ABB

ABB

COMPANY PROFILE

2013

A new CEO and new reasons for promise at ABB

Global power and automation company, ABB have been awarded major new contracts in South Africa. The South African arm of the business also has a new CEO and recently released fantastic 2012 year-end figures. It’s looking like 2013 will be another bumper year for the energy efficiency specialists.

International power and automation technology giant, ABB, has a strong presence in South Africa.

The company has major projects underway and in the pipeline and a strong local manufacturing capability with engineering sites around the country.

ABB South Africa, which was established as a local arm of the multi-national corporation, has roots in Switzerland. Set up in South Africa in 1992, the company now employs over 1800 people and offers a wide range of power and automation technologies solutions from a comprehensive product and service portfolio.

There has been much change at the company in South Africa recently as long serving CEO Carlos Pońe, who has been with ABB for 20 years, 14 of those as CEO, has been appointed CEO of ABB United Arab Emirates (UAE) and manager of Southern Gulf (UAE‚ Qatar‚ Oman) and Pakistan.

He will be replaced by Leon Viljoen, a power and energy market expert, with over 25 years’ experience in South Africa.

Mr Viljoen started his career at Brown Boveri

Technologies in 1986 as a project manager before moving through the sales and marketing divisions. He became a general manager with Powertech Group in 2000 and after two years he became a managing director and chief executive of Powertech Transformers and eventually a director of Powertech in 2006. In 2012, he was appointed COO of Powertech before his selection as CEO of ABB South Africa, a role which will commenced on 1st March 2013.

The 49 year old said: “I am confident that ABB is positioned to continue growing within Southern Africa. The demand for renewable power and energy efficiency products and service creates good opportunities for ABB.

“Although the market will remain challenging, our focus on Africa and our product, systems and service portfolio, places us in a strong position to continue delivering to our customers.

“With my past experience in the electrical engineering sector and 25 years of relations built, I look forward to continue working within this dynamic industry and I wish my predecessor Carlos Pońe, all the best in his new role at ABB in the UAE.”

A new CEO and new reasons for promise at ABBEditorial – Christian JordanProduction – Chris Bolderstone

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PAGE 2 MAR 13

The company was obviously impressed by Mr Viljoen’s vast experience and capabilities, especially when it comes to managing complex situations and large groups of people. Mr Viljoen holds a bachelor’s degree in Engineering (Electrical and Electronic) from the Rand Afrikaans University and an MBA from Henley Management College in the UK.

The outgoing CEO called his time in South Africa “an amazing 20 years” and expressed confidence in Mr Viljoen.

“I have thoroughly enjoyed my 20 years at ABB and have no doubt that our new CEO, Leon Viljoen, will continue to generate positive results for Southern Africa,” said Mr Pońe.

ABB AND SUNEDISONIn 2010, the government released its IRP (Integrated

Resource Plan) with the primary objective of determining the long term electricity demand and detail how this demand should be met in terms of generating capacity, type, timing and cost for the next 20 years.

A major facet of electrical energy and the overall energy mix as the country moves forward is undoubtedly renewable projects.

The government has stated its desire to see more and more renewable energy feeding into the grid and ABB is positioned perfectly to serve the renewable sector as the

country’s leader in power technology.Last year the company announced new contracts

that will see the construction of two turnkey photovoltaic (PV) power plants in the northern province of Limpopo. The value of the contracts is reported to be worth over R2 billion.

The projects will involve solar plant construction in Witkop and Soutpan, located close to the city of Polokwane. They will have a generating capacity of 33mw and 31mw respectively and will be among the first utility-scale PV power plants to be built in the first phase of the government’s long-term renewable energy program.

The contracts were awarded by two special purpose entities, Core Energy and Erika Energy, whose primary stakeholders include SunEdison. ABB will work with SunEdison, a company who in 2011 interconnected approximately 300mw of solar power throughout the world.

Under the terms of a financing agreement, power generated from the two facilities will be purchased by Eskom, through a 20-year power purchase agreement (PPA).

The Soutpan Solar Park is expected to interconnect in January of 2014, while the Witkop Solar Park is forecast to interconnect in April of 2014. Construction of both projects began in January this year.

Totana solar plant panels

ABB SOUTH AFRICA

MAR 13 PAGE 3

ABB say that the two facilities will have major impacts on the environment and local energy mix stating: “The large-scale photovoltaic plants will generate enough clean energy to power around 36,000 homes and displace around 130,000 tons of carbon dioxide emissions a year.”

