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LESEDI NU CLE AR S E R V I C E S

A turnkey EPC leader placing quality as the name of the game www.lesedins.co.za


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Koeberg Nuclear Power Station

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Powering & Empowering South A rica Lesedi Nuclear Services is embarking on the next stage of its comprehensive growth over the years as it develops from being a nationally-significant to an internationally successful EPC player Writer: Matthew Staff • Project Manager: Eddie Clinton

esedi Nuclear Services has undergone various restructurings and diversifications over the course of its 14-year history; all of which have culminated in the globally-significant market position it currently finds itself in as the Company looks ahead to an even more exciting future. Far from relying on pipedreams and potentially risky strategic developments, all of Lesedi’s growth - especially over the past decade - has been achieved as a consequence of carefully thought through, organic progression, with this journey now leaving the South Africanbased business on the precipice of a concerted drive into the wider sub-Saharan region and towards a diversified broader market. Formed in 2001 as an evolution from Intens Engineering and the predecessor’s construction of Koeberg

US$75 million Expected company turnover due to an increased diversification in power generation

Nuclear Power Station, AREVA, global leader in the nuclear industry, adopted Lesedi Nuclear Services as a way to enhance its localisation strategy. Fast-forward 14 years, and Lesedi is a market stalwart across not only nuclear projects and maintenance services, but also industrial, renewable, oil & gas and waste to energy, leveraging a turnkey service offering unrivalled elsewhere in the sector. And very soon, this expertise will be evident on an international scale on the continent. “We have expanded our project horizons to include several sub-Saharan countries,” the Company’s Business Development Manager, Shane Pereira explains. “Over the past 12-18 months we’ve been active with waste to energy and biomass projects in Ghana and Mauritius as well as in Rwanda, Namibia, Botswana and Mozambique. “We will partner with local companies when doing business in those particular countries, while, over the next few years,

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SVK HOLDINGS

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VK Holdings delivers excellence in construction and materials handling logistics to especially the energy sector in Sub-Saharan Africa. The company’s involvement in inter alia the Medupi and Kusile mega-projects reflect a flair for industry challenges and maverick solutions. André van der Merwe, the Chairman of the Board, heads up the company he created. “Our expertise in especially steel construction has served us well over the years,” he says.

Koeberg Nuclear Power Station

we also hope and expect to increase our turnover from US$50 million to around US$75 million through a similar diversification in the various forms of power generation.”

years of prominence in that nationallypivotal energy sector. Pereira notes: “The contract with Siemens was for the mechanical erection of the turbines, and the balance of plant for Eskom involved Sector widening scopes including fire protection, fuel Another, potentially longer-term goal and loading, treatment of the fuels, would be to take equity in projects, but forwarding systems, compressed Lesedi has a rich history in optimising air, electrical power distribution its natural growth one step at a time; systems, control and instrumentation, its current shareholding structure and the supply of all operating and is setup strongly to facilitate such maintenance procedures. success. “Then, in 2009, we were awarded Five years after inception, in 2006, the contract for the balance of plant the first significant restructuring took for the Medupi Coal Fired Power place as AREVA increased its majority Station for Eskom which included share to 51 percent; a move which the detailed design, procurement, paved the way for the construction of installation and commissioning of 14 150MW open cycle gas turbines for all the low pressure services for the Eskom as it entered an environment plant. The contract value was in excess outside of nuclear for the first time. of US$100 million and Medupi is the The commissioning of an entire largest dry-cooled power station balance of plant contract for Eskom under construction in the world and further compounded the sector therefore a significant milestone widening, and set the tone for three project for Lesedi.”

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Today, many SVK construction projects dot the South African landscape. SVK Holdings offers services through its two main divisions: SVK Energy & Construction, and its Enterprise Support divisions. SVK Energy & Construction forms the basis for growth and expansion into the energy and related construction sectors, whilst the Enterprise Support division acts as an incubation platform for new businesses and ideas. It also – at a service support level – offers plant and equipment to SVK and to outside clients, suppliers and companies. SVK Holdings services a bouquet of blue-chip clients though especially the Energy & Construction division, with Lesedi Nuclear Services as a valued SVK Holdings client. Other clients include Alstom, ESKOM, LTA-Grinaker, Mitsubishi-Hitachi (MHPSA), Murray & Roberts, SIVEST as well as the Tsogo Sun Group. Services offered encompass Project Execution Services, Structural Steel Works, Piping and Pressure Vessels, Mechanical Works and Logistics and Material Management.

T +27(0)86 143 6263 E info@svkholdings.co.za

www.svkholdings.co.za


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STRENGTH. VISION. KNOWLEDGE.

