Howden Africa

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newh o w d e n a i m s f o r

south africa magazine talks to Thomas Bärwald, the ceo of gas and air handling equipment giant Howden africa, a regular in the

Business Times newspaper’s ‘Top 100 companies’, which has

its eye on growing its markets through excellent engineering

and service.

By ian armitage

H owden is a major engineering force. Its equipment underpins economic development

on the African continent and it has played a significant role in large-scale power generation, mining, construction, petrochemical and manufacturing projects.

“We have long-term relationships with customers in many sectors of Africa’s industrial infrastructure,” says Thomas Bärwald, the CEO of the Johannesburg-based and JSE-listed Howden Africa.

Howden Africa has four main business units - Howden Power, Howden Fan Equipment, Howden Projects and Donkin Fans - offering comprehensive engineered systems and after-market support services, focusing on specific industrial sectors or product ranges.

As part of Howden Global – which has operations all over the world – the company has access to the extensive engineering knowledge derived from a worldwide installed base.

“We’re able to meet the demands of our customers, by providing solutions engineered for their specific requirements, backed by manufacturing excellence and on-site installation and technical support throughout the lifetime of each system,” Bärwald explains.

Howden Africa has two world-class manufacturing centres in South Africa, one in Johannesburg, and the other in Port Elizabeth, giving it a geographical reach that enables it to support large-scale, turnkey engineered plant and products, through most of sub-Saharan Africa.

“We specialise in the design and engineering of a wide range of

Howden africa focus energy

3www.southafricamag.com



equipment and have an extensive offering,” says Bärwald. “We have an excellent reputation in the market and listen to the customer.”

Through its engineered solutions, such as ventilation systems and refrigeration plant for mines, boiler fans, airheaters and environmental control systems for power stations and general industry, and ventilation systems for HVAC systems in construction, Howden Africa has built up an enviable reputation and offers customers a personal service and presence in Africa, he adds.

“Our involvement in the development of Africa’s industrial infrastructure is matched by our commitment to the future.”

The firm has, according to Mr Bärwald, achieved “excellent results in the first half of the financial year”, with the share price “gaining 120 percent”. It’s a good performer on the JSE.

“We have secured more mining business from countries north of the border such as Ghana, Tanzania, Zambia and the DRC (Democratic Republic of the Congo) etc,” he explains. “We have received some really good orders there. We also had a very good year in the environmental control business and generally we have done very well in service and maintenance. We have extended the amount of services, especially in the power and mining industry.”

His goal is to expand even further beyond South Africa’s borders. “Opportunities for business in future are huge in the African context. [There] is always a need for more power and there is potential for new mining projects, generating substantial demand for our products, especially

Operating a corporate fleet is becoming anightmare, with constant regulatory changesand ever increasing operational costs. Whynot join our growing client base, who haverealised that a true fleet management partneris critical to the effective management of theirfleet requirements, regardless how small orlarge their business? Eqstra Fleet Management (EFM) recognisesthat company vehicles are not core to yourbusiness and that they will at best be treatedas a necessary operational expense. To thiseffect we are the only fleet managementcompany in South Africa offering a total 360degree solution in-house – allowing ourclients to outsource part or all fleet relatedprocesses to EFM. Working with our clients, we have developedour solution on all fleet costs and not just thecost of the vehicle. Our 29 years’ experiencein the South African market has allowed us todevelop a solution and capabilities to assistclients from vehicle choice and policy designright through to driver management – butmost importantly our market leading systemprovides clients with a platform to consolidateall fleet related costs into one single view oftheir fleet, thereby allowing us to benchmarkcost drivers and constantly identify andaddress areas of improvement. We are now in a position to report the totalcosts per individual vehicle per kilometerdriven, allowing us to work with our clients toconstantly measure and drive down all fleetrelated costs. This we believe is what a truefleet management partner should be able toprovide you – and the resultant savings, inmany cases exceeding 12% of total costs aretestament to our approach. Through our “Quest for Excellence”philosophy we constantly invest in ouremployee skills & our systems and in the lastyear alone we have spent more than R50mto ensure that we remain the fleet management company of choice. We are so confident in our solution thatwe will only work with a client if we canguarantee them measurable savings.

