AHRLAC emerges from business rescue while Denel wanes
Paramount Group subsidiary Paramount Aerospace is in the final phase of implementing a business rescue plan, which should enable the South African manufacturer to enhance production of the Advanced High Performance Reconnaissance Light Aircraft (AHRLAC).
A new entity, called Paramount Aerospace Industries, now controls all assets and businesses connected with AHRLAC. It is also committed to injecting almost R1 billion ($58 million) to support AHRLAC manufacturing and marketing activities.
The AHRLAC programme was placed into business rescue in February 2019.
‘The state-of-the-art factory at Wonderboom Airport has been operational for several months under Paramount’s stewardship, with manufacturing being ramped up to ensure the [timely] delivery of aircraft to customers around the world,’ Paramount announced on 19 August.
AHRLAC is designed to incorporate advanced ISR capabilities, including EO systems and ELINT sensors. ‘It integrates designs from helicopters, surveillance platforms and reconnaissance aircraft, with the ability to carry multiple systems, such as surveillance radar and electronic systems,’ according to Paramount.
The company aims to export the aircraft in kit format for final assembly in customer countries. ‘We have been encouraged by the global interest in the aircraft and we look forward to making further new customer announcements in the near future,’ said Alison Crooks, CEO of Paramount Industrial Holdings.
While the prospects seem better for AHRLAC, elsewhere in South Africa there was bleak news for government-owned aerospace and defence manufacturer Denel. The company has been dogged by financial problems for some time, and the government stated on 16 August that it cannot inject emergency funding to help pay staff salaries.
A liquidity crisis means that Denel has been unable to pay full salaries since May, while it is also jeopardising ongoing programmes.
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