and control software is worth e5.82 million (R57.86 million).

It is estimated that local suppliers have benefited from sub-contracts worth R15 million.

Jacobus Smit, the executive director of Siemens, said the government stressed that industrial participation programmes include job creation, direct investment and long-term value.

In terms of the government's strategic defence procurement package, the German Submarine Consortium is required to spend R30 billion over seven years in industrial participation programmes which focus on investment, exports and job creation and retention.

Wolf-Rudiger von Toll, the managing director of Ferrostal Southern Africa, said: "The increasingly close industrial relationship emerging from the strategic defence procurement are ensuring technology transfers to South Africa which will help local industries stay competitive while integrating into international markets."

South Africa is due to take delivery of the three submarines between 2005 and 2007..

Thirty-eight skilled jobs were created through this contract and will form part of the service team.

With acknowledgements to Samantha Enslin and Business Report.