Germany-based drive and control technologies specialist SEW-Eurodrive has started construction of its R200 million Industry 4.0-based factory in South Africa.
The head office and factory is located in Everton, Johannesburg, in order to accommodate the company’s growth.
SEW-Eurodrive produces gear units, motors, gear motors and inverter technology in various sizes for diverse industries and applications.
Within the context of Industry 4.0, SEW-Eurodrive offers solutions for the Lean Smart Factory, including mobile assembly and logistics assistants and digital factory planning.
The 25 000sqm building is being constructed on property acquired by the company two years ago. The necessary earthworks were completed in late September, says the company, adding that construction is due to be completed by October 2021.
SEW-Eurodrive plans to move in to its new premises – which will also act as its South African headquarters – in January 2022.
According to the firm, over a three- to five-year period, the factory will be fitted with state-of-the-art, Industry 4.0 compliant technologies, including automated assembly machines and guided vehicles which the company anticipates will cost at least another R200 million.
“In order to remain globally competitive, it’s important that this new factory is as automated as possible,” says Raymond Obermeyer, managing director of SEW-Eurodrive SA.
The firm notes the new state-of-the-art, hi-tech facility will allow the company to more efficiently and effectively service customers both in Gauteng and the rest of Africa.
SEW-Eurodrive expects the majority of its growth in the years ahead to come from Africa rather than South Africa.
“We expect African markets to account for 50% of our turnover within the next three to four years, given that growth in many countries around the continent is much faster than it is locally,” says Obermeyer.
“Not only do we expect to see opportunities for growth coming from the establishment of the African Free Trade Continental Area agreement, but the removal of border restrictions will make it significantly easier for companies like SEW-Eurodrive to do business on the continent,” he says.
The new factory will accommodate a number of the company’s assembly plants around the country in order to develop better efficiencies and contain costs.
SEW-Eurodrive’s existing plants in Nelspruit, Durban, Port Elizabeth and Cape Town will continue to operate with a focus on servicing the company’s national footprint of customers, while its current head office and factory will become a large gear box repair centre, says Obermeyer.
“This new facility has been planned for some years already and we’re delighted that construction has finally kicked off, paving the way for an exciting period in the company’s growth trajectory,” concludes Obermeyer.
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