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    • The Generator and Transformer Industry In South Africa

    The Generator and Transformer Industry in South Africa 2024

    Carole Veitch | South Africa | 29 August 2024

    The Generator and Transformer Industry In South Africa 2022

    Stephen Timm | South Africa | 19 April 2022

    The Generator and Transformer Industry In South Africa 2019

    Marc Bosman | South Africa | 31 July 2019

    The Generator and Transformer Industry In South Africa 2017

    Marc Bosman | South Africa | 05 December 2017

    The Generator and Transformer Industry In South Africa 2015

    Marc Bosman | South Africa | 28 July 2015

    Report Info

    Report Summary Table of Contents
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    Report coverage

    This report on the generator and transformer industry in South Africa includes information on power generation, transmission and distribution, manufacturing sales, notable players, corporate actions, imports and regulations. There is also information on influencing factors such as environmental issues, government support, input costs and the competitive environment. There are profiles of 25 notable companies including Cummins, Siemens, ABB South Africa, Actom, Matlakse, Weg Group and FGW Generators,

    Report coverage

    This report on the generator and transformer industry in South Africa includes information on power generation, transmission and distribution, manufacturing sales, notable players, corporate actions, imports and regulations. There is also information on influencing factors such as environmental issues, government support, input costs and the competitive environment. There are profiles of 25 notable companies including Cummins, Siemens, ABB South Africa, Actom, Matlakse, Weg Group and FGW Generators,

    Introduction

    • Generators and transformers contribute to power generation, transmission, distribution, energy storage and grid management. \r\n
    • Power cuts fuelled a surge in demand for back-up generators and alternative energy generation systems. \r\n
    • Manufacturing sales and imports of transformers, electric generators and motors, increased significantly in 2023. \r\n
    • Power utility Eskom’s performance has improved significantly since April 2024. \r\n
    • Energy security remains at risk due to Eskom’s high debt, ageing power plants, overloading of transformers, theft and vandalism of electricity infrastructure, and weather-related damage. \r\n
    • The new Electricity Regulation Amendment Act provides for an independent electricity transmission system operator and aims to create an enabling environment for private renewable energy investment and to promote energy security.

    Trends

    • New embedded power and renewable energy projects are eroding demand for generators.
    • The high cost of diesel is driving energy users and innovators to search for more affordable options, reducing demand for diesel generators.
    • The maintenance and repair of power generation infrastructure and proposed grid expansion are driving demand for transformers.
    • Uptake of generators powered by renewable energy and hybrid generator systems that combine diesel generators with renewable energy systems.

    Opportunities

    • Demand for transformers from IPPs for micro- and hybrid grids.
    • Eskom’s need to replace ageing infrastructure, in addition to new capital expansion projects.
    • Ongoing opportunities in the power rental market.
    • Public procurement of locally-made products.
    • The growth of intra-African trade provides potential opportunities to supply generators and transformers to other African countries.
    • The manufacture and supply of generators powered by renewable energy.
    • The proposed expansion of the electricity transmission network provides opportunities for local transformer manufacturers.
    • The rollout of data centres presents an opportunity for providers of transformers and substations.
    • Transformers are required in renewable energy systems to prevent power fluctuations.

    Challenges

    • Margins continue to be eroded by rising production costs, notably fuel and energy, as well as the cost of imported inputs.
    • Port and logistics inefficiencies result in lengthy delays and drive up costs.
    • Reliance on imported components.
    • South Africa’s low-growth economy influences the demand for electricity, which influences how much new generator and transformer capacity must be added to the grid.
    • The impact of Eskom’s debt crisis on capital expenditure, which could affect the implementation of the proposed transmission network expansion project.
    • The introduction of new utility-scale independent renewable energy power supply to Eskom is being constrained by the lack of capacity on the national grid.

    Outlook

    • The rapidly-evolving energy market presents challenges and opportunities for manufacturers and suppliers of generators and transformers. \r\n
    • South Africa is moving towards a decentralised electricity system and increased demand for wind and solar-powered generators. \r\n
    • Despite improved electricity supply recently, the risk of future outages remains high and will continue to drive demand for back-up generators. \r\n
    • Transformers are a key component for integrating renewables and electrifying transportation. \r\n
    • The proposed expansion of the transmission network provides significant opportunities for the transformer industry and its supply chain.

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    The Generator and Transformer Industry in South Africa
    The Generator and Transformer Industry in South Africa 2024

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    The Generator and Transformer Industry In South Africa 2022-04-19

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    The Generator and Transformer Industry In South Africa 2019-07-31

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    The Generator and Transformer Industry In South Africa 2017-12-05

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    The Generator and Transformer Industry In South Africa 2015-07-28

