State defence firm Denel hopes to return to profitability within the next five years via a restructuring plan, but will still require significant cash injections to make it happen, it said in a statement on Wednesday.
The company, which makes military equipment for SA's armed forces and for export, faces liquidity problems, is reliant on government bailouts and has so far struggled to implement its turnaround strategy.
Its problems worsened over the past year amid the coronavirus crisis and a series of board exits that were related to its budget woes, according to a senior official at the Department of Public Enterprises , the main government department responsible for the firm. In a statement on Wednesday, Denel's interim Chief Executive William Hlakoane said that while a comprehensive restructuring plan would"revitalise" Denel and restore it to profitability within five years, significant cash injections would still be required.
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