Listed electronics group Altron (ATN) said on Monday its subsidiary Powertech Quadpro had secured orders valued at R280 million from companies in the infrastructure development‚ renewable energy sectors and also from clients in the rest of the continent. Powertech Quadpro provides turn-key substation solutions and upgrades.
Powertech Quadpro’s recently won contracts to carry out various projects including from Transnet National Ports Authority to provide a substation switchgear up-grade in Richards Bay‚ construction work of a substation for the Randfontein Municipality to electrify the Mohlakeng development and a contract with Sol Plaatje Municipality to upgrade the Hall Street substation in Kimberly.
Powertech Quadpro CEO Harry Browne said Powertech was optimistic that increased spend on energy infrastructure would positively influence many parts of the Powertech Quadpro business.
Altron bought a 51% stake in Quadpro Power Solutions a year ago and merged it with Powertech’s substation business Powertech IST Energy.
In September‚ Powertech Quadpro set up a joint venture in Zambia with Laatu Company and secured its first contract worth $7 million from state-owned Zambia Electricity Supply Corporation.
“The scope for work in Africa is massive. Without electrification other services such as 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‚†said Browne.
Powertech Quadpro 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 the Labonne project near Gouda‚ also in the Western Cape‚ said Mr Browne.
The joint value of these two contracts is almost R80 million.
In October‚ Altron said Powertech Tranformers‚ a division of Powertech‚ had won a R350 million contract from Eskom to provide mini-substations for two years.
Altron said‚ too‚ that Powertech’s total order book at the end of August was R1.97 billion.
Powertech reported disappointing results for the half year to August. The company experienced revenue growth but earnings were negatively affected by reduced margins primarily as a result of underperformance from the Aberdare Cables business.
