The turnaround strategy of arms manufacturer Denel is expected to get a huge boost if the parastatal wins a $1,5bn contract to supply the Turkish army with 91 helicopters.

Winning the coveted tender would also mean that survival of the Rooivalk helicopter, which Denel has been struggling to sell for years.

Public Enterprises Minister Alec Erwin told journalists in Turkey this week that SA and Turkey planned to form strategic partnerships in the development of new defence technologies.

“There would be a high level of sharing in transfer of technology and intellectual property rights,” said Erwin on Wednesday.

“That applies to any programme we are involved in with Turkey, not only the Rooivalk,” he said.

Denel CEO Shaun Liebenberg said the parastatal was also talking to Turkish companies to collaborate on the manufacturing of missiles, artillery ammunition, unmanned aerial vehicles and combat turrets.

The Turkish tender requires offset agreements for the domestic manufacturing of between 40% to 50% of the weapons and Denel said it would have no difficulty meeting such a requirement.

“Besides pursuing opportunities for the supply of naval ammunition and mine-clearing services, Denel has expertise in transferring technology and erecting manufacturing plants anywhere in the world, which is what we could do here by collaborating with Turkey, if such a requirement exists,” Liebenberg said.

Last month the Financial Mail quoted Liebenberg as saying Denel was eager to win the contract to supply Turkey with the Rooivalk helicopters. He said bidding for the tender was “probably the best opportunity we’ve ever had with Rooivalk”.

“The future of our helicopter capability is dependent on this deal.”

Other bidders include the European Eurocopter consortium, Italy’s Agusta and Russia’s Kamov.

A decision is expected at the end of next month.

To date only the South African Air Force has bought the Rooivalk, acquiring 12 helicopters in 1999.

A year later the defence ministry placed an order for 30 Agusta light utility helicopters from Italy. The helicopters were acquired as part of the arms deal SA signed in 2000.

With acknowledgement to Khulu Phasiwe, Sapa-AFP and Business Day.