Exceeding expectations

09 October 2013

Organiser Messe München International (MMI) said it was overwhelmed by the support it received for the first Bauma Africa exhibition, which was held from 18 to 21 September at the Gallagher Convention Centre, in Johannesburg, South Africa.
First planned to host around 200 exhibitors and use around 20,000 m2 of exhibition space, in the end, MMI South Africa CEO Elaine Crewe said 754 exhibitors from 38 countries had been attracted to the event, which covered more than 60,000 m2 of. A total of 14,700 registered visitors from more than 110 countries came to the show.

“This is huge for South Africa and the industry here,” said Ms Crewe. “With its premiere, Bauma Africa has immediately become the largest show for the construction machinery, building material machines and mining machines sector. The feedback we have received is just fantastic.”

Ms Crewe said the popularity of the show was testament to the growth opportunities in Africa’s construction market. “In South Africa alone, the government’s current five-year National Development Plan has set aside ZAR 800 billion (US$ 82.1 billion) for construction projects,” Ms Crewe explained.

Indeed, senior figures from a range of manufacturers at the show expressed high hopes for the African construction equipment market during the event (see box story).

The show stopper in terms of new machines came in the form of the world premiere of South African manufacturer Bell Equipment’s largest ever articulated dump truck (ADT) – the 60 ton (54 tonne) capacity B60 concept model.

In addition to this monster machine – which features the same front end as the company’s flagship B50D ADT but a dedicated 70 ton (63 tonne) rear truck and axle from Kessler – Bell also showcased a new ejector body for the B50D, and announced it had expanded its distribution partnership with Liebherr into dozers.

Northern Ireland-based crushing and screening equipment manufacturer Terex Finlay also exhibited alongside Bell, which is its new distributor in Southern Africa.

Four Terex Finlay models were on display, the new I-100 impact crusher, the J-1480 jaw crusher, 694+ inclined screen and the 883 heavy duty screener. The company was also visited during the show by Arlene Foster, the Northern Ireland Assembly Minister for Trade and Enterprise, who attended Bauma Africa to show her support for the company’s attending from Northern Ireland.

“The South African market is an emerging market for Northern Irish crushing and screening manufacturers,” Ms Foster said. “But they are here in force, with a big presence at the show. It is very encouraging.”

Meanwhile, South African manufacturer Pilot Crushtec displayed its new Trio MJ3042p jaw crusher plant, Trio MJ4254 jaw crusher unit TwisteTrac VS350E VSI crusher and Rubble Master RM80 GO. Sandvik construction, which uses Pilot Crushtec as a distributor in Southern Africa, used the show to introduce its CH550 cone crusher to the African market for the first time, along with the basic line DH350 surface drill rig.

Earthmoving

Along with Bell’s ADT, a number of other earthmoving machines were launched at the show. Shantui, for instance, introduced two new machines – the 48 tonne SE480 excavator and 2.3 m3 bucket capacity SL60W-3 wheeled loader.

Volvo’s Chinese joint venture SDLG introduced the 4.2 m3 bucket capacity LG9787L wheeled loader, 16 tonne class LGG8190 grader and LGG812H 12 tonne single drum hydrostatic roller, together with the 14 tonne LG6150E and 21 tonne LG6210E excavators.

Meanwhile, Eazi Sales & Service, which distributes JLG and Magni equipment in Southern Africa, introduced the 30 tonne lifting capacity Magni THT30.12 telescopic handlers to the local market at the exhibition. Magni founder Riccardo Magni said the company had identified a gap in the market for high capacity telehandlers.

“There is a need for large machines with 4X4 drive and the ability to carry a wide range of attachments,” Mr Magni said. “The mining and industrial segments are our targets in South Africa, and we would like to expand to North Africa in the future.”

Caterpillar also made an appearance in the form of a 116.5 kW to 205 kW C7.1 Tier 3/StageIIIA-compliant engine which was displayed on its local dealer Barloworld’s stand.

Prospects for Africa

Senior figures from a range of manufacturers outlined their expectations during Bauma Africa.

Shantui vice president Cheng Zhaohong said the company forecast African sales growth of around +10% per year for the next five years, during which the proportion of revenues from Africa is expected to grow to at least 20% of its global sales outside China.

"We have 17 distributors in around 30 countries across Africa, and will be focussing in the future on developing our sales, aftersales and service operations,” he said, adding that Tanzania, Cameron and Mozambique where future areas of focus, together with Kenya, which it would like to see become an East African hub. West Africa and South Africa are also targeted for future growth.

Meanwhile, Sandvik Construction vice president of construction for sub-Saharan Africa, Glenn Shoeman, said the company expected to generate revenues of between SEK 370 million (US$ 58 million) and SEK 400 million (US$ 63 million) from the sub-Saharan market in 2013.

“We forecast that these revenues will double in the next five years,” he said. Ethiopia, Mozambique and Nigeria would be key focusses for the company in the future, as well as the Democratic Republic of Congo.

And JCB expects the African construction equipment market to grow +50% by 2017, according to managing director of sales Ian Sayers.

“Demand in Africa has more than doubled since 2005 to 22,000 machines for the 12 months to June this year. JCB is spreading out throughout the continent, not just South Africa. We currently have 24 dealers across Africa and are looking for new opportunities.”

However, Shantui’s Mr Zhaohong said that Africa was a continent of both opportunities and of risks.

“Currency volatility is a risk, while transportation and logistics are an issue, and infrastructure issues sometimes cause delays, for instance,” he said.

This is just a snap-shot of the huge variety of equipment that was on display, many of which was introduced to the African market for the first time. Other major names including JCB, Powerscreen, Sany, Doosan and its sister brands Montabert and Bobcat also supported the show.

By the end of the exhibition, it came as no surprise that MMI’s Ms Crewe confirmed plans for a second Bauma Africa in 2015. It has not yet been decided whether the second show will take place in the same venue.

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