Construction World September 2015

EQUIPMENT

FROM PIT TO PROFIT “With a relatively buoyant outlook, and a number of economies across the continent experiencing some of the fastest and highest growth in the world, it is no wonder that current investment in infrastructure is so significant and growing. This is very good news for earthmoving equipment companies operating in Africa,” comments Elaine Crewe, CEO of BAUMA CONEXPO AFRICA.

Elaine Crewe, CEO of BAUMA CONEXPO AFRICA.

CNH Industrial construction equipment focuses not only on technology to improve equipment performance,” says Balma, “but also on keeping equipment as cost effective as possible. “ “BAUMA CONEXPO AFRICA looks forward to having new technologies and develop- ments in earth moving equipment on display in September. An equipment trade fair of this nature will assist construction players to opti- mise their operations, and therefore contribute to the growth and development of the conti- nent,” says Crewe. “As an African manufacturer

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The recently published report, Deloitte on Africa: African Construction Trends 2014, notes that investment by value

we are proud to be able to showcase our prod- ucts at an African trade show of this stature,” concludes Gillham. Balma says that BAUMA CONEXPO AFRICA 2015 offers a big opportunity for CNH Industrial Construction Equipment as the company has a strong focus on Africa. “BAUMA CONEXPO AFRICA provides continent-wide opportunities for customers tomeet us and our dealer , and we will be present to showcase the strength of both our products and our services,” he concludes.

of mega projects under construction in Africa grew by 46,2% in 2014 (from USD222-billion in 2013 to USD326-billion in 2014). Average project value increased by 84%, fromUSD689-million in 2013 to USD1,27-billion in 2014. “Power will be one of the continent's biggest opportunities for the construction industry in Africa going forward because the ability to source power comes in many different formats, all of which present huge opportunities for the construction industry,” comments Terry Gillham, Bell Equipment director of sales and marketing. The development of road infra- structure is another substantial opportunity for construction in Africa, he says. For construction players, quality equipment is integral for the success of these projects. “The right choice of the right equipment is very important because a contractor doesn't want to be going into any major construction project in Africa in particular, with incorrect or inferior equipment,” says Gillham. “It must be good, reliable equipment that is well supported by a company with the ability to service that equipment because of the remote locations of these projects,” he adds. “Customers are looking for durability and equipment that works well and performs under stress – this is critical in all African countries,” comments Riccardo Balma, Africa marketing manager at CNH Industrial Construction Equip- ment, one of the exhibitors at BAUMA CONEXPO AFRICA 2015. Investment in technological advancements is another pertinent factor for equipment suppliers. “Research and development (R&D) is very important for all equipment suppliers, particularly those servicing the mining and construction sectors, not only to retain their place in the market, but to continue meeting the needs of their customers, whose requirements are constantly evolving to tackle the new and interesting challenges that come with working in Africa,” says Crewe. “Today the construction industry focuses on latest technology developments and CNH Industrial Construction Equipment is at the forefront of the industry. “After sales service is of great importance to us and this is why we offer extended warranty coverage and a wide range of main- tenance plans that can be customized with the dealer. Dealers play a key role to build this customer satisfaction.

STRATEGIC ACQUISITION Isuzu Truck South Africa recently announced the acquisition of Port Elizabeth based KANU Commercial Body Construction and Automotive Chassis Technologies (ACT) in a 100% buyout of each entity, effective from August 2015.

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This transaction will see Isuzu Trucks change frombeing a typical commercial Original Equipment Manufacturer (OEM)

to ensure a smooth transition. In 1991, Sandla graduated with a Higher National Diploma in Mechanical Engineering (B.Tech). To date, Sandla has been working as an engineer in the automotive manufacturing sector for over 23 years and has vast experience in all aspects of the assembly line. “Isuzu Truck South Africa will continue to be one of the major contributors in the Eastern Cape’s Gross Domestic Product (GDP). We believe that every truck we sell into the market possesses an economic opportunity with great return on investment. The more we sell, the more economies we create, and with that, the creation of new job opportunities. South Africa and the continent at large need greater and stronger growth for our economies to develop,” concludes Uren.

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to an enterprise type of business that has the capacity to initiate and build products according to client specifications. “This acquisition complements our growth strategy. We believe the acquisition of KANU and ACT will definitely enhance our current business structure. The move to acquire these entities will centralise the process of buying our trucks where everything will be processed from one central point of contact,” says Isuzu Truck South Africa COO, Craig Uren. The directors of Isuzu Truck South Africa, with full support of Isuzu Leadership in Japan, have developed new strategies and plans with structures in place to lead the business into this new business cycle. “Our scope of work and business is no longer only focused on what leaves the factory gate. Together with our dealers and supplier base, Isuzu Truck South Africa will have a more integrated relationship with current and future customers in the life of their trucks,” says Uren. This acquisition also comes with a new appointment within the business. Current plant manager, Sipho Sandla will move into a new role as general manager leading the KANU/ ACT operation in Port Elizabeth, with outgoing owner of KANU, Tony Wright, staying on in an advisory capacity for a minimum of 12-months

Sipho Sandla, new general manager of KANU/ ACT and Craig Uren, COO of Isuzu Truck South Africa.

CONSTRUCTION WORLD SEPTEMBER 2015 I