BUSINESS NEWS

March 23, 2010

South African engineering skills challenges addressed by TKE SA and PDNA initiative

JOHANNESBURG – March 23, 2010 – The serious issue of skills development within the South African engineering sector is set to receive a positive boost with the announcement of a new joint initiative between ThyssenKrupp Engineering (Pty) Ltd (TKE), part of ThyssenKrupp AG, a global integrated materials and technology group, and local consulting engineering group PD Naidoo & Associates (PDNA).

Known as “ThyssenKrupp PDNA Engineering (Pty) Ltd, the new entity represents the combination of the TKE Uhde, TKE Materials Handling divisions and PDNA’s Industrial Projects (Pty) Ltd (IP) business.  Of these complementary companies, Uhde handles the design and construction of Petro Chemical, Chemical and Industrial Plants and TKE Materials Handling designs and supplies bulk material handling systems and equipment. PDNA IP is a black empowered engineering and project services company involved in industrial type plant and processing work, ranging from engineering concept, feasibility and design to implementation.

Claus Rühs, Managing Director, ThyssenKrupp Engineering (Pty) Ltd explains that: “One of the key success factors in ensuring sustainable businesses in any country is to secure and develop solid local skills for ongoing operational and maintenance aspects. From this perspective, we truly feel that the ThyssenKrupp PDNA Engineering initiative will meet both current and future skills requirements across the engineering sector. This move is a great step in TKE South Africa’s practice of aligning its business and structure to satisfy our country’s transformation imperatives.”

According to PDNA executive chairman, Dempsey Naidoo, TKE and PDNA have been locked in discussions around the joint venture for the past 12 months and decided that the new initiative represented the best route forward for both companies to leverage technical and management synergies within the existing businesses.

“Having worked together in the past on several projects, TKE and PDNA IP discovered a number of significant mutual benefits and areas of cooperation and so, decided to formalise this partnership, forming ThyssenKrupp PDNA Engineering (Pty) Ltd,” says Naidoo.

“This announcement represents a significant international and local development for PDNA and we believe that, moving forward, the initiative will present a multitude of opportunities to all of the company’s divisions,” Naidoo continues.