In continuing our review of the electronics industry in South Africa, we take a look now at the Grintek Group. The origins of this company go back to 1963, when Racal Electronics of the UK, established a local subsidiary based in Pretoria.
Following its 1963 beginnings. Racal Electronics SA Ltd was acquired by Grinaker in 1978 to form the core of Grinaker Electronics. In 1995, Grinaker was at the cutting-edge in terms of black empowerment and reached an agreement with Kunene Brothers Holdings, which had a current 32,5% shareholding in Grinaker. Grintek employs over 1300 people (with a large percentage being engineers and technicians) in its facilities that are located in Pretoria, Cape Town and Durban.
Listed on the JSE, Grintek operates three primary divisions covering telecommunications, electronics and defence. With the lack of space to cover all divisions in this brief review, only the defence business will be considered - for the financial year ended 2003 some 49% of sales were in defence - and specifically, the division of Avitronics.
Grinaker Defence and Electronics is owned jointly by Grintek and Saab, the Swedish company having 49% of the equity. Avitronics is a world recognised supplier of electronic warfare systems and is ISO 9000 certified. Its core business is in the design, development and production of innovative microwave and electro-optical electronic warfare equipment for air, sea and land applications.
One of the very unique products developed by Avitronics is its MAW-200 missile approach warning system that has been designed for use in slower moving aircraft such as transports and helicopters. The MAW system operates within the ultraviolet spectral region and this required the development of special solar blind detectors and filters. With four sensors it provides an aircraft with a 360 degree detection zone, claims a better than 99% probability of warning and can track up to eight target threats simultaneously. In addition to the MAW system, Avitronics offers a full range of laser and radar warning systems and these can be integrated into a complete protection system linked to the aircraft's chaff and flare countermeasures. Even without such devices the warning itself can provide the pilot time to take evasive manoeuvres to avoid being hit by a missile.
Despite having leading competitors in Europe and North America, during 2003 the local company was awarded a contract valued at more than R120 million to equip the Swiss Air Force Cougar helicopters with an integrated defensive aids system (IDAS). This order followed on a previous contract from the Swiss for customisation and supply of four prototype systems that have been fully-evaluated over a four year period.
The IDAS system was developed in collaboration with the SAAF and will be used on the C-130 transport aircraft as well as the Augusta helicopters now on order. EW systems from Avitronics has been fitted on a large number of aircraft including the SAAF's Oryx and Rooivalk helicopters, the Buccaneer and Cheetah. Local EW systems will also be fitted to the Hawk and Gripen when they enter service.
In terms of land vehicles, Avitronics offers a comprehensive laser warning system, providing the crew with an audio warning that they are being targeted and displaying the position of the threat relative to the gun barrel. It is also possible to automatically dispense countermeasures such as smoke grenades when a threat is detected. The system successfully passed an SA Army User evaluation during 2001 and was recently demonstrated in Europe to representatives from 14 NATO countries. Specific interest has been generated in Switzerland, Spain and North America.
Avitronics has benefited significantly through the offset business (Defence Industrial Participation) and will provide most of the electronic self-protection systems for the aircraft, ships and submarines included in the total package. The company will also provide Saab with microwave components for the Gripen fighter aircraft as well as components for the on-board radar. Saab itself recently received an order for the adaptation and qualification of radar warning systems for Germany's Tornado fighter aircraft and Avitronics will carry out a portion of this work.
According to press reports the company has almost trebled its turnover in the last three years and more than 400 new jobs have been created with a significant amount of the work being outsourced to medium and small companies.
The example of Avitronics, which is being duplicated elsewhere in the local defence industry, debunks the theory that offsets would not create value for the local industry.
This series looks at some of the leading companies in the electronics industry in South Africa today. To simplify presentation and avoid perceptions that they are being 'rated' in any way, this coverage is being presented in alphabetical order. Do not miss the next issue of Dataweek when we will look at a leader in access control and security electronics.
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