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FEATURE

President Zuma’s announced programme of huge investment in infrastructure and skills is to be followed later this year by a summit to discuss investment opportunities in a wide range of projects in all nine provinces. While supporting the broad strategy ABB CEO Carlos Poùe tells South Africa Magazine that the focus must be on companies that create employment, raise skills levels and bring new technologies.

By Colin Chinery 2

www.southafricamag.com

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resident Zuma’s ‘Industrialise South Africa’ call - the multi-billion rand infrastructure and investment drive heralded in his recent State of the Nation speech - gets a powerful welcome from Carlos Poñe, CEO of leading power and automation technologies corporation ABB South Africa. And along with it, a challenge: No one disputes inadequate infrastructure is inhibiting South Africa’s long-term efficiency and competitiveness. Or that investment is a pre-requisite for increasing GDP and employment. “Of course new investments into South Africa; in railways, power, renewables, energy efficiency and solar, are very exciting for us.

“But we must make sure that municipalities walk the talk and give priority to local industries,” says Poñe.

It’s a theme fast gaining momentum in South Africa.

The buying power of the state is now moving behind local manufacturers, with a new law allowing the government to name sectors and products that must show a minimum level of local content to qualify for state procurement.

“In South Africa alone we will see 40 gigawatts of electricity capacity built in the next 20 years, and this will be accompanied by new investments into transmission and distribution,” says Poñe.

“But outside Eskom our distribution network is in urgent, urgent need of refurbishment. We tend to criticise Eskom, but many times the problems have nothing to do with Eskom but rather with the weakness of our distribution network.

“We need to make sure municipalities and Government invest in the distribution network, and that electricity is available not just for all citizens but sufficient to drive industrial development in South Africa.”

Poñe speaks as the head of a corporation that is walking the walk.

A global leader in power and automation technologies, improving performance while lowering environmental impact, ABB has been in South Africa since 1992. With a wide range of power and automation technologies solutions and a comprehensive product and service portfolio, ABB South Africa has a strong local manufacturing capability, employing over 1500 across three manufacturing sites.

And recent order book entries trail-blaze the kind of industrial innovation, competitiveness and drive that Zuma and many others believe must become the norm if South Africa is to resolve its economic and social issues. Growth points include: A five-year full service contract with Nampak Corrugated to manage maintenance and improve overall efficiency at the company’s Rosslyn Paper Mill, Pretoria.

A R98 million order from Sasol for the replacement of medium-voltage switchgear at four substations in Mpumalanga Province.

A R72 million order for a 220/33 kV turnkey substation to electrify an open cast coil mine project in Mozambique.

Exports account for 15-20 percent of orders, and Poñe says ABB’s Africa strategy is to use South Africa as a hub for Southern and East Africa. “This means we will manufacture more products in South Africa, with increased engineering and project management done here for the rest of Africa. Our own investments in Southern Africa will probably be driven by the mining and oil and gas industries as much as the power industry.”

But for Carlos Poñe and ABB, massive investment in South Africa’s infrastructure together with top level backing for local industries has another and crucial www.southafricamag.com

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World Power Products (Pty) Ltd World Power Products has often been described as a one stop shop due to the high-tech metal fabrication facilities that are available.

Our customized service centre is invaluable to manufacturers without their own facilities with services in:

CNC laser cutting CNC punching CNC bending CNC milling and turning CNC stud welding CNC robot welding CNC plastic injection moulding CNC die casting CNC polyurethane gasket extrusion

Services also include a number of different weldings such as CO2, mig and tig,argon and spot welding, various powder coating lines, a fully equipped tool room and design and development department utilizing the Solidworks software.

PO Box 82200 Southdale 2135 130 Side Road, West Turffontein, Johannesburg 2190 Tel: 011 680 5524 | Fax: 011 433 1709 Email: info@wpp.co.za Website: www.wpp.co.za

The association between ABB and World Power Products Arthur Carolin, Group General Manager at WPP, talks about a long term commitment between two or more organizations for the purpose of achieving specific business goals and objectives. Here is one that has lasted over 25 years.

