R/€ = 15.11Change: 0.14
R/$ = 13.45Change: 0.10
Au 1149.14 $/ozChange: 2.69
Pt 940.50 $/ozChange: 6.00
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?

And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
RSS Feed
Article   Comments   Other News   Research   Magazine  
Feb 14, 2013

ABB reaffirms SA’s gateway status as orders rise to R4.3bn

Outgoing ABB South Africa CEO Carlos Poñe and his successor Leon Viljoen in conversation with Engineering News Editor Terence Creamer on prospects for the company in 2013. Camera Work: Nicholas Boyd & Duane Daws. Editing: Darlene Creamer. Recorded: 14.2.2012.
Engineering|ABB Group|ABB South Africa|Africa|Efficiency|Flow|Generators|Industrial|Mining|Motors|New ABB South Africa|Renewable Energy|Renewable-Energy|Resources|Africa|Pakistan|South Africa|United Arab Emirates|USD|Longmeadow Facility|Automation|Electricity Costs|Energy|Energy Efficiency Positions|Flow|Manufacturing|Manufacturing Capacity|Motors|Products|Renewable Energy Sector|Services|Southern Gulf|Carlos Po|Infrastructure|Joe Hogan|Leon Viljoen|Motors|Power|Motors|Limpopo|South Africa
Engineering|Africa|Efficiency|Flow|Generators|Industrial|Mining|Motors|Renewable Energy|Renewable-Energy|Resources|Africa||||Energy|Flow|Manufacturing|Motors|Products|Services||Infrastructure|Motors|Power|Motors||
© Reuse this

The Southern African unit of global power and automation group ABB reported a 36% rise in orders to R4.3-billion in 2012 and reaffirmed on Thursday that South Africa remained its main gateway into the expanding sub-Saharan Africa market, notwithstanding the country's social and economic problems.

New ABB South Africa CEO Leon Viljoen, who took over from Carlos Poñe on February 1, told Engineering News Online that he remained optimistic about prospects for both South Africa and the region.

Poñe, who delivered his fourteenth and final results presentation at the company’s Longmeadow facility, in Gauteng, had already relocated to the United Arab Emirates, where he was leading the group’s Southern Gulf and Pakistan region.

Poñe acknowledged that the South African business, which had invested materially in new manufacturing capacity over the past few years, faced serious power and labour cost pressures.

However, he and Viljoen stressed that the immediate focus would be on ensuring that these pressures were mitigated through an efficient delivery on its order backlog.

Many of its products and services were also geared towards assisting private and utility clients improve their energy efficiency positions, which meant that South Africa’s steeply rising electricity costs presented some growth opportunities.

During 2012, ABB South Africa had been buoyed by large orders arising from within the domestic renewable-energy sector.

In December, it secured a $225-million order from a SunEdison-led consortium to supply two turnkey photovoltaic power plants, located in the Limpopo province.

The group had also received strong domestic and regional order flow for motors and generators.

ABB South Africa reported a modest 2% rise in revenue growth to R3.5-billion. But 2013 had been placed on a firmer growth footing by the fact that its order backlog had risen 18% to R4.1-billion.

Energy efficiency-related workflow was also a significant driver, as process industries and miners sought to mitigate the impact of rising South African power prices.

Activity from the domestic mining and minerals sector dropped in the second half – a period during which a number of mines experieced significant disruptions as a result of industrial relations volatility. However, resources-related activity in the rest of the region remained strong and cross-border activity contributed 20% of overall revenue.

Poñe was also sanguine about the longer-term prospects for South Africa, where social factors such as inequality, poverty and unemployment were starting the weight on its credit rating and its attractiveness as an investment destination.

“Sometimes we are too negative when we approach most of our issues. We see some of the events that happened in 2012  . . . as a hurdle rather than something that is here to stay,” Poñe asserted.

South Africa’s physical and financial infrastructure remained more advanced than that which was available in the rest of the continent and, thus, positioned it ideally to provide a base from which to pursue emerging opportunities in the rest of the region.

Meanwhile, the larger ABB group reported a 15% fall in 2012 net income to $2.7-billion, on the back of a 4% rise in revenue to $39-billion.

Global CEO Joe Hogan indicated that the current focus was on balancing costs and growth, while seeking to leverage benefits from recent capital and research and development investments.

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
Latest News
Updated 2 minutes ago Allied Electronics (Altron) has dipped into the red in the six months ended August 31, as the JSE-listed firm continued to experience “adverse” challenges weighing on its Powertech Transformers, Altech Multimedia, Altech Autopage and Altech Node business units. The...
Updated 33 minutes ago Global brewer Anheuser-Busch InBev (AB InBev) has announced a revised merger offer to British–South African multinational brewing and beverage company SABMiller in its bid to combine the two firms and form a global beer conglomerate with yearly revenues of...
Updated 50 minutes ago US private equity firm KKR & Co LP is considering investing around $100-million in Africa within a year, a senior executive said on Tuesday. KKR is looking at the agriculture and food business, the energy industry and infrastructure projects, Dominique Lafont, a...
Recent Research Reports
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
This Week's Magazine
Sphere Holdings CEO Itumeleng Kgaboesele
Black-owned investment holding company Sphere Holdings plans to raise a further R1-billion in the coming months in support of its strategy to become a leading black industrial enterprise, which could ultimately seek a listing on the JSE.
Energy analyst and EE Publishers MD Chris Yelland warned recently against excessive optimism regarding timescales for the proposed construction of new nuclear power plants (NPPs) in South Africa. He was speaking at a Nuclear Roundtable in Johannesburg. “I think we...
Malawi’s Lilongwe Water Board (LWB) is inviting eligible bidders to prequalify for the board’s efficiency improvement works, which will be implemented as part of the E24-million Lilongwe Water Resources Efficiency Programme.   LWB CEO Alfonso Chikuni explains that...
CROATIA, AN EU MEMBER BUT NOT A TDCA MEMBER On July 1, 2013, Croatia officially became the twenty-eighth member of the European Union (EU). Despite Croatia’s accession into the EU, it is yet to become party to the Trade, Development and Cooperation Agreement (TDCA)...
The Council for Scientific and Industrial Research (CSIR) has announced that its new Inundu airborne electronics testing, evaluation and training pod had made its first test flight on September 10. The successful flight was undertaken from Lanseria International...
Alert Close
Embed Code Close
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96