Linkoping, Sweden: Saab, the Swedish aircraft maker, has announced that it has placed R100 million in fresh orders with Denel as part of its offsets obligations under South Africa's arms deal.

Saab announced this yesterday as Deputy President Jacob Zuma began his five-day visit to Sweden, where he is to open the assembly line today for the 28 Gripen fighter aircraft South Africa has ordered.

Saab said its R100m order covered a basket of contracts for the manufacture and supply of parts and tooling for the Gripen fighter aircraft.

Denel, the South African state-owned arms maker, assembles the main landing gear unit and the rear fuselage for all the Gripens produced.

"These contracts are a further demonstration of how the government's strategic defence procurement programme is succeeding in integrating South Africa's high technology manufacturing base (in) worldwide markets," Kjell Möller, the executive director of Saab, said.

Saab and British Aerospace Systems are involved in a joint venture, Gripen International, to supply South Africa with 28 Gripens and 24 Hawk lead-in fighter trainers. The contract is worth $2.2 billion.

The first Gripen is to be brought to South Africa in 2006 for test flights before the South African Air Force takes delivery of it.

The last Gripen is to be delivered in 2012.

Gripen International has a defence industrial participation obligation of $808m, of which it has met $180m, with $50m more waiting approval.

The total has to be met by 2012.

Saab's skills and technology transfer manager, Alf Palm, said that 80 South Africans were being trained to manufacture some of the parts and provide after-sales support for the Gripens.

About 50 engineers have been trained.

Through the transfer of skills and technology, it is expected Denel will be in a position to manufacture the rear fuselage from this year.

It will also be able to cut and drill the parts with a high-speed machine that is to be brought to South Africa next year.

South Africa contributes the audio management system and manufactures the North Atlantic Treaty Organisation pylons for the Gripen.

South Africa has also been able to negotiate for changes to the Gripen that is to be delivered to it. These include its own radios, systems computer software models and the helmet mounted display.

The Gripen is built of 60% aluminium and 5% steel.

It has 60 000 parts, 30km of wiring and 40 computers.

Each of the aircraft takes just under two years to manufacture an aircraft.

The plant in Linkoping has the capacity to produce 30 Gripens a year.

With acknowledgements to Charles Phahlane and the Cape Times.