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 5
    2.2. Geographic Position 7
    2.3. Size of the Industry 11
    3. LOCAL 14
    3.1. State of the Industry 14
    3.2. Key Trends 19
    3.3. Key Issues 20
    3.4. Notable Players 20
    3.5. Trade 23
    3.6. Corporate Actions 25
    3.7. Regulations 25
    3.8. Enterprise Development and Social Development 27
    4. AFRICA 28
    5. INTERNATIONAL 33
    6. INFLUENCING FACTORS 37
    6.1. Unforeseen Events 37
    6.2. Economic Environment 37
    6.3. Labour 38
    6.4. Environmental Issues 40
    6.5. Technology, R&D, Innovation 41
    6.6. Government Support 42
    6.7. Input Costs 44
    7. COMPETITIVE ENVIRONMENT 45
    7.1. Competition 45
    7.2. Ownership Structure of the Industry 46
    7.3. Barriers to Entry 46
    8. INDUSTRY SUMMARY 47
    9. OUTLOOK 48
    10. INDUSTRY ASSOCIATIONS 49
    11. REFERENCES 49
    11.1. Publications 49
    11.2. Websites 50
    ANNEXURE 1 52
    Industry Legislation 52
    APPENDIX 1 60
    Summary of Notable Players 60
    COMPANY PROFILES 64
    ABB SOUTH AFRICA (PTY) LTD 64
    ACTOM (PTY) LTD 67
    AGGREKO ENERGY RENTAL SOUTH AFRICA (PTY) LTD 75
    AKSA POWER GENERATION SA (PTY) LTD 77
    ARMCOIL AFRIKA (PTY) LTD 78
    BABCOCK AFRICA (PTY) LTD 80
    BARLOWORLD LTD 82
    CUMMINS SOUTH AFRICA (PTY) LTD 87
    DIESEL ELECTRIC SERVICES (PTY) LTD 89
    FGW GENERATORS (PTY) LTD 91
    FREE STATE TRANSFORMERS (PTY) LTD 92
    GENERATOR KING (PTY) LTD (THE) 94
    GENPOWER ELECTRICAL WHOLESALERS CC 96
    GEOMECHANICS (PTY) LTD 98
    HITACHI ENERGY SOUTH AFRICA (PTY) LTD 100
    INSTRUMENT TRANSFORMER TECHNOLOGIES (PTY) LTD 102
    MATLAKSE (PTY) LTD 104
    NEW WAY POWER (PTY) LTD 106
    RELIABLE TRANSFORMERS CC 108
    REVIVE ELECTRICAL TRANSFORMERS (PTY) LTD 109
    SGB SMIT POWER MATLA (PTY) LTD 111
    SIEMENS (PTY) LTD 114
    SMITH MINING EQUIPMENT (PTY) LTD 118
    TRAFO POWER SOLUTIONS (PTY) LTD 120
    TRANS ELECTRON CC 121
    WEG GROUP AFRICA (PTY) LTD 123

    Report Coverage

    This report focuses on the manufacture and supply of generators and transformers and includes comprehensive information on the state of the sector, the energy mix, imports, localisation and influencing factors including power generation, demand, capacity and input costs. There are profiles of 41 companies including major players such as ABB, Actom, generator step-up transformer manufacturer SGB-Smith Power Matla, Revive Electrical Transformers, which has supplied various renewable independent power producers and generator providers such as Cummins.

    Introduction

    This report focuses on the manufacture and supply of generators and transformers. Manufacturing sales of electric motors, generators and transformers grew by 1.2% a year to R11bn in 2021, but have been trending down by an average of 4.9% a year between 2016 and 2021, after growing by an average of 18.5% year on year between 2000 and 2016. Imports of transformers and generators, which have outpaced those of exports over the last two decades, fell by 34.7% to R12bn in 2021, largely because of steep decline in wind-powered generators and electric motors and generator parts imports. Exports amounted to R3.3bn in 2021. While demand for diesel generators has generally grown in step with loadshedding, imports of portable generators fell by 23.6% to R876m in 2021, even as loadshedding peaked. It is unclear whether ports delays, pandemic restrictions, or the increase in renewable energy projects coming online are to blame for the decline. The deployment of transformers has been held back by a decline in capital expenditure by Eskom, which sources the majority of transformers in the country. Eskom’s capital expenditure in the year to end-March 2021 of R24bn fell by 60% compared to 2017. However, the industry could expect to ramp up given the country’s plans to add over 30GW of new generation to the grid between 2022 and 2031.

    Strengths

    • A broad range of local transformers which have been designated by government.
    • Ability to diversify products to adapt to economic conditions, changing customer needs and regulatory requirements.
    • All industries in South Africa need electricity and backup power for their operations.
    • Local products are of high quality and comply with international standards.
    • Multinationals with strong brands and reliable products are present in the South African market.

    Weaknesses

    • Dependent on the welfare of target markets such as the energy, construction, civil engineering, manufacturing and mining industries.
    • High carbon emissions of diesel and petrol.
    • Low import duty on foreign-manufactured generator sets.
    • Shortage of qualified and skilled personnel.
    • The increasing cost of diesel and petrol make generators increasingly expensive to operate, exceeding the cost of Eskom electricity.

    Opportunities

    • Demand for transformers from independent power producers and in the hybrid grid.
    • Enforcement of higher local content levels.
    • Eskom’s need to replace ailing infrastructure, in addition to new capital expansion projects.
    • Increasing economic activity in Africa increases demand for backup power, providing opportunities for generators and renewable suppliers.
    • Increasing technology reliance increases the need for essential backup power, while the rollout of data centres presents a growing opportunity for transformer providers.
    • Loadshedding by Eskom could drive organic generator growth.
    • Ongoing opportunities in the rental power market in South Africa.
    • The planned addition of 30GW of new generation between 2022 and 2031 will provide opportunities for transformer manufacturers as the grid will have to be strengthened.

