Siemens and Wyrcom partnership a first for South Africa
November 2002
News
Siemens Southern Africa and Wyrcom Signals have concluded a unique partnership that sees the establishment of the first black-empowered train control systems manufacturing company in South Africa. The deal includes a mutual exclusivity arrangement with Wyrcom Signals involving joint marketing exercises both locally and overseas, opening up Siemens' global markets to Wyrcom Signals.
"This is the first such arrangement in South Africa. It is a unique partnership in that the exclusivity agreement works both ways. It is not just a one-way street in favour of the bigger company," said Gorman Zimba, managing director of Siemens Transportation Systems.
The partnership emerged out of Siemens' closure of its Isando factory and the company's desire to outsource the manufacture of its train control systems. Wyrcom was a Closed Corporation with a five-year association with Siemens South Africa in the business of railway interlocking design and the assembling of power supplies and signalling products.
"Traditionally, Siemens manufactured its signalling equipment in house," said Zimba. "But it did not make sense strategically to have a whole factory internally when we could outsource and create more jobs. With Siemens' commitment to black empowerment, Wyrcom was encouraged to be transformed into a Pty Ltd and to secure black economic empowerment."
In November 2001, Omega Scientific Research became Wyrcom Signals' empowerment partner, securing 75% in shareholder value and with full involvement in operations and financial management. The remaining 25% is held by key technical staff - and the founding members of Wyrcom.
"The partnership introduces tremendous flexibility for Wyrcom Signals because they can still manufacture non-competing solutions thereby adding value to the company," said Zimba. "But more importantly, it has opened the way for other such entrepreneurial partnerships which can only have a positive effect on the South African economy."
For more information contact Jose Machado, Siemens Southern Africa, 011 652 2000, www.siemens.co.za
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