Registration Number: 2008/001863/07 Vat Number: 4160247682

Satchwell Controls Company Profile February 2016 A business unit of ACTOM (Pty) Ltd

OEM Enquiries: André Nieuwoudt Key Account Manager: Appliance Components

www.satchwell.co.za (Branch contact detail at back)

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Goingfor100yearsinmanufacturing,creatingjobs!!

Satchwell Manufacturing Plant ACTOM (Pty) Ltd (“ACTOM”) is the largest manufacturer, solution provider, repairer and distributor of electro-mechanical equipment in Africa, employing about 7500 people. It is a black empowered company (Level 3) with an annual order intake is in excess of R8.5-billion. It has 43 operating units, 45 production, service and repair facilities, and 40 distribution outlets throughout Southern Africa. Appliance Components is a division of ACTOM and operates a manufacturing plant named Satchwell Controls in Paarl WC. Satchwell was established in the

UK in 1923 and commenced manufacturing in Paarl in 1948. For over 65 years, Satchwell has acquired a national and international reputation as leading manufacturer in South Africa of quality sheathed air & water heating elements and temperature controls. Our manufacturing and distribution facilities (Sales Branches) have strategic geographic and product focuses and are situated within minutes of South Africa's largest sea, road and airfreight terminals (See back for contact detail).

• Satchwell (Manufacturer of standard OEM products, including Solar, based in Paarl-WC) • Electric Elements (Branch for Gauteng, Polokwane, Mpumalanga & OFS, based in Germiston, Jhb) • HOTFLO (Branch for Western & Eastern Cape and Namibia, based in Cape Town ) • WIREOHMS (Branch for Natal and Northern OFS, based in Durban, KZN) • Satchwell West Coast (Branch for West Coast and Northern Cape, based in Vredenburg, WC) Appliance Components trades within the competitive global market and currently employs 225 people on a permanent basis to manufacture high quality SABS approved products, i.e. Stove and Geyser thermostats, heating elements and controls. About four years ago, Satchwell strategically decided to enter the renewable energy market i.e. Solar flat plate collectors, Evacuated Tubes (EVT’s – in process to be approved by SABS) and a Low Pressure polymer (Plastic) Geyser for low cost housing (Direct – coastal areas & Indirect – freeze areas). We are committed to local manufacturing of quality products (received a 60-year award from SABS last year), however it is a challenge to convert customers from cheap, poor quality imports to our more expensive Geyser which will outlast all. With two restructuring exercises because of OEM customers who started to import elements and thermostats the past decade (we used to employ over 500 people), our main goal is use the infrastructure and facilities to again become one of the largest employers in Drakenstein as far as industry orders, funds & finance can justify. (See also the Satchwell training plan related to solar – Section C) However, because of the overhead costs and the pressure on manufacturing in South Africa, we established an Appliance Spares & Refrigeration division. If the market demands a low-priced element / thermostat alternative, we import a quality Heatwave product, manufactured under stringent quality assurance via our Satchwell-China office. Additional, within a short period, we have established ourselves as an importer of various components/ spares for appliances and our own branded Air Conditioner (Coolwave ). Without this initiative, we would not have been able to support and keep our manufacturing plant alive. 1. Quality management & control

• Satchwell is a proudly SABS Mark Scheme holder since 1954 (The company is audited by the SABS at least

4 times per year which ensures that we comply with the relevant national and international standards); • Satchwell also added SANS 1307 for solar water heating systems; • ISO 9001 Quality Management System accredited company for more than 20 years;

o Quality management procedures are all documented and all operations have approved work instructions; Operators are trained in their respective positions and quality inspect their own work;

o Corrective and preventive systems are in place to investigate and eliminate non-conformances, including customer complaints;

o Test equipment is calibrated in-house using Master Test equipment that are calibrated externally at an accredited laboratory so that calibrations are traceable to National Standards;

o We have an in-house laboratory to test critical standards of the products; o Able to produce products to SABS, in-house or customer standards with the main aim to exceed

customer expectations.

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A- PRODUCTS MANUFACTURED IN OUR FACTORY:

2. Heating Elements:

Heating elements can be divided into two categories:

Air heating elements can be divided into the following sub categories:

a) Radiant hot plates (i.e. Defy, UNIVA);

b) Bake and grill elements for the domestic market (i.e. Defy, UNIVA);

c) Special elements for the industrial and/or catering sector (i.e. Macadams, Tombake).

Water heating elements can be divided into the following sub categories:

a) Geyser elements for normal(soft water conditions) and incolloy or stainless steel elements for

hard water conditions (Kwikot, Heattech, FRANKE, GAP, Tecron, XStream)

b) Kettle jug and urn elements (i.e. AMC Classic)

c) Special elements for the industrial and/or catering industries for either

normal or hard water conditions. (Vitrosol, Bain Marines)

3. Controls:

Controls can be divided into two main categories:

a) Energy regulators used typically in urns and stove plates.(SER and LCER) b) Thermostats typically used in geysers and ovens. (VKF, TSE, Oven Thermostat TH Type)

4. SOLAR

Introduction:

Solar collectors (absorbing the heat from the sun) can be classified in two main groups:

• Flat Plate collectors (Robust and trusted technology) • Evacuated Tubes (Made mainly for European conditions –

almost too efficient for the South African summer)

Satchwell manufactures both collectors according to SABS standard with added local content to achieve the

Cistern Type (Low Pressure) Installation designated target of 70% local content. Satchwell manufactures flat plate collectors for SABS-approved HP retrofit and new systems (see later) and to attach to our own LP Hotflo plastic geyser (Direct and Indirect). We are waiting for SABS to test our EVT LP Hotflo (Same plastic geyser with tubes - See bottom page 6 photo’s of 3 types Plastic LP Geysers)

