http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 15.16Change: -0.25
R/$ = 13.42Change: -0.15
Au 1139.39 $/ozChange: -1.66
Pt 1004.00 $/ozChange: -4.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
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  
 
 
May 04, 2012

Caterpillar boss upbeat about Africa's future, mulling investment

Back
Creamer Media's Irma Venter speaks to Caterpillar CEO Doug Oberhelman about the company opening a manufacturing facility in Africa. Camerawork and Editing: Nicholas Boyd & Darlene Creamer. Recorded: 04.05.2012
 
 
 
Construction|Africa|Aluminium|Caterpillar|CoAL|Components|Copper|Gas|Mining|rail|Road|Screen|Africa|China|USD|Capital Equipment|Capital Equipment Manufacturer|Construction-related Equipment|Energy|Equipment|Manufacturing|Manufacturing Plant|Manufacturing Sites|Natural Gas|Product|Specialised Mining Equipment Production Remaining|Doug Oberhelman|Infrastructure|Power
Construction|Africa|Aluminium|CoAL|Components|Copper|Gas|Mining|rail|Road|Screen|Africa|||Energy|Equipment|Manufacturing||Infrastructure|Power
construction|africa-company|aluminium|caterpillar|coal|components|copper|gas|mining|rail|road|screen|africa|china|usd|capital-equipment|capital-equipment-manufacturer|constructionrelated-equipment|energy|equipment|manufacturing|manufacturing-plant-industry-term|manufacturing-sites|natural-gas|product|specialised-mining-equipment-production-remaining|doug-oberhelman|infrastructure|power
© Reuse this



“I am more optimistic about Africa than I have ever been in my career,” said Caterpillar CEO Doug Oberhelman on Friday. “Africa has changed greatly.”

Delivering a presentation at Barloworld, the South African Caterpillar dealer, the 37-year company veteran noted that it would not be long before the continent saw bigger foreign direct investment flows as economic and political conditions continue to stabilise as had been the case over the last ten years.

Africa had seen a mining and energy driven recovery, which had the domino effect of an increase in disposable income, which would, in turn, require an increase in foreign direct investment, he noted.

Oberhelman said Africa had a “huge population” who wanted “to live better”.

“We are looking to make an investment in Africa.”

Oberhelman noted that Caterpillar had on its radar screen the development of an African manufacturing plant, but cautioned that this would not happen within the next two to three years.

Such a facility would also not manufacture mining capital equipment, but more energy and construction-related equipment, with specialised mining equipment production remaining at the company’s existing manufacturing sites.

This meant, however, that the capital equipment manufacturer would need to see “faster growth in the energy and construction sectors” in Africa.

Taking a global view, Oberhelman said worldwide population growth had seen a global consumer base that required infrastructure and consumed commodities – all of which suited the Caterpillar brand.

“Every time a road goes in, or an airport, we want to be there.”

Oberhelman noted that global iron demand was expected to increase from 1-billion tons in 2010 to 2.5-billion tons in 2030. Copper demand was to increase from 19-million tons to 43-million tons, and aluminium from 41-million tons to 99-million tons.

Estimated total mining capital expenditure was anticipated to see a 9.8% compound yearly growth rate to 2015.

Energy demand was very much in the same boat, with oil, natural gas and coal to account for 80% of the energy fuel mix through to 2040.

Caterpillar had certainly managed to cash in on the world’s hunger for energy and commodities, with the company posting record results in 2011 and looking set to repeat this in 2012.

Sales and revenues reached $16-billion in the first quarter of 2012, compared with $12.9-billion in the first quarter of 2011.

“We are in a sweet spot right now,” admitted Oberhelman.

Profit after tax reached $1.58-billion in the first quarter of 2012, compared with $1.22-billion for the same period in 2011.

The outlook is for the company to reach revenues of between $68-billion and $72-billion in 2012, a big jump from the $32.4-billion recorded in 2009.

A $10-billion trail of acquisitions in the rail, mining equipment and electric power sectors look set to spur on these numbers further over the next few years.

Oberhelman was especially positive about the potential contribution from MWM, which “would be our jewel”.

MWM had developed an engine that burnt natural gas.

Waiting in the wings was the acquisition of Siwei, which would be Caterpillar’s largest acquisition in China.

Siwei produced a roof support product line for the mining industry.

* Barloworld on Thursday evening opened a R250-million remanufacturing centre in Boksburg, which has the capacity to rebuild capital equipment components for customers in the mining and infrastructure sectors.

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Agriculture News
Cereal manufacturer Kellogg South Africa is opposed to the possible joint venture (JV) between its rivals Pioneer Foods and Futurelife Health Products, and will testify at a Competition Tribunal hearing on the matter on Tuesday. A statement from the tribunal...
State-owned entity Land Bank has posted a 9.3% drop in profit from continuing operations year-on-year, citing a decline to R352.5-million in the 2015 financial year from R388.6-million in the 2014 period. The bank’s net cash position improved from R1.47-billion to...
Article contains comments
The long-standing health of South Africa’s agricultural sector depends on the sustainability of farming methods, which need to take into account long-term productivity, the impact on the environment, as well as profitability. However, sustainable agriculture in the...
More
 
 
Latest News
The African Development Bank (AfDB) will focus in coming years on tackling Africa's chronic power shortages to try to unlock its economic potential and end its vulnerability to fluctuations in commodity prices, its new president said. Though it boasts nearly a...
To increase the number of international arrivals in Cape Town from 1.56-million to 2.1-million a year over the next five years, which could potentially create 100 000 jobs in the Western Cape’s multibillion-rand tourism sector, the provincial Minister of Economic...
Eqstra Contract Mining Division CEO Justin Colling
JSE-listed Eqstra’s embattled contract mining and plant rental division is showing signs of recovery and is nearly ready to look after itself, the unit’s new CEO Justin Colling said on Tuesday. The division plunged into turmoil last year, dragging its parent’s...
More
 
 
Recent Research Reports
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.
Real Economy Insight: Construction 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.
Real Economy Insight: Electricity 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
Training company The Intelligence Transfer Centre will host the fourth yearly Environmental Crimes Conference at the Indaba Hotel, in Fourways, Johannesburg between September 9 and 10. Confirmed key regulatory bodies that will attend the event include the Department...
The government of Egypt has said it is ready to provide technical assistance to Malawi in the development of the Shire–Zambezi waterway, which is designed to link landlocked Malawi to the Indian Ocean by opening the two rivers for navigation. Egyptian ambassador to...
Kenya is finally set to start building a new multipurpose petroleum pipeline, after securing a $350-loan from a consortium of banks, including South Africa's Rand Merchant Bank. The other banks in the consortium are the Cooperative Bank of Kenya, Citibank's Kenya...
MARAIS VAN HEERDEN The owner/operator should be able to view the overall project design and progress made at any time
Three-dimensional (3D) engineering design models can now be viewed on tablets, which enable stakeholders to view the design without having to buy the design software used to create it, says engineering design firm 3DDraughting executive Marais van Heerden. The...
Ford’s newest offering in a long list of newcomers to the local market in the last two years is the B-Max multi-activity vehicle (MAV). The B-Max will play in the so called B-MAV segment, or the small MAV segment, currently dominated by Toyota’s Avanza, which sells...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
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
 
 
Close
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