Denel to close Aerostructures business  

The closure will affect at least 230 employees.
Denel closes its Aerostructures business unit as part of its long-term strategy to return to profitability. Image: Siphiwe Sibeko, Reuters

South Africa’s Denel is winding up its struggling Aerostructures aircraft parts business after receiving government approval, the state arms company said on Friday.

Denel, a cornerstone of South Africa’s once-mighty defense industry, is battling to emerge from a financial crisis and has pledged to shutter loss-making divisions.

The decision to close Aerostructures comes after Denel reached an agreement with Airbus to stop producing parts for the European planemaker’s A400M military aircraft.

A Denel statement said 230 employees would be affected by its decision to close Aerostructures. Some employees will be transferred to other positions within Denel and voluntary severance packages have been offered.

CEO Danie du Toit said the decision to close Aerostructures was in line with Denel‘s long-term profitability strategy.

Denel made an operating loss of R1.9 billion in its 2018/19 financial year after a similar loss the previous year.

Denel said support functions for military helicopters and aircraft at its Kempton Park campus would not be affected.

Denel is also exploring opportunities to attract business in fields such as unmanned aerial vehicles, it added. 

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Oh no! Who is going to build body kits for French Engines, French Transmissions, French Drivetrains and French dynamic elements (except for the tail rotor), French landing gear (except the castor for the tail), SAAB fuel tanks, slap in some obsolete 1980s avionics, forget battlefield countermeasures (until recently), wonder why nobody is interested in it and call it the PROUDLY SOUTH AFRICAN rooivalk!

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