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Cash-strapped arms maker Denel eyes $2 bln in export deals

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South Africa’s Denel could see some R30 billion ($1.97 billion) in deals over the next two years which should help it recover after struggling to pay salaries and relying on bailouts, the state arms firm said on Thursday.

“Denel is actively pursuing a winnable order pipeline of R30 billion in the next two years, which will greatly contribute to the financial turnaround and long-term sustainability of the company,” Denel said in a statement.

“This includes an imminent export contract – the largest in Denel’s history. This contract, which includes an advance payment of R1.5 billion, has the potential to grow Denel’s order stock by 32%,” it said.

On Friday, Denel received $118 million cash injection from the government to stem a deepening liquidity crunch.

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