Denel to close aerostructures division
Denel is to hand over the manufacture of aircraft parts to alternative suppliers, following a consultation with stakeholders which concluded that the aerostructures business was no longer financially sustainable.
The company has reported that the closure of the aerostructure manufacturing division is at an ‘advanced stage with major steps put in place to minimise the impact on job losses’.
Formal approval for the decision was granted in 2019 after an application was received by South Africa’s Department of Public Enterprise and the Department of Finance. The conclusion of the consultation period was announced by the company on 6 February.
Mike Kgobe, CEO of Denel Aeronautics, said: ‘We have really worked hard in trying to keep job losses to a minimum and some of the employees will be transferred to other positions within the Denel group while voluntary severance packages have been offered.’
Despite the closure, the Denel group will continue to provide support to the Rooivalk combat helicopter, the Oryx medium transport helicopter, the C-130 Hercules transport aircraft, the Cheetah multirole fighter aircraft and the Puma helicopter for the South African Air Force and other customers.
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