Company to launch two new products at inaugural trade show

6th September 2013

By: David Oliveira

Creamer Media Staff Writer

  

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Construction machinery manufacturer Shantui Equipment Southern Africa (SESA) will launch its SL60W-3 loader and SE480 excavator at the inaugural bauma Africa trade show this month.

“The SL60W-3 loader has an operating weight of 21 t and is powered by a China-based Weichai Power diesel engine. The loader’s transmission is designed by Germany-based automotive engineering company ZF Friedrichshafen and has a bucket capacity of 3.5 m3, says SESA vice-GM Garron Troskie.

The SE480 excavator has an operating weight of 47.6 t and a bucket capacity of 2.3 m3 and is ideally suited to mining and quarrying applications, he explains.

In addition, at its 800 m2 exhibition stand, SESA will display a range of its established machinery, such as the SF50 forklift, the SG21-3 motor grader, the SR12-5 vibrating roller and the SR26T pneumatic roller, as well as the SD22W and the SD32W bulldozers.

Troskie says: “bauma Africa, to be held at the Gallagher Convention Centre from September 18 to 21, is an international show held on local soil for the African market, which provides SESA with an ideal opportunity to expose Shantui to the African market. The company is well positioned to capitalise on the growth that lies ahead for Africa, as SESA strengthens and builds capacity in its business.”

SESA is also one of bauma Africa’s sponsors and hopes “the show and our exhibition will confirm confidence in Shantui’s future and establish a strong foundation for the company’s expansion into Africa.

“SESA’s presence at the bauma trade show will bring the company’s sales and its support network closer to the front lines, which will take customers’ and potential customers’ trust in Shantui’s distributors to new heights,” Troskie says.

SESA intends to focus on expanding its current global distributor network, in which each distributor is an exclusive supplier of Shantui products within a specific region, supported by subsidiary hubs.

“Africa represents the last frontier. Towards the end of 2012, the International Monetary Fund forecast that sub-Saharan Africa’s gross domestic product growth would reach 5.7% in 2013 – a very strong performance, considering poor international market conditions. Further, the Economist expects that seven of the top ten fastest-growing economies in the global economy between 2011 and 2015 will be from Africa,” he says.

Troskie adds that two of the most rapidly developing sectors in Africa are the mining and quarrying sectors and, therefore, the continent’s economies and its mining industry should be kept informed of alternatives as well as the latest product developments to aid the develop- ment of Africa’s economy.

Industry Challenges
“The rapid devaluation of the rand during the first half of 2013 has posed a significant challenge for the market. Fortunately, SESA is a subsidiary of Shandong Shantui Construction Machinery Import & Export Company and not a dealer, as all our other Chinese competitors are. Despite a weaker rand, SESA can offer robust earthmoving equipment, which are suitable for African conditions, at very competitive prices,” notes Troskie.

He says another challenge in the industry is the poor availability of parts. Therefore, SESA ensures that it stocks all critical parts and 80% of noncritical parts, with parts sales being a key element of SESA’s success in 2013. Consequently, SESA appointed international freight forwarding and supply chain management services company Toll Global Forwarding early in 2012 to manage its warehouse facility and ensure a seamless parts supply from factory level to customers, he adds.

Troskie explains that domestic politics have also affected SESA’s business. “Since the build-up to the 2010 FIFA World Cup, government spending has been significantly reduced. New policies have, however, been put in place to see billions of rands invested in 2015, but it will take time before the money is apportioned.

“Although the construction industry has slowed over the past few years, mining has continued to thrive, as South Africa is blessed with vast mineral resources, including coal, copper, platinum, gold and diamonds. Mining has always been one of the most important industries influencing South Africa’s economy and recent labour unrest has greatly affected the industry. Therefore, forecasts for South Africa have been revised to reflect a much slower economic growth rate than was originally expected,” he concludes.

Edited by Tracy Hancock
Creamer Media Contributing Editor

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