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Re-establishment of boiler industry brings challenges

7th June 2013

By: Zandile Mavuso

Creamer Media Senior Deputy Editor: Features

  

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The high local-content requirements and the recent re-establishment of the boilers industry have not only brought about opportunities but also challenges. The most challenging of which relates to a reduction in productivity and the quality of boilers produced by the industry in South Africa, states global electronics and infrastructure company Hitachi Power Africa.

“The company is investing a lot of time, effort and money in improving problem areas through additional training, adapting control systems and direct front-line supervision. Since all the local scope related to manufacturing and construction is subcontracted, the company is relying on its local contractors to achieve the task at hand,” says Hitachi Power Africa CEO Johannes Musel.

“The re-establishment of the industry required that we manufacture and construct steam generators in South Africa, which called for an investment of R1.6-billion. We have achieved 60% local content, contracted more than 80% of projects to black economic- empowerment companies and initiated a skills development programme covering various education levels, which includes the training of about 2 000 artisans,” he adds.

Through the international cooperation between Hitachi Power design teams and projects worldwide, the company, says Musel, is well positioned for the future. Technological trends are focused on continuously identifying improvements in processes and designs to increase plant efficiency and lower emissions. This is achieved through ongoing research and development, and feedback from operating plants on the functioning of the boilers on the build.

With demand for skills growing in South Africa, Hitachi Power Africa believes that, in the short term, the biggest potential for growth lies in the education and training of artisans, as this is where the country is lacking significantly. In the medium to long term, more top-perform- ing artisans need to be trained as supervisors.

“Hitachi Power Africa has started training welders and riggers to accommodate [the skills] need and we have also brought in young engi- neering graduates to be trained as high-level supervisors and construction engineers. Through our skills development programme, we have already trained and qualified 900 artisans, most of whom are employed at the Medupi and Kusile coal-fired power stations, in Limpopo and Mpumalanga respectively. We have invested R23-million in a Manufacturing, Engineering and Related Services Sector Education and Training Authority-accredited artisan training centre, in Lephalale, for the purposes of this training,” Musel points out.

The company is responsible for delivering the steam generators (boilers) at the power plants under construction at the Medupi and Kusile power stations.

“Taking into consideration the engineering, material and component supply, manufacturing and construction for the offshore and local portions, our progress on the Medupi power station contract is more than 70%, and more than 50% for the Kusile power station.

“We are also pursuing smaller projects in South Africa and in neighbouring countries, but there is nothing tangible at this stage. We hope that power generation projects in South Africa will continue and we will certainly bid for those,” highlights Musel.

He hopes that the coal-fired power station programme will continue after the Medupi and Kusile power station projects are completed, so that the industry that has been established, as a result, can continue.

This will ensure that the experience gained and the jobs created are not lost. “More than 11 000 people have been employed by Hitachi Power Africa (both directly and indirectly by subcontractors) for these two projects; this figure includes the people employed at offices, workshops and construction sites,” he concludes.

Edited by Tracy Hancock
Creamer Media Contributing Editor

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