kwane capital and cvs ferrari milestone agreement
kwane capital and cvs ferrari milestone agreement
kwane capital and cvs ferrari milestone agreement

At the presence of the delegates of the Italian Embassy of South Africa, representing a first for the South African ports and container handling industry, CVS FERRARI has signed a distribution and localisation agreement with Kwane Capital, a wholly owned subsidiary of Ritam Holdings (Pty) Ltd.

Signed in Johannesburg on Friday, 9 March 2019, it is estimated that the distribution and localisation agreement’s capex investment in Operation Phakisa will exceed 1 billion Rand – with an initial market offtake of 3 billion Rand in the first year – which will also lead for the South African economy to significant job creation and skills investment in the ports and handling industry.

Says Mcebisi Mlonzi, Chairman and CEO of Ritam Holdings: “Our agreement with CVS Ferrari represents an important milestone in not only the ports and handling industry but our own business operations.

“Partnering with a global brand such as CVS Ferrari show tremendous faith in our ability to provide superior services to important customers such as Transnet as well our commitment to growing this crucial industry through job creation and skills investment. We look forward to mutually beneficial and fruitful relationship with CVS Ferrari.”

Adds Colin Clegg, Regional Manager – CVS Ferrari: “CVS Ferrari will, through our agreement with Kwane Capital, support the localisation of our product range in South Africa which also means we will be supplying specialist skills and training to support the programme.

“Also, with a dedicated distribution in South Africa we can significantly improve our after-sales support and services to our current and future customers.”

The agreement will see Kwane Capital distribute CVS Ferrari’s premier range of forklifts, empty container handlers and reach stackers. Kwane Capital will provide sales and after-market support to CVS Ferrari’s South African customer base.

As underlined by Lurence Savage, Chief Operating Officer of Ritam Holdings, importantly, the agreement provides for the transfer of intellectual property and designs from Italy to South Africa enabling significant product localisation. This will include the assembly of partially assembled or pre-fabricated parts as well as the local manufacture of specific equipment such as the container straddle carrier through the TFM Group in which Kwane Capital holds a 63.7% stake.

The TFM Group specialises in the, manufacturing, supply and support and import of specialist truck bodies.

CVS Ferrari has been a supplier of port handling equipment for over 20 years in South Africa, with an unblemished record of quality, reliability and service.

According to CVS FERRARI’s Managing Director, Stefano Mercati, “The agreement with Kwane Capital is for CVS FERRARI the first move towards a further axis of strategic corporate development that our shareholders and management intend to pursue, besides the technological leadership, that our incessant product innovation is establishing. We intend in fact achieve significant presence in relevant world markets through the setup of strong partnerships with equally strong local business partners and to heavily localize through such partnerships, service support and even specific products manufacturing”.