South Africa firm consolidates

Feb. 17, 2012 at 6:14 AM
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KEMPTON PARK, South Africa, Feb. 17 (UPI) -- Denel Saab Aerostructures of South Africa announced a consolidation of facilities to improve efficiency and trim company costs.

Included in the consolidation is the facility where the company manufactures and assembles parts for the Airbus 400M military transport.

At present, DSA's various operations are next to OR Tambo International Airport in Johannesburg, where aircraft companies and subcontractors are increasingly located. The government plans an "aerotropolis" near OR Tambo that will be the focal point of a Special Economic Zone.

Dozens of small and medium-size businesses, many of them suppliers to the industrial campus's four aerospace anchor tenants, have moved to the area.

By moving operations under one roof, Denel Aerostructures expects to save about $2.5 million annually.

"It brings us in line with global best practice and strengthens DSA's position as a cost-effective supplier in a highly competitive industry," said DSA Chief Executive Officer Ismail Dockrat.

"By cutting down on our production costs and streamlining the workflow, the consolidation will contribute to the long-term sustainability of the company."

The consolidation of facilities is expected to be completed by the end of the year.

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