Technology company ABB has invested more than R10-million to complete additional technology transfer that brings the manufacture of UniGear ZS1 medium-voltage switchgear to South Africa. This move forms part of the company’s strategic plans to strengthen local manufacturing.
Previously, the product was fully imported from the Czech Republic or other countries when needed. Owing to the investment, 60% to 70% of the technology will now be locally manufactured and assembled, which will allow customers to benefit from a higher design flexibility, faster accessibility and lower costs owing to reduced import costs and delivery time.
“The size of the South African switchgear market is projected to register growth. The increasing number of investments in sustainable power generation, coupled with the growing population, is expected to drive the growth of the market.
“This illustrates both the importance of the domestic sector to multinationals and the strategic location of South Africa to a rapidly growing African consumer market,” says Department of Trade, Industry and Competition agency InvestSA head Yunus Hoosen.
The Distribution Solutions factory within ABB's Longmeadow campus, in Modderfontein, Gauteng, which spans 43 520 m2 and contains offices, and manufacturing and logistics centres, now employs about 120 people, ten of whom have been newly employed owing to the investment.
ABB plans to increase these numbers by employing more permanent engineers, contractors and graduates through its graduate programme, for example, which has more than 70 graduates currently participating.
In addition to the transfer of UniGear ZS1 production, the company has started the process of increasing the localisation of its Compact Secondary Substations, which is due to be completed in October.
“Utilities are increasingly looking to implement smart solutions to solve complex energy challenges. ABB is well placed to continue to deliver world-class solutions to customers now through local manufacturing right here in South Africa.
“The creation of job opportunities for local engineers and contractors demonstrates our commitment to the long-term development of the country,” ABB electrification distribution solutions division medium voltage primary air-insulated switchgear manager Egon Worthmann says.
Built in 2009, ABB South Africa’s headquarters adopts sustainable manufacturing approaches, with the site boasting a 760 kW array of rooftop solar panels that generate enough solar energy to provide about 30% of the site’s yearly energy consumption of 2 400 MWh.
“The ABB investment further signifies that South Africa remains an attractive investment destination across all sectors, including the advanced manufacturing sector,” Hoosen says.
The Distribution Solutions factory serves customers in South Africa and other sub-Saharan countries.