Denel is holding initial talks with Advanced Technology and Engineering (ATE) about options for a strategic relationship as part of evolving plans to develop a consolidated rotary-wing business within South Africa.
Parallel talks have been launched with Eurocopter and its French supply chain with the same objective.
Denel chief executive Shaun Liebenberg says the outcome of Turkey's attack helicopter programme, which has shortlisted the Denel Rooivalk against the AgustaWestland A129, will play a key role in determining the final shape of any future co-operation efforts. A downselect on the programme is imminent. Liebenberg describes the Turkish programme as "a key milestone that will undoubtedly provide a key impetus for our consolidation".
He says "to win a big deal like Turkey would certainly drive the [rotary-wing] strategy in direction A. Losing the deal in Turkey would drive the strategy in direction B. The bottom line is that we have to do it."
Officials from both ATE and Denel say if Turkey selects Rooivalk, the helicopter has the potential to become the primary focus for closer links, with ATE already playing a key role on the aircraft as avionics and weapons systems integrator.
If Turkey selects the A129, ATE's existing efforts to develop an international market for upgrades for Russian-built military and civil helicopters will in turn become a potential vehicle upon which to develop a co-operation arrangement.
Liebenberg says the talks with ATE remain top level and are exploring "does one and one equal three if we do things together".
Denel's talks with the French helicopter sector flow from the supplier chain for the Rooivalk and its sister helicopter, the Denel Oryx: "A lot of our technology is French-based - engines, transmission systems, avionics out of Thales. There are preliminary talks taking place with the French rotary-wing environment and Turkey will be a clear indicator as to which way we go. The process really is that if we are successful in Turkey, can we collectively with Turkey and Eurocopter do things in other parts of the world? I don't know if we can, but these are the realities. That will then obviously affect the role that ATE plays and that will determine whether they will drive forward aggressively the Russian helicopter process. If Turkey doesn't happen, then Russian helicopters, Chinooks, refurbishment of Eurocopter aircraft, Agusta aircraft, a lot of things become possible. So each business case has got its merits."
Source: Flight International