Howden Africa

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Howden Africa focus energy

South Africa Magazine talks to Thomas Bärwald, the CEO of gas and air handling equipment giant Howden Africa, a regular in the Business Times newspaper’s ‘Top 100 Companies’, which has its eye on growing its markets through excellent engineering and service.

By Ian Armitage

H

owden is a major engineering force. Its equipment underpins economic development on the African continent and it has played a significant role in largescale power generation, mining, construction, petrochemical and manufacturing projects.

“We have long-term relationships with customers in many sectors of Africa’s industrial infrastructure,” says Thomas Bärwald, the CEO of the Johannesburg-based and JSE-listed Howden Africa.

Howden Africa has four main business units - Howden Power, Howden Fan Equipment, Howden Projects and Donkin Fans - offering comprehensive engineered systems and after-market support services, focusing on specific industrial sectors or product ranges.

As part of Howden Global – which has operations all over the world – the company has access to the extensive engineering knowledge derived from a worldwide installed base.

“We’re able to meet the demands of our customers, by providing solutions engineered for their specific requirements, backed by manufacturing excellence and on-site installation and technical support throughout the lifetime of each system,” Bärwald explains.

Howden Africa has two worldclass manufacturing centres in South Africa, one in Johannesburg, and the other in Port Elizabeth, giving it a geographical reach that enables it to support large-scale, turnkey engineered plant and products, through most of sub-Saharan Africa.

“We specialise in the design and engineering of a wide range of www.southafricamag.com

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Howden Africa focus energy

equipment and have an extensive offering,” says Bärwald. “We have an excellent reputation in the market and listen to the customer.”

Through its engineered solutions, such as ventilation systems and refrigeration plant for mines, boiler fans, airheaters and environmental control systems for power stations and general industry, and ventilation systems for HVAC systems in construction, Howden Africa has built up an enviable reputation and offers customers a personal service and presence in Africa, he adds.

“Our involvement in the development of Africa’s industrial infrastructure is matched by our commitment to the future.”

The firm has, according to Mr Bärwald, achieved “excellent results in the first half of the financial year”, with the share price “gaining 120 percent”. It’s a good performer on the JSE. “We have secured more mining business from countries north of the border such as Ghana, Tanzania, Zambia and the DRC (Democratic Republic of the Congo) etc,” he explains. “We have received some really good orders there. We also had a very good year in the environmental control business and generally we have done very well in service and maintenance. We have extended the amount of services, especially in the power and mining industry.”

His goal is to expand even further beyond South Africa’s borders.

“Opportunities for business in future are huge in the African context. [There] is always a need for more power and there is potential for new mining projects, generating substantial demand for our products, especially 4

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Eqstra Fleet Management Operating a corporate fleet is becoming a nightmare, with constant regulatory changes and ever increasing operational costs. Why not join our growing client base, who have realised that a true fleet management partner is critical to the effective management of their fleet requirements, regardless how small or large their business?

Eqstra Fleet Management (EFM) recognises that company vehicles are not core to your business and that they will at best be treated as a necessary operational expense. To this effect we are the only fleet management company in South Africa offering a total 360 degree solution in-house – allowing our clients to outsource part or all fleet related processes to EFM. Working with our clients, we have developed our solution on all fleet costs and not just the cost of the vehicle. Our 29 years’ experience in the South African market has allowed us to develop a solution and capabilities to assist clients from vehicle choice and policy design right through to driver management – but most importantly our market leading system provides clients with a platform to consolidate all fleet related costs into one single view of their fleet, thereby allowing us to benchmark cost drivers and constantly identify and address areas of improvement.

We are now in a position to report the total costs per individual vehicle per kilometer driven, allowing us to work with our clients to constantly measure and drive down all fleet related costs. This we believe is what a true fleet management partner should be able to provide you – and the resultant savings, in many cases exceeding 12% of total costs are testament to our approach.

Through our “Quest for Excellence” philosophy we constantly invest in our employee skills & our systems and in the last year alone we have spent more than R50m to ensure that we remain the fleet management company of choice.

