Damen Shipyards Group has signed a Strategic Partnership Agreement with the Department of Trade, Industry and Competition (DTIC) in South Africa as part of the National Industrial Participation (NIP) programme.
The agreement will see Damen undertake NIP activities in advance for purposes of collecting NIP credits from domestic economic activity and fulfilling requirements related to local industrial participation including investment, export sales, research and development, technology transfer and transformation of the local economy.
Under this agreement, Damen Shipyards Cape Town (DSCT), a subsidiary of Damen, will continue its work of localisation and industrial participation to the benefit of the South African shipbuilding industry and economy.
Since commencing its operations in South Africa, Damen has contributed to the development of, and investment in, the local shipbuilding and manufacturing sectors. Its contributions have included the development of personnel for highly skilled employment, as well as widespread local procurement activities.
Investing in local industry
In 2008, when the yard, formerly known as Farocean Marine, became part of the Damen Shipyards Group, the company signed a similar, 10-year agreement with the then Department of Trade and Industry (DTI). Since then, Damen has generated over 1 billion rand in credits. These have been collected through various activities including direct investments and job creation. This has been both direct, through employment at DSCT, and indirect, through the beneficial effects of local procurement.
Damen’s contribution to a sustainable South African shipbuilding sector also includes investment in local business, and the manufacture of products for export markets. Such operations are in line with the values of the Damen Shipyards Group, which aims at the development of local industry wherever it operates. Damen has gained extensive experience in working with local industries all around the world.
A unique approach to shipbuilding
Damen is supported in its aims by its unique approach to shipbuilding. Having a large portfolio covering all sectors of the maritime industry, the company delivers in the region of 150 vessels internationally each year. Additionally, Damen’s business model is to construct its proven, standard designs on speculation for stock. As such, it can ensure sustainable employment for the long-term.
Damen has also participated, since 2020, in the Defence Industrial Participation (DIP) programme. With this, the company has contributed to the development of transformed companies, as well as Exempted Micro Enterprises (EME) and Qualifying Small Enterprises (QSE), further creating employment opportunities and developing export opportunities.
Recognition for South Africa’s commitment
Jan-Wim Dekker, COO of the Damen Shipyards Group said, “The South African Government deserves recognition for its commitment to improving the national economy by forming cooperations such as this one. The investments that the government is making in vessels built in South Africa, for South Africa go beyond increasing the country’s capabilities in the water. They also ensure the wider development of manufacturing and a sustainable maritime industry that offers real employment opportunities in the country. For that reason, Damen is very proud to have signed this Strategic Partnership Agreement. We look forward to continuing our commitment to securing the maximum possible benefit for the shipbuilding industry and people of South Africa.”
Dr Tebogo Makube, the Chief Director of both the Industrial Procurement and Industrial Participation within the DTIC, said, “We are happy to be renewing our relationship with Damen. The company has a great track record in supporting the industry and economy of South Africa. The previous years have demonstrated the potential for our cooperation to have a wide-reaching, internationally positive impact for the country. We’re pleased to have found a partner that is so visibly committed to doing the best for South Africa. Partnerships such as this are of great importance for our country where job creation and skills development are vital for much needed economic growth and stability.”