Denel exiting loss-making businesses

Struggling state-owned defence company Denel has started exiting loss-making businesses.

PRETORIA - Struggling state-owned defence company Denel has started exiting loss-making businesses.

This is part of the company’s turnaround strategy.

READ: Denel gets R1.8bn government bailout

In August, Denel was one of a few state-owned entities that received a government bailout.

Denel is pushing ahead with its turnaround strategy to combat fraud, corruption and wastage.

Parliament recently heard that Denel Asia’s liquidation was approved.

READ: Denel expects state aid in third quarter

Experts say the arms manufacturer can turn the tide by streamlining supply chains, reducing staff costs and exiting other businesses.
 
Denel says it expects about R30-billion in deals over the next two years, as well as the largest export contract in its history.

Source
eNCA