Photo by: Bloomberg
After announcing in July last year that it planned to acquire a 50% stake in its sales partner Hytec Holdings, drive and control technologies group Bosch Rexroth said on Tuesday that the joint venture (JV), which came into effect on October 1, would offer significant expansion opportunities in sub-Saharan Africa’s hydraulics and automation markets.
The company said in a statement that the merger represented the next step in a relationship that began with Hytec’s accreditation as the sole importer of Bosch Rexroth products to South Africa in the 1960s.
With the region’s mining, oil and gas, power and general support industries identified as a key growth market, Hytec believed the JV enabled each entity to leverage the core offerings of the other to provide superior automation solutions for the region.
The closer affiliation with the Bosch Rexroth brand would further position the Hytec group as the recognised service, repair and refurbishment original-equipment manufacturer partner of Bosch Rexroth components, such as pumps, cylinders, motors, filters and valves, noted Hytec CEO John Wingrove.
“This will enhance our service support capabilities for the region’s industrial projects and allow us to better fulfil the needs of our customers,” he outlined.
The merger would also see the Bosch Rexroth brand represented alongside several complementary product brands as part of a complete turnkey hydraulic and automation solution, fully supported by Hytec Group.
“Another important pillar of our expansion will be our training capabilities for the whole range of hydraulic, automation and servicing skills,” explained Hytec deputy CEO Roland Keller.
Hytec had a strong didactics engineering portfolio, with a fully-equipped training centre in Spartan, Johannesburg, and the company’s specialists were presenting training courses in countries such as Nigeria, Kenya and Seychelles.
The Hytec Group/Bosch JV senior management board would be comprised of Wingrove, Keller, group finance controller John Dunmow and CFO Andrew Castle.
In addition to the Hytec Holdings head office and HYSA, the centralised procurement and distribution warehouse, six Hytec Group companies would form part of the new JV, namely Hytec/Afripower; Tectra Automation; Hydraulic and Automation Warehouse; Hytec Engineering; Hytec Fluid Technology; and Hytec Services Africa, incorporating subsidiaries in Mozambique, Namibia, Zambia, Botswana and Ghana.