Damen Shipyards Group (DSG) has signed a new strategic partnership agreement with the Department of Trade, Industry and Competition (dtic) as part of the National Industrial Participation (NIP) programme.

Under the agreement, Damen subsidiary Damen Shipyards Cape Town (DSCT) will continue its localisation work and industrial participation “to the benefit of the South African shipbuilding industry and economy”, says the Dutch-owned group.

In 2008, when the local shipyard, formerly known as Farocean Marine, became part of DSG, the company signed a similar, ten-year agreement with the then Department of Trade and Industry.

Since then, Damen has generated more than R1-billion in credits. These have been collected through various activities, including direct investments and job creation, both within DSCT and at local suppliers.

Damen has also participated in South Africa’s Defence Industrial Participation (DIP) programme since 2020.

DSCT director Sefale Montsi says the Cape Town facility currently employs 223 people.

“The DSCT yard is agile and able to build vessels of various configurations to accommodate clients’ operational needs.”

Montsi tells Engineering News & Mining Weekly that the yard has built more than 40 vessels to date, including various types of tugs, patrol vessels, research vessels, cutter suction dredgers and Shoalbusters.

Shoalbuster is the product name of a type of tugboat, designed by Damen, with a shallow draught capability.

DSCT’s main customers are Armscor and the South African Navy (SAN), Transnet National Ports Authority and Africa Marine Solutions Group.

“DSCT, as part of the Damen group, has also exported many ships to a variety of countries, including Djibouti, Nigeria, Guinea, but also to countries in the Middle East and the Caribbean,” says Montsi.

The yard is currently working on finalising the third multimission inshore patrol vessel (MMIPV) for the SAN under Project Biro.

DSCT in 2018 signed the contract for three MMIPVs, with an option for more vessels of a similar nature.

The navy took delivery of SAS King Sekhukhune I in 2022, as well as the SAS King Shaka Zulu in November last year.

Delivery of the third vessel is planned for this year.

Montsi says the yard is also working on building a multipurpose vessel for Transnet, planned for delivery early next year, while some of its staff have also been deployed to an unnamed country to assist on vessel refits.

DSG industrial participation manager Marijke Winiarski says agreements such as South Africa’s NIP are “in Damen’s DNA; it is what we do as a company”.

She says Damen has 36 locations across the globe, all with a focus on “long-term sustainable partnerships”.

“Wherever we are active locally, we are there for the long term and we do it with the aim to grow the business in a sustainable way. This means it is second nature for us to participate in and comply with the NIP and DIP programmes.”

In order to ensure DSCT has a steady flow of business, the Cape Town site has been set up as a stock-building site.

This means it is able to build or assist in building vessels for the mother company and/or sister companies within the group, as well as other African countries.

“The fact that DSCT is part of the Damen group has helped us stabilise production at the Cape Town yard, and to retain our shipbuilding capabilities in South Africa,” says Winiarski.