First Cat genset assembly plant in South Africa showcases growth plans

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To meet rising demand, reduce unit cost and promote localisation, 395 Caterpillar and its southern African dealer, Barloworld Power, have established the first ever assembly plant for Cat generators in South Africa.

Located in Boksburg, Johannesburg, the facility will initially assemble the CFat i6 and 400 series generator sets ranging from 400kVA to 1,000kVA, according to Imrad Amod, 8140 Barloworld Power assembly manager. The facility is an upgraded existing workshop previously used as a customised solutions centre for the manufacture of baseframes, enclosures, canopy builds and container modifications for generators. “The assembly plant is a major step forward in Barloworld Power and Caterpillar’s growth aspirations across southern Africa,” says Mark Mencel, executive director of Barloworld Power southern Africa.

Mencel adds that the initiative will significantly reduce unit costs as locally assembled Cat generator sets will be completely exempted from the 20% import duties in the Southern African Customs Union, which comprises South Africa, Botswana, Lesotho, Namibia and Swaziland.

Nalen Alwar, business development manager: Gas Southern Africa at Barloworld Power, reiterates that the investment is part of Barloworld Power’s strategic growth plans. “Key to the growth strategy is investment in facilities and equipment to support our existing customer base and new sales.” He adds that this puts the company in good stead in its preparations to make the most of the promising gas-to-power market and offers continuous improvement in the mature diesel standby market.

Meanwhile, Chris Monge, Caterpillar area manager, says the initiative between Barloworld and Caterpillar promotes localisation and leverages the OEM’s ability to provide a local solution for South Africa. “This represents a significant investment in the local economy to support our growth strategy in the power business.”

The facility was set up with the assistance of experts from Caterpillar’s power systems assembly factory in India and is being managed and staffed by Barloworld Power. It employs a total of 26 people, but Amod says there is scope for growing the number as the facility ramps up production in response to demand. The first two pilot 550kVA units were assembled in February. Componentry is sourced in completely knockdown format from Caterpillar China.

Meanwhile, Mencel says the facility is a result of a long-term plan that was purely aimed at reducing unit costs. However, he is upbeat that the timing has coincided with increased demand for power solutions in South Africa, as the country grapples with current power shortages. Besides South Africa, he says southern Africa, as a whole, offers great growth prospects. He sees growing demand in Mozambique and Angola. However, Angola is going through a difficult phase due to the current squeezed oil prices.