Question NW3582 to the Minister of Public Enterprises
24 November 2022 - NW3582
Buthelezi, Mr EM to ask the Minister of Public Enterprises
Whether he will furnish Mr E M Buthelezi with an update on the (a) Rheinmetall Denel Munition (RDM) and (b) projects that (i) are in progress and/or (ii) have been rolled out by the RDM; if not, why not, in each case; if so, what are the relevant details in each case?
Reply:
According to the information from Denel
(a) Rheinmetall Denel Munition RF Pty. Ltd (RDM) is a joint venture between the German Rheinmetall Waffe Munition GmbH (51%) and the South African State-Owned Company, Denel. The JV was completed in 2008. RDM is producing and selling ammunition of various calibres. RDM employs a total of 2,500 people across its four sites (2 in Western Cape, 1 in Gauteng and 1 in North West) and conducts business with more than 1,500 suppliers in South Africa. Over 90% of RDM’s turnover is generated from international clients, especially in the Middle East / Northern Africa (MENA), Asian and Europe. RDM’s dependency on international clients underlines its dependency of the timely approval of contracting and export permits from the South African National Conventional Arms Control Committee (NCACC).
(b) RDM operates in a sensitive defence/military environment. Customers insist on tight non-disclosure requirements as part of contractual obligations. All other mandatory regulatory disclosures related to contracting for export and import of controlled items are made to the NCACC.
(i) Since the inception of the Joint Venture in 2008, the company invested R1.5 billion in the development of new technologies, R1.0 billion in infrastructure and facilities as well as more over R500 million in social responsibility, skills development, and supplier development.
(ii) RDM’s goal is to be carbon neutral by 2035. In this regard, RDM is in the process of constructing the first solar PV farm at the Somerset West site and the same model will be replicated across all RDM sites in South Africa.
RDM has started to endeavour in technology developments in the field of alternative green energy solutions, specifically solar and green hydrogen. On green hydrogen, RDM has developed several applications and wants to position itself as a partner for hydrogen supply globally. RDM is also developing solutions for fixed and mobile hydrogen power, and storage solutions for industrial use. RDM unveiled its green hydrogen plans at the 2022 Africa Aerospace and Defence exhibition.
Remarks: Reply: Approved / Not Approved
Jacky Molisane P J Gordhan, MP
Acting Director-General Minister
Date: Date