French electricity equipment major Alstom Grid and local electrical equipment manu- facturer Actom have renewed their techno- logies cooperation agreement for the next two years, having officiated their partnership at a signing ceremony, in Johannesburg, last month.

The agreement gives Actom, the largest electrical engineering group in Southern Africa, exclusive representation rights to promote, sell and support Alstom Grid’s products in South Africa and in other neighbouring countries.

It also encompasses a licensing agreement, allowing Actom to manufacture specific Alstom Grid products and components, including high-voltage insulators above 132 kV and advanced protection systems.

The renewed agreement formalises an interim agreement that has been in effect between the two parties since 2010. At the time, Actom’s former international technology partner for transmission and distribution technology and equipment, French nuclear technology specialist Areva, sold its global transmission interests to Alstom Grid and its distribution interests to global energy management specialist Schneider Electric.

The agreement pertains to four Actom business divisions, including high-voltage equipment, power transformers, protection and control, as well as power systems, and “represents the continuation of a longstanding, mutually beneficial cooperative association between the two groups”, says Actom executive chairperson Jack Rowan.

He tells Engineering News that Actom’s need for new technology requires that the company associate itself with a world leader in power transmission.

“We are, therefore, very pleased to have signed this agreement, which is an extension of a partnership that has lasted for more than 100 years. Alstom produces state-of-the-art products from a wide range of manufacturing sites in the devel- oped and developing world and, as a large player locally, we couldn’t have asked for a better combination,” says Rowan.

Alstom Grid Southern Europe and Africa VP Eric Boulot says the renewal of the agreement has provided the companies with the perfect opportunity to review their shared operations and the evolution of the market to re-energise their market approach with a renewed focus on customer needs.

“Actom and Alstom share a common history and complement each other by supplying a complete portfolio of transmission and distribution solutions to our customers in the region,” he says, further outlining the companies’ shared activities, including signalling, boiler services and metro coaches.

“This agreement will reinforce the partnership and cooperation between the two groups. We share a clear ambition in supporting our customers’ facing of current challenges, and in further implementing Smart Grid solutions to manage newly installed renewable power generation and create a more efficient transmission grid.”

Boulot says the companies recently embarked on a customer roadshow to showcase their latest technologies and innovations in Zimbabwe, Zambia and Namibia. He adds that there are additional roadshows in the pipeline, owing to the success of the previous event.

“South Africa is preparing to invest in large-network reinforcements and, as countries like Zambia are also developing their transmission networks, we are instilling a new dynamic to support our customers,” he says.

Meanwhile, Rowan tells Engineering News that Alstom Grid has allowed Actom total access to its technology, adding that the French electri- city major has been “very supportive” in this regard.

“Moreover, the licensing agreements are available in terms of the contractual agreement, should we want to manufacture Alstom products locally,” he says.

Together with Alstom Grid, Actom represents a combined original-equipment manufacturer, with after-market repairs and service capabilities that facilitate total life-cycle management and electromechanical and turnkey solutions.

While Actom is committed to developing and manufacturing its own products, it also manu- factures many products under licence agreements with international partners, wherever feasible, as part of its commitment to boosting local content.

“We have continued with this philosophy and have sustained manufacturing activities for the past hundred years,” says Rowan, adding that the company’s capital investment has been significant and is in line with government’s strategy to create employment.

Actom has reportedly spent R680-million in capital expenditure since 2002 by investing in acquisitions and growing the company’s existing businesses through building factories and acquiring machinery.

Rowan states that the company spends R1.4-billion a year in salaries and wages on its 7 500-strong staff complement and emphasises the company’s commitment to developing its employees.

“We provide opportunities for employees to advance their careers within the group and have a good record of employee retention,” he says.

Actom’s order intake and yearly sales amount to about R7.5-billion a year, of which R1-billion can be attributed to transmission-related activities.

Meanwhile, Alstom has a global sales intake of €20-billion and employs more than 90 000 people in more than 100 countries.

About 25% of the installed power generation base worldwide is equipped with Alstom-manufactured equipment.