South African transformer and switchgear manufacturer Hansen + Genwest is eager to diversify its product range and expand its customer base, setting its sight on acquisitions and spreading its wings into the rest of Africa.

The Benoni, South Africa-based company, which prides itself on selling the ‘Rolls Royce’ of transformers and switchgear, is targeting a 20% increase in its customer base over the next three to five years, homing in on clients outside the underground coal mining industry. Currently, coal mining accounts for 95% of its business.

Part of the global Kopex Group, from Poland, Hansen + Genwest designs, manufactures and installs dry-type transformers in flameproof and non-flameproof models, as well as related switchgear. The company offers 24/7 aftermarket support to its customers through a field service department with fully equipped service vehicles and after-hour logistics support from its main store.

In line with its growth plans, Hansen + Genwest is on the cusp of launching a new product, which promises to “revolutionise” the use of transformers in underground mines. The gas-cooled transformer has been developed in conjunction with customers and advanced through the research and development (R&D) stage to production in a mere eight months.

With a six-engineer-strong R&D department, the company designs all its products in-house at its premises in Apex, Benoni, where its manufacturing and testing facilities are also located. As a proudly South African manufacturer, the company imports only 15% of the components used in its products.

Passionate about its product and serious about safety, Hansen + Genwest subjects all its product ranges to type testing – a stringent, destructive and expensive test. “To my knowledge, we are the only supplier that type tests our equipment,” says Kopex Africa MD Nico Roets. The manufacturer, which complies with all relevant international industry standards, tests each product before it is delivered to its customers.

Being part of an international firm provides Hansen + Genwest with the financial backup to realise its growth and expansion plans. An international “big brother” also gives the company more credibility. “We are not just another small big company, but we are part of a very large international organisation that enables us to share knowledge and expertise over a vast range of disciplines – from R&D to production and management,” says Roets.

Despite the labour-induced pressure on the South African mining industry, Hansen + Genwest is upbeat about prospects, as coal remains high in demand for power generation and fossil fuel production in the country. “More than 75% of South Africa’s coal production is used locally and only about 25% is exported, thus the market is not that much affected by the downturn internationally, as experienced in Australia.”

Commenting on business in general in South Africa, Roets believes the country should do more to manufacture goods locally. “We need to export less of our raw materials and produce more products locally. This can only be achieved if we can increase our productivity levels and upskill our labour force.”

Sensitive to South Africa’s unemployment and skills challenges, Hansen + Genwest is investing in an apprenticeship programme and training matrix for its employees. The company has 80 permanent staff members on its payroll and about 30 to 40 contractors.
Hansen + Genwest reported a yearly turnover of R163-million in 2013, which it intends to increase to about R184-million in 2014 and R500-million by 2015.