Cape Town - BAE Systems, one of the world’s largest defence and aerospace companies, said yesterday it was on target to meet offset production obligations in SA as part of the country’s $2,2bn fighter jet procurement plan.

The defence firm’s target is to inject about $8,7bn worth of new projects into the economy.

BAE, supplier to the South African Air Force of parts for the Gripen and Hawk fighter jets, also announced that a R296m contract had been awarded to Pretoria Metal Pressings, a Denel unit, to supply precision brass components for small-calibre ammunition. It forms part of BAE’s industrial obligations.

The company’s comments come two weeks after Defence Minister Mosiuoa Lekota told the National Assembly that with the period of payment for the arms contract drawing to a close, only about 13000 jobs had been created, well short of the 65000 expected. It also followed criticism by Democratic Alliance leader Tony Leon of the offset programme’s achievements.

Michael Gavin, BAE’s executive vice-president for Africa, speaking at the Africa Aerospace and Defence show in Cape Town yesterday, said that the company had met “and exceeded” its “substantial” offset commitments. It had successfully implemented a number of programmes in SA: part of its national industrial participation programme sanctioned by the trade and industry department, and its defence industry participation programme sanctioned by Armscor.

BAE, together with its Gripen partner Saab, was fulfilling its obligation, which was set to run until 2011, and was “on track to the satisfaction of both (the department) and Armscor”, said Gavin.

SA’s purchase of new Hawk and Gripen fighter aircraft to modernise its air force had resulted in more than 100 new investments across its aerospace, defence and various civil industries, Gavin said.

BAE spokesman Linden Birns said the information on which Leon based his criticism was “outdated” and from a 2003-04 report. The latest report, published in Parliament in October last year, indicated that BAE and Saab had delivered “just over 100%” of their targets and performed better than expected.

Birns said that although BAE could not give definite figures on the number of new jobs it had created through the offset programme, the programme was having a positive effect on thousands, directly as employees, and indirectly as service providers.

BAE has so far delivered 10 Hawk jet trainer aircraft to the South African Air Force, and will supply seven more in the next 10 months.

The Gripen fighter was top attraction at this year’s Africa Aerospace and Defence show, held at Ysterplaat air base because its usual venue, the Waterkloof base, was undergoing refurbishment.

BAE also announced it was supporting Parsec, a Pretoria-based electronics company, in its development of a “revolutionary” railway safety system. South African processing technology designed to make trains safer, is to be tested in development trials in the UK.

With acknowledgements to Chris van Gass and Business Day.