    Threats

    • A slowing economy could reduce demand for transformers and generators by industry and business.
    • Alternative electricity-generating products gaining popularity and becoming more affordable. Government policy supports the adoption of renewable energy generation solutions.
    • Continuing significant transformer imports at lower cost.
    • Economic conditions reduce ability of customers to invest in generators and transformers.
    • Embedded generation projects, enabled by new regulation which raised the threshold to 100MW for own-generation projects could result in reduced demand for portable generators in favour of renewable power generation.
    • Emission compliance regulations such as carbon tax could impact on business.
    • Eskom and municipal financial woes.
    • High duties on South African exports in foreign countries.
    • Increasing availability of global brands.
    • Increasing input costs are a threat. For example the rising diesel price could result in energy users moving away from diesel generators.
    • Short to medium-term shortage of qualified and skilled personnel.

    Outlook

    Industry commentators believe the outlook for local manufacturing of transformers is positive. Demand is expected to be driven by the projected installation of 30GW of new generation, as well as embedded generation and data centre projects. Portable generator suppliers are, however, more cautious, as the commissioning of new power projects is likely to reduce the need for generator power, while many energy users are shifting away from relatively expensive and dirty diesel-powered generators to renewable energy options to meet their power generation needs.

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    The Generator and Transformer Industry In South Africa
    The Generator and Transformer Industry In South Africa 2022

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 3
    2.2. Geographic Position 4
    2.3. Size of the Industry 6
    2.4. Key Success Factors and Pain Points 11
    3. LOCAL 12
    3.1. Key Trends 12
    3.2. Notable Players 18
    3.3. Trade 19
    3.4. Corporate Actions 24
    3.5. Regulations 24
    3.6. Enterprise Development and Social Economic Development 29
    4. AFRICA 31
    5. INTERNATIONAL 39
    6. INFLUENCING FACTORS 43
    6.1. COVID-19 43
    6.2. Economic Environment 43
    6.3. Labour 44
    6.4. Environmental Issues 46
    6.5. Technology, Research and Development (R&D) and Innovation 47
    6.6. Government Support 47
    6.7. Input Costs 48
    7. COMPETITIVE ENVIROMENT 50
    7.1. Competition 50
    7.2. Ownership Structure of the Industry 52
    7.3. Barriers to Entry 52
    8. SWOT ANALYSIS 53
    9. OUTLOOK 54
    10. INDUSTRY ASSOCIATIONS 54
    11. REFERENCES 55
    11.1. Publications 55
    11.2. Websites 56
    APPENDIX 1 58
    Summary of Notable Players 58
    COMPANY PROFILES 63
    ABB South Africa (Pty) Ltd 63
    ACTOM (Pty) Ltd 66
    Aggreko Energy Rental South Africa (Pty) Ltd 74
    Aksa Power Generation SA (Pty) Ltd 76
    ArmCoil Afrika (Pty) Ltd 77
    Babcock Africa (Pty) Ltd 79
    Barloworld Ltd 81
    C and R Industries CC 87
    Caco Trading (Pty) Ltd 88
    Channel Data (Pty) Ltd 90
    Cummins South Africa (Pty) Ltd 92
    Diesel Electric Services (Pty) Ltd 94
    Diesel Gen Technologies CC 96
    Energenic GL (Pty) Ltd 98
    Epiroc South Africa (Pty) Ltd 100
    FGW Generators (Pty) Ltd 102
    Free State Transformers (Pty) Ltd 103
    Generator King (Pty) Ltd (The) 105
    Genpower Electrical Wholesalers CC 107
    Geomechanics (Pty) Ltd 109
    Goscor (Pty) Ltd 111
    Hitachi Energy South Africa (Pty) Ltd 113
    Hoffmann Power (Pty) Ltd 115
    Ian Dickie and Company (Pty) Ltd 117
    Instrument Transformer Technologies (Pty) Ltd 119
    KLB Engineering (Pty) Ltd 121
    Magetz Electrical CC 123
    New Way Power (Pty) Ltd 125
    Reliable Transformers CC 127
    Revive Electrical Transformers (Pty) Ltd 129
    SGB Smit Power Matla (Pty) Ltd 131
    Siemens (Pty) Ltd 133
    Smith Mining Equipment (Pty) Ltd 137
    Stevens and Co (Pty) Ltd 139
    Trafo Power Solutions (Pty) Ltd 141
    Trans Electron CC 143
    Transformer Manufacturers (Pty) Ltd 145
    Tuning Fork (Pty) Ltd 147
    Turner Morris (Pty) Ltd 150
    V R Engineering (Pty) Ltd 153
    Zest WEG Group Africa (Pty) Ltd 154

    Introduction

    This report focuses on the generator and transformer industry, which includes all technologies which generate and move electricity and the encompassing digital platforms which monitor and manage these increasingly complex power networks. The industry has since 2015 suffered the effects of an economy weakened by reduced investment and operational expenditure in the traditional power industry represented by Eskom and municipalities, as well as in agriculture, construction, manufacturing and mining, and energy, all key industries which utilise industry products and services. However, the industry has benefitted from rising government, corporate, industrial, agricultural and private investment in renewable energy installations.

