Chicago Pneumatic relishes southern Africa growth

5517 Chicago Pneumatic has expanded its product portfolio with a number of recent new launches in southern Africa. With various new product launches, ranging from compressors, light towers, hydraulic breakers to generators, Jacques van der Westhuizen, Chicago Pneumatic’s business development manager for southern Africa, says the company’s main focus is regional growth. While more growth is coming out of the region than the traditional main market of South Africa, he, however, reports a soaring generator market primarily driven by incessant power cuts in South Africa.
     
As the national power provider Eskom is not reaching targets and power outages are becoming part of life, many businesses are being affected, prompting a sharp increase in generator sales. To make the most of this bourgeoning market, Chicago Pneumatic has launched its CPPG portable generator range. The petrol and diesel-driven units range from 2,3kVA to 13kVA, and are predominantly for construction applications. The company has sold more than 300 units since December 2014, and has a back order of 600 units. Meanwhile, it has also expanded its product line-up with the launch of its CPSG range of stationary generators from 60kVA to 780kVA. These are designed for both construction and industrial applications such as mining and quarrying. A total of six units have been sold through dealer BMI Group.      

South Africa’s generator boom aside, Van Der Westhuizen says the company’s major focus is regional growth. “Of late, we are seeing more growth coming out of the region,” he says, adding that Zambia, Mozambique and Botswana are the hotspots.

Zambia is driven by the mining sector, where light towers are the main seller for Chicago Pneumatic. Dealer United Sales and Service recently sold three units of the newly-launched CPLT8-H5 hydraulic light towers to First 6513 Quantum Minerals (FQM). FQM has a replacing programme that aims to purchase about 120 more units this year.

Elsewhere, Botswana is also driven by the mining sector where, apart from diamonds, vast coal projects drive greenfield projects and associated infrastructure. Van Der Westhuizen says generators, construction tools and light towers are the main drivers of this market.

In Mozambique, Van der Westhuizen says generators and light compaction gear are top sellers.  Government spending is projected to increase by 10% this year to address infrastructure gaps. Transport projects worth USD17-billion in the pipeline also present more opportunity for construction equipment gear. Meanwhile, national electricity utility Electricidade de Moçambique says power demand will grow by 15% to 20% per year in the next few years, against a generation capacity increase of only 10%. This also presents a major market for generators.