Featuring: ACTOM's Maintenance Offering
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Featuring: June 2017 ACTOM’s maintenance offering Watt What’s ACTOM (Pty) Ltd www.actom.co.za Always with you Corporate Focus A better year in a difficult environment The group had a better year as order be a critical focus area for the group, as intake improved, particularly in the the continent improves both its infra- latter months when the local and structure and added-value industries. global economies began a fragile We are well positioned, with our unique recovery. local capacity, experience and skill base Municipal markets recovered, as to continue building a sustainable pres- did the mining and industrial sectors. ence on the continent. Eskom demand also increased, which The company is continuing to focus contributed much needed loading for on its empowerment credentials in the factories which received orders. line with government and customer Unfortunately, the recent political policies and is working on developing environment has created instability a sustainable structure in partnership and markets have slowed over the past with all stakeholders. few months. Nevertheless economic Management focus will remain on fundamentals, although still tentative, developing, retaining and supporting remain positive and local demand our staff and our asset infrastructure should improve strongly once political in order to ensure that when stability and economic certainty returns. standard maintenance procedures are and growth return to normal levels Prospects for the group remain re-implemented on the back of re- we will be ready to capitalise on the positive as the need for power both sumed sustainable economic growth. opportunities. locally and in Africa continues to grow Government remains committed to In conclusion I would like to once in both the traditional and renewable supporting local manufacture, which again thank all management, staff and sectors. In addition the maintenance should provide loading for our factories other stakeholders for their hard work backlog on the regional transmission and allow ongoing investment into both and support over the past unsettled and distribution system continues to capital and technology. year. remain largely unaddressed. This will Development and further penetra- provide significant opportunities when tion of the African market continues to Mark Wilson Group launching new growth initiatives The past year has seen South wards diversifying the business in the Africa face extremely challenging medium term from both a product and conditions economically. This has geographic perspective, the intention manifested in an exceptionally slow here being to grow ACTOM’s presence growth for the country. Political in Africa by the development of indus- and policy uncertainty have led to a trial hubs in key regions. slowdown in investment on both the Regarding the group’s performance domestic and international fronts. in terms of the broad-based black The key factors that have led to the economic empowerment regulations, reduced growth have been low com- ACTOM has done exceptionally well in modity pricing and a general slowdown the latest round of B-BBEE assessments across most sectors. We have seen a by maintaining its Level 3 B-BBEE sta- major slowdown in product purchases tus overall and in most of its divisions. from the electricity utilities. The manu- I’d like to add a word of thanks to facturing sector has been particularly all our divisions and business units for badly affected, the effects of which it change its traditional business model. their dedication and exceptional per- have been compounded by the growth Government has intervened in the formance under extremely challenging of imports of electrical equipment. The interests of local manufacturers in des- conditions. We have performed well on recent downgrades in our sovereign ignating certain locally manufactured all fronts, being financial, B-BBEE, envi- rating will further compound challeng- products which government institu- ronmental and health & safety, where es and we expect this to directly impact tions are now obliged to purchase in we have achieved a disabling injury on our business in the coming year. preference to imports, aiding develop- frequency rate for the group of 1,45. On the positive side, our John ment of local industry going forward. In closing, we are currently going Thompson business has performed My focus in the coming months through extremely turbulent times with exceptionally well, in particular the will be around the poorly performing major political noise. This tends to be a Utility & Environmental Boiler unit. Also divisions in the group with a view to distraction and my advice to everyone noteworthy is that our MV Switchgear turning them around. A further key is that we need to stay focussed and division has acquired the WPI Power focus will be to optimise synergies manage issues which are within our Solutions business and transformed between group divisions and continue control as best we can. I