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MANUFACTURING OF: A. Flat plate panels

SABS Leak detection Test

B. Evacuated Tubes (EVT’s) Heatpipes

C. EVT Manifold

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D. Plastic Low Pressure (Cistern type) Geysers (Low maintenance, Affordable, Durable, Locally manufactured, SABS approved)

Different Colors Hotflo Locally Manufactured Low Pr essure Geysers : Satchwell decided to enter the Southern Africa Market with a robust 98% locally manufactured Low pressure geyser (Cistern Type Polymer) to fight the cheap, poor quality systems imported from the east. Two geysers are manufactured to go with the 1.5m² flat plate panel (see Geyser with Panel above):

• Hotflo 110 Liter Direct Low Pressure Plastic Geyser - for coastal areas, and

• Hotflo 100 Liter Indirect Low Pressure Plastic Geyser – for freeze areas and where the water quality is very bad.

Types of Geysers

New !! Low Pressure (LP) Direct LP Integrated EVT (SABS Pending) Indirect LP (Freeze areas)

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SABS approved systems (Rebate program) – Other syst ems pending at SABS Satchwell obtained SABS approval on 10 systems, where our 1.5m²; 2.0m² and 2.5m² panel (see above) is connected to a geyser from all the leading South African geyser manufacturers. Hence, these solar systems will easily achieve the designated 70% local content (see below), if and when required. Eskom Registered Solar Systems:

B- SOLAR PRODUCTS SOURCED TO SUPPORT OUR FACTORY:

SOLAR SPARES & ENERGY SAVING PRODUCTS

• Solar Circulation Pumps (220V & 12V)

• Timers (Geyserwise & DB Electronic)

• Valves (Tempering, Banjo, TP)

• Insulation (Pipes and Geyser)

• Copper pipe (15mm & 22mm)

• Instant hot water heaters (Stefani)

System name Pressure Tank volume Collector type Circulation type Transfer type SABS status

Satchwell 150L Kwikot Retrofit High Pressure 150L Flat Plate Pumped Direct SABS Mark

Approval

Satchwell 150L GAP Indirect High Pressure 150L Flat Plate Thermosiphon Indirect SABS Mark

Approval

Satchwell Heat Tech Solarline 100L

High Pressure 100L Flat Plate Thermosiphon Indirect SABS Mark Approval

Satchwell Heat Tech 150L Indirect

High Pressure 150L Flat Plate Thermosiphon Indirect SABS Mark

Satchwell Heat Tech 200L Indirect High Pressure 200L Flat Plate Thermosiphon Indirect SABS Mark

Satchwell Heat Tech 150L Direct

High Pressure 150L Flat Pate Pumped Retrofit Direct SABS approved

Satchwell Franke 150L Direct High Pressure 150L Flat Plate Pumped Retrofit Direct SABS

Approved

Satchwell WE Duratherm 200L Direct

High Pressure 200L Flat Plate Pumped Retrofit Direct SABS Approved

Satchwell Hotflo 100L Indirect

Low Pressure 100L Flat Plate Thermosiphon Indirect SABS Approved

Satchwell Hotflo 110L Direct Low Pressure 110L Flat Plate Thermosiphon Direct

SABS Approved

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5. Appliance Spares and Refrigeration This department caters for the following:

o Refrigeration Gas:

o Compressors for:

Domestic Commercia l Industrial Air-Conditioning

o Copper Tubing & Fittings: o Fan Motors:

o Catering:

o Air-conditioning

o Refrigeration:

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C- SATCHWELL TRAINING CENTRE: SOLAR SKILLS TRAINING:

Satchwell has the infrastructure and resources to commit to related training projects. As an example, we have trained 94 unemployed matriculants interested in manufacturing as part of our succession plan during 2004 (NQF1 Manufacturing Learnership). The majority of these trainees are currently in the employment of the Satchwell. Unfortunately, we have lost about 70% of our traditional business due to imports from the East and we have successfully turned the business around to solar component manufacturing (Geyser / Solar flat plate panel / Evacuated Tubes)

Satchwell Controls has the resources, with the support of ACTOM, to establish a training centre, empowering skilled employees according to the well established ISO 9001 quality and unit standards. ACTOM has a number of training centres throughout South Africa, and runs a number of skills development and employment equity programs. Details of which are attached to this profile.

The training plan related to Solar:

• Appointed and trained a dedicated SDF to focus and drive training (completed); • Train two SME employees (1xPlumber / Solar Installer and 1xElectrician) as Assessors

(Training 17-21 August 2015); • Source an external Moderator (as and when needed); • Establish a Boland College & MERSETA partnership agreement with Satchwell to assist

with training center accreditation and programs (in progress); • Assist Level 4 Plumbing students with experiencial training to complete qualification in

Solar faultfinding and installation (since 2014 - ongoing);

The end result and goal is to institute Satchwell a s a major role-player, supporting new established BEE businesses in municipal areas where solar roll-out is awarded. The B-BBEE Enterprise Development plan can be supported by goo d management mentorship and infrastucture to establish SMME’s, ensuring SANS pr oduct and installation quality.

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www.satchwell.co.za

www.actom.co.za

Satchwell: 021 - 863 2035 FACTORY & Head Office (Western Cape, Paarl) Electric Elements: 011 - 873 1415 (Gauteng, Germiston) HOTFLO: 021 - 511 3377 (Western, Cape Town) WIREOHMS: 031 – 205 6570 (KZN, Durban) Satchwell West Coast 022 – 715 1853 (West Coast, Northern Cape based in Vredenburg)

CONTACT DETAIL

One of our Sales Branches (Paarl)