1. AMD BRIEFING TO THE PORTFOLIO COMMITTEE ON DEFENCE: 2 NOV 04
SOUTH AFRICAN AEROSPACE MARITIME AND DEFENCE INDUSTRIES ASSOCIATION (AMD)
2018/09/19

2. ROLE PLAYERS AND THEIR PERSPECTIVES SIZE AND SHAPE OF THE SADRI
CONTENTS
INTRODUCTION
ROLE PLAYERS AND THEIR PERSPECTIVES
SIZE AND SHAPE OF THE SADRI
CHALLENGES
2018/09/19

3. ROLE-PLAYER PERSPECTIVES
SADRI; shareholders need growth and profit, whilst accepting their social responsibility
Denel; Sustainability and transformation
The dti; Stimulation of SA industrial base
DFA; Mutual support for foreign initiatives
DoD; Turnkey systems at lowest cost; operational and logistic support -- peace and war; maintain essential technologies, capabilities and capacities
Continued
2018/09/19

4. ROLE-PLAYER PERSPECTIVES, CONT
Armscor; Manage DoD acquisition contracts; ensure that SADRI performs within contract.
Arms Control Authorities (NCACC & NPC); Responsible operations and trade in armament – Post 9/11 concerns
Summary
Satisfy essential DoD requirements
Sustainable profitability of industries
2018/09/19

5. THE SOUTH AFRICAN DEFENCE RELATED INDUSTRIES
The South African Defence Related Industries (DRI) are:
Companies in the public and private sector
That provide products and services to security forces.
The DRI forms one of the strategic industrial sectors of the South African economy
2018/09/19

6. SA AEROSPACE, MARITIME AND DEFENCE INDUSTRIES ASSOCIATION (AMD)
AMD is the representative association for companies from the DRI.
AMD represents the collective interest of its members.
AMD as an association strives to ensure a sustainable and responsible South African Defence Related Industry.
AMD members elect the Board of Directors to direct the activities of AMD.
The Board ensures that AMD is managed by its members for its members.
The dti and the DoD recognise AMD as the Industry Association representing the interests of the SADRI.
AMD is self-funded by its members
2018/09/19

7. AMD CONSTITUENCY Representation
Represents 90% of defence related business in South Africa
Represents 97% of all defence related exporters
2018/09/19

8. MEMBERSHIP
44 Members
“Big Six” (Denel, Grintek, ATE, Reutech, African Defence Systems and BAE Systems Land Systems OMC)
Armscor
Small and Medium enterprises (29)
Historically disadvantaged enterprises (5)
International memberships (BAE Systems-RSA; Boeing International Corporation-Africa).
2018/09/19

9. AMD MEMBER COMPANIES African NDT Centre Aerosud AMS ASET
Aztec Components
Contactserve
Epsilon Eng
Flightcraft Aviation
IFS-Defence
LMT
Sediba Network
Siemens
Sinjana Eng cc
Thales Adv Eng
VRG Electronics
Waymark
ATE
ADS
BAE Systems Land
Systems OMC
AMT
Ansys Integ. Sys.
CCII Systems
CyberSim
Demco
GISCOE
Internex
M-Tek
Paramount Log
Parsec (Pty) Ltd
TAU Aerospace
Volt Ampere
PRIVATE COMPANIES
STATE OWNED
Denel (17 units)
Armscor
CSIR - Defencetek
ASSOCIATE MEMBERS
BAE SYSTEMS
BOEING AFRICA
HDI/BEE
Lechabile Quality Systems
FBS
Kgorong Investment
Bohlabela Wheels
Emzansi Eng Consultants
JSE LISTED
Grintek
Tellumat
Reutech
IST Dynamics
2018/09/19

10. ESTIMATED SIZE OF THE SADRI (2003)
Turnover
Defence-Electronics Rm 4.2
Rest of the SADRI Rm 2.8
Total SADRI Rm 7.0
SADRI Exports Rm 3.7
Total Personnel
2018/09/19

11. SADRI PERSONNEL Black White Directors 31 115 Senior Managers 52 300
Middle Managers
Junior Managers
Skilled personnel
Unskilled personnel
Total
Equity ownership, share of economic benefits: 20% (ave)
Preferential procurement from BEE firms: 16% (ave)
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12. SA DEFENCE INDUSTRY SHARE OF DEFENCE TURNOVER
2018/09/19

13. DEFENCE EXPORTS 2002
2018/09/19

14. DoD REQUIREMENTS
Support to SANDF’s operational and logistic capability, both in times of peace and war
Support of the SANDF to remain strategically independent in their expanding responsibilities on the continent (AU, Standby Force, Peacekeeping, NEPAD, etc)
Unaffordable to subsidise retention of strategic capabilities and technologies within the local industrial base
Therefore focus on Export to:
Achieve economies of scale.
Be internationally competitive.
Expand the export base through international cooperative ventures.
2018/09/19

15. CAPABILITIES Upgrades and life-extensions of major systems
World class artillery systems and mine protection
Air defence systems
Armoured vehicles
Air-to-air missiles
Air-to-ground weapons
Unmanned Aerial Vehicles (UAVs)
Radar systems
Command, control, communications, computers, intelligence, reconnaissance and surveillance (C4IRS).
Electronic warfare systems – Air, Land and Sea
2018/09/19

16. CAPABILITIES (Cont) Combat suites for ships and armoured vehicles
Avionic suites for military aircraft
Submarine periscopes
Simulation, war gaming and training systems
Sensors and signal processing
Gun Turrets
Laser rangers and designators
2018/09/19

17. CAPABILITIES (Cont) Systems Engineering and Program Management
Geographic Information Management
Quality and Configuration Management
Logistics engineering, documentation and Integrated Logistics Support
      
2018/09/19

18. MAIN CHALLENGES FACING INDUSTRY
Ensuring sustainability of SADRI by complementing local sales with export
Ensuring more coordinated government support
In export promotion
In R & D and Human Resource Development
Joint strategic planning, in a government/industry partnership
2018/09/19

19. MAIN CHALLENGES FACING INDUSTRY (CONTINUED)
Developing and retaining essential industrial capabilities, capacities and technologies to meet the requirements of the DoD, through efficient utilisation of all available resources.
Responsible operations and trade in armaments, while enabling optimum commercial business
Develop industry to become more price, performance and schedule competitive
Adapting the SADRI to support the requirements caused by the expanding role of the SANDF in Africa.
2018/09/19

20. MAIN CHALLENGES FACING INDUSTRY (CONTINUED)
Creating more industrial opportunities through outsourcing and in doing so, to make the industry more accessible to small and medium companies.
Developing a new source of PDI technical human resources, aligned with the technology programs.
Developing and Implementing the SADRI BEE Charter.
Consolidating and growing globalisation successes of the SADRI.
Ensuring sustainability for the SADRI after the SDPs.
2018/09/19

21. Thank you for your attention
Questions?
2018/09/19