A multimillion-rand joint venture which will boost the local defence industry has been formed by a French and South African company.

The Altech Group has sold 50% of its Altech Defence Systems (ADS) subsidiary for an undisclosed amount to the world's third largest defence electronics company, Thomson-CSF, in a deal which will later see a further 20% of the joint holdings being sold to a so-far unidentified black empowerment group.

The new company, to be known as ADS, will also take over the defence business of another Altech subsidiary, ISIS Computers, based at Centurion.

Altech chief executive Craig Venter, who will be chairman of the ADS board, said the joint venture would enable the company to participate in an even larger portion of the overall requirements of the local and international defence industry.

"Over and above existing business being undertaken by Altech Defence Systems, there is a guarantee from Thomson-CSF for additional annual business, including exports, amounting to a minimum of R150-million over the next few years," Venter added.

Turnover of the new company would be more than R200-million.

Pierre Moynot, who has been appointed ADS chief executive, said that one of the advantages for Thomson-CSF was access to South African-developed technologies developed during the many years of international arms embargoes against this country.

With acknowledgement to Norman Chandler and The Star.