We are so confident in our solution that we will only work with a client if we can guarantee them measurable savings.

WE DON’T JUST FINANCE YOUR VEHICLES WE MANAGE YOUR FLEET

For more information or to get a free consultation on how EFM solutions can be tailor made to help you drive down your fleet costs by up to 15%, contact Eqstra Fleet Management on 011 458 7555 or visit www.efm.co.za

Howden Africa focus energy

Tektower Tektower manufactures a whole range of cooling towers from the smallest fibreglass units for airconditioning applications to site assembled modular units for large manufacturing plants and mines to the concrete or galvanized steel units for the really large applications. All towers are manufactured to the exceptionally high quality standards.

capital equipment such as air and gas handling equipment, mine main ventilation and cooling.

“The SADC countries are emerging as an important market for us, especially in mining and infrastructure. We have developed a strong reputation in the region through a combination of excellent engineering solutions and innovation, and our geographical proximity facilitates rapid after-market support, at site where required.”

Opportunities are plenty at home too and Bärwald is optimistic about the future for Howden Africa, particularly in the light of the environmental regulations that are increasingly impacting the manufacturing sector.

“South Africa is focused on cleaning up environmentally and driving to green and we’re seeing new environmental laws and carbon tax proposals for the country, as well as the 2010 Clean Air Act. Companies are now required to manage and monitor emissions and invest in environmental control. We’ll see a lot of power producers looking to clean up their acts even more and bring the existing plants and new plants to international standards. Obviously a big slice of what we do is relevant here - our environmental control division is growing. We have good, proven products.

“We are optimistic about the future. We are supplying major turnkey ventilation projects and ice plants for the 6

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Tektower is one hundred percent South African owned and are proud of the fact that 95% of our Cooling Tower products are produced in South Africa and our towers are built to last - they are designed and built to withstand the African harsh conditions - the sun, the heat and humidity.

Tektower manufactures a whole range of cooling towers from the smallest fiberglass units for air-conditioning applications to site assembled modular units for large manufacturing plants and mines to the concrete or galvanized steel units for the really large applications. All towers are manufactured to the exceptionally high quality standards.

Although Tektower is a specialised cooling tower company, it offers more than just cooling towers. We offer a whole range of products that are related to our business. These include: · · · · · · · ·

Water Circulating Pumps Chillers Plate heat exchangers Side Stream Filters Engineering designs and drawings Project Management Full Maintenance Contracts Water Treatment

CLIENTS

Head Office Contact Details 82 Plane Road Spartan P.O. Box 3990 Edenvale 1610 Gauteng Tel: +27 (0)11 975-6506 Fax: +27 (0)11 394-3458 Email: info@tektower.co.za Website: www.tektower.co.za

Howden Africa focus energy

ultra-deep gold mines and platinum and coal mines in South Africa and we currently have major contracts within the rest of Africa to supply ventilation equipment to deep level mines and process plants. Our main projects going on right now are the supply of air and gas handling equipment to the new large power projects at Eskom.”

The aftermarket is another growth area where many of Howden’s equipment is still in the field after 30 to 40 years operation that need servicing, refurbishments and upgrades.

Mr Bärwald has worked with Howden for over 23 years. Along the way he has worked and headed the Howden’s Australian and South East Asia business for 15 years and South American businesses for three years, and also headed the Chinese operations for nearly two years.

“Howden is a great place to work,” he says. “The company has a presence on every continent and an impressive track record of innovation. To carry that forward we invest in technological R&D, innovation, and the training of our staff.

“We have, at the moment, like many other engineering companies, a generation shift, a change. We have a lot of people that will retire in the next decade and now the next generation has to take over and we want to maintain good skills. We also ensure that if you are in Europe, North America, China, Australia or Africa you will get the same quality.”

Howden has long recognised the importance of allowing individuals to develop their skills and knowledge to their full potential.

