https://www.miningweekly.

com/article/denel-decides-on-future-of-its-aeroengine-and-manned-
aircraft-businesses-2017-09-08

Future of Denel’s aero engine and manned aircraft

businesses clarified
15TH SEPTEMBER 2017 BY: KEITH CAMPBELL - CREAMER MEDIA SENIOR DEPUTY EDITOR

S
outh African defence industrial group Denel has a clear
plan for the future of Turbomeca Africa (TMA), which it is
in the process of buying off Safran Helicopter Engines
(Safran HE), part of France’s Safran SA aero engines group.
Hitherto, TMA (originally established in 2002) was a joint
venture between Denel and Safran HE, the French business
holding 51% and the South African group 49%. “Our takeover is
still subject to final approvals,” Denel Group chief strategy
officer Theo Kleynhans tells Engineering News.

Up to now, TMA has had three primary functions: support of

operators; maintenance, repair and overhaul (MRO); and the
manufacture of engine parts. On average, it has carried out some
150 equivalent engine overhauls and repairs annually on three
types of engine – the Arrius 2, the Makila 1 and the Turmo IVC (all
Safran, or Safran-predecessor company, designs). The Arrius 2
is an engine designed for small helicopters (weighing between
1.5 t and 3.2 t), which entered service in 1996 and is still in
production. The Makila 1 power plant is fitted to Airbus
Helicopters Super Puma helicopters and to South Africa’s Denel
Oryx transport and Denel Rooivalk attack helicopters. The
Turmo IVC powers the still widely used Puma helicopter (except
for upgraded machines fitted with the more powerful Makila).

“In future, TMA will focus on the MRO of Makila and Arrius
engines and accessories for the South African Air Force (SAAF),”
he reports. “But manufacturing activities at TMA will stop. MRO
and other activities – special processes: heat treatment and
surface treatment for steel – will be maintained. We’re going
absolutely for a cash-generating position for the company; it
must pay its way. Makilas will still fly for many years. There will
be at least another ten years of solid SAAF Makila support. But we
will also be doing Makila support for Safran – there will be a good
relationship with Safran going forward. We will be doing work
for them as well. And we will also be looking at work on other
engines, including non-Safran engines.”

At the recent press briefing on Denel’s financial results, in

response to a question from Engineering News, Kleynhans
observed: “Internationally, the Super Puma fleet has run into
problems – a large part of the fleet has been grounded. So MRO
work on the Makila has come under pressure. And work for
Rolls-Royce on the Tay engine has come to an end: this engine is
no longer in production. So we decided to focus on the Makila,
which is essential for the SAAF.”

He also explained that TMA would be integrated with Denel’s

new consolidated aviation business, Denel Aeronautics. This has
been created by the merger of the former Denel Aviation (DAv)
and Denel Aerostructures (DAe) businesses. DAv, DAe and TMA
 are all located in the same Denel complex in Kempton Park, east
of Johannesburg, at OR Tambo International Airport (on the
opposite side of the airfield from the passenger and air cargo
terminals).

For many years, DAe was a lossmaker for Denel, at one point
dragging the whole group into the red. However, the successful
implementation of a turnaround strategy saw the business
significantly cut its losses. And, Kleynhans assured, DAe had
achieved profitability, without outside support, before it was
merged with DAv. “The profitability was largely the result of the
restructuring of the business, which included amongst others, a
shared service-level agreement across the Kempton Park
campus, a reduction of footprint and rental costs, and
renegotiated contracts with customers,” he explained. “DAe had
stabilised, was delivering on time and was ahead of its target on
the [Airbus Defence & Space] A400M [military transport aircraft
programme, for which Denel is both a development partner and a
Tier 1 supplier]. So we needed to look at the future of DAe. We felt,
given the level of integration already achieved on the Kempton
Park campus, it would be best to integrate DAe and DAv. This also
allows us to consolidate and integrate the scarce engineering
skills found in both companies.” For the future, the focus will be
on the planned upgrade of the SAAF’s Rooivalk helicopters. The
A400M will remain the anchor client for the aerostructures side
of the business, which is also expanding its work for the
commercial aviation sector.

Phone: +27 (0)11 622 3744

Email: newsdesk@engineeringnews.co.za
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