am optimistic it into a sustainable and profitable to grow our core business. This will that our economy will turn and we need business within a nine-month period. include, amongst others, issues around to be well poised when that happens. Marthinusen & Coutts has also secured systems offerings. substantial export work which has seen There will be a very strong drive to- Mervyn Naidoo What’s Watt June 2017 2 Corporate What’s Inside ACTOM’s maintenance offering Pg 3 Interim Eskom contract for Distribution Transformers Pg 16 Newly appointment Group CEO, Mervyn Naidoo Pg 6 LHM manufactures transformers in record time Pg 16 Annual Chairman’s Award Pg 6 LHM expands into Angolan market Pg 17 Balmoral College learners shine Pg 7 R&M pool group resources for urgent refurbishment Pg 18 Completion of water tube boiler in Java Pg 8 M&C completes Africa’s largest rotor pole refurb Pg 19 John Thompson awarded CE quality marking Pg 9 First Electro-mechanical Installation in Panama Pg 20 J T wins bid for Ghanian edible oil refinery Pg 10 First International orders received for Relco products Pg 21 Electrical Machines open branch in Richards Bay Pg 12 TLT ACTOM awarded Sasol Mining contract Pg 22 Static Power’s modular UPS system Pg 12 ACTOM Energy to add value to ACTOM divisions Pg 23 Signalling complete rail yards project upgrade Pg 12 Power Systems’ Sy Gourrah SAIEE Jnr Vice President Pg 25 HV dual-voltage (VT) transformer developed Pg 13 ACTOM T&D wins award at AUW exhibition Pg 26 MV Switchgear’s new effluent treatment plant Pg 14 Long Service awards Pg 27 P&C signs new distributorship agreement Pg 15 Electrical Products staff triumph at 2017 Dusi Pg 29 Cover The images portray the diverse variety of maintenance projects undertaken by the various ACTOM Group divisions. See pages 3 & 5. ACTOM’s asset lifecycle maintenance offering Investing in operational equipment can run into millions so the expec- tation for assets of this nature to last for years is not surprising. Key to extending the lifespan of any equipment is ensuring it is well maintained throughout the asset lifecycle. ACTOM, through a number of its divisions and business units, has been providing maintenance services to customers for many years. Currently, depending on the nature of an ACTOM business unit, maintenance accounts for anything between 10% – 90% of ACTOM’s maintenance offering revenue. As the largest manufacturer, solution provider, repairer, maintainer “In these demanding times, it our business both locally and across and distributor of electro-mechanical is imperative to extract maximum Africa. Time and time again we have equipment in Africa, extending its value from your plant and equipment. seen the entrepreneurial spirit amongst range of maintenance options makes ACTOM Solutions, as a project busi- our staff and I am confident that given strategic sense. ness with front-end engineering capa- the opportunity and tools, our staff will With ACTOM’s diverse structure bilities, can provide customers with the grow our maintenance capability,” ex- that includes design, manufacturing, optimal maintenance solution. By es- plained Mervyn Naidoo, Group CEO. condition monitoring and maintenance, tablishing ACTOM Solutions, we have The acquisition of WPI Power the solutions their OEM status offers, initiated the process of laying a founda- Solutions (WPI) in 2016 accelerated would be most beneficial to custom- tion for a division that is able to provide ACTOM’s maintenance offering. WPI’s ers. By making use of ACTOM’s diverse maintenance solutions offerings across core business is the repair and mainte- maintenance offering, customers Group products. It is important that nance of electrical networks. Martin would no longer have the burden of we integrate the current maintenance Kelly, Divisional CEO responsible for managing a number of service pro- services we offer to our customers WPI elaborates, “We have provided viders, but enjoy a ‘one-stop shop’ so that we are able to take advantage maintenance and testing of switch- solution for all their maintenance of every opportunity available to us, gear equipment to companies such as requirements. through our existing contracts, to grow To page 4 3 What’s Watt June 2017 Corporate From page 3 million rand contract was awarded to Sasol, Anglo Gold Ashanti and Anglo MV Switchgear and Martin Kelly, MV American for many years. On most of Switchgear’s Divisional CEO explains these sites we have dedicated teams the scope, “Electrical distribution to ensure that equipment is well main- equipment is repaired and main- tained. A priority within these busi- tained for the Ekurhuleni Metropolitan ness sectors is health and safety and Municipality by 15 multi-disciplinary as part of the maintenance contract, teams of between two and eight mem- we ensure that all equipment meets bers each. The contract incorporates regulatory requirements.” maintenance of the properties occu- Regulatory maintenance is an area pied by the equipment because our of maintenance that is often over- teams understand the dangers within looked.