Eqstra Fleet Management

For more information or to get a free consultation on how EFM solutions can be tailor made to help you drive down your fleet costs by up to 15%, contact Eqstra Fleet Management on 011 458 7555 or visit www.efm.co.za

WE DON’T JUSTFINANCE YOUR VEHICLESWE MANAGE YOUR FLEET



capital equipment such as air and gas handling equipment, mine main ventilation and cooling.

“The SADC countries are emerging as an important market for us, especially in mining and infrastructure. We have developed a strong reputation in the region through a combination of excellent engineering solutions and innovation, and our geographical proximity facilitates rapid after-market support, at site where required.”

Opportunities are plenty at home too and Bärwald is optimistic about the future for Howden Africa, particularly in the light of the environmental regulations that are increasingly impacting the manufacturing sector.

“South Africa is focused on cleaning up environmentally and driving to green and we’re seeing new environmental laws and carbon tax proposals for the country, as well as the 2010 Clean Air Act. Companies are now required to manage and monitor emissions and invest in environmental control. We’ll see a lot of power producers looking to clean up their acts even more and bring the existing plants and new plants to international standards. Obviously a big slice of what we do is relevant here - our environmental control division is growing. We have good, proven products.

“We are optimistic about the future. We are supplying major turnkey ventilation projects and ice plants for the

Tektower manufactures a whole range of cooling towers from the smallest fibreglass units for air-conditioning applications to site assembled modular units for large manufacturing plants and mines to the concrete or galvanized steel units for the really large applications. All towers are manufactured to the exceptionally high quality standards. Tektower is one hundred percent South African owned and are proud of the fact that 95% of our Cooling Tower products are produced in South Africa and our towers are built to last - they are designed and built to withstand the African harsh conditions - the sun, the heat and humidity.

Tektower

Tektower manufactures a whole range of cooling towers from the smallest fiberglass units for air-conditioning applications to site assembled modular units for large manufacturing plants and mines to the concrete or galvanized steel units for the really large applications. All towers are manufactured to the exceptionally high quality standards.exceptionally high quality standards.

Although Tektower is a specialised cooling tower company, it offers more than just cooling towers. We offer a whole range of products that are related to our business. These include:

· Water Circulating Pumps· Chillers· Plate heat exchangers· Side Stream Filters· Engineering designs and drawings· Project Management· Full Maintenance Contracts· Water Treatment

Head Office Contact Details

82 Plane RoadSpartan

P.O. Box 3990Edenvale

1610GautengGauteng

Tel: +27 (0)11 975-6506Fax: +27 (0)11 394-3458

Email: [email protected]: www.tektower.co.za

CLIENTS


ultra-deep gold mines and platinum and coal mines in South Africa and we currently have major contracts within the rest of Africa to supply ventilation equipment to deep level mines and process plants. Our main projects going on right now are the supply of air and gas handling equipment to the new large power projects at Eskom.”

The aftermarket is another growth area where many of Howden’s equipment is still in the field after 30 to 40 years operation that need servicing, refurbishments and upgrades.

Mr Bärwald has worked with Howden for over 23 years. Along the way he has worked and headed the Howden’s Australian and South East Asia business for 15 years and South American businesses for three years, and also headed the Chinese operations for nearly two years.

“Howden is a great place to work,” he says. “The company has a presence on every continent and an impressive track record of innovation. To carry that forward we invest in technological R&D, innovation, and the training of our staff.

“We have, at the moment, like many other engineering companies, a generation shift, a change. We have a lot of people that will retire in the next decade and now the next generation has to take over and we want to maintain good skills. We also ensure that if you are in Europe, North America, China, Australia or Africa you will get the same quality.”

Howden has long recognised the importance of allowing individuals to develop their skills and knowledge to their full potential.

In 2008 it added a formal dimension to its training capabilities by instituting the Howden Academy, a residential training course at the University of Caledonia in Glasgow in which engineers from all Howden business units are brought together for an introduction to technologies and business practices.


The company has a presence on every continent and an impressive track

record of innovation. To carry that forward we invest in technological r&d, innovation, and

the training of our staff

Industrial Cleaning62 George StreetMantevredeVanderbijlpark

Tel: 016 932 5328Fax: 016 932 5395Email: [email protected]: [email protected]

Hydraulics & Engineering36 Saturn Street

Naledi Vaalpark

Tel: 016 971 1218Fax: 016 971 3530

Email: [email protected]: [email protected]

Our services include: Hydraulics – New & reconditioned pumps, cylinders, seals, new valves, valve banks and hydraulic hoses and fittings.

