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21 September 2006

It is significant that South Africa's departments of science and technology and trade and industry share this platform at this 2006 African Aerospace and Defence Show where all that is sophisticated and technologically innovative in the aerospace and aeronautics industry is on exhibition. It's a partnership between government, Department of Science and Technology (DST), Department of Trade and Industry (dti), Science Councils, Higher Education Institutions (HEIs) as well as industry partners. Our involvement must be taken as indicative of just how serious South Africa's aspirations are of transforming from a commodities based economy to a knowledge based economy.

We have a very clear idea of how we will become a knowledge economy. This requires strong integration with global manufacturing supply chains and has to be underpinned by a strong core of human capital that is scientists, engineers and technology practitioners. This becomes possible with the kind of state investments South Africa is making in research and development and the incentives for private sector to increase its spending on Research and Development (R&D). It becomes much more possible with the research flagship activities prioritised in the national Advanced Manufacturing Technology Strategy and international industry partners such as Airbus Military. Such partnerships are vital in safeguarding and developing South Africa's competence in the various fields associated with aerospace and aeronautics.

South Africa is already committed to modernising the economy and leveraging procurement options to benefit and further develop local industry. We are not starting from a zero-base. South Africa has already demonstrated innovative technology capability with the design, development, testing and production of the Rooivalk attack helicopter. The local industry is involved in manufacturing and upgrading gas turbine engines, drive trains as well as electronics, primary and secondary structure components to original equipment manufacturers. It is also involved in production programmes in selected aviation-specific niches including aircraft structural fabrication, composites, plastics and airline interior systems.

South Africa already has research and development capacity in areas such as semi solid metal forming of advanced metals such as titanium. We do recognise the huge scope for building on our existing strengths. With the A400M procurement contract by South Africa's Department of Defence, two local companies, Denel and Aerosud are recognised as tier one suppliers into the Airbus manufacturing base. We cannot afford to let this opportunity and partnership rest there. There is an urgent need to use this opportunity to grow the number of engineering firms and strengthen their competitive position to participate more fully in the global share of aerospace manufacturing contracts.

We believe that Airbus, a company whose success is built on its innovative use of pioneering technology, is the best partner to support South Africa in the rejuvenation of its aerospace capabilities including the all important arena of turning R&D into new technologies, techniques and solutions.

In brief the nature of this relationship with Airbus is in terms of the following aspects:

* collaboration on research and development in areas of mutual interest within the aeronautics sector (the specific details will be agreed upon and will vary from project to project)
* human capital development programmes, which will give opportunities for our best engineering and science students to complete research projects and receive related on the job training at Airbus and its associated European Aerospace Centres of Competence
* this will also assist in increasing the number of qualified engineers and scientists thus contributing towards the Joint Initiative on Priority Skills Acquisition (JIPSA) initiative as well as contributing significantly to the growth and development of our aerospace industry in South Africa.

This partnership with Airbus is certainly in line with the objectives of our National Research and Development Strategy (NRDS) and it opens opportunities for South African researchers to be able to conduct research that is relevant and meets the specifications and requirements of the Original Equipment Manufacturers (OEM), it gives us the opportunity to further develop and build our human capacity within the high-tech advanced manufacturing sector and the opportunity to leverage international expertise with the aerospace industry.

This memorandum of understanding is a culmination of on-going engagements and team work by the DST, the Council for Scientific and Industrial Research (CSIR), the implementing unit for the advanced manufacturing technology strategy and collaboration with the dti and the Aerospace Industry Support Initiative (AISI).

It is indeed an exciting and moving moment for us to have come this far. We will definitely take this opportunity with two hands, in order to derive maximum benefit for South Africa out of this relationship with one of the world's renowned aeronautics companies, Airbus.

I thank you

Issued by: Department of Science and Technology
21 September 2006