Who Owns Whom

The Generator and Transformer Industry In South Africa 2022

Stephen Timm | South Africa | 19 April 2022

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R 13 500.00(ZAR) estimated $ 851.84 (USD)*

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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.

The Generator and Transformer Industry in South Africa

Manufacturing sales of electric motors, generators and transformers grew marginally in 2021, but have been trending down between 2016 and 2021. Imports of transformers and generators have outpaced those of exports over the last two decades. While demand for diesel generators has generally grown in step with loadshedding, imports of portable generators fell sharply in 2021, even as loadshedding peaked. 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. The industry could expect some increase given the country’s plans to add new power generation to the grid.

Embedded Generation

The increase in embedded generation, where industry, mines and municipalities produce their own power, represents an opportunity and threat to generator and transformer manufacturers. Increased embedded generation and renewable energy projects will likely inhibit demand for diesel generators, but provide opportunities for manufacturers and importers to produce and supply generators and transformers for renewable and other off-grid projects. Some generator manufacturers are considering making generators powered by renewable energy.

Demand

The biggest demand for generators is from the construction sector, which has performed poorly since 2018. The continued complete shutdown of the events industry, which uses short term rental of generators, during the pandemic, has resulted in less demand, but this could pick up as restrictions are lifted. South Africa’s electricity crisis continues to drive demand.

Table of Contents

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