Electromechanical equipment manufacturer ACTOM has unveiled a revitalised transformer production and testing facility in Pretoria.

The 40 000 m² site previously served as a factory for Powertech Transformers’ SGB-SMIT Power Matla subsidiary, which entered into business rescue in September 2023 owing to financial distress.

The process resulted in ACTOM acquiring SGB and rehiring 250 of the skilled employees that were left unemployed for two years. 

ACTOM also acquired a 10 000 m² transformer manufacturing site of SGB, in Cape Town.

The Pretoria factory underwent extensive maintenance and repairs since the acquisition, particularly to offer testing for large Class 3 transformers of up to 500 MVA – the only testing facility of its kind on the continent.

As Africa’s largest original-equipment manufacturer of these transformers, as well as of a range of products for power generation, transmission, distribution and power conversion, ACTOM aims to aid in Africa’s industrialisation and electrification.

The company supports products across their full lifecycle from manufacturing to integration into complete parts such as substations and power stations, and provides aftermarket support, repairs and services. 

Since its establishment 122 years ago, ACTOM has grown to employ 8 000 people across production sites in South Africa, Zimbabwe, Namibia, Zambia, Kenya and Botswana.

ACTOM CEO Mervyn Naidoo pointed out during the factory launch on December 3 that Africa generated less than 10% of China’s total power generating capacity despite having a similar population figure, which showed the immense potential to close the electricity access gap on the continent.

By 2050, Africa is projected to have the world’s largest economically active population globally with an anticipated 1.5-billion people between 18 and 65 years old.

Naidoo said industrialisation and electrification in Africa were key to addressing the 600-million people currently lacking access to reliable electricity, as well as poverty, inequality and unemployment.

The company is committed to manufacturing “for Africa, in Africa”.

ACTOM has supplied about 70% of the main substation transformers at South Africa’s rapidly advancing renewable-energy projects, with no service failures.

ACTOM Power Transformers CEO Steve Jordaan said South Africa was poised for more growth in demand for power transformers owing to the transition to renewable energy and the advent of AI, which required large-scale data centres to function.

He confirmed that the Pretoria factory would start manufacturing in earnest early next year following operational activities at the site, including training for employees.

ACTOM aimed to restore the factory to its full staff complement of more than 1 000 people in due course, Jordaan stated.

Commenting on the factory’s reopening, Department of Trade, Industry and Competition (dtic) acting deputy director-general Dr Tebogo Makube emphasised the importance of local content in public procurement, urging provincial and local governments to choose local electrical products instead of imports.

Despite the dtic having designated transformers in the public procurement system, Makube said its implementation varied among government bodies, with many municipalities still opting for imports of these products.

He noted government’s role in fostering local procurement did not need new laws, urging municipalities and metros, in particular, to recognise the economic benefits of local manufacturing and the circular flow of income that can support the region.

“Money spent on procurement is often reinvested, which benefits municipal services and public servants while creating jobs and supplier opportunities,” Makube stated.

Association of Municipal Electricity Utilities strategic adviser Vally Padayachee added that partnerships between the public and private sectors often solved for the technical challenges faced by municipalities in service delivery and that this “win-win” situation could ensure sustainable growth and development.

This is particularly prudent as South Africa needs to invest at least R160-billion to update its distribution infrastructure nationally.

City of Tshwane Mayor Nasiphi Moya agreed on the importance of local content, saying that support for local production was central to the city’s economic revitalisation strategy, which aimed to have the city’s economy grow by 3.9% by 2029 – from 0.3% in 2023.

She mentioned that partnering with the private sector could address infrastructure challenges related to energy, water and safety, particularly in the industrial district of Pretoria West. Moya reiterated the city’s commitment to supporting local businesses, from approval processes through to security enhancement.

Now that ACTOM was cementing its presence in Pretoria, special adviser on energy for the Presidency Silas Zimu suggested that the city and ACTOM conduct an assessment of the current power distribution assets and determine the modernisation and refurbishment needs of all substations, which could be a good starting point for the company’s order book.

Zimu said South Africa’s economy could be revitalised through energy projects and support more re-employment of workers who had been displaced across the country.