Arms Consortium to Roll Out Condom Plan
The German Submarine Consortium, which won an SA arms deal tender with submarines, plans to revive its joint venture to start a condom manufacturing company in the country.
This follows the liquidation of Condomi Africa, which embarrassed Ferrostaal, the commercial partner in the consortium, after it was criticised for failing to deliver on its promise to establish commercial offset projects.
Recently, Condomi AG of Cologne, formally applied for liquidation in view of the planned restructuring of its South African activities.
Ferrostaal announced at the weekend that it was to implement its condom venture in SA with new partners.
"The new joint venture is to target domestic and export markets, including large scale tenders by African governments within the parameters of their antiHIV/AIDS campaigns," said a Ferrostaal spokesman.
The joint venture is one of the consortium's smaller industrial participation projects connected to the South African navy's acquisition of three type U-209 submarines.
The vessels are already under construction and the consortium has until final delivery to fulfil its industrial participation obligations.
For reasons of commercial confidentiality, Ferrostaal said it would make a further announcement on the new joint venture only "once negotiations with the preferred partners have been finalised".
With acknowledgements to Business Day.