Tawazun Holding, the investment firm focused on defense and specialised manufacturing, announced on Thursday that it had partnered with the Dynamics division of Denel, owned by the Government of South Africa and South Africa's largest defense manufacturer, in a joint venture to build the Middle East region's first facility for the development, manufacture, assembly and integration of precision-guided systems for conventional air munitions.
The joint venture will be known as “Tawazun Dynamics” and be owned 51 per cent by Tawazun Holding and 49 per cent by Denel. The first customer for the initial system will be the UAE Air Force and Tawazun Dynamics will both supply precision-guided weapon systems as well as product system management services to the UAE AF and other international clients.
Saif Mohamed Al Hajeri, Chief Executive Officer of Tawazun Holding, said: "The creation of Tawazun Dynamics marks the next chapter of Tawazun's continued focus on the development and diversification of the UAE's industrial base. To achieve this, it is important for us to work with recognized technology and product leaders in partnerships that capitalize on our relative strengths. We believe that Denel, with its history of successful products that focus on innovation and operational excellence, corporate governance and cultural values, matches our own ambitions and that our partnership will be a long-term and mutually-beneficial one."
Riaz Salojee, Denel Group Chief Executive Officer, said: "With its investments in industrial knowledge-building, and its location at the crossroads of East and West, the UAE is poised to become a leader in defense engineering and manufacturing. We believe that, in Tawazun, Denel has found the right partner through which to further expand our strategic footprint, internationally exploit and expand our products and systems and cement our commitment to the Middle East region."
The new entity will utilize and expand the engineering expertise in Denel in South Africa and also see the creation of technical jobs in Abu Dhabi. Denel has already overseen the training of the first set of UAE nationals who will work in Tawazun Dynamics.
The Tawazun Dynamics facility will be established in the Tawazun Industrial Park, which is Tawazun Holding's emerging knowledge hub for defense and strategic manufacturing in Al Ajban, just outside of Abu Dhabi, the capital city of the UAE. The plant will utilize Denel's world-class technology, systems and processes to transform conventional air munitions into precision-guided weapon systems. Details of the specific product systems will be announced at the start of 2013.