2009-06-11 - Acquisition supports power capacity infrastructure build with local manufacturing and demonstrates ABB’s commitment to local power market.
Johannesburg, South Africa, June 09, 2009 - ABB South Africa, a subsidiary of the global power and automation technology group, has acquired a local capacitor manufacturer, Westingcorp (Pty) Ltd, for an undisclosed sum from the owners of the company.
ABB South Africa will add the business to its power products portfolio for customers in the electric utility, mining and industrial sectors. Capacitors are used to improve the energy efficiency of electrical equipment.
"This acquisition forms part of ABB's strategy to support the power capacity infrastructure build with local manufacturing and shows our commitment to the local market," says Carlos Pone, CEO of ABB South Africa. "These products will be important for the upgrading and expansion of electricity infrastructure and in using energy more efficiently."
ABB South Africa will add value to the business through research and development, expanding distribution through its Middle East Africa (MEA) regional distribution channels and increase the product range. The business will also benefit from ABB South Africa's BEE credentials.
The Westingcorp operation, based in Centurion, employs approximately 30 people. The business will transfer to ABB's new head office, logistics and manufacturing premises at Longmeadow, Johannesburg, in 2010.
The acquisition is subject to customary regulatory approvals.