Pretoria, 25 February 2002
The Department of Public Enterprises and Turbomeca today mark an important milestone in the Government's restructuring programme for the Defence sector by singing Heads of Agreement in preparation for Turbomeca to acquire a majority equity holding in a company to be formed from the Airmotive division of Denel (Pty) Ltd. "Turbomeca Africa" is the name that has been chosen for this new company.
The Heads of Agreement signed today take both parties forward towards our objective of creating a vibrant and thriving defence sector in general and a dedicated facility to increase the manufacturing base for Airmotive and Turbomeca's product ranges in particular. A number of matters still need to be finalised prior to concluding this deal. We are confident, however, that based on the progress we have made thus far Government and Turbomeca will be able to successfully conclude this transaction to the benefit of South Africa.
Through this acquisition by Turbomeca, the new company will become the African continent's service center for Turbomeca engines, including sales, maintenance and customer service. Turbomeca Africa will manufacture engine parts for Turbomeca, General Electric, Rolls-Royce and Volvo, and will also repair and overhaul certain Turbomeca and Snecma engines. With this partnership, Turbomeca Africa is also committed to supporting the Turbomeca engines operated by South African National Defence Forces (SANDF).
In regard to this, Turbomeca will transfer technologies and know-how to South Africa (in the manufacturing, repair & overhaul and commercial customer support fields) and will establish the new company as a training center. Turbomeca will also support social investment plans in South Africa, including an important training program for operators, technicians and engineers and support the development of careers in the aerospace industry.
Emeric d'ARCIMOLES, President and CEO of Turbomeca, comments on the signing as follows: "South Africa has always been a priority for Turbomeca and we have recognized Denel's repair and manufacturing capabilities since 1974, when the first licensing agreement for the repair of Alouette III and Puma engines was signed. The Turbomeca Africa company, formed from Denel's Airmotive Division, is a further step in our commitment to South Africa. We are dedicated to making the Airmotive business profitable and to building a long-term growth company, allowing Turbomeca and South Africa to enlarge their business on the African continent".
The new company will employ approximately 400 people. The predicted turnover is 300 to 400 million Rands (30 to 40 million Euros).
For any additional information, please contact:
Mr Richard Goode: Director Department of Public Enterprises: 083 327 4427