Prior to committing to the projects in South Africa, SunEdison performed extensive tests and models to determine the optimal design and projected output of the facilities. Once the projects are operational, they will be monitored continuously by SunEdison’s fleet-wide Renewable Operations Centre (ROC). The ROC will leverage the SunEdison Environmental and Energy Data System (SEEDS) to help maximize the efficiency of the facility by tracking its actual performance against its predicted output.

“We have a strong relationship with ABB and are excited to be working with them on this project” said Pashupathy Gopalan, SunEdison Vice President and Managing Director of South East Asia and Sub Saharan Operations. “ABB brings extensive experience and expertise to the table and we are pleased to be working with them to bring renewable energy to South Africa.”

At group level, ABB has delivered more than 50 turnkey PV power plants worldwide.

In Limpopo, each turnkey solution will include design, engineering, installation and commissioning. ABB will also supply a range of products and technologies including inverters, protection equipment, switchgear, dry-type transformers, controllers and the supervisory control and data acquisition (SCADA) system. ABB will also construct a substation and provide the connection to the high-voltage power grid.

“Our vast experience in supplying high-efficiency PV power plants, combined with our local capabilities and presence will enable us to deliver best-in-class solutions and support the country’s vision to integrate renewable energies,” says Brice Koch, head of ABB’s Power Systems division.

“We are delighted to be part of these solar PV projects which will help promote the energy mix and contribute to the country’s international obligations on climate change,” said Carlos Pońe. “With ABB’s world-class technology and local presence, these projects will provide opportunities for the transfer of skills and the upliftment of local expertise.”

It is reported that these projects will have a big impact on the local communities in Limpopo. Economic development is always highly scrutinised whenever a prominent national or international organisation opens up in a rural location. In this case, the projects will create 318 jobs during construction, and 55 jobs on an on-going basis, with 44 of those designated for historically disadvantaged individuals.

SUPPORTING COMMUNITIES ABB operates with responsibility as the core element

of its business. Responsibility to the stakeholder is placed at the top of the list of priorities. As part of its commitment to responsible business, ABB works with local communities, the environment, local business and the government to ensure that its activities have only is involved.

The company says: “Our sustainability programme supports a range of social development projects to reach out and touch the lives of the needy and most vulnerable in communities. ABB’s corporate social investment (CSI) programme supports technical skills development, care for orphans of HIV/AIDS, as well as environmental awareness and energy efficiency.”

Technical skills development is something which the company’s CSI programme has become expert in promoting. Operating in a highly technical environment, ABB, of course, need a technically skilled workforce and by helping young people, who might not have otherwise had the chance, to get involved with engineering allows for that important skill base to develop.

The company says: “Recognising the skills shortages and its impact on economic growth, ABB has embarked on a programme with the Swiss South African Co-operation Initiative (SSACI) to support the development of technical skills at Further Education and Training (FET) colleges. The programme provides students with excellent working experience in a modern international engineering workplace, and gives lecturers support by enabling them to attend ABB’s leading technology courses to update industry relevant knowledge.” > continues on page.48

Equipment for the wind industry

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PAGE 4 MAR 13

“With ABB’s world-class technology and local presence, these projects will provide opportunities for the transfer of skills and the upliftment of local expertise”

Totana solar plant panels

ABB SOUTH AFRICA

MAR 13 PAGE 5

With massive infrastructure and energy projects taking shape around the country, the demand for expert services in sheetmetal fabrication has increased dramatically.

One of the country’s leading precision sheetmetal fabricators is Sheetmetal S.A, a highly experienced, brilliantly equipped fabrication engineering company, based in Queensburgh, Durban.

The company was formed in 1996 by current members Mr A. Alaraju and Mr D. Chetty. After exponential growth in the early years of business, the company had to relocate to accommodate the expansion. The team jumped from a staff of three to twelve and even today, assets and staff numbers continue to increase.

Current Marketing Manager, Prean Alaraju, tells IndustrySA that the business is still growing and finding success, even in these tough economic times.

“Currently Sheetech S.A has a total production area of 4971m² which is occupied by sixty-four staff members and sixty-nine machines.

“We offer a wide range of metal fabrication and metal pressing solutions. Sheetech S.A is also contracted to a number of Powder Coating companies and Electro-plating companies so that the customer’s choice of finishes may be achieved.

“In terms of growth we have purchased a MVD INAN 400T CNC Bending Machine from Turkey. Due to the expansion and growth there was a need to purchase a larger property, which is currently used for assembling of ABB panels and storage.”

By Joe Forshaw

The company has strategically positioned itself as an important colleague of some of the country’s major organisations. This has resulted in little effect from the global economic slowdown. Many of the company’s clients have been affected but Sheetech S.A has worked on strengthening relationships and building new ones to supplement the healthy workload.

