|
PRETORIA, South Africa - Denel says it will need strong government support to continue its missile program. The company said it expects another loss for the financial year to March 31, 2010. Denel Dynamics' viability is undermined by its small orderbook and hurt by the high cost of researching and developing modern missiles. The South African National Defense Force has a tendency to order missiles in small numbers, meaning these weapons' production runs are too small to offset research and development costs.
Denel Dynamics cannot continue producing missiles without more funding, according to Denel Group CE Talib Sadik. He said this missile unit is not sustainable without strong government support or a strategic equity partner.
| 
