Powertech Quadpro (PTQP), an Altron group company that provides turnkey substation solutions, celebrated its first successful year as a member of the Altron group. It has been exactly a year since Altron acquired a 51% stake in QuadPro Power Solutions and the process started to merge the acquisition with Powertech IST Energy, Powertech’s existing substation business.
The new business has shown much success. In its first year, the company has secured orders to the value of R280-million in all three of Powertech’s identified growth markets, namely infrastructure development, renewable energy and Africa.
Harry Browne, CEO of PTQP, says, “We have worked hard to build a firm foundation for the business this year, and the effort is starting to bear fruit.” Browne remembers the fun times and the challenges, from settling down in new offices to improving the company’s BEE status – all while compiling the kind of tenders that win contracts.
In South Africa, the company’s main projects are infrastructure upgrades in the public sector.
Recent wins include a R36-million project from Tlokwe Municipality, a contract from Transnet National Ports Authority to carry out R7-million substation switchgear upgrade in Richards Bay, R35-million construction work of a substation for the Randfontein Municipality to electrify the Mohlakeng development, R18-million upgrade of Edenvale Industries 6,6 kV Switching Station for Ekurhuleni Metropolitan Municipality and a R23-million contract with Sol Plaatje Municipality to upgrade the Hall Street substation in Kimberly.
Is this a sign of increased public sector spend on energy infrastructure going forward? Time will tell says Browne, but Powertech is optimistic that increased spend will positively influence many parts of this Altron sub-group.
PTQP has also established its presence in the fast-growing renewable energy market with contracts for two wind farm projects. It will deliver substations for both Eskom’s Sere wind farm project near Vredendal in the Western Cape and Acciona’s/Aveng Labonne project near Gouda, also in the Western Cape. The joint value of these two contracts is almost R80-million.
Harry Browne is particularly excited about breaking into the Zambian market with local joint venture partner Laatu Company Limited. In September the JV secured its first contract with ZESCO, the state-owned power company in Zambia that produces about 80% of the electricity consumed in the country. Worth US$7-million (around R70-million), the contract covers work at three of ZESCO’s substations.
“The scope for work in Africa is massive. Without electrification other services like telecommunications and broadband cannot be rolled out. We do however have to remain competitive, we have an edge as we have local understanding of the African market but the price has to be right,” says Browne.
Reflecting on PTQP’s first year in business, Browne knows where he wants to take the company. “Our goal is to be the leading preferred substation contractor in South Africa and Africa.” Judging by the progress the team has made in its first year of existence, it would be safe to bet on PTQP’s and Altron’s chances of success.
