Grintek's aggressive overseas drive pays off with Malaysian contracts
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Trade and Industry Editor
BLACK-owned technology group Grintek's aggressive marketing efforts abroad are paying off with the announcement this week of two substantial contracts with the Malaysian government.
The group one of SA's largest defence technology companies said on Monday that its Avitronics unit had been contracted by Malaysia to install warning systems on that country's fighter aircraft.
This was followed on Tuesday by a second order, which will see subsidiary Grintek Aviation Systems supply and install signalling equipment that guide aircraft to a safe landing at a civilian airport in the north of Malaysia.
The contracts were the first in Malaysia for both Avitronics and Grintek Aviation Systems.
Grintek's operating profit fell 60% in the six months to December, partly due to a 7% rise in selling and administration expenses.
New group CE Shaun Liebenberg said , however, that this was a worthwhile expense as much of it went into aggressive marketing abroad in countries such as Saudi Arabia, India and Malaysia.
Ben Ash of Avitronics said on Tuesday that strong political ties between SA and Malaysia, strengthened during President Thabo Mbeki's visit to that country at the end of last year, helped secure the contracts.
Avitronics, a joint venture between Grintek and Saab of Sweden, has secured the first phase of a $20m contract to install multisensor warning systems on Malaysia's Russian aircraft.
The first phase involves only the supply of the prototypes, but Ash was confident that Avitronics would secure the full order.
The company plans to start immediately with the system engineering phase to ensure that the system is fully integrated onto the fighter aircraft. The second production phase is expected to take about 18 months.
Gavin Swanepoel of Grintek Aviation Systems said on Tuesday that its contract was worth less than R10m. It involved the supply of instrument landing systems and distance measurement equipment to Alor Setar Airport.
He said the contract included the installation and commissioning of the equipment, as well as training of onsite personnel.
There were indications that Malaysia would install this type of equipment at a number of other airports and he was optimistic about the chances of securing further contracts in the country.
Similar technology has been supplied to the Kruger Mpumalanga International Airport outside Nelspruit and Matsapa Airport in Swaziland, among others.
Grintek delivered the first electronic warfare suite for the South African Navy's new patrol corvettes last year.
The group's share closed unchanged at 132c on Tuesday.
Apr 15 2004 07:09:15:000AM Carli Lourens Business Day 1st Edition
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