http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 16.33Change: -0.04
R/$ = 14.22Change: 0.02
Au 1301.96 $/ozChange: 10.81
Pt 1081.50 $/ozChange: 5.50
 
 
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 About 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
Africa|Business|CoAL|Engineering|Eskom|Generators|Petrochemicals|Power|PROJECT|Training|Africa|Energy|Equipment|Manufacturing
Africa|Business|CoAL|Engineering|Eskom|Generators|Petrochemicals|Power|PROJECT|Training|Africa|Energy|Equipment|Manufacturing
africa-company|business|coal|engineering|eskom|generators|petrochemicals|power|project|training|africa|energy|equipment|manufacturing
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
Creamer Media Senior Deputy Editor

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
 
Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Electricity News
The World Bank does not expect the recent rise in platinum prices to be sustained for the full year, with its latest ‘Commodity Markets Outlook’ report forecasting a 10% year-on-year price decline in 2016. The report, released on April 26, notes that precious metals...
Article contains comments
Public Enterprises Minister Lynne Brown argued in Parliament on Tuesday that, as a 60% offtaker of coal in South Africa, Eskom should be in a position to command better coal prices and lamented the fact that the State-owned utility’s coal costs were rising at levels...
Article contains comments
More
 
 
Latest News
Environmental Affairs Minister Edna Molewa
Cabinet has extended the contract of Department of Environmental Affairs (DEA) director-general Nosipho Ngcaba and approved the appointment of Limpho Makotoko as the new DEA COO.     “Under the leadership of Ngcaba, the DEA has consistently received clean and...
Mzwandile Masina
The Department of Trade and Industry (DTI) has invited companies to participate in a trade and investment mission to Ghana and Nigeria from August 8 to 12.   Companies in the agriculture and agroprocessing sectors, built environment professionals, automotive and...
Cabinet has approved the Industrial Policy Action Plan (Ipap) 2016/17 to 2018/19, which seeks to achieve a higher-impact industrial policy in difficult economic circumstances, including the difficulties faced by the domestic steel industry and the drought which has...
More
 
 
Recent Research Reports
Automotive 2016: A review of South Africa's automotive sector (PDF Report)
Creamer Media’s Automotive 2016 Report provides an overview of South Africa’s automotive industry over the past 12 months. The report provides insight into local demand and production, vehicle imports and exports, investment and competitiveness in the sector, as well...
Energy Roundup – April 2016 (PDF Report)
The April 2016 roundup covers activities across South Africa for March 2016 and includes details of a North Gauteng High Court Judge’s dismissal of a court application to postpone the 9.4% electricity tariff increase, which the National Energy Regulator of South...
Electricity 2016: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2016 report provides an overview of South Africa’s electricity sector, focusing on State-owned power utility Eskom and independent power producers, electricity planning, transmission, distribution and the theft thereof, besides other issues.
Energy Roundup – March 2016 (PDF Report)
The March 2016 roundup covers activities across South Africa for February 2016 and includes details of the Department of Energy’s plans to announce the preferred bidders for the first tranche of the coal independent power producer procurement programme; the Council...
Steel 2016: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2016 Report examines South Africa’s steel industry over the past 12 months. The report provides insight into the global steel market and and particularly into South South Africa’s steel sector, including production and consumption, main...
Construction 2016: A review of South Africa's construction industry (PDF Report)
Creamer Media’s Construction 2016 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; key participants; local demand; geographic diversification; corporate activity; black economic...
 
 
 
 
 
This Week's Magazine
The two spent-fuel pools at Eskom’s 1 800 MW Koeberg nuclear power station, in the Western Cape, will be full by 2018, increasing the urgency on the State-owned utility to begin pursuing alternative storage options. Koeberg has, over the past 32 years, accumulated a...
South Africa lacks the skills necessary to implement the government’s plan to build 9.6 GWe of new nuclear energy capacity, warns nuclear-qualified Quality Strategies International CEO David Crawford. “Apart from the concern about the affordability of the programme,...
DOROS HADJIZENONOS The 700-series devices provide network security monitoring, app control, URL filtering, VPN security, antivirus, antispam, antibot, and advanced intrusion prevention and detection functionality
Cybersecurity multinational Check Point has released its latest 700-series cybersecurity systems for small businesses, which draw on its international threat intelligence to provide up-to-date cybersecurity, says Check Point South Africa country manager Doros...
Daimler Trucks and Buses Southern Africa (DTBSA) saw a marked slip in new-vehicle sales in 2015 compared with 2014, with sales dropping from 5 897 units to 5 300 units. The decline came as the South African new truck and bus market declined from 31 558 units in 2014...
Group of 20 (G-20) economies threatened to penalise havens that don’t share information on their banking clients after the leak of the Panama Papers provoked a global uproar over tax evasion. The G-20 will consider “defensive measures” against financial centers and...
 
 
 
 
 
 
 
 
 
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 $149 Close
Subscribe Now for $149