Denel among world’s top 100 manufacturers
Denel’s inclusion among the world’s top 100 defence manufacturers, at No 100, was announced by the international publication, Defense News, which ranked the companies based on an analysis of their revenue achieved during the 2014 financial year.
Denel saw its revenue grow over the past four years from R3.2 billion in 2011 to R4.6 billion in 2014.
“This is the first time that Denel has entered the global top 100 list in the company’s history,” said Denel Group Chief Execuitive, Riaz Saloojee in a statement.
The company was, according to the ranking, now the second largest defence manufacturer in the southern hemisphere – right behind the Brazilian aerospace conglomerate, Embraer, which occupies the 55th position on the global list. In addition, Denel’s 17% growth in revenue also placed it 13th on the list of companies in terms of year-on-year growth.
Delighted at the news, Saloojee said: “As a state-owned company our primary focus is to ensure the strategic independence of the South African National Defence Force and enable it to protect the country’s territorial integrity and participate in peacekeeping operations on the continent.”
Since the results of the ranking was announced, Denel has seen a further 28% increase in its revenue for the 2014/2015 financial year. A 34 percent surge in exports helped the company to see revenues leap up to R5.85 billion in March this year.
Speaking about the role exports play in the company’s revenue stream, Saloojee said it was important to acknowledge that “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.”
“The global defence markets remain constrained but we are confident that we can maintain the growth trajectory for the foreseeable future,” Saloojee said.
Denel has said it has a confirmed order book of more than R35-billion and is also pursuing further opportunities to the value of R37-billion. Saloojee pointed out that this was “largely focused on the Denel’s proven strengths in the design and manufacturing of artillery, ammunition, missile and military vehicles”.
He added that the successful deployment of their products such as the Rooivalk combat helicopter in African peace-keeping operations had “focused global attention on South Africa’s capabilities”.
Denel has, in the past year, invested R467 million in research and development, and the company intended to grow its presence in the command-and-control and maritime environment.
- ANA