HP`s commitment to local PC assembly, BEE pays dividends

In the wake of the recent media reports about the initial exclusion and subsequent inclusion of local computer manufacturers from large tenders, Hewlett-Packard has highlighted the fact that its PCs are locally manufactured by one of its BEE partners, Matomo Technologies.

"This offers government and parastatals the best of both worlds: access to a tier-one brand, for reliability and international quality, along with local manufacture," comments Claude Sch"uck, Business Manager at HP SA.

Matomo Technologies, a subsidiary of Matomo Holdings, handles the local assembly of HP`s Evo D300V and 310V desktops, as well as the disc imaging and a stringent burn-in process for each unit. Thozamile Botha, Executive Chairman of the Matomo Group, states that HP has also awarded the contract for all HP and Compaq bench repair work to the Matomo Group, covering all warranty and post-warranty repairs for HP and Compaq machines nationwide.

With regard to the local assembly, Botha says Matomo initially started producing 1 000 machines per month, but is currently manufacturing up to 6 000 units per month. "We are projecting production of 10 000 units per month by the end of the year," he affirms.

Matomo is also conducting feasibility studies to establish plants in Nigeria and Kenya to accommodate the demand for HP PCs in East and West Africa: "We currently supply the South African channel through Tarsus Technologies, and the African market through JET Distribution," he says. "The bigger the demand grows, the higher our production becomes and the more previously disadvantaged people we can employ."

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Sch"uck emphasises: "These locally assembled PCs comply with international standards and enable HP to address segments of the market that are both price-sensitive and brand-aware, while empowering previously disadvantaged South Africans."

Botha adds: "While a number of HP`s competitors have local assembly plants, most of them lack strong BEE programmes - they may produce locally, but they don`t transfer the skills. Not only does Matomo own the plant in its entirety, but there is transfer of skills and management capability from HP to us, so there is ownership and employment by blacks, which is true black economic empowerment."

HP`s commitment to having BEE partners assemble HP-branded PCs locally is paying dividends, according to independent market research conducted by BMI-TechKnowledge. In the latest report measuring PC market share in units sold for the last quarter, HP`s desktops took first place, making HP the number one PC vendor in SA. "This is largely due to our local assembly programme," states Sch"uck.

Henry Ferreira, country manager of HP South Africa, says HP has a deliberate and ongoing BEE policy locally, aimed at enabling the company to become a leader in the BEE environment in SA. "In addition to building BEE initiatives into the foundations of the company`s various business unit plans, HP also dedicates resources to these initiatives," he concludes. The company`s BEE Committee is tasked with establishing, reviewing and approving empowerment policy in procurement and with monitoring and evaluating BEE implementation progress.