JOHANNESBURG (Reuters) – South African state arms company Denel is in talks with Airbus about winding down production of parts for the European planemaker\u2019s A400M military aircraft, Denel said on Saturday.<\/p>\n\n\n\n
Denel, a cornerstone of South Africa\u2019s once mighty defense industry, is battling to emerge from a financial and operational crisis. In February it said it could sell stakes in some divisions as part of a strategy to return to profits within two years.<\/p>\n\n\n\n
The company has also been trying to renegotiate onerous contracts and exit parts of its business which are no longer viable, after making a 1.7 billion rand ($117 million) loss in the 2017\/18 financial year.<\/p>\n\n\n\n
Denel said it was yet to finalize terms with Airbus for the winding down of production for the A400M.<\/p>\n\n\n\n
\u201cThe two companies agreed that the continued manufacturing of aircraft parts by Denel is no longer sustainable in its current form,\u201d Denel said in a statement. \u201cAlternative options are now being considered between the two parties.\u201d<\/p>\n\n\n\n
Denel will try to minimize the impact on jobs at its Aeronautics division, it added.<\/p>\n","protected":false},"excerpt":{"rendered":"
JOHANNESBURG (Reuters) – South African state arms company Denel is in talks with Airbus about winding down production of parts for the European planemaker\u2019s A400M military aircraft, Denel said on Saturday. Denel, a cornerstone of South Africa\u2019s once mighty defense industry, is battling to emerge from a financial and operational crisis. In February it said it could sell stakes in… Read more »<\/a><\/p>\n","protected":false},"author":85,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3513","post","type-post","status-publish","format-standard","hentry","category-article"],"_links":{"self":[{"href":"https:\/\/baileyonlineclassroom.com\/subsaharanafricablog\/wp-json\/wp\/v2\/posts\/3513","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/baileyonlineclassroom.com\/subsaharanafricablog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/baileyonlineclassroom.com\/subsaharanafricablog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/baileyonlineclassroom.com\/subsaharanafricablog\/wp-json\/wp\/v2\/users\/85"}],"replies":[{"embeddable":true,"href":"https:\/\/baileyonlineclassroom.com\/subsaharanafricablog\/wp-json\/wp\/v2\/comments?post=3513"}],"version-history":[{"count":1,"href":"https:\/\/baileyonlineclassroom.com\/subsaharanafricablog\/wp-json\/wp\/v2\/posts\/3513\/revisions"}],"predecessor-version":[{"id":3514,"href":"https:\/\/baileyonlineclassroom.com\/subsaharanafricablog\/wp-json\/wp\/v2\/posts\/3513\/revisions\/3514"}],"wp:attachment":[{"href":"https:\/\/baileyonlineclassroom.com\/subsaharanafricablog\/wp-json\/wp\/v2\/media?parent=3513"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/baileyonlineclassroom.com\/subsaharanafricablog\/wp-json\/wp\/v2\/categories?post=3513"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/baileyonlineclassroom.com\/subsaharanafricablog\/wp-json\/wp\/v2\/tags?post=3513"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}