ACTOM, South Africa’s leading manufacturer of power transformers and electrical infrastructure, has recently acquired SGB-SMIT Power Matla (SSPM) which operates as a primary transformer manufacturing company in South Africa. Through this strategic move, ACTOM will enhance its transformer manufacturing abilities to now include class 3 units up to 500 MVA 500 kV while increasing production capacity and strengthening its energy sector focus to support regional industrial growth throughout Africa.
Mervyn Naidoo, CEO of The ACTOM Group, states that the acquisition will bring a number of benefits to the company by introducing transformer class 3 unit manufacturing while advancing African industrialisation initiatives.
The acquisition takes place at a strategic moment given 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 generate employment opportunities while developing local skills and establishing domestic manufacturing capabilities to decrease import reliance and boost economic performance.
The renewable energy sector also presents a vital business opportunity for ACTOM. The self-build strategies of Concentrated Solar Power (CSP), wind and Photo Voltaic (PV) solar project developers require them to construct power generation facilities and transmission substations that connect to the electrical grid. ACTOM is well-positioned to supply the heavy-duty transformers and infrastructure necessary to facilitate these connections.
SSPM’s Pretoria and Cape Town manufacturing facilities will form the foundation for this growth initiative. The Pretoria plant, which has remained largely inactive since October 2024 due to funding issues and fire damage, will undergo full restoration and upgrades. After completion, the Pretoria factory will function as the main base for class 3 transformer production, making ACTOM the largest transformer manufacturer throughout Africa.
Geographic expansion is a key strategic objective for ACTOM. While large transformer factories entail significant operational costs, expanding across Africa enables better cost management, enhances manufacturing efficiency, and fosters broader industrial development and electricity infrastructure growth throughout the continent.
Naidoo emphasises that ACTOM aims to establish itself as an authentic African Original Equipment Manufacturer (OEM) by developing local manufacturing centres which will deliver support services throughout the continent. “Our vision is ‘in Africa, for Africa, by Africa’, thereby fostering sustainable growth, skills development, and industry resilience on our continent.”
“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.” Says Holger Ketterer CEO of SGB-SMIT Group.
Moving forward, ACTOM plans to surpass pre-fire production levels in Pretoria, establish additional manufacturing facilities, and strengthen its role as a regional hub.
