State-owned defence industry conglomerate Denel is ranked number 100 on the list of global defence manufacturers and the second largest in the southern hemisphere.
The ranking is based on an analysis of revenue during the 2014 financial year done annually by Defense News. It is the first time in the company’s history it has made it into the top 100.
Denel chief executive Riaz Saloojee said the ranking is a reflection of the rapid growth in Denel’s revenue over the past four years, from R3,2 billion in 2011 to R4,6 billion in 2014. Since publication of the ranking Denel announced a further 28% increase in revenue for the 2014/15 financial year.
“As a state-owned company our primary focus is to ensure the strategic independence of the SA National Defence Force and enable it to protect the country’s territorial integrity and participate in peacekeeping operations on the continent.
“However, it is also important to note exports now constitute 52% of Denel’s revenue. This earns valuable foreign exchange for South Africa and creates a greater awareness about the qualities and capabilities of the country’s manufacturing sector,” Saloojee said.
In hemisphere terms, Denel is the second largest defence manufacturer in the southern hemisphere behind Brazil’s aerospace conglomerate, Embraer, at 55.
Denel’s 17% growth in revenue also places it 13th on the list of companies in terms of year-on-year growth. “Global defence markets remain constrained but we are confident we can maintain the growth trajectory for the foreseeable future,” Saloojee said.
The company has a confirmed order book of more than R35 billion and is also pursuing further opportunities to the value of R37 billion. This is largely focused on the Denel’s proven strengths in the design and manufacturing of artillery, ammunition, missile and military vehicles.
The world’s top 10 defence industry companies feature six headquartered in the United States with Lockheed Martin at number one. Boeing is second, with UK-based BAE Systems third, Raytheon fourth, General Dynamics fifth, Northrop Grumman sixth and the Airbus Group (France) seventh. The remaining three top 10 are United Technologies (US), Finmeccanica (Italy) and L-3 Communications (US).