Denel SOC Ltd is a state-owned commercially driven company and strategic partner for innovative defence, security and related technology solutions. The Denel Group consists of four divisions, Denel Guided Weapons, Denel Integrated System Solutions, Denel Landward and finally, Denel Aerospace. Denel Aerospace is an amalgamation of two former divisions of Denel we have visited before; Denel Aeronautics and Denel Overberg Test Range.
Under the umbrella of Denel Aerospace, the Group brought together the maintenance and repair facilities at Kempton Park Campus and the Test Range at Western Cape, between Arniston and Cape Infanta, near the air force base in the Overberg.
“It is a critical capability for the South African National Defence Force, delivering end-to-end aeronautical solutions,” says Bridget Salo, former CEO of Denel Overberg Test Range and current Acting Group Executive for the amalgamated Denel Aerospace. “It includes aircraft system upgrades, integrated with our core manufacturing capability at the Kempton Park Campus, and the strategic flight capability we have in place at the Overberg Test Range, which plays a significant role in the life support phase of military systems.”
The South African Defence Force is the primary client of Denel Aerospace, but the business is also focusing its marketing efforts on international opportunities across the aerospace industry.
Combined Power
By bringing together two previously separate divisions of Denel, Denel Aerospace has created a formidable presence in the aerospace and defence sectors.
“With the two divisions amalgamated, we have collective capabilities you can find nowhere else in Africa,” Salo says, “We believe Denel has the potential to play a leading role in aviation and space initiatives.”
Denel Aerospace’s facilities are internationally recognised by world standard accreditation bodies and leading OEMs. Its products and services are a blend of uniquely South African and indigenised solutions honed to meet its customers’ needs. Meanwhile, its location makes it accessible to the rest of Africa, and the southern hemisphere as a whole.
This is particularly useful in terms of the Overberg Testing Range, as the range’s location has the kind of moderate climate conditions that allow for year-round testing, whereas many of its competitors are only able to test six months out of every twelve.
“We can accommodate tests through all seasons,” Salo tells us. “We are only closed for three weeks for summer vacation.”
The Overberg Test Range also offers a comprehensive service for all test clients.
“It is a one-stop-shop for logistics and ground support services, as well as target services which are becoming increasingly important to clients,” Salo says.
A New Structure
This restructuring is partly in response to the consequences of the Covid 19 pandemic, which kickstarted an urgent turnaround strategy for Denel’s sustainability and future growth.
“We implemented effective stakeholder management to ensure the Denel brand continues to enjoy the support we have had from local and international markets,” Salo says. “We had to restructure the organisation, and the amalgamation of these two divisions was part of that. It helped to reduce our cost base, and our footprint, and ensured a headcount reduction.”
Denel implemented streamlined and effective policies and procedures, including supply chain management, skill management and retention strategies. The company has also developed access to new revenue streams through collaborations with strategic partners.
But as well as negotiating the challenges of the Covid pandemic, Denel is also addressing the issues that arise with an ageing workforce.
“Retirement and other factors have seen the exit of some employees, but the company has adapted to its workforce composition,” Salo explains. “We have made provision for permanent and contract employees to assist us in executing tests and projects.”
Of course, with the unique demands that Denel needs to meet, it is often not possible to simply recruit someone with all of the skills and experience that Denel needs. These talents need to be built from the ground up.
“For these specialised positions we invest in in-house training to develop the specialists that we require,” says Salo. “We also invite retirees to come back and assist us in mentoring young talent to fill in shortcomings and gaps in our knowledge. They share the things that you can only learn when you are part of this business. We have an employee corps who are passionate about aviation and space projects, particularly about offering specialised functions in the space industry.”
Launch Capability
Denel has also sent its people abroad for training to keep their knowledge relevant in the industry and in compliance with the accreditations it requires. It is paving the way for Denel’s first few footsteps into space.
“We are venturing into a space launch capability!” Salo tells us. “Our test range has existing launch support infrastructure, and was originally designed for satellite launches which were cancelled in 1993.”
Today the infrastructure at Overberg is used for in-flight testing for guided weapons and aviation systems, but in recent years the facility has been looking to space once again. Increasingly it has been used for sub-orbital “sounding” rockets, with the goal of achieving fully-fledged space launch capability.
“There is enough demand for our services and the future is full of opportunities,” Salo says. “The challenge is to build capacity while maintaining productivity, sustainability and profitability.”
Salo’s strategy is to continue the company’s ongoing surge in growth while forming credible long term strategic partnerships, entrenching Denel’s position in the local and international market while maximising the value of its intellectual property for the Group as a whole. It is a strategy that has achieved great things for the business so far, and that looks set to continue.
“We remain an innovative company with the ability to deliver world class products across the spectrum of aerospace, defence and related technologies,” Salo concludes. “The Denel Group offers a wide range, from land to sea, to air, and security environments, and we can work in all of those spaces. We have the sustainable turnaround, operational excellence, and sustainable revenue to strengthen our relationships with stakeholders.”
