Denel Aviation and UIC Oboronprom Seal Agreement on Maintenance Hub in South Africa

Sept. 19, 2012

Pretoria, South Africa / 19 September 2012 – Denel Aviation, South Africa’s largest defence equipment manufacturer, and UIC Oboronprom, the parent company of Russian Helicopters, announce that they have signed a Teaming agreement to create a servicing hub for Russian-made military and commercial helicopters in Sub-Saharan Africa.

The Teaming agreement was signed today at the 7th Africa Aerospace and Defence Exhibition (AAD) at the Air Force Base Waterkloof in Tshwane. Denel Aviation is accredited to perform maintenance and in the future repair and overhaul (MRO) services for military and commercial models produced by Russian Helicopters, in Sub-Saharan Africa.

Mike Kgobe, the Chief Executive of Denel Aviation, said that the agreement will significantly expand the company’s business in Africa and strengthen its position as the premier provider of MRO services in the Sub-Saharan region.

“Our objective is to become the maintenance hub for most of the modern commercial and military aircraft operating in Sub-Saharan Africa,” said Mr. Kgobe. “The agreement represents the culmination of a long-standing partnership between the two companies.”

Helicopter aviation is a high-growth market in Africa, and Russian Helicopters is well positioned to be a market leader on the continent for years to come, said Russian Helicopters CEO Dmitry Petrov.

“We see great potential for our helicopters in countries across Africa, and are delighted to be working with Denel Aviation to provide a complete customer care programme for our clients on the continent,” Mr Petrov said.

MRO accreditation includes a lengthy process of training and auditing of skills, equipment and facilities. From October, Denel Aviation technical staff will attend an intensive training programme on the latest Russian Helicopters technology and procedures in the eastern Siberian city of Novosibirsk.

“Our knowledge of the African geography and climatic conditions and the track record of our products that have been extensively deployed in operational conditions, make us a logical partner of choice to the military and civilian markets on the continent,” Mr. Kgobe said.

Russian Helicopters manufactures an extensive line-up of versatile and resilient helicopters that can be used for purposes from cargo and passenger transport to medevac and search-and-rescue missions, fire-fighting, corporate transporation and offshore in the oil and gas sector.

Russian-made helicopters enjoy an excellent reputation across Africa, with airlines and international humanitarian organisations making extensive use of the Mi-8/17 and Ka-32 series. There are an estimated more than 500 Russian-made helicopters flying today in African countries.

At Africa Aerospace and Defence, Russian Helicopters is showcasing a diverse line-up of civilian and military helicopters (the latter jointly with Oboronprom and Rosoboronexport).

Denel SOC is the largest manufacturer of defence equipment in South Africa and operates in the military aerospace and landward defence environment. Incorporated as a private company in 1992 in terms of the South African Companies Act (No 62 of 1973), Denel’s sole shareholder is the South African Government. Denel is an important defence contractor in its domestic market and a key supplier to the South African National Defence Force (SANDF), both as original equipment manufacturer (OEM) and for the overhaul, maintenance, repair, refurbishment and upgrade of equipment in the SANDF’s arsenal.

UIC Oboronprom, JSC is a multi-profile industrial and investment group established in 2002. It is a part of Russian Technologies State Corporation. Its main tasks include: helicopter engineering (Russian Helicopters, JSC) and engine-building (United Engine Industry Corporation managing company).

Russian Helicopters, JSC is a subsidiary of UIC Oboronprom, which in turn is a part of Russian Technologies State Corporation. It is one of the global leaders in helicopter production and the only helicopter design and production powerhouse in Russia. Russian Helicopters is headquartered in Moscow. The company comprises five helicopter production facilities, two design bureaus, a spare parts production and repair facility, as well as an aftersale service branch responsible for maintenance and repair in Russia and all over the world. Its helicopters are popular among Russian ministries and state authorities (Ministry of Defence, Ministry of Internal Affairs, Emergency Control Ministry), operators (Gazpromavia, UTair), major Russian corporations. Over 8000 helicopters of Soviet/Russian make are operated in 110 countries worldwide. Traditionally the demand is highest in the Middle East, Africa, Asia-Pacific, Latin America, Russia, and CIS countries. Russian Helicopters was established in 2007. In 2011 its IFRS revenues increased 27.8% to RUB 103.9 billion. Deliveries reached 262 helicopters.

Partners of Russian Helicopters: AirTaxi Service (interior completions and maintenance); Tranzas (software, navigation systems, aviation simulators); CSTS Dinamika (technical training means for aviation flight and engineering personnel); BETA AIR (testing equipment and aviation electronics); Ural Works of Civil Aviation (repair of helicopter engines and components, as well as gearboxes).

Russian Technologies State Corporation was established in November 2007 to support Russian industry in developing, producing and exporting high-tech industrial products. The Corporation includes 22 directly managed companies and 17 holdings, of which 12 are in the defence sector and five in civil industry. In total Russian Technologies comprise about 600 companies. The Corporation has its headquarters in Moscow, and has a presence in 60 of Russia’s regions. It exports its products to 70 countries.