Company plans to localise part of operation, creating new jobs

20th September 2013

By: Ilan Solomons

Creamer Media Staff Writer

  

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Energy efficient technology solutions provider i4 Power Technology (i4PT) group plans to start manufacturing some its products locally, including its heating and cooling solutions, in the next 9 to 12 months, i4 Group CEO Ajay Jekison tells Engineering News.

He says the company currently undertakes some sub-assemblage of solar geysers and energy efficient lighting, which creates a few jobs; however, localising the production of its products will create many jobs and provide a quicker turnaround time for its customers.

In terms of solar geysers, i4PT is in partnership with several manufacturers such as electronics and electrical engineering group Genersys Solar.

Jekison highlights that i4PT holds an 86% share in the manufacturing rights of solar thermal technology manufacturer Genersys Solar’s water heaters in South Africa.

He acknowledges that the company has a small market share, but it is making inroads, as it already has five-million customers in South Africa and is gaining new customers daily.

“The biggest driver of the rising popularity of our energy efficient heating and cooling solutions is South Africa’s significant increases in electricity costs in the past five years,” states Jekison.

Another factor that has bolstered the popu- larity of i4PT’s product offering is the com- pany’s standard three-year swop-out warranty for all its products.

Jekison says this warranty is indicative of the confidence i4PT has in its products, which are supplied to domestic and large industrial users.

Although i4PT stocks a range of heat pumps, Jekison explains that the company is not product specific and is guided by its engineers, who are accredited in the energy field, as to which heat pump system is best suited to each client’s project.

The i4PT assessment team includes electrical and mechanical engineers.

As an accredited energy services company of State-owned power utility Eskom, the company strongly promotes the rebate programmes offered by Eskom to save customers from having to front large sums of capital beforehand.

Further, the company has employed about 500 master electricians who all possess a wireman’s licence and are obliged to issue a certificate of compliance, which proves that an electrical installation complies with the Occupational Health and Safety Act, No 181 of 1993, and the Electrical Installations Regulations of 2009, adds Jekison.

The company also provides training for its general workers at its facilities in all nine of South Africa’s provinces and it sends its qualified master electricians and engineers to run training courses for new workers, where required.

Projects

In the last two years, the com- pany’s engineering team has provided heating and cooling solutions for various projects, including the recreational facility at South African ferrochrome producer Assmang’s ferrochrome mine, in Machadodorp, in Mpumalanga. The company has also supplied schools in Mpumalanga, such as Dendron Primary School and Matshwara Secondary School.

In April, i4PT was awarded contracts to install energy effi- cient heating and cooling solu- tions for the office buildings of JSE-listed Advtech Group and State-owned group South African Airways (SAA) – including SAA subsidiaries.

However, Jekison tells Engineering News that Eskom needs to approve its rebate applications for these projects before work can start.

“One of the most significant challenges facing the company is Eskom’s turnaround time on rebate application approvals,” he notes.

Faster turnaround times from Eskom will help i4PT attract more customers, says Jekison, as all its installations depend on Eskom rebate approvals.

He explains that i4PT does not want to unduly burden its customers with large upfront capital expenditures, especially in light of the current tough economic climate in which companies and individuals find themselves.

However, feedback from the power utility for some of the company’s projects has taken more than a year.

“We have had many discussions with Eskom concerning the negative impacts delays have on projects, but no tangible improvements are visible yet,” states Jekison.

Benefits of Products

Using the company’s products can ensure a reduction in a residential household’s or business’s electricity bill of 30% and 60% a month, Jekison says.

Additionally, many customers will receive a full return on investment (ROI) in terms of savings on their electricity bills in one month to one year, he notes, adding that this depends on the size of the initial capital outlay.

Jekison says, to date, all i4PT’s projects have achieved a ROI in no longer than 11 months.

“By the end of next year, we would like our products to be available at retail outlets across South Africa. This will include the relevant costing information on the product’s packaging, such as the possible savings resulting from a product’s use, and how long it will take a person or company to achieve a full ROI,” Jekison concludes.

Edited by Tracy Hancock
Creamer Media Contributing Editor

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