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SPX Powers Up South Africa

SPX Powers Up Infrastructure Development

South Africa continues to need for increased sources of reliable electricity due to strong economic growth, rapid industrialization and a mass electrification program that led to the demand for power surpassing available supply in early 2008.

Eskom, South Africa’s state-owned utility, has launched a multi-billion rand program infrastructure development program to help meet the country’s burgeoning electricity needs. SPX is playing an important role by supplying equipment for two new coal-fired power plants.

More Capacity, More Jobs

The facilities are expected to each add about 4.8 gigawatts of additional capacity ― roughly 25% of South Africa’s existing capacity ― and help create much-needed jobs.

The SPX technologies provided may help diminish the coal-fired power plants’ impact on the country’s natural resources and assist Eskom in meeting increasingly stringent environmental guidelines.

Teaming Up with Alstom and Hitachi

Working with Alstom, a world leader in energy infrastructure development, SPX is providing Balcke Dürr-branded feedwater heaters for the six coal-fired boilers at the 4,788 megawatt Medupi Power Station.

Medupi, which means “rain that soaks parched lands,” is the first coal-fired power plant to be built in the country in 20 years. It will be located near the water-stressed area of Lephalale, in the Limpopo province, with the first generating unit expected to be completed in 2011.

The construction of the plant will have a major impact on the lives and the economy of the local community beyond generating power. Homes and a social infrastructure are being developed to serve the thousands of contractors working on site in the community.

SPX is also working with Hitachi Power Africa (Pty) Ltd, a subsidiary of Hitachi Power Europe GmbH (HPE), on the project by supplying Balcke-Dürr-branded pulse jet fabric filters and air pre-heaters. The equipment is designed to help reduce emissions and enhance the productivity and efficiency of the Medupi plant.

In addition, SPX will manufacture pressure parts for the six 800 MW boilers. The parts will be produced in SPX’s local manufacturing facilities in Nigel. Established in 1970, the Nigel facility was expanded approximately 100,000 square feet in 2008 to better serve local customers.

Repeat Performance at Kusile

SPX is also working with Alstom and Hitachi Power Africa to provide key products for the new 4,740 megawatt Kusile Power Station.

The facility is being constructed close to the existing Kendal power station in the Mpumalanga province east of Johannesburg, South Africa.

The Kendal station, completed in 1993, was the last major power plant built in South Africa. Cooled by six SPX cooling towers, it was the world’s largest dry cooled power station when it was constructed.

The Kusile facility will employ technologies to help consume significantly less water than a conventional wet-cooled coal-fired power plant. SPX's air-cooled condensers are designed to minimize the plant's water usage. SPX is also providing feedwater heaters.

The Kusile facility will also rely in part on SPX’s highly efficient filters and airpreheaters to help reduce emissions and enhance plant productivity.

Like the Medupi project, construction of the Kusile plant is contributing to the local economy. It is estimated that construction of this new power station will create up to 5000 jobs.

Infrastructure Experience

The new coal-fired power stations are just two of the many infrastructure development projects underway or recently completed by SPX in South Africa.

SPX has also provided expertise to a number of large mechanical construction projects in South Africa, including the Fischer-Tropsch Design Reactor (FTDR) project for Sasol Technology in Sasolburg, South Africa. The Fischer-Tropsch process is a catalyzed chemical reaction in which carbon monoxide and hydrogen are converted into liquid hydrocarbons in various forms. SPX erected 70 pieces of equipment including vessels, heat exchangers and pumps.

According to Chris Kearney, SPX CEO, “we have an established presence in South Africa so we are well positioned to help the country meet its increasing power and energy demand. We are making a substantial investment in our manufacturing facilities and employee base, and are committed to build our business for the long-term in South Africa."

 

Certain statements in this article may be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. Please refer to our public filings for a discussion of certain important factors that relate to forward-looking statements contained in this article. The word "expect," "anticipate" and similar expressions may identify forward-looking statements. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Statements in the article speak only as of the date this article was first posted, and SPX disclaims any responsibility to update or revise such statements.