VANGUARDOF A DIGITAL ERA

Altech UEC’s Manufacturing Director, Jannie Viljoen, explains.

“With the advent of the switch to digital terrestrial television (DTT), South Africa is expecting massive growth within the digital and electronics manufacturing sector. Our government is pushing for job creation, so while staying compliant with World Trade Organisation regulations, they’re putting some import barriers in place that will allow local businesses to compete favourably with imports from

the East. “This is a great opportunity and we have ideally

positioned ourselves to participate in this growth and support government’s policy by investing in a new state-of-the-art manufacturing facility. Not only will the factory employ more people, but associated services such as packaging, delivery and installation will create tens of thousands of small business opportunities in the future,” he adds.

Launch Pad For A New IndustryThe new Altech UEC high technology manufacturing

facility in Mount Edgecombe was a huge undertaking for Altech. Described as a “story factory” by Altech CEO Craig Venter, the 13 500m2 world-class facility has the capacity to manufacture more than three million television set-top boxes (STBs) per annum.

“The boxes we manufacture here deliver stories to people’s homes,” Venter said at the official opening last year. “The new generation STBs will enable millions of people in South Africa, Africa and across the world to access digital television - a medium through which they will discover the world around them in all its richness, diversity and endless possibility.”

The facility not only gives Altech more capacity to deliver

their own products, but provides a valuable resource that they can offer to other businesses.

“The economic spin-offs are destined to be huge - from technical support to retailing - while the increased demand for broadcast content, especially regional-based programming, will create more jobs for local content producers and their supply chains. New jobs will be created all down the delivery chain, while millions will be able to benefit from better education and communication through new electronic

means,” said Venter.“We see ourselves engaging

with more contract manufacturers,” Viljoen says. “Increasing our volumes is crucial because the dilution effect on our overheads is huge. So we’re not just going to build our own devices, we will offer our services to the market to manufacture a wide range of electronic devices such as LCD televisions. With this strategy we aim to increase our volumes by up to 40 percent.”

The new facility is a major part of Altech’s strategy going forward.

“Quality and cost are crucial factors in the manufacturing industry. While we’re at a disadvantage to manufactures in countries with extremely low labour costs, we can apply advanced manufacturing technologies and processes to level the playing field to produce quality products, while allowing us to compete on cost,” Viljoen says.

The Digital MigrationThe factory is essential for another reason. Demand for

set-top boxes is expected to multiply in the near future, as South Africa migrates to digital terrestrial television.

“Roughly nine million households in South Africa will need a set-top box to convert to digital transmission once analogue switches off,” Viljoen says. “However, that is a small part of the potential once you factor in the rest of Africa. For example, it is estimated that Nigeria alone has between 40 and 50 million televisions that will require a set-top box once that country switches to DTT.”

If Altech wants to compete globally, it faces some challenges.

“In the rest of Africa we do not have a particularly well-known brand name,” Viljoen admits. “From a manufacturing perspective that means we need to position ourselves with

Altech UEC

“The new generation STBs will enable millions of people in South Africa, Africa and across the world to access digital television - a medium through which they will discover the world around them in all its richness, diversity and endless possibility.” Jannie Viljoen, Manufacturing Director

When you think of South Africa, a thriving electronics industry may not be the first thing that jumps to mind. Yet with the expansion of companies such as Altech UEC that could soon be set to change. This is not accidental. Heavy investment in the electronics manufacturing industry is among the many strategies South Africa is employing to climb out of the economic slump of the last few years and boost job creation.

that in mind, so we’re competing on cost and quality. As far as the wider company is concerned, we’re using our global expertise to provide value added services and solutions, from systems integration and professional services through to end-to-end solutions and support.”

It’s a strategy that’s been working well for Altech.Viljoen explains: “We’ve faced tough competition across

all the markets in which we operate, but our successes in the African market have carried us through.”

A Winning TeamOf course, that success wouldn’t be possible were it not

for Altech UEC’s employees.“Perhaps our most valuable employees are our process

engineers. They ensure we are in line with the latest technological advances within the electronics manufacturing industry. We’re investing heavily in building their expertise through a series of training activities as well as exposing them to the wider manufacturing market through global site visits and exhibitions. This investment has had some good returns so far,” Viljoen explains.

To continue attracting the skills and expertise that Altech UEC needs, the company not only provides bursaries to deserving students, but through its corporate social investment strategy it has embarked on developing local communities by supporting various projects for schools and children’s homes. The KwaMashu multi-media centre for learning is one such initiative. The multi-media centre is a hi-tech IT centre established to develop students in the areas of mathematics, science, English and life orientation.

Venter agrees: “For South Africa to be globally competitive, we need more than the infrastructure we already have or are planning to build. We need a strong core of highly skilled professionals in science, engineering and technology. We need to demystify mathematics and science and take it into the mainstream so that everyone can participate on an equal basis.”

Building For The FutureThe electronics industry is an exciting field in South

Africa right now. “The industry received a significant windfall when

the South African government implemented import restrictions,” Viljoen says. “The next big thing is going to be digital migration. The government has circulated a White Paper indicating that it wants electronics to be a priority growth industry for South Africa. Altech is one of the largest electronic manufacturers in the industry. With more than 16 years’ experience in supplying the South African electronics industry we have a sizable market share. Our manufacturing experience at the component level enables us to compete favourably with most other manufacturers in South Africa who supply niche, low volume products. With our experience and capability we hope to attract more well-known consumer electronics brands to be assembled locally in South Africa.”

“We aim to contribute positively to the growth of the electronics industry in South Africa. There are obvious commercial benefits for Altech UEC, but we believe that by driving the necessary investments and contributing to job creation we will position ourselves to support government and empower local industry,” Viljoen concludes.

Altech UEC

031-3747000

Member of the Santova Group of Companies

Innovative International Supply Chain Solutions

Supply Chain Optimization; Freight Logistics; Customs and Excise; Marine and International

Insurance Services; Warehousing and Distribution

OSCAR / Optimization through IT - Visibly Accurate Real Time Information, Virtual Supply Chain Management and Business Intelligence

www.santova.com

Altech UECwww.uec.co.za+27 31 408 2759

Written by Chris Farnell

www.littlegatepublishing.com