ACTOM reopens Pretoria transformer plant in first major step after acquisition

ACTOM Group CEO, Mervyn Naidoo.

ACTOM has formally relaunched transformer production at its Pretoria facility – the first major operational milestone following its acquisition of SGB-SMIT Power Matla (SSPM), which positions the group as Africa’s largest transformer manufacturer. The plant, which had been unoccupied for more than a year, has now brought approximately 250 employees back into service after returning to work on November 3. Manufacturing is set to kick off in January.

A factory tour held on December 3 showcased ACTOM’s renewed commitment to rebuilding local transformer manufacturing capability – an objective central to the acquisition. Through that transaction, ACTOM assumed ownership of SSPM’s Pretoria and Cape Town plants with the intention of restoring production capacity and expanding high-voltage transformer output for South Africa’s transmission grid expansion.

ACTOM Group CEO Mervyn Naidoo highlighted the Pretoria plant’s technical capability, stating: “This factory is equipped to manufacture core class 2 power transformers of up to 315 MVA and 275 kV.” The decision to revive the plant was driven by the scale of anticipated grid development, he added. “The country faces approximately 15 000 km of transmission line build and needs more than 100 substations over the next 15 years,” he said. Naidoo emphasised that increasing domestic production capacity is essential to meeting this demand without excessive reliance on imported units.

Tshwane Executive Mayor Nasiphi Moya highlighted the city’s reliance on stable transformer supply, citing recent disruptions that affected major automotive manufacturers due to aging infrastructure, “The city requires additional transformers and units procured from the Pretoria plant, which will directly support the strengthening of substations and power quality improvements,” she said.

During a panel discussion on Africa’s transformer supply constraints, ACTOM Divisional CEO for Power Transformers Steve Jordaan framed the acquisition as a strategic response to global shortages intensified by renewable energy integration. “Our facility provides the scale needed to meet future domestic orders and reduce reliance on imported units, which has penetrated the market while many skilled South Africans sat at home unemployed,” he said.

Representing national industrial policy, Tebogo Makhube, Chief Director of Industrial Procurement at the Department of Trade, Industry and Competition, reiterated that localisation is central to strengthening long-term manufacturing capability. Municipal infrastructure priorities were also highlighted. Vally Padayachee, Strategic Advisor to the Association of Municipal Electricity Utilities, linked the plant’s reopening to urgent distribution network pressures, stating that refurbishment and grid strengthening cannot be delayed.

Sipho Marala, Group Executive at the Gauteng Growth and Development Agency, added that the re-opening supports provincial plans to expand industrial capacity and energy-related investment.