Transmashholding has announced a EUR 32 million (R 500 million) investment in a South African manufacturing facility through its newly subsidiary, TMH Africa, jointly owned by Transmashholding (70%) and Mjisa Investments (30%).
The company will invest to modernise and develop the capacity of a manufacturing facility in Boksburg, east of Johannesburg. THM Africa plans to produce mostly diesel locomotives and coaches for South Africa and the African continent, but the company “will start the operation in South Africa by delivering the right quality and the right services. The R 500 million investment is part of the acquisition and the set-up of the factory and, within the next five years, we will be spending more money around capital expenditure to create new lines and training – there is a lot of knowledge, but there is more potential in this industry,” Jerome Boyet, CEO of TMH Africa said.
Besides South Africa, TMH is looking for the African countries who have railway network, targeting six countries within Group’s strategy. Kenya, Namibia, Angola, Egypt and Nigeria are the countries which can benefit TMH products and services. “We are now stepping up in creating TMH Africa as part of the Group, creating an entity which is meant at acquiring an industrial asset in the country [South Africa]. We are activating as an investor and stepping in with our own plans. We intend to provide products and services throughout the continent as we are looking for all African countries which have railway network such as Kenya, Namibia and Angola and, in the northern part of the continent, we are looking for Egypt and Nigeria,” Jerome Boyet explained.
For TMH, South Africa is an extremely promising market and it is a gateway to the continent. “We believe that our range of products such as diesel locomotives, with passenger coaches, electric trains and freight cars is an excellent asset in terms of portfolio of products to address the needs of the African continent. The African market is an opportunity for the new rolling stock and for the modernisation of the existing units, as well as for services. The continent lacks the expertise in services and rolling stock maintenance, which increase the products’ availability and reliability,” TMH CEO Martin Vaujour said during an interview with CNBC Africa.
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