In 2008 it added a formal dimension to its training capabilities by instituting the Howden Academy, a residential training course at the University of Caledonia in Glasgow in which engineers from all Howden business units are brought together for an introduction to technologies and business practices.

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The company has a presence on every continent and an impressive track record of innovation. To carry that forward we invest in technological R&D, innovation, and the training of our staff

A preferred supplier to many large corporations, offering specialized services and products to a broad spectrum of utilities

“Training is vital,” Bärwald says.

“We have an engineering ladder structure with the aim of, if you are a good engineer, you can get the same kind of promotions as you would if you had manager career.

Next year we intend to do even more training. We will continue to train.”

Bärwald says the Howden Academy builds on the cooperation and shared knowledge that has always distinguished Howden as a company. “Every Howden engineer is an integral part of an international pool of leading-edge expertise.” END To learn more visit www.howden.com.

Tel: +27 11 708 7010 Cell: +27 82 657 8882 Email: fabcom@vodamail.co.za Website: www.fabcomsa.co.za Fabcom CC, a well established and experienced company, specialises in the manufacture and supply of fabric and metal expansion joints, bellows and insulation products. Due to the many and varied applications of the product, clients requirements are individually assessed and their needs met.

Fabcom prides itself upon the selection and utilisation of high performance, high quality material in the manufacturing of its products. A leader in its field and with access to state of the art materials, Fabcom is able to ensure that the end user receives cost effective and technical sound solutions.

Applications • Fan Manufacturers • Project Houses • Cement Industry • Pulp and Paper Industry • Petro-chemical Industry • Sugar Industry • Fertilizer Industry • Metallurgical Industry • Power Generation • Pollution Control and Gas Cleaning

We strive to provide our clients with products and services that meet or exceed their expectations, both in terms of quality and service, while also ensuring competitive pricing.

We offer products and services across all Engineering Disciplines: • Machining • Reconditioning • Specialized Welding • Manufacturing / Fabrication

We are proud to manufacture Howden’s fans, casings and rotors.

Tel: (016) 986-2130/1/2/4 Fax: (016) 986-2135 Email: info@aio.co.za Web: www.aio.co.za

Krupp St. 8 P.O. Box 3054 Vanderbijlpark 1900

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South Africa’s own Superior Hydro-Blasting, Vacuum Specialist, Hydraulics & Engineering

Our services include: Hydraulics – New & reconditioned pumps, cylinders, seals, new valves, valve banks and hydraulic hoses and fittings.

Engineering – Machining, shafts, bushes, general engineering, repairs to gearboxes and valves.

Protective Linings – Anti-corrosion, rubberlining and fibreglass.

Plastic Pipeline Systems – HDPE, PVC, PVDF & Polypropylene.

Industrial Cleaning – Vacuum, high-pressure water jetting.

Industrial Cleaning 62 George Street Mantevrede Vanderbijlpark Tel: 016 932 5328 Fax: 016 932 5395 Email: rockent@mweb.co.za

Hydraulics & Engineering 36 Saturn Street Naledi Vaalpark Tel: 016 971 1218 Fax: 016 971 3530 Email: rockent@telkomsa.net

Great East Road, Stand No.6949 P O Box 33304,Lusaka,Zambia Tel:260-211-361111.

Fax:260-211-222753 Email:zesco@zesco.co.zm Website:www.zesco.co.zm

N OF INTEREST FOR THE IDENTIFICATION, VERIFICATION AND O ASSETS FOR USE IN ACCOUNTING AND INSURANCE outages impacting strongly on the Zesco is Zambia’s state-owned power PURPOSES

utility. It generates, transmits, and

economy as production has been halted

Management Policy that should include not onbut a number of occasions due to lack of distributes electricity in the country

limited to the standards, processes, procedures, pression of Interest power supplies. and offers various vending options guidelines and controls forfor the recording of assets viders to identify, verify beginning at the budgeting and procurement stages both accounting and Of of particular note, the country’s customers to buy electricity using through to the finalunits disposal and or transfer Assets. ly with International nsurance and Risk mining sector has suffered stoppages as prepaid meters.

