Defence manufacturer, Denel, has initiated a realignment of companies in the group that will lead to savings, increased efficiencies and more effective corporate governance.

“Our objective is for Denel to be managed and perceived as one, integrated business,” says the Group Financial Director, Fikile Mhlontlo. He says an integrated Denel will strengthen the company’s ability to retain its position as South Africa’s premier manufacturer of strategic defence and aerospace products and solutions and a growing player in African and global defence markets.

“Denel is a strategic national asset for South Africa and as a state-owned company we will play a growing role to contribute to national objectives in terms of skills development, research and the growth of a viable high-tech manufacturing industry,” he says.

The changes to Denel follow the appointment of Riaz Saloojee as new Group Chief Executive Officer in November 2011. The stateowned company has reported a profit of rand41 million for the 2011-12 financial year and generated cash of rand210 million.