    Strengths

    • A broad range of local transformers which have been designated by government.
    • Ability to diversify products to adapt to economic conditions, changing customer needs and regulatory requirements.
    • African market.
    • All industries in South Africa need electricity and back-up power for their operations.
    • Local products are of a high quality and comply with international standards.
    • Multinationals with strong brands and
    • reliable products are present in the South

    Weaknesses

    • Dependent on the welfare of target markets such as the energy, construction, civil engineering, manufacturing and mining industries.
    • High carbon emissions of diesel and petrol.
    • Low import duty on foreign-manufactured generator sets.
    • Shortage of qualified and skilled personnel.
    • The increasing cost of diesel and petrol make generators increasingly expensive to operate, exceeding the cost of Eskom electricity.

    Opportunities

    • Demand for transformers from independent power producers and in the hybrid grid.
    • Enforcement of higher local content levels.
    • Eskom’s need to replace ailing infrastructure and capital expansion projects.
    • Increasing economic activity in Africa increases demand for back-up power, providing opportunities for generators and renewable suppliers.
    • Increasing technology reliance increases the need for essential back-up power.
    • Load shedding by Eskom could drive organic generator growth.
    • Ongoing opportunities in the rental power market in South Africa.
    • State and private infrastructure spend provides opportunities for renewable and prime and back-up power for the construction and civil engineering industry.

    Threats

    • Alternative electricity-generating products gaining popularity and becoming more affordable. Government policy supports the adoption of renewable energy generation solutions.
    • Continuing significant transformer imports at lower cost.
    • Economic conditions reduce ability of customers to invest in generators and transformers.
    • Emission compliance regulations such as carbon tax could impact on business.
    • Eskom and municipal financial woes.
    • High duties on South African exports in foreign countries.
    • Increasing availability of global brands.
    • Increasing input costs.
    • Short to medium-term shortage of qualified and skilled personnel.

    Outlook

    Industry commentators agree on the need for energy industry players to diversify or face obsolescence, as renewables begin to proliferate. Customers and energy users are demanding an integrated and diversified energy supply based on flexible pricing and payment models. The energy industry, subject to regulatory developments, will become increasingly oversupplied and competitive as the world moves increasingly towards renewables and fossil fuel oversupply increases. Freedom of choice will drive pricing of supply down as technology costs decline. \r\n\r\nDeclining renewable energy prices will ensure mainstream adoption over the next 10 years. The size of the opportunity to be addressed through escalating energy demand will ensure a positive outlook for the reduced number of industry players and improve ability to manage through the current economic climate, despite the numerous challenges. The scope of demand for electrification where none currently exists is large. The International Energy Agency estimates that by 2020 developing countries will need to double power output to meet rising demand. Analysts note that while opportunities abound, continued access to finance will be critical for success. Funding and delivering the transmission and distribution network to accommodate renewable energy generation will be critical. The adoption of smart grid technology and energy storage is acknowledged as the main market driver in the transformer sector over the next five years.

    The Generator and Transformer Industry In South Africa
    The Generator and Transformer Industry In South Africa 2019

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    Industry Landscape

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    The Generator and Transformer Industry in South Africa 2024-08-29

    R 20 000.00(ZAR) estimated $1104.51 (USD)*

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    The Generator and Transformer Industry In South Africa 2022-04-19

    R 6 500.00(ZAR) estimated $358.97 (USD)*

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    The Generator and Transformer Industry In South Africa 2017-12-05

    R 1 900.00(ZAR) estimated $104.93 (USD)*

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    The Generator and Transformer Industry In South Africa 2015-07-28

