Business Enquirer Issue 132 | BUTEC | December 2024

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BUTEC’S COMMITMENT TO COMMUNITY AND INNOVATION IN AFRICA

BUTEC'S COMMITMENT TO COMMUNITY AND INNOVATION IN AFRICA

BUTEC, a leading regional corporation, delivers innovative and sustainable solutions across Africa and the Middle East. With a focus on Engineering & Contracting (EPC), Electro-mechanical Solutions, Facility Services, and Utility Services, BUTEC provides comprehensive solutions to meet the diverse needs of its clients. Built on the dedication and expertise of its employees, BUTEC is committed to adhering to strict ethical standards in performing its duties. Under the stewardship of passionate leaders such as Mr. Fady Abou Jaoude, BUTEC continues to showcase how companies can rely on innovation and collaboration to build a more sustainable future.

BUTEC

PROJECT DIRECTED BY: GLEN NEWTON

ARTICLE WRITTEN BY: ELLIE PERRY

LG Air Solutions: Pioneering climate control for every environment

At LG Air Solutions, we lead the global air conditioning and ventilation industry with advanced climate control technology for homes and businesses. As a division of LG Electronics, we leverage decades of innovation to create solutions prioritising comfort, energy efficiency, and sustainability.

Our residential offering features the sleek ArtCool and versatile DualCool systems, blending aesthetics with functionality. These units incorporate AI and IoT capabilities for personalised comfort whilst optimising energy usage.

For larger-scale applications, our flagship Multi V5 system headlines our Commercial Air Conditioning portfolio. This state-of-the-art VRF technology offers unparalleled flexibility and efficiency for diverse commercial environments. The Multi V5 boasts dual sensing control, monitoring both temperature and humidity for ultimate efficiency. Its advanced inverter

compressor achieves remarkable energy savings, operating at frequencies as low as 10Hz.

The system’s sustainability credentials are further enhanced by its ability to adapt to renewable energy sources, as shown in South Africa’s first fully solar-powered HVAC solution developed for I and S Motors’ Workshops and Warehouse in the Midvaal municipality.

We integrate smart features across our product range, with advanced sensors, machine learning algorithms, and remote management capabilities. Our systems adapt to user preferences and environmental conditions in real-time, maximising both comfort and energy savings.

With a global presence and deep understanding of regional climate challenges, we tailor our offerings to meet specific market needs. As climate control becomes increasingly vital, we continue to push boundaries, developing technologies that not only cool and heat but also purify, creating holistic environments that enhance well-being and productivity.

Overview of BUTEC

Established in 1964 with headquarters in Beirut and Dubai, boasting a workforce of over 7,500 employees spread across 21 countries, BUTEC currently stands as one of the largest regional conglomerates.

BUTEC has a rich history of delivering high-quality projects on time and within budget. This commitment to excellence has positioned BUTEC as a frontrunner in the region. Part of BUTEC’s success in this technically and geographically diverse environment stems from the company’s culture of building strong, lasting relationships based on loyalty and professionalism with both local and internationally renowned partners. BUTEC strives to earn their trust through proficiency, collaboration, and mutually beneficial complementarities, which have been key to its continued growth and success. The company continues to expand its geographical footprint

across Africa while simultaneously diversifying its areas of expertise through strategic acquisitions and partnerships. This enables the Group to offer a wider range of solutions to its clients, while also creating new opportunities for growth and development.

Introduction to Mr Fady Abou

Jaoude: A Key Leader within BUTEC Group

In a recent interview, Mr. Fadi Abou Jaoude, General Manager of both BUTEC Utility Services and BUTEC South Africa shed light on his career trajectory within the Group and shared insights into the company’s ambitions and development.

Mr. Abou Jaoude remarkable journey within the company, starting as a junior engineer and culminating in this pivotal role, exemplifies BUTEC’s commitment to nurturing talent and fostering internal growth.

General Manager Butec
Utility Services & Butec
South Africa, Fady Abou Jaoude

Throughout his career, Mr. Abou Jaoude has consistently demonstrated a strong commitment to skill development and to building a collaborative work environment. He has played a key role in mentoring and empowering team members, fostering a culture of innovation and continuous improvement.

