TLT Divisional News – Sole Distributorship

Sole Distributorship

2009-09-10

engineroom-largeThe extended distribution arrangement, incorporating extension of ACTOM Mechanical Equipment’s existing licence and technology agreements, which entitle it to design and manufacture Fläkt Woods fan solutions for the local market, establishes it as the sole distributor of Fläkt Woods fans in Southern Africa.

For many years the company has been the distributor and licence-holder for Fläkt Woods axial flow fans from the 315 mm to 2500 mm diameter range and last year it entered the centrifugal fans market with locally designed and manufactured assemblies up to 1 MW in power.

“Up to now the local design, manufacture and distribution of Fläkt Woods fans has been split between ourselves, who took responsibility for small- to medium-sized units, and Fläkt Woods’ local subsidiary, which handled the larger units. With the new deal we’ve become the sole Southern African distributor of Fläkt Woods centrifugal and axial flow fans across the entire range,” commented Craig Johnston, ACTOM Mechanical Equipment’s general manager.

The additional products extend the size of the largest fan units tenfold in power to an upper limit of 10 MW, from the previous upper limit of 1 MW. The new deal establishes the company as a leading contender in the power plant, infrastructure and process industries, including iron & steel and cement processing, while further strengthening its position in the mining and heating, ventilation and air-conditioning (HVAC) markets, where it is already among the top fan assembly producers and suppliers.

“The immediate impact of the deal on the company is a substantial boost in turnover,” Johnston stated.

“It also significantly improves our future business growth prospects, not only because of the consolidation of the local distributorship of all Fläkt Woods products under one roof, but also due to the fact that it adds vital critical mass to our business infrastructure, which promises better utilisation of our resources, including skills, manufacturing plant, computer systems and other business facilities.”

Johnston said ACTOM Mechanical Equipment has hired most of the staff employed by the previous distributor of the larger Fläkt Woods fans. “They include designers and marketing and sales people who have the necessary technical expertise and provide a vital link with the existing markets for these products.”

He added: “Although the established practice of the previous distributor of contracting out all manufacturing of fan assemblies and accessories to local engineering companies will continue for the time being, we intend manufacturing and fabricating more of this equipment ourselves in due course, as we do with the bulk of our established products. This will be done to improve our factory loading and may lead to us having to extend our plant at a later stage.”

ACTOM Mechanical Equipment is part of the South African black-owned group ACTOM (Pty) Ltd, in which the BEE equity is 50,2%. The group’s BEE shareholders are Tiso Electrical (Pty) Ltd, Kagiso Power Projects (Pty) Ltd, Sibilant Investments (Pty) Ltd and Management.

ACTOM employs 5 000 people and has an annual order intake in excess of R4bn. It has 26 operating units, 22 production facilities and 21 distribution centres throughout South Africa.

ACTOM has exclusive distribution, technology and representation rights for Alstom and Areva T&D in Southern Africa and maintains management, technical and commercial links to the Alstom and Areva T&D business units in Europe.

For further information contact Craig Johnston, ACTOM Mechanical Equipment

PO Box 1300, Germiston 1400

Tel (011) 871-6789 Fax (011) 871-6677

E-mail craig.johnston@actom.co.za