    R 1 900.00(ZAR) estimated $104.93 (USD)*

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 3
    2.2. Geographic Position 5
    3. SIZE OF THE INDUSTRY 5
    4. STATE OF THE INDUSTRY 13
    4.1. Local 13
    4.1.1. Corporate Actions 18
    4.1.2. Regulations 19
    4.1.3. Enterprise Development and Social Economic Development 23
    4.2. Continental 24
    4.3. International 28
    5. INFLUENCING FACTORS 34
    5.1. Economic Environment 34
    5.2. Rising Operating Costs 35
    5.3. Labour 35
    5.4. Government Initiatives 38
    5.5. Business and Civil Initiatives 39
    5.6. A Just Energy Transition 40
    5.7. Eskom and Municipality Debt, Fraud and Corruption 41
    5.8. Technology, Research and Development (R&D) and Innovation 42
    5.8.1. Cyclicality 45
    5.9. Environmental Concerns 45
    6. COMPETITION 47
    6.1. Barriers to Entry 49
    7. SWOT ANALYSIS 50
    8. OUTLOOK 51
    9. INDUSTRY ASSOCIATIONS 51
    10. REFERENCES 52
    10.1. Publications 52
    10.2. Blogs 61
    10.3. Websites 61
    APPENDIX 1 65
    Summary of Notable players 65
    APPENDIX 2 69
    South African Wind Farms 69
    COMPANY PROFILES 71
    ABB SOUTH AFRICA (PTY) LTD 71
    ACTOM (PTY) LTD 74
    AGGREKO ENERGY RENTAL SOUTH AFRICA (PTY) LTD 82
    ARMCOIL AFRIKA (PTY) LTD 84
    BABCOCK AFRICA (PTY) LTD 86
    BARLOWORLD LTD 88
    BRIGGS AND STRATTON RSA (PTY) LTD 93
    CACO TRADING (PTY) LTD 95
    CATO RIDGE ELECTRICAL CONSTRUCTION (PTY) LTD 97
    CHANNEL DATA (PTY) LTD 100
    CUMMINS SOUTH AFRICA (PTY) LTD 102
    DIESEL ELECTRIC SERVICES (PTY) LTD 104
    DIESEL GEN TECHNOLOGIES CC 106
    ELECTRO INDUCTIVE INDUSTRIES (PTY) LTD 108
    EPIROC SOUTH AFRICA (PTY) LTD 110
    FREE STATE TRANSFORMERS (PTY) LTD 113
    GENERATOR KING (PTY) LTD (THE) 115
    GENERATOR LOGIC HOLDINGS (PTY) LTD 117
    GENPOWER ELECTRICAL WHOLESALERS CC 119
    GEOMECHANICS (PTY) LTD 121
    GOSCOR (PTY) LTD 123
    HOFFMANN POWER (PTY) LTD 125
    HONDA MOTOR SOUTHERN AFRICA (PTY) LTD 127
    IAN DICKIE AND COMPANY (PTY) LTD 129
    MAGETZ ELECTRICAL CC 131
    MASSMART HOLDINGS LTD 133
    MATASE INDUSTRIAL SOLUTIONS (PTY) LTD 139
    NEW WAY POWER (PTY) LTD 141
    RELIABLE TRANSFORMERS CC 143
    REVIVE ELECTRICAL TRANSFORMERS (PTY) LTD 144
    SGB SMIT POWER MATLA (PTY) LTD 146
    SIEMENS (PTY) LTD 148
    SMITH MINING EQUIPMENT (PTY) LTD 152
    STEVENS AND CO (PTY) LTD 155
    SUDEN PROCUREMENT CC 157
    SUPERWATT (PTY) LTD 159
    TRAFO POWER SOLUTIONS (PTY) LTD 161
    TRANS ELECTRON CC 162
    TRANSFORMER MANUFACTURERS (PTY) LTD 164
    TUNING FORK (PTY) LTD 165
    TURNER MORRIS (PTY) LTD 168
    VR ENGINEERING (PTY) LTD 170
    ZEST WEG GROUP AFRICA (PTY) LTD 172
    0
    0

    Report Coverage

    The South African Generator and Transformer Industry report describes the current situation in the country, outlines developments in the industry and focuses on factors influencing the sector’s success. The report profiles 50 industry players including Allied Electronics Corporation Ltd t/a Altron which in November 2017 disposed of its 80% interest in the Powertech Transformers Group to a consortium comprising Power Matla (Pty) Ltd., Power Matla Transformers (Pty) Ltd. and SGB-SMIT GmbH. Also profiled is New Way Power which with 10% market share, was the second-largest local manufacturer of Gensets in 2015. During the course of 2017 the company’s share of the market has increased to an estimated 30%.

    Introduction

    This report focuses on the generator and transformer industry, which, since 2015 has suffered the effects of an economy weakened by reduced investment in energy and mining, declining manufacturing output and the impact of the drought on the agricultural sector. Above average winter temperatures and rising renewable energy production combined with Eskom’s stabilising of the grid, have resulted in an energy surplus, impacting the generator industry. Eskom and Municipality woes have resulted in reduced capital investment in the transformer industry, particularly reflected in the results of industry players. Fraud and corruption remain prevalent in the industry and despite an increased focus on localisation, South Africa imported electrical transformers, static converters and inductors to the value of approximately R4.7bn in 2016.

    Strengths

    • A broad range of local transformers which have been designated by Government.
    • Ability to diversify product offering to adapt to economic conditions, changing customer needs and regulatory requirements.
    • African market.
    • All industries in South Africa need electricity and back-up power for their operations.
    • Local products are of a high quality and comply with international standards.
    • Multinationals with strong brand power and
    • reliable products are present in the South

    Weaknesses

    • Dependent on the welfare of target markets such as the energy, construction, civil engineering, manufacturing and mining industries.
    • High carbon emissions of diesel and petrol.
    • Low import duty on foreign-manufactured generator sets.
    • Shortage of qualified and skilled personnel.
    • The increasing cost of diesel and petrol make Gensets increasingly expensive to operate, exceeding the cost of Eskom electricity.

    Opportunities

    • Demand for transformers from IPPs and in the hybrid grid.
    • Eskom’s need to replace ailing infrastructure and capital expansion projects.
    • Increasing economic activity in Africa increases demand for back-up power, providing opportunities for Genset and renewable suppliers.
    • Increasing technology reliance increases the need for essential back-up power.
    • Limited and anticipated State and Private infrastructure spend provides opportunities for renewable and prime and back-up power for the construction and civil engineering industry.
    • Ongoing opportunities in the rental power market in South Africa.
    • Selective municipal load shedding by Eskom could drive organic generator growth.
    • Should it occur, the enforcement of higher local content levels.