Engineering – Machining, shafts, bushes, general engineering, repairs to gearboxes and valves.

Protective LiningsProtective Linings – Anti-corrosion, rubberlining and fibreglass.

Plastic Pipeline Systems – HDPE, PVC, PVDF & Polypropylene.

Industrial Cleaning – Vacuum, high-pressure water jetting.

ROCKENT INDUSTRIAL SERVICEScc

South Africa’s own Superior Hydro-Blasting, Vacuum Specialist, Hydraulics & Engineering

Fabcom CC, a well established and experienced company, specialises in the manufacture and supply of fabric and metal expansion joints, bellows and insulation products. Due to the many and varied applications of the product, clients requirements are individually assessed and their needs met. Fabcom prides itself upon the selection and utilisation of high performance, Fabcom prides itself upon the selection and utilisation of high performance, high quality material in the manufacturing of its products. A leader in its field and with access to state of the art materials, Fabcom is able to ensure that the end user receives cost effective and technical sound solutions. Applications• Fan Manufacturers• • Project Houses• Cement Industry• Pulp and Paper Industry• Petro-chemical Industry• Sugar Industry• Fertilizer Industry• Metallurgical Industry• • Power Generation• Pollution Control and Gas Cleaning

Tel: +27 11 708 7010Cell: +27 82 657 8882

Email: [email protected]: www.fabcomsa.co.za

A preferred supplier to many large corporations, offering specialized services and products to a broad spectrum of utilities

We strive to provide our clients with products and services that meet or exceed their expectations, both in terms of quality and service, while also ensuring competitive pricing.

We offer products and services across all Engineering Disciplines:

• Machining• Reconditioning • Specialized Welding • Manufacturing / Fabrication

We are proud to manufacture Howden’s fans, casings and rotors.

Krupp St. 8 P.O. Box 3054 Vanderbijlpark1900

Tel: (016) 986-2130/1/2/4Fax: (016) 986-2135

Email: [email protected]: www.aio.co.za

“Training is vital,” Bärwald says. “We have an engineering ladder structure with the aim of, if you are a good engineer, you can get the same kind of promotions as you would if you had manager career. Next year we intend to do even more training. We will continue to train.”

Bärwald says the Howden Academy builds on the cooperation and shared knowledge that has always distinguished Howden as a company. “Every Howden engineer is an integral part of an international pool of leading-edge expertise.” eND

To learn more visit www.howden.com.

Zesco is Zambia’s state-owned power

utility. It generates, transmits, and

distributes electricity in the country

and offers various vending options for

customers to buy electricity units using

prepaid meters.

In recent years it has pumped

millions into infrastructure

improvements, playing its part in

securing Zambia’s future.

But still more could be done. Zambia

endures persistent power interruptions.

Zesco is determined to improve

the situation.

In order to raise funds for power

improvements, the company is looking

to foreign investors. Managers recently

visited London, Boston and New York in

order to meet with potential investors.

“We are probably talking $1 billion,

probably even $2 billion,” Cyprian

Chitundu, Managing Director of Zesco

revealed at the Zambian International

Investment Forum.

The utility may even decide to

issue a Eurobond, following in the

footsteps of the recent issuance of

$750 million debt by the Zambian

government in September.

What is clear is that Zesco is looking

to address power problems. Zambia has

experienced extensive power shortages

over recent years, leading to power

outages impacting strongly on the

economy as production has been halted

on a number of occasions due to lack of

power supplies.

Of particular note, the country’s

mining sector has suffered stoppages as

a result of low power supplies, causing

the country to miss out on the potential

it holds as the largest copper producer

in Africa.

In January 2013 it was revealed that

Zesco plans to build a new 330 kV power

transmission line to provide electricity to

new mines.

The environmental management

agency said Zesco applied for

environmental approval to build the

power line, which would feed First

Quantum Minerals’ Kalumbila mine and

Barrick Gold’s Lumwana mine.

“The estimated capital cost of the

project is $249.3-million and project

implementation will take about 30

months,” the agency said in a statement.

Zesco was formerly known as Zambia

Electricity Supply Corporation Limited

and changed its name in May 1994. The

company was founded in 1970 and is

based in Lusaka.