WE ARE PART OF THE NUCLEAR FAMILY SVK Holdings prides itself on being a supplier to one of Southern Africa’s most important developments in Strategic Nuclear Construction. We are part of a family that believes in the power of delivery. Let us become part of your project and deliver on your promise.

t: +27 (0)86 143 6263 f: +27 (0)86 219 3490 e: info@svkholdings.co.za www.svkholdings.co.za

SVK Building, Cnr Bronkhorstspruit (R104) and Boschkop Road, Donkerhoek, Mooplaats 356 JR, GPS: 25°45’47.87’’S 28°25’5.14’’E

Applying those same levels of expertise, the significance of attaining the contract for the balance of plant for the 4,800MW plant stemmed equally from the fact that Lesedi was the only bidder; emphasising the Company’s stature as the only able turnkey provider for a project of that magnitude.

Highly sophisticated engineering

This unique and niche set of resources derives from a careful fostering of the Company’s workforce throughout its diversification and was given a new dimension in 2012 with a restructuring put in place to best hone the skillsets, sub-contracting partnerships and project management capabilities engrained in the organisation. With AREVA diluting its shareholding to 39 percent, the introduction of the J&J Group as the Company’s primary black empowerment shareholder, and international construction

Open Cycle Gas Turbine-Exhaust Air duct

heavyweight, Group Five to the Company’s ownership has since aided Lesedi’s diversification even further. “Over the years, we have developed a highly sophisticated engineering division as well as commercial contracting competencies in order to

carry out the kinds of projects we have done,” Pereira says. “We have utilised only local skills for the projects we have worked on, and the diversification we have enjoyed, has enabled us to grow our engineering and project management capacities significantly.”

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Lean, efficient and streamlined operations

The end result is an EPC entity with overlapping skill-sets across numerous industrial domains, which not only makes Lesedi an attractive contracting proposition across nuclear, oil & gas and various energy sectors, but also a highly flexible business in terms of applying said attributes to future opportunities that may arise. “Since 2012 we have diversified a little bit further and have bid on a biomass project in South Africa,” Pereira states as an example. “We’re now well positioned to develop our own projects with the intention of executing them across various forms

Safety Milestone Celebration 2014

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of power generation in the future.” This differentiating market advantage out in the field is further complemented by an ongoing internal acknowledgement of how to be as lean, efficient and streamlined as possible, despite the ever-increasing size of the business. Demanding, continuous training programmes for experienced and graduate employees alike addresses the manual aspect of such an approach, while the introduction of Industrial Financial Systems in 2009 as an enterprise resource planning (ERP) platform has had a similarly defining

Lesedi head office, Cape Town

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Vessel Head Replacement at Koeberg Nuclear Power Station


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Areas like health and safety are given massive emphasis within our organisation, throughout Lesedi, our partners and our sub-contractors effect on refining administrative and project procedures from the Company’s central South African hub.

Diversifying risk

Ultimately, what Lesedi has achieved, on an unparalleled scale, is affirm itself as the EPC contractor of choice in a widespread array of sectors in the region. Pereira enthuses: “We position ourselves as an EPC company but our value added is certainly focussed on the ‘EP’ aspect of EPC. We have strong engineering skills, strong project management skills and strong integration skills ensuring appropriate technologies are selected in the execution of our projects. “Typically with the construction element though, we will either partner with a construction company or sub-contract the construction scope to a construction specialist, where Lesedi will manage the construction. It just so happens that by the definition of construction, a lot of market players have large balance sheets but that doesn’t mean they have the EP capabilities, which is really where the risk resides.”

It is also where Lesedi comes into its own in diversifying said risk, striking a balance between offering clients its own extensive turnkey offering, alongside the promise of introducing a host of construction-specific business partners to the overall bid proposition. Being the only bidders back in 2006 for the balance of plant on Eskom’s open cycle gas turbine project, as well as for the internationally-renowned Medupi balance of plant EPC contract, epitomises Lesedi’s unique positioning

in the market, while equally prominent successes in areas of health and safety - recently celebrating three million lost time injury-free man hours - ensures that the excitement surrounding the Company’s future expansion is certainly not misplaced. Pereira concludes: “Areas like health and safety are given massive emphasis within our organisation, throughout Lesedi, our partners and our subcontractors. “It fits within the wider ethos of priding ourselves on quality and doing the job correctly. “Quality is the name of the game: We have trusted relationships, competent sub-contractors, and a highly skilled workforce which ultimately confirms to clients in these projects that we are the people who will do the job correctly first time.”

Staff at head office, Cape Town

Medupi Coal Power Station

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LESEDI NUCLEAR SERVICES Edison Way, Century Gate
 Century City, Cape Town 7441 South Africa T: +27 861 551 1049 | +27 21 525 1300 F: + 27 21 525 1333

www.lesedins.co.za

LESEDI NUCLEAR SERVICES  

Lesedi Nuclear Services Business Brochure - Africa Outlook Issue 31

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