The leading manufacturer of power transformers and electrical infrastructure in South Africa, ACTOM, has recently acquired SGB-SMIT Power Matla (SSPM), which operates as a primary transformer manufacturing company.
With this move, ACTOM will enhance its transformer manufacturing abilities to include class 3 units up to 500 MVA 500 kV, increase its production capacity and strengthen its energy sector focus to support industrial growth in South Africa and throughout Africa.
Mervyn Naidoo, CEO of The ACTOM Group, highlights that the acquisition will bring a number of benefits to the company, with the addition of transformer class 3 unit manufacturing and in advancing African industrialisation initiatives.
The acquisition takes place at a strategic moment, in the context of South Africa’s Transmission Development Plan (TDP) and Integrated Transmission Plan (ITP), which project extensive network expansion over the next decade. This development requires new high-voltage substations and transmission corridors that will generate increased demand for large power transformers. The acquisition will also create employment opportunities and assist in developing local skills, consolidating domestic manufacturing capabilities to decrease import reliance and boost economic performance.
The renewable energy sector also presents an important business opportunity for ACTOM. Project developers driving the construction of new wind and solar power generation plants also require construction of the transmission substations to connect to the electrical grid. ACTOM is well-positioned to supply the heavy-duty transformers and infrastructure needed to facilitate these connections.
SSPM’s Pretoria and Cape Town manufacturing facilities will form the foundation for ACTOM’s expanded capacity in this field. The Pretoria plant, which has remained largely inactive since October 2024 following fire damage and due to funding issues, will be fully restored and upgraded. Once this work is complete, the Pretoria factory will function as the main base for class 3 transformer production, making ACTOM the largest transformer manufacturer in Africa.
Geographic expansion is a key strategic objective for the company. Large transformer factories entail significant operational costs and expanding across Africa will enable better cost management, enhance manufacturing efficiency, and support broader industrial development and electricity infrastructure growth across the continent.
Naidoo emphasises that ACTOM aims to establish itself as an African original equipment manufacturer (OEM), developing local manufacturing centres that will deliver support services in different countries and regions. “Our vision is ‘in Africa, for Africa, by Africa’ – supporting sustainable growth, skills development, and industry resilience on our continent.”
Holger Ketterer CEO of the SGB-SMIT Group, comments: “SGB-SMIT is pleased that with ACTOM a strong and experienced South African partner has been found who can offer both the assets and the employees of SGB Smit Power Matla a sustainable and positive future. We are confident that ACTOM, as a leading local manufacturer, will continue to build on the strengths of the company and further develop its position in the South African market. SGB-SMIT will actively support ACTOM throughout the transition period to ensure a smooth and seamless handover.”
Moving forward, ACTOM plans to surpass pre-fire production levels in Pretoria, establish additional manufacturing facilities, and strengthen its role as a regional hub.
For more information visit: www.actom.co.za