Gripen International, The South African government has reported that Saab, and its Gripen programme partner BAE Systems, has delivered $US 5.3 billion of new economic benefits through offset projects arising from its acquisition of Gripen fighters and Hawk trainers.
In its 2007 annual report, South Africa's Department of Trade & Industry (DTI), announced to Parliament that the delivery of the combined Saab – BAE Systems offset, linked to South Africa's joint Gripen and Hawk acquisition programme, was ahead of schedule with a surplus of economic benefits being delivered by August 2007.
The Gripen industrial partners have delivered $US 4.8 billion of new economic benefits to South Africa so far and are well on track to fulfil their $US 8.7 billion offset target by 2012.
Addressing the Parliamentary Portfolio Committee on Trade & Industry, the DTI’s Chief Director for National Industrial Participation, Mr Sipho Zikode, highlighted Saab-BAE Systems’ performance which was more than $US 550 million ahead of its target.
To date, Saab-BAE Systems have implemented over 100 industrial participation projects, boosting South Africa’s manufacturing-for-export capacity with ventures addressing a spectrum of civil sectors including agriculture, mining and minerals processing, medical research, automotive manufacturing and timber production.
At the same time, Gripen customer Armscor has also reported that the Gripen team has made good progress in the delivery of defence industry-related offset. Armcor’s annual report, tabled in Parliament on 30 October, indicates the delivery of ZAR 3.38 billion ($US 520 million) of benefits, comprising investments, local and export sales of South African equipment and services and technology transfer to South Africa’s defence and aerospace industry. The report highlighted a ZAR 108m surplus in the Gripen defence offset programme.
South Africa will take delivery of the first of its 26 Gripen new generation fighters, a two-seater D variant, in March 2008, with the final aircraft being delivered in 2012.
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