Gigaba: Denel on recovery path

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Malusi Gigaba1 Independent Newspapers Public Enterprises Minister Malusi Gigaba. Picture: Sarah Makoe.

State-owned arms manufacturer Denel's revenue-generating ability was significantly improving, Public Enterprises Minister Malusi Gigaba said on Thursday.

The company had posted a modest profit of R41 million for the financial year ending March 2012, he told reporters in Centurion after meeting the Denel board.

“This company is in a turnaround process and we are encouraged with the progress made so far. I am happy with the company’s performance at this stage, though there is still a lot of work to be done.”

Gigaba said he had instructed the parastatal’s board to explore ways to expand into the African market.

“Denel must position itself to penetrate the African market. We will be looking to other sectoral departments like defence and international relations to leverage Denel’s capabilities in that target market.”

The Denel Group and its associates employ over 6700 people.

According to a statement from the company, in the 2011/12

financial year it had secured approximately R5 billion in export orders, which would be executed over the next five to seven years. - Sapa

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