COMMENT
Local is lekker
L
ocalisation is a buzzword at the moment, with more
companies, both local and international, looking
to increase their local footprint and reinforce their
commitment to the South African economy. At a time
when the news is crawling with the Guptas and their
various dealings, as well as those of their erstwhile PR
agency, it is refreshing to see companies willing to invest in
the future of our country.
Two of the bigger international companies that have
renewed their South African investment are Caterpillar and
Sandvik. The former recently held the official inauguration
of its first African distribution centre in Kempton Park,
close to Johannesburg, while Sandvik launched its local
manufacturing facility in Jet Park. In addition to being the
company’s first distribution centre on the African continent,
Caterpillar’s facility is also the first to operate under a co-
location arrangement with its southern African dealers —
Barloworld Equipment — leasing 3 500m 2 of space for its
direct-to-customer retail parts centre, ensuring the lowest
possible turnaround time for its regional customers.
In addition to opening its first local manufacturing
facility, engineering giant Sandvik launched its low-
profile LH115L loader, designed in conjunction with the
company’s South African customers specifically for our
sometimes difficult mining conditions. Not only is this
machine designed for harsh African operating conditions
and manufactured in South Africa, it also has close to 70%
local content, sourced from local suppliers — another
illustration of international companies’ commitment to
South Africa despite everything else going on in the news,
from the mining charter to the Gupta saga.
But it is not only new investment and facilities that
illustrate South Africa’s potential. This year, Metso is
celebrating 60 years since its Vereeniging operations
were established in 1957. In the intervening decades, the
company’s operations in South Africa have expanded, and
today it employs over 290 people at its Vereeniging facility
and over 800 countrywide.
This year also marks the 90th anniversary of the
partnership between Caterpillar and South African
company Barloworld Equipment. In the decades since
‘Punch’ Barlow signed up to be the Caterpillar distributor
in South Africa, the company has grown from a small
family operation to an international behemoth, serving 11
southern African countries as well as Iberia, Siberia, and
the Russian Far East, and has also expanded its scope of
operations.
The long-term investments of these and other
companies present a foundation for future growth and
investment, and with South Africa stepping up to the
plate, we have the potential to build a truly prosperous and
sustainable future. n
Robyn Grimsley – Editor
Plant Equipment & Hire
www.equipmentandhire.co.za
NOVEMBER 2017
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