3 QUALIFICATIONS dders can access more result of low power supplies, causing In recent years it has pumpedshould provideainformation Interested consultants bsite: www.zesco.co.zm. indicating that they are qualified to undertake the to miss out on the potential the country millions into infrastructure assignment by submitting their detailed information CTURE it holds as the largest copper producer its part in ZESCO has theimprovements, following onplaying the following:3.1 Ten Years demonstrable experience in s ranging from 108 in Africa. securing Zambia’s future. undertaking similar assignments in Power Hydro Power Stations Utility Companies.

3.2Zambia Demonstrated experience nd Nine (09) Diesel In January 2013 it was revealed that But still more could be done. and expertise in the valuation of Generation, ughout the country. plans to build a new 330 kV power endures persistent powerand interruptions.

Transmission Distribution assets Zesco and other prising Transmission associated infrastructure ten years. nd over 60 Transmission transmission line to provide electricity to Zesco is determined to improve of not less than ambia. The Distribution 3.3 Demonstrated experience in Financial Audits new mines. the situation. and specifically verification and confirmation of acity of over 1500MVA. Fixed assets and liabilities of not less than tenenvironmental years. ther moveable andIn nonThe management order to raise funds for power 3.4 Demonstrated experience in Insurance Loss as a Business Information agency improvements, the company is looking Adjusting/Assessment in the Electricity Supplysaid Zesco applied for siness applications are Iindustry of not less than ten years. 3.5 environmental approval to build the to foreign investors.

Managers recently Provide evidence of membership to relevant bodies.

3.6York Provide of sound power line, which would feed First visited London,professional Boston and New in evidence financial capacity to carry out the assignment entification, verification, Kalumbila mine and order with potential investors. independently audited annualQuantum statementsMinerals’ for ll fixed assets for the to meet (Submit the last five years). with a comprehensive Barrick Gold’s Lumwana mine.

“We are probably talking $1 billion, values. Additionally, “The estimated capital cost of the probably even The $2 billion,” Cyprian firm should show evidence of collaboration ish an internationally with any Oracle partner(Globally) whose credentials 55) for sustainable asset project is $249.3-million and project Chitundu, Managing Director of Zesco include the following: ent shall involve but not implementation will take about 30 revealed at the Zambian International ivities: (a) Valid Oracle Partner Id,(b) Partnership Validity(c) dentification and months,” the agency said in a statement.

Investment Forum.

Status of Partner - Silver/ Gold/ Platinum/ Diamond. xed assets data capture bases; 2.3 Asset The utility may (d) Certifications andto References Zesco was formerly known as Zambia even decide ation according to Electricity Supply Corporation Limited issue a Eurobond, following in the 4. SUBMISSION Establishing Asset The Expression of Interest must be deposited in ment values) forfootsteps use and changed its name in May 1994. The of the recent issuance of fixed assets; 2.5 the tender box on the 2nd Floor, New Building, $750 million debt

by Limited, the Zambian and internationally ZESCO Head Office, Standcompany No. 6949, was founded in 1970 and is Great East Road, Lusaka, Zambia on or before and tag all the identified based in Lusaka. government in September.

Friday, 8 February 2013 at 10:30 hours local r tracking purposes. time.

The telephone 223971 s for all the company’s It has offices in Lusaka, Ndola, and What is clear is that Zesco isnumbers lookingare 260 (211) with the internationally and 260 (211) 362314 and the telefax number is Kitwe; and service outlets in Zambia. to address power problems. icity utility industry 260 (211) 223971.Zambia has HOWEVER, TELEFAX OFFERS WILL NOT counting and Insurance experienced extensive power shortages BE ACCEPTED. tellite Asset Care To learn more visit www.zesco.co.zm. recent years, leading to power t Care Centre toover anchor blish an Asset SENIOR MANAGER – PROCUREMENT 10

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ZESCO/114/12-EXPRESSION OF INTEREST FOR THE IDENTIFICATION, VERIFICATION AND REVALUATION OF ZESCO ASSETS FOR USE IN ACCOUNTING AND INSURANCE PURPOSES 1 BACKGROUND ZESCO Limited invites Expression of Interest from qualified services providers to identify, verify and revalue fixed assets for both accounting and insurance purposes to comply with International Accounting Standards and Insurance and Risk Management Standards. Bidders can access more information on ZESCO website: www.zesco.co.zm.

