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Electrical industry stalwarts Aberdare Cables and Crabtree, both companies in the Powertech group, are to restructure into a single entity. The restructuring process will commence in September 2011 and is expected to be completed within the first quarter of 2012.
Harry Coetzee, chief executive officer of Aberdare, said the restructuring will provide a platform for improved market penetration. Aberdare, a manufacturer of electrical cables and wiring and Crabtree, a manufacturer of electrical accessories such as plugs, switches, sockets and circuit breakers, supply products to what is essentially the same customer base.
“There are considerable synergies apparent that will lead to greater efficiency in both operations and this will generate positive impacts for our customers. The restructuring is in line with Powertech’s strategy to align marketing and sales activities on market sectors and customers,” said Coetzee.
“In the first phase of the restructuring, we will work towards the integration of our marketing and sales teams. We see tangible benefits for our customers arising out of this as the dual sales role of the integrated sales department will in time result in single invoicing, simpler ordering and a more efficient delivery processes.”
Coetzee stressed that a full evaluation of customer needs was conducted to ensure that the restructuring would deliver improved services and support to customers across the board. He added that it was also considered most important to preserve the long-established Aberdare and Crabtree brands and the product ranges of both companies.
The executive team, led by Coetzee and Crabtree managing director Pierre Nothard, has identified “uncompromised service to customers during the restructuring” as a principal objective. “We have both committed to ensuring that the effects on customers are all positive and our planning includes regular consultation with them. We welcome input from them at any time during the process,” said Coetzee.
Aberdare and Crabtree products carry the SABS (South African Bureau of Standards) mark that confirms products are regularly inspected, tested, audited and comply to laid down specifications. They also have ISO9001 quality management system accreditation.
Coetzee said this was most important to both companies. He added that Aberdare has been a user of SAP enterprise software for many years and has made significant break-throughs in monitoring, management and control across all aspects of the business.
“What we have learned will be passed on to Crabtree and we anticipate their product availability ex-stock and manufacturing response times at the Wadeville factory will improve, once again to the benefit of customers.”
Crabtree has its head office and factory at Wadeville and branches are located in Durban, Cape Town, Port Elizabeth, East London, George and Bloemfontein. Aberdare has six manufacturing sites, three in South Africa in Johannesburg, Port Elizabeth and Pietermaritzburg with the remainder in Mozambique, Portugal and Spain.
About Aberdare Cables
Aberdare Cables is the leading power cable manufacturer that has played a significant role in the distribution of electrical power in South Africa. A Powertech company within the Altron Group, Aberdare Cables has a 65-year history of sustained growth and achievement. A 30% stake is held by the Izingwe Consortium. With a strong focus on skills development, enterprise development and socio-economic initiatives Aberdare Cables has a BEE status rating of AA (level 3). More than 1700 2000 people are employed at factories and branches throughout southern Africa, Spain, Portugal and Mozambique.