“World Power Products formed a business relationship in 1986 with ABB then known as ASEA. Over the years, WPP has witnessed the changes to ASEA BBT and now ABB SA. During this association and throughout dealing with various divisions (BBT-Yelland, BBT-Control Systems, and BBT Power Division), we have also been associated with various divisions from Pretoria West: Midrand Bedfordview Robertville Alrode Elandsfontein And now Long Meadow.

We have made many friends in those divisions over the past 25 years, and WPP has played an important role in the contribution to the growth of ABB with various designs and manufacturing improvements and the processing of products supplied by ABB. During this period we have shared many successes and the relationship has been cemented making WPP one of ABB’s preferred suppliers.

World Power Products will continually seek to improve our products and services and the shared objectives and goals to ensure a common direction aligned with each party’s mission”.

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component – an accelerating commitment to sustainability.

At November’s COP 17 UN Climate Change Conference in Durban, he added his signature to those of other South African business leaders to the Energy Efficiency Leadership Network pledge confirming commitment to energy efficiency and a sustainable future.

“We are committed to saving energy in our operations as part of our sustainability priorities,” says Poñe. “As a leader in power and automation technology, we have an important role to play in helping our customers to increase their energy efficiency and at the same time lower carbon emissions.”

Sustainability is an integral part of ABB South Africa, its Modderfontein headquarters and 6

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state-of-the-art manufacturing and logistics centre near Johannesburg a showpiece of green construction and environmental friendliness.

Built with the latest environmental concepts and technology, the H-shaped structure lowers energy consumption through the use of natural light. Costeffective, energy-efficient technologies include a building automation system, power factor correction, drives and high-efficiency motors for the heating, ventilation and cooling systems.

Insulation in the walls, roof and floor cuts cooling costs, while energy is reduced through solar heating, recycling heat from air conditioning motors, and extensive use of ‘grey’ water.

And Longmeadow is more than a model of energy and water efficiency. “From the very beginning we made a decision to create a campus rather than just a place to work. There’s a convenience store for example – very useful if you arrive here very early in the morning, a café shop as well as a canteen, and you can eat outside close to running water.

There are Internet cafes for those without access to computers and where we teach employees how to use the Internet. All in all our people have a good environment in which to work, and this combination of the campus together with energy and water efficiency is uncommon.”

Longmeadow was built in 2009, and Poñe estimates that all investments on energy and water efficiency – over R30-R40 million, will have been paid for by 2013 – “an example of how ABB’s technologies can reduce energy consumption.”

And he is encouraged by the vision and commitment of the country’s business leaders.

“I have seen South African top managers and big business show real concern and take action on sustainability issues. For many years I was chairman of the Industrial Environmental Forum of Southern Africa (now the Business Council for Sustainable Development: South Africa) a body that included very large companies like Eskom and Sasol, and as far back as nine years ago I could see a huge dedication.

“Starting with pollution and reducing CO2 emissions, this has now widened substantially with social and corporate investment where we see South African managers and companies very much at the forefront.”

WORLD POWER PRODUCTS PTY (LTD) Mrs E.Bahlig, Owner and Managing Director at World Power Products, states that we at WPP has and will always foster the culture of being the manufacturer and service centre of choice to the industry and believe that working with companies such as ABB the key philosophy should be around a partnership and the development of a long term relationship.

World Power Products started business in 1963, and has since become a leading local manufacturer of high precision sheet metal products, as well as being of service to customers from development of drawings to completion of products adhering to stringent quality control processes achieving the ISO-9001-2008 Certifi cation.

With almost 50 years experience in the fi eld, we operate from fi ve integrated factory sites, covering a total of 30,000 square meters of factory space, all in the same area, and each with the latest machinery, equipment and technology.

The company is committed to innovation, and realizes the importance to stay at the forefront of the industry by continually investing in the latest capital intensive manufacturing technologies.