1.1 ZESCO INFRASTRUCTURE In the generation business, ZESCO has the following power stations among others ranging from 108 MW to 990MW, four Small Hydro Power Stations ranging from 5 to 12 MW and Nine (09) Diesel Power Stations spread throughout the country.

ZESCO has a network comprising Transmission Lines exceeding 7,231km and over 60 Transmission Substations spread across Zambia. The Distribution business has a installed capacity of over 1500MVA. Additionally, ZESCO has other moveable and nonmoveable assets. ZESCO has a Business Information Management System, all business applications are based on Oracle data base.

2 SCOPE OF WORK The assignment involves identification, verification, coding and revaluation of all fixed assets for the Company so as to come up with a comprehensive asset register reflecting fair values. Additionally, there will be need to establish an internationally accepted framework (PAS 55) for sustainable asset management. The assignment shall involve but not limited to the following activities: 2.1 Conduct a fixed asset identification and verification exercise; 2.2 Fixed assets data capture and upload in relevant databases; 2.3 Asset classification and categorization according to industry best practice.; 2.4 Establishing Asset fair values (total reinstatement values) for use to prove insurable losses of fixed assets; 2.5 To establish an intelligent and internationally recognized coding system and tag all the identified and verified fixed assets for tracking purposes.

2.6 To determine fair values for all the company’s fixed assets in accordance with the internationally accepted practice for electricity utility industry (PAS 55), International Accounting and Insurance Standards; 2.7 Establish Satellite Asset Care Centers and a Central Asset Care Centre to anchor assetmanagement; 2.8 Establish an Asset

Management Policy that should include but not limited to the standards, processes, procedures, guidelines and controls for the recording of assets beginning at the budgeting and procurement stages through to the final disposal and or transfer of Assets.

3 QUALIFICATIONS Interested consultants should provide information indicating that they are qualified to undertake the assignment by submitting their detailed information on the following:3.1 Ten Years demonstrable experience in undertaking similar assignments in Power Utility Companies. 3.2 Demonstrated experience and expertise in the valuation of Generation, Transmission and Distribution assets and other associated infrastructure of not less than ten years.

3.3 Demonstrated experience in Financial Audits and specifically verification and confirmation of Fixed assets and liabilities of not less than ten years.

3.4 Demonstrated experience in Insurance Loss Adjusting/Assessment in the Electricity Supply Iindustry of not less than ten years. 3.5 Provide evidence of membership to relevant professional bodies. 3.6 Provide evidence of sound financial capacity to carry out the assignment (Submit independently audited annual statements for the last five years).

The firm should show evidence of collaboration with any Oracle partner(Globally) whose credentials include the following: (a) Valid Oracle Partner Id,(b) Partnership Validity(c) Status of Partner - Silver/ Gold/ Platinum/ Diamond. (d) Certifications and References 4. SUBMISSION The Expression of Interest must be deposited in the tender box on the 2nd Floor, New Building, ZESCO Limited, Head Office, Stand No. 6949, Great East Road, Lusaka, Zambia on or before Friday, 8 February 2013 at 10:30 hours local time. The telephone numbers are 260 (211) 223971 and 260 (211) 362314 and the telefax number is 260 (211) 223971.

HOWEVER, TELEFAX OFFERS WILL NOT BE ACCEPTED. SENIOR MANAGER – PROCUREMENT

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1A Booysens Road Booysens 2091 Johannesburg South Africa Tel: +27 11 240 4000 Fax: +27 11 493 0545 Email: enquiries@howden.co.za

www. howden.co.za