Denel Presentation to NCOP

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Denel Presentation to NCOP
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Agenda

• S A Defence Industry
• Denel Profile
• Divisions Products
• Challenges/Responses
• Gender Equity
• Racial Inequalities
• Employment Skills Development
• Question and Answer

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SA Defence Industry
MINISTER OF PUBLIC ENTERPRISES
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Denel Profile (1)
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Denel Profile (2)

• Eleven military type factories
• Aerospace
• Land Systems
• Non-military fields
• IT, Property
• Food,
• Electronics and Plastics
• Original Equipment Manufacturer
• Staffing 10 400 employees

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Denel Manufacturing Plants
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Aerospace Division
Helmet sighting systems
UAVs / observation systems
Missiles guided weapons
Aircraft parts manufacture / maintenance /
refurbishment
Rooivalk attack helicopter
OTB multi-purpose test range
Target drones
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Land Systems Division
Artillery systems 155mm 105mm long range
Plant manufacture
Artillery propellant charges projectiles
Infantry weapons
Small / medium calibre ammunition
Aerospace
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Commercial and IT Division

• Denel Properties (Pty) Limited
• Dendustri Aluminium Components
• Irenco Electronic Plastic injection
• SPP Soya-based Protein-rich foodstuffs
• IT Interests Cosource, Arrivia.kom, Sybase
• Densecure In-house Insurance company

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Denel Challenges Responses
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Human Resources Challenges andDenel Responses

• Gender Equity
• Racial Equality
• Skills Development
• Unemployment

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Gender
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Gender Equity
Level 2002/2003 2002/2003 2003/2004 2003/2004
Exco 2/11 18 2/10 20
GMs Corporate 0/0 0 2/17 12
GMs Divisions 2/9 11 2/7 28
Division Management 7/83 8 19/108 17
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Gender EquityDenel Responses

• The company is targeting women in all recruitment
  processes
• Bursary recruitment process also targets female
  students
• Currently women make up 25,6 of our employees
• Still very few women pursue technical careers

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Race
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Racial Equality
Level 2002/2003 2002/2003 2003/2004 2003/2004
Exco 4/11 36 6/10 60
GMs Corporate 4/17 24 7/17 41
GMs Divisions 4/9 44 5/7 71
Division Management 27/83 33 47/108 43
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Racial EqualityDenel Responses

• Full compliance with Employment Equity Act
• EE forums active - unions management
• Recruitment processes are biased towards HDIs
  in technical positions, eg. Engineers and
  technicians

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Skills
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7,2
4,5
5,6
0,8
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13,2
49,7
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Denel Youth FoundationTraining Programme (DYFTP)

• Bridging programme (Grade 12) to improve
• Maths
• Science
• English Language literacy
• 600 students have been trained
• many graduated with degrees
• a large number have been placed within Denel
• DYFTP currently has 450 learners, 35 are female

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GET SET Programme

• Prepares secondary school girls to embark
  on(based in Tembisa)
• Science
• Engineering
• Technology based careers
• 140 grade 10 12 girls (Saturday classes
  experience at Denel)
• Programme to be expanded
• 10 learners from rural areas in each province
  will receive support in
• Maths
• English
• Science
• Life Skills

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Outreach Programmes

• Sediba Teacher Development Project
• Grade 12 Maths and Science teacher and learner
  skills in Potchefstroom
• Programme to be extended nationally new CSI
  focus
• Bursaries
• Long-term requirements of Denel
• Core business areas in engineering, technology
  and scientific fields
• Bursaries worth R7,8 million were awarded last
  year
• This year, Denel employed 73 bursary students

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Skills Development

• Denel Centre for Learning and Development
• The School of Business Leadership
• The School of Aerospace
• The School of Land Systems
• Skills Development Projects
• Through eight sector education and training
  authorities
• Focus on Engineers, Scientists and Technicians
• External training within South Africa
• External training in Nepad countries

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Management Training

• Management Development for Aerospace Group
• STTP Saab-Gripen Programme
• Corporate Finance Course for Senior Managers
• Strategic Marketing Course
• TOPP Chartered Accountant Training
• 1 White Female, 1 Coloured Male, 2 African Males

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Operational Training

• Project Management - Wits Aeronautical and
  Engineering School
• Graduate Diploma in Engineering (GDE) - Wits
  Engineering School
• Denel artisans with experience but without
  tertiary qualifications
• Project Management - Institute for Aeronautics
  and Space (IAS)
• Denel employees trained in Toulouse, France

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Skills Transfer Programme

• SAAB Aerospace in Sweden and Denel Aviation
• Historically-disadvantaged employees trained in
  world-class
• technology.
• Consists of a comprehensive design and
  development centre
• Skilled personnel trained in further
  international aerospace work
• Supports further development of the Gripen
  Fighter Aircraft
• Transfer of skills in a vast number of
  engineering, manufacturing, flight
• testing and management processes employed by
  SAAB.
• In the past 3 years, 23 engineers have been
  trained, 11 are black.

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Skills Training in SA

• Advanced Aircraft and Type training (1 260
  employees from 52 companies)
• Aircraft engine courses
• Airframe courses
• Maintenance courses
• Denel Apprentice School (180 students from
  private companies- AMOSA)
• 43 previously disadvantaged individuals
• 7 women
• 96 sponsored by Denel 67 blacks and 4 women.
• Apprentices are trained for 4 years, including
  on-the-job-training

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Skills Training in NEPAD countries
Country Number Trained Aspect of training
Kenya 20 King Air aircraft engine, airframe, maintenance
Uganda 6 Engine airframe and avionics
Botswana 20 Engine and airframe
Zambia 8 Civil aircraft regulations Gas turbines, airframes
Namibia 5 CAR, jet engines, airframes
Angola 4 General
Zimbabwe 10 Generic courses
Swaziland 9 Advanced training, aircraft maintenance
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UnemploymentDenel Response

• Youth Development Programme
• DOD students
• Auditor General
• Denel
• Social Plan
• Training for retrenched employees
• SMME support programmes
• Outreach Programmes
• Communities trained to create own employment
• Needlework project in Swartklip

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Conclusion

• Competitiveness of SA Defence Industry
• Denel is a strategic state asset SANDF
  competitiveness
• Strong and competitive global markets
• Innovation
• Human capital provisioning strategy (Critical
  skills)
• Attract
• Develop
• Retain

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Question and Answer