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Water-focused Strategic Goals within the SA Industrial Market Drive Capital Expenditure

Strategic goals set by companies within the South African industrial market are the driving force behind expenditure within the industrial water market.

 
PRLog - Mar. 3, 2011 - CAPE TOWN, South Africa -- CAPE TOWN – 3 March, 2011 – Strategic goals set by companies within the South African industrial market are the driving force behind expenditure within the industrial water market. However, the motivational factors and goals behind increased capital expenditure vary across the different industries.

New analysis from Frost & Sullivan (http://www.environmental.frost.com), South African Industrial Water Market: 2010 Operational and Capital Expenditure Analysis - Annual Release, finds that the industrial sector accounted for 56.0 per cent of the South African industrial water market in 2009. In this research service, the South African industrial water market is segmented into six end-user industries, namely petrochemicals, energy and power, chemicals, automotive, pulp and paper and mining.

“The commissioning of return to service sites as well as establishment of new electricity generating plants by the state owned utility Eskom is one of the drivers of growth within the water markets,” notes Frost & Sullivan Environmental  & Building Technology Research Analyst Kudzanayi Bangure. “This is particularly the case for coal fired power stations that require intensive wastewater infrastructure as well as all wet cooled power stations that require purified water.”

The key water infrastructure required for these plants include water supply pipelines (temporary and permanent), water and wastewater treatment facilities and dams for water storage facilities.

One of the criteria used to attain a Black Economic Empowerment (BEE) rating as stated in the BEE codes of good practice by end users that have a significant amount of public sector participation is the preferential procurement criteria. This requires that a company procure from a BEE-certified company.

“Due to this preferential procurement policy, end-users are reluctant to conduct business with water companies that have not gone through the BEE process,” explains Bangure. “End-users would much rather prefer to do business with companies that have gone through the BEE process as this will assist them with their preferential procurement goals.”

Companies are now seeking BEE certification through various means ranging from increasing employment equity to mergers and acquisitions with black-owned companies.

“Companies that wish to contract within the public sector will need to comply with either the relevant BEE Code or the Preferential Procurement Policy Framework Act (PPPFA) requirements,” concludes Bangure.

If you are interested in more information about this study, please send an e-mail with your contact details to Christie Cronje, Corporate Communications, at christie.cronje@frost.com.

South African Industrial Water Market: 2010 Operational and Capital Expenditure Analysis - Annual Release is part of the Environmental Growth Partnership Services programme, which also includes research in the following markets: The South African Mining Energy Water & Wastewater Treatment Equipment Markets, South African Water & Wastewater Treatment Equipment Markets, and South African Solid Waste Management Market.  All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com.

South African Industrial Water Market: 2010 Operational and Capital Expenditure Analysis - Annual Release
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Contact:
Christie Cronje
Corporate Communications – Africa
P: +27 21 680 3566
E: christie.cronje@frost.com

http://www.frost.com

# # #

Frost & Sullivan, the Growth Partnership Company, partners with clients to accelerate their growth. The company's research and consulting services empower clients to generate, evaluate, and implement effective growth strategies.

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Source:Frost & Sullivan
Phone:0027216803566
City/Town:Cape Town - Western Cape - South Africa
Industry:Environment
Tags:south africa, water, industrial water, eskom, bee, wastewater, Infrastructure
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