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Denel’s A400M component deliveries on track

Denel Aerostructures.Denel Aerostructures (now part of Denel Aeronautics) successfully delivered all A400M components to Airbus Military as required, and generated R510 million in revenue from these work packages in the 2016/17 financial year.

This is according to the most recent Denel annual report, which said the division “met all its major A400M deliverables for the 2016/17 financial year, including additional spares and modification sales. The deliverables consisted of 24 WFF (Wing to Fuselage Fairing), TS (Top Shell) and RSS (Ribs, Spars and Swords) ship sets. On the cargohold system work packages, 20 ISO-lock and eight central guide vertical restraint sets were delivered.

“The most notable programme performance was the TS programme which celebrated its 67th consecutive on-time completion. The total programme value of the five work packages amounts to R3.6 billion and revenue of R510 million (2015/16: R540 million) was recognised during the year.” Nevertheless, Denel Aerostructures made a R7 million loss in the last financial year, compared to a profit of R7 million the previous year.

The main activities of Denel Aeronautics have been the A400M work as well as the manufacture of winglets for the HondaJet and subassemblies for the secondary structure of Airbus A350-1000 pylons. The company is attempting to diversify and, according to the annual report, is pushing a partnership with Boeing and other suppliers.

“The development of a strategic relationship with Boeing is maturing in pursuit of new business opportunities and revenue diversification. In this regard, DAe was invited to a Boeing bidders conference where a restructured Boeing supply chain moving from having finished parts suppliers, towards developing focused factories for manufacturing and assembly was launched by Boeing.”

Last year Denel Aerostructures and Denel Aviation merged to form Denel Aeronautics. “The establishment of Denel Aeronautics as a new entity demonstrates our commitment to improve efficiency and productivity and to optimise our cost structures through operational excellence,” Denel Group CEO Zwelakhe Ntsehe stated.

“Denel Aeronautics is, without a doubt, the leading aerospace company in Africa and is a powerhouse in design, manufacturing and MRO solutions – maintenance, repair and overhaul – to both the military and commercial sectors on the continent. We continue to deliver on our commitments to the A400M programme and we recently completed the 67th consecutive on-time completion of the top shells that are fitted on to the world’s most advanced military airlifter.

“While our relationship with Airbus remains strong on both the manufacturing and MRO sides of the business we are also building strategic relationships with other global aerospace companies. We are confident that this will lead to new business opportunities and revenue diversification.”

Denel has also grown its footprint in the aviation sector with the full acquisition of Turbomeca Africa (TMA). TMA manufactures engine components – including gears, gearbox casings, shafts and couplings – for Safran Helicopter Engines. The company supports 40 customers in 20 countries, including the SA Air Force, the SA Police Services and a number of civilian air operators.

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