Denel to Make Boeing Spares
Johannesburg - Arms manufacturer Denel has been awarded a $36m (R360m), nine-year contract to supply parts for Boeing 747 and 767 airliners.
Boeing will also provide training and capital equipment worth a further R50m for the project.
The contract was signed at Denel Aviation's Kempton Park facility on Monday morning.
Denel deputy chief executive Max Sisulu, who signed on behalf of his company, said there was significant commercial advantage in being an accredited Boeing supplier.
"Given the fact that the US represents the largest aerospace market in the world, I am confident that our relationship with Boeing will open doors to further business opportunities there and elsewhere."
Denel already does work for several of the world's largest aviation concerns, including Agusta, Saab, BAE Systems, Turbomeca, General Electric, Rolls Royce and others.
Sisulu said: "We intended for Denel Aviation to obtain high-volume type work from Boeing, involving a low number of different parts, which allows us to benefit from significant economies of scale over the longer term."
Boeing's senior vice-president for international relations, Tom Pickering, called the deal "a new step for Boeing".
He added that the move would add "scores" of new skilled and semi-skilled jobs at Denel.
"It is important for us to be part of the communities in which we do business, said the retired ambassador.
Pickering also remarked that the agreement could lead to further co-operation between Boeing and South Africa. Production of the components will start towards year-end.
With acknowledgements to Sapa and www.news24.co.za