    Threats

    • Alternative electricity generating products gaining popularity and becoming more affordable. Government policy supports the adoption of renewable energy generation solutions.
    • Continuing significant transformer imports at lower cost.
    • Economic conditions reduce ability of customers to invest in generators and transformers.
    • Emission compliance regulations such as carbon tax could impact on business.
    • Eskom and municipal financial woes.
    • High duties on South African exports in foreign countries.
    • Increasing availability of global brands.
    • Increasing input costs.
    • Short to medium-term shortage of qualified and skilled personnel.

    Outlook

    The outlook for the reduced number of industry players capable of weathering the current economic climate remains positive despite the numerous challenges. The need and demand for electrification where none currently exist remain high and the International Energy Agency (IEA) estimates that by 2020 developing countries will need to double their electrical power output to meet rising demand. Analysts note that while opportunities abound, having continued access to finance will be critical for success. Perhaps most critical is the ongoing requirement to fund the increasing need to enhance and expand the transmission and distribution network to accommodate renewable energy generation. The adoption of smart grid technology and energy storage is acknowledged as the main market driver in the transformer sector over the next five years.

    Read More..
    The Generator and Transformer Industry In South Africa
    The Generator and Transformer Industry In South Africa 2017

    Full Report

    R 1 900.00(ZAR) estimated $104.93 (USD)*

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    The Generator and Transformer Industry in South Africa 2024-08-29

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    The Generator and Transformer Industry In South Africa 2022-04-19

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    The Generator and Transformer Industry In South Africa 2019-07-31

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    The Generator and Transformer Industry In South Africa 2015-07-28

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 2
    2.2. Geographic Position 3
    3. SIZE OF THE INDUSTRY 4
    4. STATE OF THE INDUSTRY 12
    4.1. Local 12
    4.1.1. Corporate Actions 16
    4.1.2. Regulations 18
    4.1.3. Enterprise Development and Social Economic Development 21
    4.2. Continental 22
    4.3. International 24
    5. INFLUENCING FACTORS 26
    5.1. Economic Environment 26
    5.2. Rising Operating Costs 27
    5.3. Labour 27
    5.4. Government Initiatives 28
    5.5. Eskom and Municipality Debt, Fraud and Corruption 30
    5.6. Technology, Research and Development (R&D) and Innovation 31
    5.7. Cyclicality 33
    5.8. Environmental Concerns 33
    6. COMPETITION 34
    6.1. Barriers to Entry 36
    7. SWOT ANALYSIS 36
    8. OUTLOOK 37
    9. INDUSTRY ASSOCIATIONS 38
    10. REFERENCES 38
    10.1. Publications 38
    10.2. Websites 39
    APPENDIX 1 41
    Indicative Lifespan of Grid Components. 41
    COMPANY PROFILES 42
    ABB SOUTH AFRICA (PTY) LTD 42
    ACTOM (PTY) LTD 46
    AGGREKO ENERGY RENTAL SOUTH AFRICA (PTY) LTD 55
    ALLIED ELECTRONICS CORPORATION LTD 57
    ARMCOIL AFRIKA (PTY) LTD 61
    ATLAS COPCO SOUTH AFRICA (PTY) LTD 63
    BARLOWORLD LTD 67
    BRIGGS AND STRATTON RSA (PTY) LTD 72
    CACO TRADING CC 74
    CATO RIDGE ELECTRICAL CONSTRUCTION (PTY) LTD 76
    CHANNEL DATA (PTY) LTD 78
    CUMMINS SOUTH AFRICA (PTY) LTD 80
    DIESEL ELECTRIC SERVICES (PTY) LTD 82
    DIESEL GEN TECHNOLOGIES CC 84
    ELB GROUP LTD 85
    ELECTRO INDUCTIVE INDUSTRIES (PTY) LTD 89
    FREE STATE TRANSFORMERS (PTY) LTD 91
    GENERATOR KING (PTY) LTD (THE) 93
    GENLOGDORM (PTY) LTD 95
    GENPOWER ELECTRICAL WHOLESALERS CC 97
    GEOMECHANICS (PTY) LTD 99
    GOSCOR (PTY) LTD 102
    HOFFMANN POWER (PTY) LTD 104
    HONDA MOTOR SOUTHERN AFRICA (PTY) LTD 106
    MAGETZ ELECTRICAL CC 108
    MARSTON MOOR TECHNOLOGIES CC 110
    MASSMART HOLDINGS LTD 111
    MATASE INDUSTRIAL SOLUTIONS (PTY) LTD 117
    MZANSI GENERATORS (PTY) LTD 118
    NEW WAY POWER (PTY) LTD 119
    PLAN-MY-POWER (PTY) LTD 121
    POWERTECH TRANSFORMERS (PTY) LTD 123
    RELIABLE TRANSFORMERS CC 125
    REVIVE ELECTRICAL TRANSFORMERS (PTY) LTD 126
    SIEMENS (PTY) LTD 128
    SINETECH (PTY) LTD 132
    SMITH MINING EQUIPMENT (PTY) LTD 135
    STEVENS AND CO (PTY) LTD 137
    SUDEN PROCUREMENT CC 139
    SUPERWATT (PTY) LTD 141
    TRAFO POWER SOLUTIONS (PTY) LTD 143
    TRANS ELECTRON CC 144
    TRANSFORMER MANUFACTURERS (PTY) LTD 145
    TUNING FORK (PTY) LTD 146
    TURNER MORRIS (PTY) LTD 148
    VR ENGINEERING (PTY) LTD 150
    ZEST ENERGY (PTY) LTD 152
    ZEST WEG ELECTRIC (PTY) LTD 154
    ZEST WEG GROUP AFRICA (PTY) LTD 156
    ZEST WEG MANUFACTURING (PTY) LTD 159

