25 February 2002
Minister Gayssot,
Mr d'Arcimoles,
Mr Zungu,
Members of the Denel board of directors and Management,
Members of Turbomeca management,
Ladies and Gentlemen of the press,
It gives me great pleasure to welcome you here today for the purpose of signing 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.
This event is an important milestone in the Government's restructuring programme for State Owned Enterprises. This event is also an important example of the growth of bilateral relations between South Africa and France in a high-technology field, involving technology transfer, training and development of South African skills. Furthermore it signifies concrete progress that has been made towards the objective of restructuring the Defence Sector through the introduction of Strategic Equity Partners into Denel.
Singing Heads of Agreement stands as a milestone on the road we are on to comprehensively restructure the defence sector and support the growth of the helicopter engine capabilities of Denel through a partnership with Turbomeca, a leading company in this field. I am informed that work still needs to be done to carry forward the transaction to completion. I am 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.
Our mutual objective is to see, in due course, the establishment of Turbomeca Africa as a facility that will service helicopter engines for the African continent. In this respect our vision for Turbomeca Africa will be able to play a role in the economic revival of our continent and support NEPAD.
Denel is strategic asset that performs critical services for our National Defence Force. This partnership with Turbomeca will, naturally, preserve that function and guarantee continued support for the Turbomeca engines operated by South African National Defence Forces.
The benefits of this partnership are many. In particular it is intended that through this partnership an extended range of helicopter engine components will be manufactured in South Africa thereby strengthening the country's industrial base and the job opportunities that goes with it.
Minister Gayssot, Mr d'Arcimoles, singing the Heads of Agreement today is an important step forward and I look forward inviting you to ceremony in the near future to concluding this transaction to create Turbomeca Africa.