It has offices in Lusaka, Ndola, and

Kitwe; and service outlets in Zambia.

To learn more visit www.zesco.co.zm.


ZESCO/114/12-EXPRESSION OF INTEREST FOR THE IDENTIFICATION, VERIFICATION AND REVALUATION OF ZESCO ASSETS FOR USE IN ACCOUNTING AND INSURANCE PURPOSES

1 BACKGROUND ZESCO Limited invites Expression of Interest

from qualified services providers to identify, verify and revalue fixed assets for both accounting and insurance purposes to comply with International Accounting Standards and Insurance and Risk Management Standards. Bidders can access more information on ZESCO website: www.zesco.co.zm.

1.1 ZESCO INFRASTRUCTURE In the generation business, ZESCO has the following

power stations among others ranging from 108 MW to 990MW, four Small Hydro Power Stations ranging from 5 to 12 MW and Nine (09) Diesel Power Stations spread throughout the country. ZESCO has a network comprising Transmission Lines exceeding 7,231km and over 60 Transmission Substations spread across Zambia. The Distribution business has a installed capacity of over 1500MVA. Additionally, ZESCO has other moveable and non-moveable assets. ZESCO has a Business Information Management System, all business applications are based on Oracle data base.

2 SCOPE OF WORK The assignment involves identification, verification,

coding and revaluation of all fixed assets for the Company so as to come up with a comprehensive asset register reflecting fair values. Additionally, there will be need to establish an internationally accepted framework (PAS 55) for sustainable asset management. The assignment shall involve but not limited to the following activities:

2.1 Conduct a fixed asset identification and verification exercise; 2.2 Fixed assets data capture and upload in relevant databases; 2.3 Asset classification and categorization according to industry best practice.; 2.4 Establishing Asset

fair values (total reinstatement values) for use to prove insurable losses of fixed assets; 2.5 To establish an intelligent and internationally recognized coding system and tag all the identified and verified fixed assets for tracking purposes. 2.6 To determine fair values for all the company’s fixed assets in accordance with the internationally accepted practice for electricity utility industry (PAS 55), International Accounting and Insurance Standards; 2.7 Establish Satellite Asset Care Centers and a Central Asset Care Centre to anchor

assetmanagement; 2.8 Establish an Asset

Management Policy that should include but not limited to the standards, processes, procedures,

guidelines and controls for the recording of assets beginning at the budgeting and procurement stages through to the final disposal and or transfer of Assets.

3 QUALIFICATIONS Interested consultants should provide information

indicating that they are qualified to undertake the assignment by submitting their detailed information on the following:-

3.1 Ten Years demonstrable experience in undertaking similar assignments in Power Utility Companies. 3.2 Demonstrated experience and expertise in the valuation of Generation, Transmission and Distribution assets and other associated infrastructure of not less than ten years. 3.3 Demonstrated experience in Financial Audits and specifically verification and confirmation of Fixed assets and liabilities of not less than ten years. 3.4 Demonstrated experience in Insurance Loss Adjusting/Assessment in the Electricity Supply Iindustry of not less than ten years. 3.5

Provide evidence of membership to relevant professional bodies. 3.6 Provide evidence of sound financial capacity to carry out the assignment (Submit independently audited annual statements for the last five years).

The firm should show evidence of collaboration with any Oracle partner(Globally) whose credentials include the following:

(a) Valid Oracle Partner Id,(b) Partnership Validity(c) Status of Partner - Silver/ Gold/ Platinum/ Diamond.

(d) Certifications and References

4. SUBMISSION The Expression of Interest must be deposited in

the tender box on the 2nd Floor, New Building, ZESCO Limited, Head Office, Stand No. 6949, Great East Road, Lusaka, Zambia on or before Friday, 8 February 2013 at 10:30 hours local time. The telephone numbers are 260 (211) 223971 and 260 (211) 362314 and the telefax number is 260 (211) 223971.

HOWEVER, TELEFAX OFFERS WILL NOT BE ACCEPTED.

