3 June 2008 – Powertech Transformers has signed an enabling contract with Eskom for the supply of transformers across a range of sizes up to 400kV. The indicative value of the contract stands at R1.366 billion and significantly enhances the alliance partnership with Eskom.
Leon Viljoen, Chief Executive Officer of Powertech Transformers, said: “This contract for transformers forms part of Eskom’s extensive investment in upgrading and expanding the electricity grid to enhance the security of supply over the next five to seven years. Eskom’s greatest challenge remains the supply of continuous electricity during the building of the new base-load generating capacity.”
The transformers ordered by Eskom will be designed and manufactured in their totality at Powertech Transformers’ manufacturing facility in Pretoria West. Based on more than fifty years of operation, Powertech Transformers has vast experience in the manufacture of transformers and is currently the largest power transformer manufacturer on the African continent.
Norbert Claussen, CEO Powertech, said, “In the Powertech transformer group, we manufacture almost the entire range of power transformers for sub-Sahara Africa, ranging in size from 50kVA to 795MVA as well as other related transformer equipment for electrical power networks. This contract together with our long standing relationship with Eskom will bring a significant contribution to resolving our current power supply issues.”
He added that in March this year Powertech concluded the acquisition of the 50% shareholding that it did not own in the joint venture company ABB Powertech Transformers, from ABB South Africa for R320 million. As part of the transaction, ABB has signed a technology agreement with Powertech Transformers which will enable the company to maintain its leadership position through access to ABB’s leading technology for power transformers. Following this transaction, the negotiations with Powertech’s group BEE partners for a 25.1% stake in Powertech Transformers are progressing and an announcement regarding this transaction will be made in due course.