The latest acquisition being a state of the art Fiber Laser cutting machine from Italy, using only 20% of the current energy consumption to that of the conventional CO2 Lasers.

Due to demands and requirements from the industry World Power Products embarked on the establishments of Perano Sales in 1975 to cater for in house and the external demand for the manufacture and supply of locks, hinges and hardware for the to the enclosure and panel manufacturing industry.

Contina Storage Systems was established in 1990 with the main focus being the manufacture of storage management systems, hi density rack storage panels and drawers, tool trolleys, and work station benches for the easy storage and identifi cation of spare parts, tools ,small components etc.

As well as manufacturing of the PB3000 19” rack cabinets to cater for increasing telecommunications and information technology markets.

Ultimo Technology was formed in 1993 for the manufacture of the Perano standard range of wall mounted enclosures and the PB1000 series a highly versatile modular and adaptable range of fl oor standing cabinets to satisfy the increasing demand for these products.

Mega Enclosures was launched in 1998 to produce the Mega series of stainless steel wall mounted and fl oor standing enclosures in 3cr12, 304 and 316 stainless steels to accommodate requirements for corrosion resistant enclosures fi nding applications in coastal, chemical and harsh environments where mild steel and other materials are unsuitable.

We also have the Chemopur plating plant to cater for various types of electro plating requirements, in house and to the industry as well.

We are an accredited B-BBEE contributor and WPP is also an offi cial training provider under the Merseta with training SAQA aligned for Apprenticeships, Learnerships and Skill Development Programmes.

For more information please contact us on Tel: 011 680 5524 Email: info@wpp.co.za www.wpp.co.za

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But before new employment can be created existing jobs must be safeguarded. “We must guarantee that the jobs that exist, stay, then new investment will create new jobs.”

President Zuma says new investments in South Africa’s roads, railways and ports will create construction jobs and encourage miners and manufacturers to expand their operations.

Among projects announced, a R300 billion investment in a ‘logistics and industrial corridor’ to improve transportation and support businesses between Johannesburg and the port city of Durban, the main artery of South Africa’s economy.

“The massive investment in infrastructure must leave more than just power stations, rail lines, dams and roads. It must industrialize the country, generate skills and boost much-needed job creation,” says Zuma.

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Carlos Poñe agrees. “We need more support and procurement for local industries, those that are price and technology competitive. Secondly as a country we must address the skill base issue and see that it is widened.

“We need to create a bigger pool of engineers.

We need to train all the engineers we can and bring back to South Africa as many as possible. And this goes right across the spectrum, from engineers that can plan, design, project or site manage.”

While President Zuma – “We can’t only do politics; we must also do the economy” declares that investors are crucial for job creation, Standard Bank Chief Economist Goolam Ballim says Government needs to recognise that the private sector is the dominant job creator and will participate in the economy when it feels secure.

Carlos Poñe gives a parallel warning.

“Without a good and wide skill base in South Africa, we will have a huge challenge to deliver on this project.

We should not be looking at price alone.

We need to make sure that companies that create employment,

Master Splice & Termination Master Splice & Termination was founded by Johan Visser in 1986 after 30 years’ experience in the electrical industry.

The company is a dynamic and well structured electrical contracting company and supplies Magnetic Proximity Switches and Permanent Magnets to the Mining Industry where they are used on surface and underground for a variety of purposes, including the control and detection of moving bodies. They may be used as limit switches or presence detectors. Because of the robust construction of the switch enclosures, they are positioned in a variety of hostile environments, where they handle the damage and corrosion remarkably well.

We also manufacture and install cable racks for the mining industry.

We specialize in winder electrical installations, upgrades and maintenance.

raise skills levels and bring new technologies are encouraged and supported. These are the businesses that will bring benefit to South Africa in the long run.

“And we must believe in South Africa and Africa. We have enough negativity going around.

People need to start being positive about our country and our continent.” END

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Longmeadow Business Estate (North) 2 Lake Road Modderfontein 1609 Gauteng Tel: +27 10 202 5000 Fax: +27 11 579 8000

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