The Cluster



7 February 2013

Localisation and Eskom.
The inaugural meeting of the Pump Cluster, incorporating, Seals, Couplings and Motors was held on 7 February 2013.

The meeting was very well attended by members from this industry sector who is aiming to organise the sector to take advantage of the localization opportunities, specifically those emanating from Eskom and State-Owned Enterprises (SOE).

In addition, other industry sectors in South Africa such as mining and petrochemical will also provide huge localisation opportunities.

This strategy was developed in the context of Government’s national policies on industrial growth and development (National Development Plan, IPAP, CSDP and B-BBEE).

The scale of Eskom’s current spend and the anticipated spend over the next 5-10 years has highlighted the role that Eskom can play in terms of a number of opportunities:

The size of Eskom’s operations and expansion presents an opportunity to drive socio-economic development.

The long-term view of the company’s procurement spend allows them to identify areas where they can directly stimulate economic growth in a sustainable way.

Clarification of Eskom’s role in implementing the energy mix requirements of the IRP will enable them to bring critical mass to bear on industrialisation and localisation opportunities resulting from the Integrated Resource Plan. ( IRP.)

Pumps have been identified by Eskom as one of its strategic commodities through which to leverage future demand to promote the objectives of its Supplier

Current Market Situation
Locally based subsidiaries of foreign multinational companies dominate the South African and Eskom pump market. An analysis of the South African Pump market indicates that the country has both current and potential local capability to manufacture, assemble and refurbish pumps for various end user sectors.

The aim of the SD&L strategy is to develop a local pump industry with a full value chain offering, which conforms to South Africa’s transformation agenda.

The objective for the development of a pumps SD&L strategy is to identify opportunities and guide efforts to leverage future spend in order to:

  • Enhance local content among Eskom’s pump supplier base.

  • Develop existing local suppliers to improve competitiveness and develop capacity to export.

  • Contribute towards the development of scarce skills for Eskom and national requirements.

  • Make a contribution to job retention and creation.

Would you like to become a member?
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