Denel partnered with Tawazun Holdings

The joint venture is with Denel Dynamics, trading as Tawazun Dynamics, owned 51% by Tawazun Holdings and 49% by Denel.

It will provide precision-guided weapon system manufacturing and integration, as well as product system management services to the defence force of the United Arab Emirates and other international clients.

The announcement was made at the 7th Africa Aerospace and Defence Exhibition (AAD) held at the Air Force Base, Waterkloof, in Pretoria.

Geographically, this is the first deal of its kind for Denel Dynamics where the partnership is located outside of South Africa, creating an international footprint.

Speaking at the signing ceremony, Denel Group Chief Executive Riaz Saloojee said the joint venture would strengthen Denel's reputation as a global defence manufacturer and provide it with another important foothold in a strategically important region.

"Denel possesses world-class technology, systems and processes and a proven ability to transform conventional air munitions into precision-guided weapon systems," Saloojee said.

"This high-level skills investment will be our core contribution to the newly established company. In terms of skills development and production Denel Dynamics will sustain current local jobs and there is scope for further development," he said.

In addition, Saloojee said due to the downstream enabling effect of the Denel business on smaller South African suppliers, it will continue to develop and enhance local industry.

(Image: Denel)

Denel Dynamics is a recognised global leader in the design, development and manufacturing of tactical missiles, precision-guided weapons, unmanned aerial vehicle systems (UAVS) and integrated air defence solutions.

It has already partnered with Brazil in developing the A-Darter air-to-air-missile, with production scheduled to start at the end of 2014.

Also included in its range of precision-guided products and missile systems are the UMkhonto-IR air defence missile systems, the Ingwe and Mokopa anti-armour missile systems, precision-guided munitions and the Raptor II stand-off weapons.

Denel Dynamics has the unique ability to offer turnkey armed surveillance UAVS.

Manufacturing will be central to Tawazun Dynamics' operations. This will enable Denel Dynamics, traditionally a very strong development house with a relatively small production capacity, to expand and strengthen another side to its business.

Tawazun Holdings is a strategic investment holding company focused on defence and specialised manufacturing, owned by the government of Abu Dhabi. The Tawazun Dynamics production facility will be located in the Tawazun Industrial Park in Al-Ajban, on the outskirts of Abu Dhabi.

Saloojee said Denel has enjoyed a very productive long-term relationship with the United Arab Emirates and the new company would help to strengthen and deepen these ties. The UAE is strategically located in the global markets and is investing strongly in industrial knowledge-building.

"This makes it a logical partner for Denel and supports our commitment to be a leading player in advanced manufacturing and systems engineering. Through Tawazun Dynamics we will also strengthen the profile of the South African Defence Industry in a very strategic region," he said.

Also speaking was Tawazun Holding CEO Saif Mohamed Al Hajeri who said the creation of Tawazun Dynamics marked the next chapter of Tawazun's continued focus on the development of the UAE as the leading regional hub in defence and specialised engineering and manufacturing.

"It is critical for us to work with partners who share our long-term vision and our organisational values.

"We believe that Denel, with its focus on operational excellence, corporate governance and sustainable growth, matches our own ambitions and that our partnership will be a long-term and mutually-beneficial one," he said.