One of the most important elements of the Sheetech S.A business is the workforce. “The quality of work that Sheetech S.A produces is owed to our experienced staff. The current experience of the staff adds up to approximately 250 years collectively,” states Mr Alaraju.

The company has embarked on a project with Merseta to upskill people with disabilities as part of social investment in giving back to the community. This will obviously have positive effects on the workforce and local skills base and Mr Alaraju explains that a special division has been set up to help with training and education.

“The Education and Training Division (ETD) is a Merseta accredited training centre. The ETD was initially developed for staff training but has branched out into doing learnerships and skills programs for the community and students from V.N. Naik School for the Deaf.”

Even the recruitment and selection process is geared towards helping local students into the industry. “We also choose promising school students doing learnerships in the field of Engineering Fabrication. Students are given the opportunity to receive proper on the job training in the sheet metal industry.”

Sheetech S.A is one of the country’s

leading metal fabrication organisations.

Contracts with major businesses,

including ABB South Africa, have

helped the company grow and proven

the company’s ability to deliver nothing

but quality.

Cutting edge quality

COMPANY REPORT

PAGE 6 MAR 13

and laser cutting. The future plan is to invest in a laser cutting machine and open a powder coating plant. This will enable us to manufacture products from start to finish rather than outsourcing,” says Mr Alaraju.

Considering the success that Sheetech S.A has seen over the last two decades and the experience and skill of the workforce, it is likely that the company will continue to position itself as the precision sheetmetal fabrication industry leader in the country, with customers returning time after time for fantastic product and service everytime.●

Having worked in the past with large scale organisations such as SA Breweries, ABB SA, Omniflex, Daimler Chrysler and Honeywell to name but a few, Quality Assurance Supervisor, Saiendren Chetty explains that the company sees opportunities across a range of industries.

“There are major opportunities for sheet metal fabrication in the various sectors of the automotive, locomotive, aviation and catering industry. Our current Quality and BBBEE ratings place us as an ideal partner for collaboration with larger entities.”

The company prides itself on the quality of its work and says that efficiency and experience set them apart from the crowd.

“We offer quality manufactured products. Being ISO 9001:2008 accredited we have a standard to uphold. Sheetech S.A ensures that the delivery of products to customers is on time. The reject rate on products has never reached 1 ppm,” says Chetty.

The future holds much promise for Sheetech S.A, with the aforementioned industries burgeoning, the company will look to grow organically from with.

“Currently many of the products that Sheetech S.A manufacture need to be outsourced for powder coating

Mr Alaraju explains the work that

Sheetech S.A has completed for

ABB SA.

“At Sheetech S.A all customers

are treated with the same level of

importance. The products do differ

in size and type from customer

to customer but the quality of

manufacturing never changes.

“The work Sheetech S.A has done

for ABB includes fabricating of

panels, bases, doors and any other

product that needs to be fabricated

using sheet metal. Some of the

products that ABB require need to

be either machined and laser cut,

these products are outsourced for

manufacturing. Sheetech S.A also

manufactures parts for Eskom’s

Kusile Power Station which ABB is

sub-contracted to.

“We find a way to do any job for

any customer at a high standard

of quality.”

“We offer a wide range of metal

fabrication and metal pressing solutions.

Sheetech S.A is also contracted to a

number of Powder Coating companies

and Electro-plating companies so that

the customer’s choice of finishes may

be achieved”

SHEETECH

MAR 13 PAGE 7

Sheetech S.A offers a wide range of metal fabrication and metal pressing solutions offering you a one stop solution to your needs.

17 Downie CresentQueensburghDurban4093South Africa

[email protected]

+2731 4648015

+2731 4645032

www.sheetechsa.co.za

ISO 9001:2008 certified

B-BBEE Level One Contributor

Merseta Accredited Education and Training Division

At group level, the company is equally committed to research, skill development and education and this was proven in February when ABB selected 40 research projects for funding, after inviting academic and research institutes around the world to submit proposals for grants that will shape the future of power and automation.

The ABB Research Grant program is intended to support promising graduate students and senior researchers who are researching projects with industrial applications in the power and automation area.

The 40 projects were chosen from more than 500 proposals submitted by more than 250 universities in 46 countries.

ABB Chief Technology Officer, Prith Banerjee, said of the program: “We were delighted with the level of interest and very impressed by the quality of proposals submitted. Our aim is to establish a truly collaborative innovation environment with leading research institutes around the world. We already have about 100 existing research collaborations with universities, and we expect to fund 40-50 new ones each year.”

