Rostec, Denel sign defence partnership agreement


Russian state owned company Rostec and Denel have signed a Memorandum of Understanding covering defence cooperation at the MAKS 2013 International Air and Space Show outside Moscow.

Rostec yesterday in a press release said that the agreement covers military and technical cooperation, joint research and the exchange of information and technology. The document was signed by Dmitry Shugayev, Deputy General Director of Rostec, and Ghandi Badela, member of the Board of Directors of Denel Group. The signing ceremony took place in the presence of South African Secretary for Defence, Dr Sam Gulube.
“It is especially pleasant that Rostec is signing this Memorandum with one of the partners in the BRICS [Brazil, Russia, India, China and South Africa] bloc, within which the corporation is ready to implement, both bilateral and multilateral projects,” said Shugayev.
“We have been successfully cooperating with one of the divisions of Denel, Denel Aviation, and we are confident that both parties will only benefit from further development of cooperation. The document that we have signed opens up good prospects for the implementation of specific projects in the defence industry on mutually beneficial conditions.”

The memorandum makes provision for the establishment of a joint working group that will manage and monitor joint projects. The document is designed for a one-year period and may be extended by mutual consent, Rostec said. The document makes provision for the joint development, production, modernization and sale of weapons and equipment.

Cooperation between Rostec and Denel was initiated in September 2012. During the African Aerospace and Defence (AAD) exhibition last year, Denel Aviation signed an agreement with Russian Helicopters (part of Rostec) for the establishment of a regional maintenance centre for Russian helicopters in Africa. The centre was opened in March 2013 in Johannesburg.

At the international air show in Le Bourget, France, this year, Oboronprom and Denel Aviation signed a contract to expand the service centre for the maintenance, repair and modernization of Mi-8/17 helicopters and agreed to greatly expand the functionality of the facility. It will carry out not only comprehensive maintenance, but also complex repair and modernization of civil and military Mi-8/17 helicopters.

State Corporation Russian Technologies (Rostec) includes 663 organizations, which currently form 8 holding companies in the defence-industrial sector and 5 holding companies in civilian industries.