SENIOR MANAGER – PROCUREMENT

SA MAG 34 ZESCO - ZESCO DPS.indd 2 22/01/2013 15:01:13

Great East Road, Stand No.6949P O Box 33304,Lusaka,Zambia

Tel:260-211-361111. Fax:260-211-222753Email:[email protected] Website:www.zesco.co.zm

ZESCO/114/12-EXPRESSION OF INTEREST FOR THE IDENTIFICATION, VERIFICATION AND REVALUATION OF ZESCO ASSETS FOR USE IN ACCOUNTING AND INSURANCE PURPOSES

1 BACKGROUND ZESCO Limited invites Expression of Interest

from qualified services providers to identify, verify and revalue fixed assets for both accounting and insurance purposes to comply with International Accounting Standards and Insurance and Risk Management Standards. Bidders can access more information on ZESCO website: www.zesco.co.zm.

1.1 ZESCO INFRASTRUCTURE In the generation business, ZESCO has the following

power stations among others ranging from 108 MW to 990MW, four Small Hydro Power Stations ranging from 5 to 12 MW and Nine (09) Diesel Power Stations spread throughout the country. ZESCO has a network comprising Transmission Lines exceeding 7,231km and over 60 Transmission Substations spread across Zambia. The Distribution business has a installed capacity of over 1500MVA. Additionally, ZESCO has other moveable and non-moveable assets. ZESCO has a Business Information Management System, all business applications are based on Oracle data base.

2 SCOPE OF WORK The assignment involves identification, verification,

coding and revaluation of all fixed assets for the Company so as to come up with a comprehensive asset register reflecting fair values. Additionally, there will be need to establish an internationally accepted framework (PAS 55) for sustainable asset management. The assignment shall involve but not limited to the following activities:

2.1 Conduct a fixed asset identification and verification exercise; 2.2 Fixed assets data capture and upload in relevant databases; 2.3 Asset classification and categorization according to industry best practice.; 2.4 Establishing Asset

fair values (total reinstatement values) for use to prove insurable losses of fixed assets; 2.5 To establish an intelligent and internationally recognized coding system and tag all the identified and verified fixed assets for tracking purposes. 2.6 To determine fair values for all the company’s fixed assets in accordance with the internationally accepted practice for electricity utility industry (PAS 55), International Accounting and Insurance Standards; 2.7 Establish Satellite Asset Care Centers and a Central Asset Care Centre to anchor

assetmanagement; 2.8 Establish an Asset

Management Policy that should include but not limited to the standards, processes, procedures,

guidelines and controls for the recording of assets beginning at the budgeting and procurement stages through to the final disposal and or transfer of Assets.

3 QUALIFICATIONS Interested consultants should provide information

indicating that they are qualified to undertake the assignment by submitting their detailed information on the following:-

3.1 Ten Years demonstrable experience in undertaking similar assignments in Power Utility Companies. 3.2 Demonstrated experience and expertise in the valuation of Generation, Transmission and Distribution assets and other associated infrastructure of not less than ten years. 3.3 Demonstrated experience in Financial Audits and specifically verification and confirmation of Fixed assets and liabilities of not less than ten years. 3.4 Demonstrated experience in Insurance Loss Adjusting/Assessment in the Electricity Supply Iindustry of not less than ten years. 3.5

Provide evidence of membership to relevant professional bodies. 3.6 Provide evidence of sound financial capacity to carry out the assignment (Submit independently audited annual statements for the last five years).

The firm should show evidence of collaboration with any Oracle partner(Globally) whose credentials include the following:

(a) Valid Oracle Partner Id,(b) Partnership Validity(c) Status of Partner - Silver/ Gold/ Platinum/ Diamond.

(d) Certifications and References

4. SUBMISSION The Expression of Interest must be deposited in

the tender box on the 2nd Floor, New Building, ZESCO Limited, Head Office, Stand No. 6949, Great East Road, Lusaka, Zambia on or before Friday, 8 February 2013 at 10:30 hours local time. The telephone numbers are 260 (211) 223971 and 260 (211) 362314 and the telefax number is 260 (211) 223971.

HOWEVER, TELEFAX OFFERS WILL NOT BE ACCEPTED.

SENIOR MANAGER – PROCUREMENT

SA MAG 34 ZESCO - ZESCO DPS.indd 2 22/01/2013 15:01:13

1A Booysens Road Booysens 2091 Johannesburg South Africa

Tel: +27 11 240 4000 Fax: +27 11 493 0545 Email: [email protected]

www. howden.co.za

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Howden Africa

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