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The Generator and Transformer Industry In South Africa

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

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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.

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The Generator and Transformer Industry In South Africa 2022

Full Report

R 9 500.00(ZAR) estimated $509.66 (USD)*

Industry Overview

R 6 650.00(ZAR) estimated $ 356.76 (USD)*

Historical Reports

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

R 1 900.00(ZAR) estimated $101.93 (USD)*

View Report Add to Cart

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

R 1 900.00(ZAR) estimated $101.93 (USD)*

View Report Add to Cart

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

R 1 900.00(ZAR) estimated $101.93 (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 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

Report Coverage

This extensive report on the generator and transformer industry describes the size and state of the industry and factors that influence it including the roll-out of renewable energy and government programmes, regulation, global and continental trends and developments and new technologies. The report includes comprehensive profiles of 43 companies including global players such as Siemens and ABB. Other companies profiled include Actom, which disposed of Wilec to Gauteng-based Makarenge Electrical Industries, and New Way Power, which was disposed of by enX.

The South African Generator and Transformer Industry

The generator and transformer industry 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, which is represented by Eskom and municipalities, as well as in agriculture, construction, manufacturing and mining, and energy, that are 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.

Disruption

The energy industry is undergoing disruption and is in transition on multiple fronts driven by new technologies, evolving customer needs and the need to improve grid resilience and flexibility. Renewable power generation is growing, while almost half of the world’s electrical utilities which use thermal coal as feedstock are reported to be unprofitable. The energy industry faces challenges to the traditional one-directional way in which energy is centrally produced, transmitted and distributed and witnessing the evolution of energy networks into decentralised, decarbonised and digitalised systems. The evolution of the smart grid is challenging giants of the industry and allowing new investors, developers, operators and technology providers to enter the industry.

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The Generator and Transformer Industry In South Africa 2019

Full Report

R 1 900.00(ZAR) estimated $101.93 (USD)*

Industry Overview

R 1 330.00(ZAR) estimated $ 71.35 (USD)*

Historical Reports

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

R 9 500.00(ZAR) estimated $509.66 (USD)*

View Report Add to Cart

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

R 1 900.00(ZAR) estimated $101.93 (USD)*

View Report Add to Cart

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

R 1 900.00(ZAR) estimated $101.93 (USD)*

View Report Add to Cart

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
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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%.

The South African Generator and Transformer Industry

Since 2015 the South African generator and transformer industry 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 that has negatively affected the growth of the generator industry. Growth in the transformer sector has also slowed because of reduced capital investment. Fraud and corruption remain prevalent 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.

Opportunities

Although markets slowed in 2017, prospects are considered positive on local and African growth in the traditional and renewable electricity sectors. Climate change and the green economy are expected to play vital roles in the adoption of diesel generators in Africa. The implementation of the Carbon Tax in 2018 will impact the generator market and stakeholders believe that manufacturers of reduced noise and emissions level generators are more likely to achieve end-user acceptance.

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

Full Report

R 1 900.00(ZAR) estimated $101.93 (USD)*

Industry Overview

R 1 330.00(ZAR) estimated $ 71.35 (USD)*

Historical Reports

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

R 9 500.00(ZAR) estimated $509.66 (USD)*

View Report Add to Cart

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

R 1 900.00(ZAR) estimated $101.93 (USD)*

View Report Add to Cart

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

R 1 900.00(ZAR) estimated $101.93 (USD)*

View Report Add to Cart

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.

The South African Generator and Transformer Industry

This report focuses on the local 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. This, combined with poorly maintained power infrastructure, unreliable power supply, rapid infrastructure growth, increasing population, the commoditisation of telecommunications devices, and access to data, have contributed to a significant increase in demand for generators and transformers.

Challenges

Demand is expected to continue as a result of Eskom’s planned power expansion projects, capacity added by Independent Power Producers (IPPs) and the eventual implementation of Government’s Strategic Infrastructure Projects (SIPs). Currently South African transformer manufacturers have the capacity to deliver between 50% and 60% of market demand for medium and large power transformers. The balance, along with many other items, has to be imported. Stakeholders believe that cheaper imports, particularly from China and India represent a threat to local manufacturers. As well as receiving manufacturing and export incentives, these countries pay no import duty. In comparison, local manufacturers have to pay duties as high as 40% when exporting to certain countries.

High Quality Local Manufacture

Although there is a critical lack of cost-effective local manufacturing capacity to meet domestic demand, manufacturers emphasise the high quality of locally manufactured products. Local companies continue to innovate, spend on research and development, invest in state of the art manufacturing facilities, manufacture world class products and deliver complex managed integrated solutions. The African export market is becoming increasingly important and South Africa is already the major transformer supplier in Botswana, Mozambique, Namibia, Zambia and Zimbabwe.

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

Full Report

R 1 900.00(ZAR) estimated $101.93 (USD)*

Industry Overview

R 1 330.00(ZAR) estimated $ 71.35 (USD)*

Historical Reports

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

R 9 500.00(ZAR) estimated $509.66 (USD)*

View Report Add to Cart

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

R 1 900.00(ZAR) estimated $101.93 (USD)*

View Report Add to Cart

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

R 1 900.00(ZAR) estimated $101.93 (USD)*

View Report Add to Cart

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