    Report Coverage

    This report describes the current situation in the country, examines the increasingly competitive market and focuses on factors influencing the sector’s success. The report also profiles 47 industry players ranging from local manufacturer Powertech Transformers (Pty) Ltd which employs 1,026 people and is one of the market leaders in the transformer sub-sector, to small business, Transformer Manufacturers (Pty) Ltd based in Gauteng, which employs 25 people to service its mining, industrial and parastatal customers.

    Introduction

    This report focuses on the generator and transformer industry which in the past decade has experienced strong growth as demand for power has outstripped supply, resulting in power supply shortages. The significant increase in demand for generators and transformers is global, but particularly in developing countries. The size and value of the industry are difficult to quantify as most players do not publish financial information. However, many generator companies are reported to have experienced healthy annual growth of between 5 and 10%, with Actom and Altron the dominant players. The transformer industry estimates total annual sales in excess of R8bn.

    Strengths

    • A broad range of local transformers.
    • Ability to diversify product offering to adapt to economic conditions, changing customer needs and regulatory requirements.
    • All industries in South Africa need electricity and back-up power for their operations.
    • Compliance with international standards.
    • Local quality.
    • Multinationals with strong brand power and reliable products are present in the South African market.
    • Understanding of local conditions.

    Weaknesses

    • Delivery lead times of local products.
    • Dependent on the welfare of target markets such as the energy, construction, civil engineering, manufacturing and mining industries.
    • High carbon emissions of diesel and petrol.
    • Low import duty on foreign manufactured generator sets.
    • Shortage of qualified and skilled personnel.
    • Staff retention unless large company.
    • The increasing cost of diesel and petrol make Gensets increasingly expensive to operate, exceeding the cost of Eskom electricity.

    Opportunities

    • Continued unreliable and inadequate electricity supply by Eskom ensures market growth.
    • Demand for transformers from IPPs.
    • Demand for transformers in the hybrid grid
    • Eskom’s need to replace ailing infrastructure and capital expansion projects.
    • Government investment in infrastructure provides opportunities for prime and back-up power for the construction and civil engineering industry.
    • Higher levels of local content required.
    • Increasing economic activity in Africa increases the demand for back-up power, thereby providing opportunities for Genset suppliers on the continent.
    • Opportunities to grow the rental power market in South Africa.
    • Recovery in industrial and mining activity.
    • Reliance on technology increases the need for essential back-up power.

    Threats

    • Alternative electricity generating products gaining popularity and becoming more affordable. Government policy supports the adoption of renewable energy generation solutions.
    • Corruption.
    • Currency weakness and fluctuation.
    • Economic conditions reduce ability of customers to invest in generators.
    • Emission compliance regulations such as carbon tax may impact on business.
    • Eskom and municipal financial woes.
    • High duties on SA exports in foreign countries.
    • High taxation and municipal rates.
    • Increasing availability of global brands.
    • Increasing input costs.
    • Labour costs.
    • Low local content requirements for foreign products tendered.
    • Lower cost imports.
    • Short to medium term shortage of qualified and skilled personnel.
    • Unemployment and lack of jobs.

    Outlook

    The future outlook of the sector is positive. There is a national growth plan to increase generation capacity to 80,000MW by 2030 to meet the projected demand growth required to enable infrastructure projects to satisfy rapid population growth, redress current inefficiencies and historical deficiencies, and drive economic growth. With an electrification rate of 85% based on the existing extensive generation and transmission network, built with the assistance of products and skills provided by existing sector companies, there is confidence that despite all the current challenges faced by Eskom, the country is poised to deliver the requisite growth with the assistance of the sector. The new generation projects are tracking well; sector companies are becoming increasingly involved with new IPP market entrants and have developed or are acquiring renewable energy capability. Eskom’s 2013 Ten-Year Transmission Development Plan has as the major focus the integration of new power stations and new loads developed by Eskom and the IPPs into the network, creating opportunities for sector companies. Possibly before, but certainly once the large Eskom projects come on line, there will be an opportunity to address the maintenance backlog. The Eskom delays have had a positive effect on the industry, with sector companies having innovated, restructured, rationalised and diversified operations, developing new technologies and integrated solutions, forming strategic partnerships and positioning for future growth. New export opportunities have been developed based on technological innovation and existing skills and services. Eskom’s demand reduction programme will create new opportunities for the sector, driving power generation and transmission opportunities. There are also opportunities for the sector which will arise from the regional electricity pooling agreements.

