http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.27Change: 0.10
R/$ = 11.62Change: 0.03
Au 1198.02 $/ozChange: 3.56
Pt 1200.50 $/ozChange: 3.00
 
 
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 Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Dec 07, 2007

Hitachi Power Africa assures relationship with ANC-linked company is above board

Back
Engineering|Africa|Babcock Borsig|CoAL|Deutsche Babcock|Eskom|Generators|Hitachi Power Africa|Hitachi Power Europe|Mail & Guardian|Petrochemicals|PROJECT|Sasol|Steinmüller|Africa|Germany|Medupi Power Station|Energy|Equipment|Manufacturing|Petrochemicals|African National Congress (ANC)|Power|Robin Duff|Koss R-80 Consumer Headphones|Limpopo|Mail & Guardian
Engineering|Africa|CoAL|Eskom|Generators|Petrochemicals|PROJECT||Africa|||Energy|Equipment|Manufacturing|Petrochemicals||Power||||
engineering|africa-company|babcock-borsig|coal|deutsche-babcock|eskom|generators|hitachi-power-africa|hitachi-power-europe|mail-guardian|petrochemicals-company|project|sasol|steinmller|africa|germany|medupi-power-station|energy|equipment|manufacturing|petrochemicals|african-national-congress-anc|power|robin-duff|koss-r-80-consumer-headphones|limpopo|mail-guardian-published-medium
© Reuse this Power-equipment vendor Hitachi Power Africa has defended its relationship with Chancellor House, which is said to have strong ties with the ruling African National Congress (ANC) and has even been described as an ANC business front, stressing there is nothing improper about the relationship.



Late last month, leading national weekly Mail & Guardian exposed the fact that Chancellor House had a 25% stake in Hitachi Power Africa, which, together with Hitachi Power Europe (Germany), was awarded the biggest contract in Eskom’s history on November 13.

The R20-billion contract is for six 800-MW utility steam generators for the Medupi power station, which is being built at a cost of R78,6-billion, at a site near Lephalale, in Limpopo province. The consortium is also in line to supply a similar offering for the R80-billion-plus Project Bravo, which is to be built almost simultaneously at a site near Emalahleni, in Mpumalanga. This tender should be awarded before the end of the month.

In a reply to emailed questions, Hitachi Power Africa MD Robin Duff told Engineering News that the relationship with Chancellor House was developed in a bid to deepen its “local knowledge” and that Chancellor House had paid cash for its shares. Duff refused to comment on the value of the payment, describing it as “proprietary information”.

Duff acknowledged that it was aware that Chancellor House has political connections when concluding the black economic-empowerment transaction, but asserted that this was the case “with most other empowerment entities”. He revealed that Chancellor House’s T M Mokoena was a director of Hitachi Power Africa, with M Net-sianda as an alternate director.

Stressed, too, was Chancellor House’s advisory role and the fact that it played no direct role in negotiations with Eskom for a recent contract. “Their role is as investor and adviser on local issues such as skills development, empowerment, and socioeconomic initiatives,” Duff elaborated.

Also placed into context was the long-standing historical relationship between Eskom and the under- lying companies, which currently fall under Hitachi Power Africa.

Through a series of mergers and acquisitions, which saw Steinmuller bought by Babcock Borsig in 1999 and the energy division then sold to Hitachi in 2003, Hitachi Power was the current owner of all the know-how and South African references of the former L&C Steinmuller group.

This included boiler installations at the Majuba, Tutuka, Duvha and Kriel power stations, as well as the majority of the boilers installed at petrochemicals group Sasol, which were engineered and supplied by Deutsche Babcock.

“Hitachi Power thus has a local boiler reference base of close to 20 000 MW. We never lost touch with Eskom and discussions about Eskom’s expansion plans have been ongoing since 2004,” Duff explained, asserting, too, that Hitachi Power Europe currently ranked among the three leading suppliers of utility boilers internationally.

Duff stressed, too, that Hitachi was a strong supporter of Eskom’s aspiration to build local manufacturing capacity around its big build programme, which already involved a pipeline of work worth R300-billion, and that the group would invest in new manufacturing facilities.

This investment would include facilities to produce boiler pressure parts, tube bundles, ducting and coal bunkers and piping. It would also involve the procurement of large cranes, the creation of apprentice training centres and other enterprise development initiatives.

“Planning for the major investments is advanced and will be implemented as from 2008,” he concluded.

Several attempts to garner comment from Eskom proved unsuccessful.

Edited by: Martin Zhuwakinyu
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Electricity News
anzania's attorney general resigned late on Tuesday, becoming the first political casualty in an energy corruption scandal in the east African country that has led Western donors to delay aid and weakened the currency. The resignation followed a vote in parliament...
The Democratic Alliance on Tuesday called on Deputy President Cyril Ramaphosa to clarify Eskom's latest threat of further rolling blackouts. Spokesperson on public enterprises Natasha Michael said Ramaphosa had to disclose the reason four generators stopped working...
South Africa asked on Friday for bidders to submit proposals to build coal-fired power plants as part of a string of initiatives launched this week aimed at ending chronic electricity shortages. Bidders will need to pay a nonrefundable R200 000 rand ($17 000) fee...
More
 
 
Latest News
Updated 3 hours ago China appears to have been routinely underestimating output from its sprawling steel sector, with official figures for last year alone 40-million tonnes below a key industry estimate - an amount equivalent to Germany's entire annual production. Beijing has vowed to...
Lumwana, Zambia
Canada’s Barrick Gold Corp will suspend operations at its Lumwana copper mine, in Zambia’s Northwestern province, after the country enacted legislation that raised the royalty rate on openpit mining operations from 6% to 20%. TSX- and NYSE-listed Barrick, the world’s...
The Labour Court in Johannesburg has set aside the 2011-2014 metal sector wage agreement, the National Employers' Association of SA (Neasa) said on Thursday. The 2011-2014 wage deal was the result of an agreement between the Steel and Engineering Industries...
More
 
 
Recent Research Reports
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 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 network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
 
 
 
 
 
This Week's Magazine
South Africa remains an important manufacturing and export platform for Ford Motor Company, says executive chairperson Bill Ford. However, he adds that other countries on the continent are “becoming interesting”, and that the US carmaker is casting its net wider for...
TO BE PHASED INTO SERVICE The first MeerKAT dish, with another 63 to come
Germany’s Max-Planck-Society (MPG) and the Max-Planck-Institute for Radio Astronomy (MPlfR) are investing €11-million (about R150-million) into South Africa’s MeerKAT radio telescope array programme. The money will be used to design, build and install S-band radio...
Infrastructure spend in sub-Saharan Africa will grow from $70-billion in 2013 to $180-billion by 2025, says PwC capital projects and infrastructure Africa leader Jonathan Cawood. This is one of the findings of PwC’s Capital Projects & Infrastructure report on East...
Private-owned defence and aerospace manufacturer Paramount Group and the Ichikowitz Family Foundation unveiled its Anti-Poaching Skills and K9 Training Academy in Magaliesburg last month.
MATT BARKER Wireless networks should enable users to engage and must provide relevant information to them based on their activity and location
The inclusion of Bluetooth to provide sub-three meter accuracy and heightened functionality for users is one of the ways to change existing wireless networks into engagement networks. An engagement network differs from common wireless networks in that it enables the...
 
 
 
 
 
 
 
 
 
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