BUTEC: Delivering Large-Scale Projects and Comprehensive Services

BUTEC provides a broad range of services, starting as an EPC firm specializing in sectors such as Water & Environment, Power & Energy, Industrial facilities, Oil and Gas, Infrastructure and Buildings. Over the years, BUTEC has successfully executed large-scale projects, including energy plants in the UAE and Qatar, water treatment stations in Lebanon and Algeria, and airports in Jordan, Qatar and Saudi Arabia. More recently, BUTEC has ventured into wasteto-energy plants, with projects in Sharjah and Abu Dhabi.

Expanding its services, BUTEC also offers comprehensive facility management solutions, divided into soft services, such as cleaning, administrative support, catering, and security for clients like malls and hospitals, and hard services, which ensure the smooth operation and efficiency of large facilities. Notably, BUTEC manages water treatment plants, data centers, firefighting systems, and some of the largest malls in Africa, including the biggest commercial mall on the continent. In addition, they provide Electro-Mechanical solutions, which include industrial and tertiary HVAC, low current systems, automation, and data centers, with major projects in South Africa, Morocco, and the Mohammed VI Tower in Rabat.

Lastly, in Utility Services, BUTEC optimize public service delivery by managing electrical and water networks efficiently, reducing losses and promoting sustainable resources use.

BUTEC: Strengthening its Presence in Africa through Strategic Acquisitions

At the outset of 2022, BUTEC announced the acquisition of 17 companies specializing in multi-utility building services (such as energy, heating, air conditioning, ventilation, electricity, etc.) from Engie. These companies formed a network operating across 10 African countries, divested by the French conglomerate.

Always looking ahead, two years later BUTEC has successfully finalized the acquisition of Eaux de Marseille Maroc (EMM), a subsidiary previously owned by another French corporation, Veolia which specialized in water management and sanitation services. This move not only illustrates BUTEC’s commitment to expanding their footprint in North Africa, but also emphasizes the company’s pledge to provide safe, reliable water services to local communities. This acquisition seamlessly aligns with BUTEC’s strategy to expand its presence across Africa and diversify its range in utility services, complementing BUTEC’s core operations.

BUTEC’s presence in Africa demonstrates an ability to blend international experience with local insights, forming a cooperative strategy that garners trust and fosters local development. Through various business units, including those engaged in construction and public utilities, BUTEC aims to enhance its reach across the African continent.

South African Acquisitions

BUTEC’s operations in South Africa signify another critical chapter in its expansion story. The acquisition of established local firms such as Thermaire and Ampair, known for their air conditioning and mechanical solutions, is geared toward fortifying BUTEC’s presence within the electro-mechanical sphere. The successful transition of these companies under the BUTEC umbrella includes not only a rebranding process but also an infusion of both local and international expertise.

“In addition, we saw that South Africa would eventually need our expertise in

electrical and water networks—addressing electrical losses and detecting water leaks. This presented a great opportunity to contribute to the market. While South Africa is an attractive business hub, we also see potential in neighbouring countries like Botswana and Mozambique, which are poised for growth. We don’t regret venturing into this market. Though it’s still early, we’re confident in its potential, with positive market response and the local team integrating well into the BUTEC family” Fady shares with us.

This venture into South Africa emphasizes the potential and importance of these partnerships in enhancing BUTEC’s service offerings, enabling the company to provide comprehensive solutions that span the entirety of the infrastructure lifecycle-from engineering and construction to ongoing facility management.

In-Country Value and People-Centric Approach

At the heart of BUTEC’s ethos is a commitment to nurturing human capital. The company appreciates that its most valuable asset is its workforce. By implementing an in-country value model, BUTEC has cultivated local expertise and nurtured talent through its BUTEC Academy. This academy provides upskilling opportunities for employees, as well as 40 students every year, ensuring they are well-equipped to meet the evolving demands of the industry.