    Read More..
    The Generator and Transformer Industry In South Africa
    The Generator and Transformer Industry In South Africa 2015

    Full Report

    R 1 900.00(ZAR) estimated $104.93 (USD)*

    Buy Now +

    Industry Landscape

    R 1 330.00(ZAR) estimated $ 73.45 (USD)*

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    Historical Reports

    The Generator and Transformer Industry in South Africa 2024-08-29

    R 20 000.00(ZAR) estimated $1104.51 (USD)*

    View Report Add to Cart

    The Generator and Transformer Industry In South Africa 2022-04-19

    R 6 500.00(ZAR) estimated $358.97 (USD)*

    View Report Add to Cart

    The Generator and Transformer Industry In South Africa 2019-07-31

    R 1 900.00(ZAR) estimated $104.93 (USD)*

    View Report Add to Cart

    The Generator and Transformer Industry In South Africa 2017-12-05

    R 1 900.00(ZAR) estimated $104.93 (USD)*

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    Table of Contents

    [ Close ]
    PAGE
    1. INTRODUCTION 1
    2. DESCRIPTION OF THE INDUSTRY 1
    2.1. Industry Value Chain 2
    2.2. Geographic Position 3
    3. SIZE OF THE INDUSTRY 3
    4. STATE OF THE INDUSTRY 10
    4.1. Local 10
    4.1.1. Corporate Actions 16
    4.1.2. Regulations, Standards & Government Programmes 16
    4.1.3. Enterprise Development and Social Economic Development 19
    4.2. Continental 20
    4.3. International 23
    5. INFLUENCING FACTORS 24
    5.1. Economic Environment 24
    5.2. Rising Input Costs 25
    5.3. Labour 26
    5.4. Information Technology 27
    5.5. Technology 27
    5.6. Environmental Concerns 27
    5.7. Government Support for Infrastructure 29
    6. COMPETITION 30
    6.1. Barriers to Entry 32
    6.2. Research and Development (R&D) 32
    6.2.1. Innovation 33
    7. SWOT ANALYSIS 34
    8. OUTLOOK 35
    9. INDUSTRY ASSOCIATIONS 37
    10. REFERENCES 37
    10.1. Publications 37
    10.2. Websites 38
    ORGANOGRAM 36100 40
    Manufacture of Generators and Transformers 40
    COMPANY PROFILES 42
    ACTOM (PTY) LTD 42
    ALLIED ELECTRONICS CORPORATION LTD 51
    ARMCOIL AFRIKA (PTY) LTD 55
    CATO RIDGE ELECTRICAL CONSTRUCTION (PTY) LTD 57
    ELECTRO INDUCTIVE INDUSTRIES (PTY) LTD 59
    FREE STATE TRANSFORMERS (PTY) LTD 61
    POWERTECH TRANSFORMERS (PTY) LTD 63
    RELIABLE TRANSFORMERS CC 66
    REVIVE ELECTRICAL TRANSFORMERS (PTY) LTD 67
    SIEMENS (PTY) LTD 69
    TRANSFORMER MANUFACTURERS (PTY) LTD 73
    TSS TRANSFORMERS (PTY) LTD 74
    ZEST WEG ELECTRIC (PTY) LTD 76
    ORGANOGRAM 61509b 78
    Wholesale of Generators 78
    COMPANY PROFILES 81
    AGGREKO ENERGY RENTAL SOUTH AFRICA (PTY) LTD 81
    ATLAS COPCO SOUTH AFRICA (PTY) LTD 83
    BARLOWORLD LTD 86
    BRIGGS AND STRATTON RSA (PTY) LTD 91
    CACO TRADING CC 93
    CATO RIDGE ELECTRICAL CONSTRUCTION (PTY) LTD 94
    CHANNEL DATA (PTY) LTD 96
    CHHC TRADING (PTY) LTD 98
    CUMMINS SOUTH AFRICA (PTY) LTD 101
    DIESEL ELECTRIC SERVICES (PTY) LTD 103
    DIESEL GEN TECHNOLOGIES CC 105
    ELLIES (PTY) LTD 106
    GEN MOTION (PTY) LTD 109
    GENERATOR KING (PTY) LTD (THE) 111
    GENERATOR LOGIC HOLDINGS (PTY) LTD 112
    GENPOWER ELECTRICAL WHOLESALERS CC 114
    GEOMECHANICS (PTY) LTD 116
    GOSCOR (PTY) LTD 118
    HOFFMANN POWER (PTY) LTD 120
    HONDA MOTOR SOUTHERN AFRICA (PTY) LTD 122
    MAGETZ ELECTRICAL CC 124
    MARSTON MOOR TECHNOLOGIES CC 126
    MASSMART HOLDINGS LTD 127
    MZANSI GENERATORS (PTY) LTD 132
    NEW WAY POWER (PTY) LTD 133
    PLAN-MY-POWER (PTY) LTD 136
    SIEMENS (PTY) LTD 138
    SINETECH CC 142
    SMITH MINING EQUIPMENT (PTY) LTD 144
    STEVENS AND CO (PTY) LTD 146
    SUDEN PROCUREMENT CC 148
    SUPERWATT (PTY) LTD 150
    TUNING FORK (PTY) LTD 152
    VR ENGINEERING (PTY) LTD 154
    ZEST ENERGY (PTY) LTD 155
    ZEST WEG GROUP AFRICA (PTY) LTD 157

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