MechChem Africa March-April 2021

SA Manufacturing base a springboard for Africa growth

Juliano Vargas, CEO of Zest WEG, talks about the strong South African manufacturing base that has driven ZestWEG’s success over the past decade, and its role as a springboard into Africa.

status and investing heavily in training and enterprise development. It helped thatWEG is a member of the BRICS Business Council (representing Brazil), so it has over the years been able to engage with South African au- thorities about local content requirements and industry development opportunities. “Our business – both in Brazil and South Africa – has put its weight behind economic empowerment and transformation, focusing heavily on local suppliers and local skills,” he says. ZestWEG’s investment in human capi-

tal exceeds the portion of payroll demanded by B-BBEE in local training. Among other initiatives is a bursary programme, and itwill shortly employ its third electrical engineer from this scheme. Vargas highlights thepowerful launchpad that thisgroundworkhas created for growing the company’s footprint in Africa, where it alsoapplies its local development philosophy by partnering with in-country Value Added Resellers (VARs). www.zestweg.com

E stablishing a strong local manu- facturing base in South Africa has been integral to ZestWEG’s success over the past decade, building the economy and providing an important spring- board into Africa. This process has aligned closely with the strategic approach of Brazil-based parent organisation WEG, which prioritises its member companies’ capabilities, efficiencies and innovations on a local level, according to Juliano Vargas, CEO of Zest WEG. “This has required considerable investment in our lo- cal production capacity and skills base,” says Vargas. “The outcome to date has been very successful, withZestWEGdeveloping its local structure and supply chain, while working to world class standards andbeing supportedby WEG innovation.” As an example, he notes that Zest WEG today achieves almost 90% local content capability for its transformers and more than 70% local content capability for other products such as E-houses and panels. These products form part of the company’s wide range of solutions, including electric motors, drives, switchgear, energy generation, electri- cal infrastructure and generator sets, all with different levels of localisation. This locally developed supply chain deliv- ersvariousbenefits tocustomers, saysVargas. These includeshort lead times, as there is little reliance on Europe, China or the US for parts and components. “The impacts to our market are consider - able, andwehavemorepredictabilityandcon- trol of our supply chain,” he says. The company has embraced South Africa’s commitment to transformation, achieving Level 1 B-BBEE

The E-House assembly facility, which Zest WEG operates in Heidelberg, South Africa.

The Zest WEG panel manufacturing facility in Robertsham. The company is achieving 70% local content capability for products such as E-houses and panels.

The Zest WEG transformer manufacturing facility in Heidelberg achieves almost 90% local content.

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