“BUTEC Academy plays a crucial role in ensuring our staff stays knowledgeable and up-to-date with the evolving skills needed in a changing market. We started with a branch in Lebanon, initially focused on training for utility services as we ventured into this new field. Over time, the training expanded to the entire BUTEC Group. Now, we are in the process of rolling it out across all regions as part of our geographical expansion” Fady adds

BUTEC Academy reflects an unwavering dedication to education and development- elements that are

ENGINEERING BUTEC

critical for driving sustainable growth in emerging markets. This initiative not only caters to internal staff but also extends its outreach to local communities, providing vital training workshops and opportunities for skill enhancement.

In tandem with training initiatives, BUTEC actively pursues partnerships with local institutions to foster educational programs that empower youth and stimulate local economies. This comprehensive approach ensures that BUTEC contributes positively to the human capital of the regions in which it operates.

“One of the key factors that drew us to the entities in South Africa was their established legacy training center in HVAC, which we are now transforming to formalize and expand the procedures and scope. BUTEC Academy is not just a trademark; it is an integral part of our success. We don’t view it as a marketing tool, but rather as a reflection of our mindset and culture. It’s truly one of the key drivers behind our success” Fady shares.

These initiatives resonate positively in local communities. The focus on training and development not only helps employees advance their careers but also contributes to the greater socio-economic fabric of the country by equipping local populations with valuable technical skills.

BUTEC’s’ values Business Integrity, Unity of purpose, Time Commitment, Efficiency Focus and Customer Partnership serve as guiding principles as the company strives to improve the livelihoods of communities in the 21 countries it operates within.

Company Ethos and Culture

BUTEC’s corporate culture build on a deep respect for local customs and needs. Their ethos is deeply entwined with a community-centric approach, wherein stakeholders’ wellbeing is of utmost priority. The company has embedded corporate social responsibility (CSR) within its operational DNA, actively engaging in dialogues with community leaders

to assess their needs and ensure that projects align with local aspirations. From infrastructure improvements to educational initiatives, BUTEC’s commitment to creating a positive impact is unwavering.

The corporation’s focus on employee empowerment and recognition reflects its commitment to fostering a thriving environment for both its employees and the communities they serve. This is further demonstrated by the establishment of an employee share trust within its South African entity, highlighting BUTEC’s dedication to motivating its employees and aligning their interests with the company’s long-term success.

Technological Advancements and Strategic Partnerships

In an ever-evolving technological landscape, BUTEC invests heavily in

innovative tools and systems. The implementation of Building Information Modelling (BIM) and exploration into AI illustrate BUTEC’s proactive stance in integrating technology to streamline engineering and construction processes.

These advancements are complemented by a robust network of partnerships with international organisations such as the International Finance Corporation (IFC) and other multilateral institutions which bolster BUTEC’s operational capacities and broaden its scope of services. By fostering strong collaborations with both local and international businesses, BUTEC addresses a myriad of regional challenges ranging from utility management to construction expertise.

Vision for the Future

As BUTEC navigates its path ahead, the focus remains steadfast on enhancing in-

ENGINEERING BUTEC

country value, nurturing talent, leveraging technology, and fostering partnerships. The company’s vision integrates environmental sustainability into strategic objectives aspiring to lead in resourceefficient construction and utility services.

Moreover, as employers become increasingly conscientious about their social responsibilities, BUTEC is determined to setting benchmarks for sustainable practice across the African continent. key objective is the successful execution of utility services in regions facing water and energy crises, as the company seeks to expand its impact through innovation and strategic collaborations.

BUTEC exemplifies what it means to be a socially responsible company operating in a complex, multicultural landscape. Through a relentless commitment to community upliftment, strategic

partnerships, and innovative technology, BUTEC not only enhances its operational efficiency but also nurtures the regions it serves. The company’s forward-thinking approach, pragmatic understanding of local contexts, and devotion to employee empowerment lay the groundwork for a sustainable future, leaving a lasting legacy across Africa.

As BUTEC writes its next chapter, the influence it exerts through transformative infrastructure and community development will undoubtedly pave the way for a brighter future for all stakeholders involved. By remaining true to its core values, BUTEC ushers in an exciting era of growth defined by collaboration and continuous development. www.butec.com

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