Agreement on new aerostructures company

Saab and Denel recently signed an agreement to create a new South African aerostructures company. Under the agreement, Saab is buying 20 per cent of the shares in the company. A group of ten people from Saab will move to South Africa to have leading positions in the new company.

The agreement means Saab will initially acquire 20 per cent of the shares in the new company, which equates to an investment of 66 million rand. The remaining 80 per cent will be owned by Denel. The signing ceremony took place in Stockholm in the beginning of June in connection with a visit to Sweden by Alec Erwin, South Africa’s Minister of Public Enterprises. The agreement, which was signed by Saab CEO Åke Svensson, South Africa’s Minister of Public Enterprises Alec Erwin and Denel CEO Shaun Liebenberg, includes clauses on structure, ownership and management of the new company.

Almost 650 co-workers

The company, which has not yet been officially named, will initially comprise just under 650 employees from Denel. Saab will second a team of 10 people to the new company.  – Under the supervision of the CEO of the company, Kjell Johnsson, currently General Manager of Corporate Support/Shared Services at Saab, a reorganization will take place. Marketing and Sales as well as Procurement will be jointly managed between Saab Aerostructures and the new company.
“We see it as a great and exciting challenge to create a profitable company with satisfied customers, together with our South African colleagues,” says Kjell Johnsson.

Focus on profitability and customer benefit

The primary aim is to develop the operation in the same way as Saab Aerostructures has done, with a focus on profitability and customer benefit. Bengt Savén, currently head of Operations at Saab Aerostructures, will be Vice President of the new company.
“Having been on the Saab Aerostructures journey, I can see major similarities with the situation we were facing in 1997, when we moved over to production for customers on the commercial market. A lot of what we did then now has to be done in South Africa. Most of the expertise is there already, and our main contribution is new work processes, customer relations and a new management structure,” he explains.

The Saab co-workers who will hold posts within the new company will be in South Africa from mid-August. Management responsibility is planned for official transfer on September 1.

Back to CNB 3/2006