The chosen research projects will receive grants ranging from $50,000 to $80,000 per year. Although the program will only fund projects initially for one year, ABB fully expects to support the successful projects over a longer period of time. Universities that will receive grants this year are mainly from Europe and the USA.

“We were looking in particular for projects that support our strategy, which is to develop power and automation technologies that save energy and improve people’s lives,” Mr Banerjee said.

BOOMING BUSINESSIn South Africa, the business of power and energy has

been booming since 2010 when the government released details of the IRP.

There has been an explosion of investment into renewable projects from foreign and local companies. Wind farms are under construction the Eastern Cape; Chinese, American, Spanish and Irish companies have invested in solar farms in the Northern Cape and major hydro projects are nearing completion in the Free State and KwaZulu-Natal.

ABB transformer workshop

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PAGE 10 MAR 13

ABB transformer workshop

“The order and revenue flow were driven mainly by our focus on renewable energy and energy efficiency projects. With the strong order book still to be executed of R4 billion, we are well placed for the year ahead”

HVDC valve hall, converting electricity from AC to DC and vice versa

ABB SOUTH AFRICA

MAR 13 PAGE 11

COMPANY REPORT ABB SOUTH AFRICA

ABB has already played a big part in South Africa’s solar energy mix after it contributed to two solar PV power plants national power utility Eskom Holdings.

ABB provided a fixed tilt solar PV power plant with a station capacity of 620kw and production potential of 11.4 million kWh per year. At the Lethabo site, the installation comprised a single axis tracking solar PV power plant with a peaking capacity of 575 kW and a production potential of 12.5 million kWh per year.

Away from the projects in Limpopo, ABB has other valuable orders which the company is readying itself for; showing the boom in the renewable industry is still on-going.

Other orders include a $13 million order to supply medium voltage induction motors ranging from 375kW to 10mw. The contract entails design, manufacturing, testing and delivery of state-of-the-art ABB equipment. The upgrade of the existing motors commenced in September 2012 and expected completion is scheduled for September 2013.

In line with what we mentioned above, and as part of this new contract, ABB will train 24 apprentices to qualify as boiler makers, welders, fitters, armature winders, turners and quality controllers. These apprentices will be taught technical skills in a controlled environment at the local facility in Alberton, South Africa.

ABB SA Longmeadow campus

PAGE 12 MAR 13

ABB SA Longmeadow campus

Quality CraftsmanshipOur versatility and precision are the main attributes of our service and enables us to manufacture and assemble a vast variety of components to satisfy our client’s particular project needs.

CNC Turning ~ Milling and Sheetmetal Fabrication ~Conventional Turning ~ Machining ~ Presswork ~ High Quality

Welding ~ Assembly

Contact usP.O. Box 1827 Alberton 1450, 7 Van Der Bijl Street, Alrode SouthT: (011) 900-2303 • F: (011) 868-3352 [email protected]

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now sitting at around R3.5 billion with South Africa contributing 80% of revenue and Southern Africa (namely DRC, Mozambique, Kenya and Botswana) making up the balance.

At the end of 2012, the order book (or order backlog) was 18% better off than a year previously, levelling at R4.1 billion. Long term contracts on utilities and mines, and the solar projects mentioned above helped push up this figure.

“Energy efficiency continued to be a significant driver for customers to reduce costs, with old plant and systems being replaced, such as motors and generators,” the company said.

In his final months in charge, year-end results like this were pleasing for Mr Pońe and stated his happiness with the stats and confidence of a prosperous 2013.

“We are very pleased with the 36% increase in orders to R4.3 billion and the 2% increase in revenue,” he said. “The order and revenue flow were driven mainly by our focus on renewable energy and energy efficiency projects. With the strong order book still to be executed of R4 billion, we are well placed for the year ahead.”

For more information on ABB’s work on solar projects in SA, go to www.abb.co.za.

COMPANY REPORT ABB SOUTH AFRICA

Construction at the Raslaffan power

plant, Qatar

ALL IN THE FIGURES IN PLACEWhile many statistics can be used to show success in

business, ABB South Africa has seen a huge rise in the stats that actually count – orders.

The company reported at the end of 2012, a 36% rise in orders, taking the financial value of orders to over R4.3 billion. The rise in order was seen mainly in the areas of solar, motors and generators and was felt mainly in the last six months of the years.

Encouragingly, revenue figures were also up by 2%,

ABB Group headquarters, Zurich, Switzerland

PAGE 14 MAR 13

(0)1603 618 000

[email protected]

East Coast Promotions Ltd, Ferndale Business Centre, 1 Exeter Street.Norwich, NorfolkNR2 4QB

www.abb.co.za