Capital Equipment News December 2019

Barloworld Power now assembles models from 13 kVA to 1 500 kVA.

Why local assembly? Botha says Cat generators are premium, high-quality offerings that come at a premium price. Barloworld Power has since worked closely with its principal, Caterpillar, to find ways to make Cat gensets more price competitive in a market that is so price sensitive. “We came up with a solution to assemble locally,” says Botha. “As a result we are able to offer the product at a far more competitive price, without compromising the quality,” he says. Botha says local assembly reduces logistics costs involved in the process of importing fully built units. He says, previously all components were either shipped to Northern Ireland or China from the various sources for assembly, before the complete units were shipped to our local market. Now all the parts and components are shipped directly from the source to South Africa for local assembly, cutting the logistics costs previously incurred by sending components to Ireland or China. Botha also notes that there is a duty benefit attached to local assembly, with import duties on fully built-up imports at 20%, compared with 0% for locally assembled units. This translates into lower prices for customers. The expansion of local assembly activities also triggers

Barloworld Power, the energy and transport division of Barloworld Equipment, has expanded the range of Caterpillar gensets assembled locally at its Boksburg facility

Barloworld Power will now locally assemble all Cat gensets available within its product suite – from a 13 kVA unit ideal for household usage to a large 1 500 kVA genset suited for industrial applications

Local assembly allows Barloworld Power to offer premium Cat gensets at a far more competitive price, without compromising quality

There is also a duty benefit attached to local assembly, with import duties on fully built-up units at 20%, compared with 0% for locally assembled units. This translates into lower prices for customers

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CAPITAL EQUIPMENT NEWS DECEMBER 2019 19