Transformer manufacturer LH Marthinusen (LHM), a division of electromechanical equipment manufacturer ACTOM, has launched its new R32-million industrial fan production facility, in Germiston, Gauteng.

The company noted during an event on May 29 that the facility strengthens South Africa's manufacturing capabilities, enhances job creation and aligns with the National Development Plan's goals for economic and infrastructure advancement.

In a media release, the Department of Trade, Industry and Competition (dtic) described the opening of the facility as marking a significant milestone in South Africa’s industrialisation and localisation efforts, adding that it is a direct outcome of the National Industrial Participation Programme (NIPP) – a key policy instrument under the country’s industrial policy framework.

The department said the new facility comes on the back of ACTOM’s recent supply of industrial goods to State-owned Eskom and its commitment to fulfil NIPP obligations.

It noted that these obligations are designed to leverage strategic government procurement to stimulate domestic manufacturing, promote technology transfer and support the growth of local industries.

“This moment marks a significant milestone, not only for ACTOM, but for South Africa's broader journey towards industrialisation, localisation and shared prosperity,” said Trade, Industry and Competition Minister Parks Tau during the launch.

“When we speak of industrialisation, we often mean large factories and heavy machinery. But at its core, industrialisation is about transferring skills, technologies and know-how, so that we can add value within our own borders rather than ship our wealth in the form of raw materials abroad,” he added.

The new plant will manufacture large-scale industrial fans for energy, mining and food processing applications, supporting both domestic infrastructure projects and regional export opportunities.

It also represents a practical case study of the successful implementation of the NIPP through original-equipment manufacturer (OEM) participation, the dtic said in the release, adding that the facility positions ACTOM as a key contributor to South Africa’s efforts to reduce import dependency, enhance competitiveness and grow the manufacturing sector.

“This not only deepens our manufacturing capability, but also nurtures a culture of research and innovation,” said Tau.

“By localising fan production, we will anchor downstream demand for our steel producers, driving beneficiation and unlocking economies of scale throughout the metals value chain,” he added.

Speaking on the issue of unemployment and slow GDP growth in South Africa, ACTOM CEO Mervyn Naidoo noted that ACTOM had undertaken to “actively embrace education” through the development of various training centres.

With this in mind, the new facility also houses a training centre, which Naidoo said had currently taken on 80 youth as apprentices.

“We see this type of initiative as crucial for our country, and not just our country, our continent as well, and we would like to see our competitors and other OEMs commit to industrialising in the region, to embrace our local economies, economies on the continent, to grow our continent and create jobs and stimulate economic growth as opposed to purely importing,” said Naidoo.

Additionally, Tau described the facility as a “beacon of what South Africa can achieve when we align our policies, our investments and our aspirations”.

“As we cut the ribbon today, let us reaffirm our shared mission to build a thriving, inclusive and globally competitive South African industrial economy. The journey ahead is ambitious, but with vision, collaboration and determination I have no doubt that we will succeed,” Tau expressed.