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Renewables boost for ABB South Africa’s revenue

ABB South Africa, has seen its revenue increase by 66% in its financial year that ended in December 2013. The main reason for the increase in revenue to R5.9 billion was an increased demand for renewable energy in South Africa. The country accounts for 90% of ABB South Africa’s revenue.

The company says that future business is largely expected from the southern African region. Since the successful integration of various sites in Johannesburg into one premises (Longmeadow), the company now also hosts a new capacitor factory, a turbo charger service site in Walvis Bay and premises in Milnerton, Cape Town. More than R200 million will be invested into extending and upgrading the company’s motor facility in Alrode.

ABB southern Africa CEO Leon Viljoen is particularly optimistic about opportunities arising from a potential integrated transport system for the sub-continent. “The knock-on effect of an inter-regional rail network for the region’s economic development is immense. Besides the fact that it will allow Africa to be more competitive in the global economy, it will also be a major source of employment.”

Viljoen remains positive about prospects based on South Africa’s Integrated Resource Plan (IRP), which projects a significant portion of future energy generation emanating from renewable energy projects. “The predictions from the IRP correlate with the feedback we have received from our customers and business partners, all looking at investing into renewable energy over the next few years.”

ABB’s orders from southern Africa have already increased and are expected to increase even further over the next five years as a result of the continent’s need for accelerated transport, communication, water and power infrastructure development. “We are optimistic about the future business opportunities in the 12 African countries in which we currently operate.”