The Altron group has welcomed government’s high-value infrastructure development programme to boost local manufacturing and technology.
Public procurement is one of the key drivers in government’s Industrial Policy Action Plan (IPAP). The regulations that give effect to the plan, empower the Minister of Trade and Industry to designate industries, sectors and sub-sectors for local procurement at specified levels of local content.
At the end of January this year, Minister Rob Davies released the latest list of designated products. In addition to valves and electrical and telecommunications cables, the list includes manual and pneumatic actuators and components for solar water heaters.
In December 2011, power pylons, rolling stock, buses, canned vegetables, clothing, textiles, footwear and leather products, as well as set-top boxes, were designated for local production with minimum local content thresholds.
Seara Macheli-Mkhabela, Altron’s group executive for human capital and corporate affairs, says that both IPAP and the Preferential Procurement Policy Framework Act (PPPFA) regulations are aimed at boosting the local manufacturing sector.
“Illegal imports and imported goods with no value-add to South Africa’s employment, skills development and infrastructure improvement are making it difficult for some of our local products to compete fairly.”
Seara points out that particularly Powertech and Altech stand to benefit from the PPPFA regulations.
“Powertech is traditionally a major supplier into the power distribution and transport markets. The main contributors are Aberdare Cables, which is the biggest manufacturer and supplier of electrical cables in the country and our joint venture with CBI-electric which produces telecommunications cables.
“Altech UEC is a leader in the manufacturing of set-top boxes. We already have the factories to produce locally, and can therefore make the most of government’s new regulations.”
In January government also issued a 15% tariff on imported finished set-top boxes, reinforcing the drive to manufacture them locally.
Powertech Transformers has become one of the first local companies to qualify for a technology assistance package from the Department of Science and Technology’s (DST) Technology Localisation Programme. The funding will be used for a collaborative research and development project with the Department of Mechanical Engineering at the University of Pretoria and the CSIR.
“The research relates to the short-circuit withstand ability of transformers,” says Bernard Meyer, CEO of Powertech Transformers. “Through this project we will establish and develop a local knowledge base.”
Beeuwen Gerryts, chief director: Technology Localisation and Advanced Manufacturing at DST, explains the department’s goal for the Technology Localisation Programme.
“Through the technology assistance funding, we increase South African companies’ access to new technologies, skills and innovations. The ultimate aim is to increase local manufacturing capabilities and activities, and reduce the reliance on imports, resulting in increased skills development and sustainable work opportunities.”
Public procurement is one of the key drivers in government’s Industrial Policy Action Plan (IPAP). The regulations that give effect to the plan, empower the Minister of Trade and Industry to designate industries, sectors and sub-sectors for local procurement at specified levels of local content.
At the end of January this year, Minister Rob Davies released the latest list of designated products. In addition to valves and electrical and telecommunications cables, the list includes manual and pneumatic actuators and components for solar water heaters.
In December 2011, power pylons, rolling stock, buses, canned vegetables, clothing, textiles, footwear and leather products, as well as set-top boxes, were designated for local production with minimum local content thresholds.
Seara Macheli-Mkhabela, Altron’s group executive for human capital and corporate affairs, says that both IPAP and the Preferential Procurement Policy Framework Act (PPPFA) regulations are aimed at boosting the local manufacturing sector.
“Illegal imports and imported goods with no value-add to South Africa’s employment, skills development and infrastructure improvement are making it difficult for some of our local products to compete fairly.”
Seara points out that particularly Powertech and Altech stand to benefit from the PPPFA regulations.
“Powertech is traditionally a major supplier into the power distribution and transport markets. The main contributors are Aberdare Cables, which is the biggest manufacturer and supplier of electrical cables in the country and our joint venture with CBI-electric which produces telecommunications cables.
“Altech UEC is a leader in the manufacturing of set-top boxes. We already have the factories to produce locally, and can therefore make the most of government’s new regulations.”
In January government also issued a 15% tariff on imported finished set-top boxes, reinforcing the drive to manufacture them locally.
Powertech Transformers has become one of the first local companies to qualify for a technology assistance package from the Department of Science and Technology’s (DST) Technology Localisation Programme. The funding will be used for a collaborative research and development project with the Department of Mechanical Engineering at the University of Pretoria and the CSIR.
“The research relates to the short-circuit withstand ability of transformers,” says Bernard Meyer, CEO of Powertech Transformers. “Through this project we will establish and develop a local knowledge base.”
Beeuwen Gerryts, chief director: Technology Localisation and Advanced Manufacturing at DST, explains the department’s goal for the Technology Localisation Programme.
“Through the technology assistance funding, we increase South African companies’ access to new technologies, skills and innovations. The ultimate aim is to increase local manufacturing capabilities and activities, and reduce the reliance on imports, resulting in increased skills development and sustainable work opportunities.”