Industrial technology and equipment multinational Bosch has acquired the remaining 50% stake in Johannesburg-based industrial technology company Hytec.
The company had acquired 50% of the Hytec shares in 2014.
Hytec has about 40 branches in South Africa, Mozambique, Namibia, Zambia, Botswana, Ghana and Kenya and its roughly 770 employees generated sales of about €86-million in 2017.
The sub-Saharan Africa hydraulic and automatic solutions specialist company has now become a wholly owned Bosch Rexroth subsidiary.
With its new subsidiary, Bosch Rexroth hopes to further expand this business. Hytec has a well-established marketing network in sub-Saharan Africa, and its associates were well familiarised with what local customers want, Bosch Rexroth MD Rolf Najork said.
“Together with Hytec, we can take better advantage of the market opportunities in the African growth industries. The region is characterised by a lot of end-user business, such as servicing and spare parts for users of machinery.”
“Africa has a lot of potential as a strategic market of the future. In the years ahead, we want to significantly increase our sales in Africa. Considerable opportunities are offered by the heavy investments being made in infrastructure projects in areas such as construction and power generation,” Bosch management board member Uwe Raschke added.
Hytec will continue to market the products of other manufacturers. Its portfolio includes roughly 30 brands. It will also continue to do business as Hytec, since this is a strong, well-known brand in Southern Africa. The same applies to the Hytec subsidiaries TECTRA, HAW, HFT, HYSA, Hytec Engineering and HSA.
“Combining high-level regional marketing knowledge with Bosch Rexroth’s product expertise and technological prowess will be a significant boost to our business on the continent,” added Najork.
Within the next ten years, it is expected that 187-million Africans – equivalent to half the US population – will live in cities. This means growing demand for drive and control solutions for industrial machinery and mobile machinery, such as construction vehicles.
“Bosch Rexroth and Hytec are serving the African market in areas such as power engineering. In one major project, the two companies renewed the entire hydraulic equipment of the Roseires Dam, in Sudan. At 1 800 MW, the output of this dam on the Blue Nile is comparable with that of a nuclear power station.”
“The complete acquisition of Hytec gives us a welcome opportunity to extend this successful collaboration and to grow further in Africa,” says Bosch Rexroth South Africa GM Tillmann Olsen. The companies have worked together for 50 years.
In May, Bosch Rexroth and Hytec will move into new joint premises in Johannesburg. The premises will include new marketing and administration offices, as well as an assembly line, a service centre, and a training centre for courses in hydraulics and automation technology.
Bosch Group has systematically expanded its presence on the continent and is present in ten African countries. Its focus is on affordable solutions and services for local requirements. These include training programmes for tradespeople in Kenya, for example, or automechanics in Nigeria.
Bosch has been present in Africa since 1906. All four Bosch business sectors – Mobility Solutions, Industrial Technology, Consumer Goods and Energy and Building Technology – are active there. There are two manufacturing sites in South Africa, in Brits and Midrand.