Power transformers and electrical infrastructure company ACTOM has acquired primary transformer manufacturing company SGB-SMIT Power Matla (SSPM), which will enhance ACTOM's transformer manufacturing capabilities to now include Class 3 units up to 500 MVA/500 kV, increase its production capacity and strengthen its energy sector focus to support regional industrial growth throughout Africa.
The acquisition will also generate employment opportunities while developing local skills and establishing domestic manufacturing capabilities to decrease import reliance and boost economic performance, says ACTOM Group CEO Mervyn Naidoo.
South Africa’s Transmission Development Plan (TDP) and Integrated Transmission Plan (ITP) anticipate extensive network expansion over the coming decade that will require new high-voltage substations and transmission corridors, which will generate increased demand for large power transformers.
Further, the renewable energy sector also presents a vital business opportunity for ACTOM. The self-build strategies of concentrated solar power, wind and solar PV project developers require that they build power generation facilities and transmission substations that connect to the electrical grid.
ACTOM is well-positioned to supply the heavy-duty transformers and infrastructure necessary to facilitate these connections, Naidoo notes.
SSPM’s Pretoria and Cape Town manufacturing facilities will form the foundation for ACTOM's growth initiative, he adds.
The Pretoria plant, which has remained largely inactive since October 2024 owing to funding issues and fire damage, will undergo full restoration and upgrading.
After completion, the Pretoria factory will function as the main base for class 3 transformer production, and thereby making ACTOM the largest transformer manufacturer in Africa, Naidoo highlights.
ACTOM plans to surpass pre-fire production levels in Pretoria, as well as establish additional manufacturing facilities, and strengthen its role as a regional hub, he adds.
Meanwhile, geographic expansion is a key strategic objective for the company. While large transformer factories entail significant operational costs, expanding across Africa enables better cost management, enhances manufacturing efficiency and fosters broader industrial development and electricity infrastructure growth throughout the continent, Naidoo says.
ACTOM aims to establish itself as an African original-equipment manufacturer by developing local manufacturing centres that will deliver support services throughout the continent, he says.
“Our vision is ‘in Africa, for Africa, by Africa’ to foster sustainable growth, skills development, and industry resilience on our continent,” says Naidoo.
ACTOM is a strong and experienced South African partner that can offer the assets and the employees of SSPM a sustainable and positive future, says SGB-SMIT Group CEO Holger Ketterer.
“We are confident that ACTOM, as a local manufacturer, will continue to build on the strengths of the company and further develop its position in the South African market. SGB-SMIT will actively support ACTOM throughout the transition period to ensure a smooth and seamless handover,” he says.