Johannesburg, 11/12/2024
Over the past two years, BUTEC, a regional corporation specializing in industrial construction and a key international player in utilities management, environmental services, energy, and oil & gas across the Middle East and Africa, has significantly strengthened its foothold in the South African market, delivering solutions to both private and public sector clients.
The company made its entry into the South African and broader African market by acquiring around 17 multi-utility building services companies previously divested by the French group Engie. Notably, the acquisition included Thermaire Investments and Ampair two well-established leaders in the local HVAC (Heating, Ventilation, and Air Conditioning) market, renowned for their expertise in installation and maintenance services.
As part of its integration strategy, BUTEC rebranded two of its South African subsidiaries—now operating as BUTEC and BUTEC Services—and substantially expanded their capabilities by transferring expertise from across the Group, with a particular focus on the MEP (Mechanical, Electrical, and Plumbing) sector.
With these new competencies and the extensive experience BUTEC brings across its diverse operations, the two subsidiaries are strategically positioned to capitalize on emerging opportunities and deliver high-impact projects in new sectors, notably renewable energy, applying best practices, particularly in terms of quality, performance, energy efficiency, and sustainability.
Additionally, BUTEC acquired DUCTSHOP, a company specializing in the manufacturing of high-quality metal products, which will continue to operate under its original name in South Africa.
The portfolio of companies acquired from Engie in 2022 in South Africa represented a substantial portion of a $200 million transaction, comprising 17 companies and employing 1,500 professionals across nine African countries, including Morocco and Ivory Coast. This strategic acquisition aimed to establish two high-performing divisions in multi-technical maintenance, electrical and mechanical installation, and energy, with complementary financial profiles and a high degree of skills and human resources integration.
Since then, BUTEC has focused on seamlessly integrating into the South African economic landscape, emphasizing value creation, job generation, and fostering business opportunities, particularly in the MEP sector. “BUTEC’s expertise, coupled with its commitment to sustainability and innovation, positions the Group to make a substantial contribution to the country and the region’s development,” said Ziad Younes, Chairman of BUTEC Group.
Over the past 15 to 20 years in South Africa, many facilities management companies have shifted towards outsourcing certain services to subcontractors, creating significant growth opportunities in this sector.
These initiatives, along with future plans, reflect BUTEC’s continuous commitment to streamline its portfolio of acquired companies and ensure their seamless integration into the Group. This process involves aligning the Group’s global strategy and core values—business integrity, unity of purpose, time commitment, efficiency focus, and customer partnership—with the unique characteristics of each acquired entity, while addressing the needs of their stakeholders and workforce. The corporation’s focus on employee empowerment and recognition reflects its commitment to fostering a thriving environment for both its employees and the communities they serve. This is further demonstrated by the establishment of an employee share trust within its South African entity, highlighting BUTEC’s dedication to motivating its employees and aligning their interests with the company’s long-term success.
By adhering to this approach, BUTEC, founded in the 1964s, has steadily expanded its operations to become a key global player. Today, the Group operates in 21 countries across the Gulf, Middle East, and Africa, supported by a highly skilled workforce of over 7,500 professionals, driving excellence across its diverse areas of expertise.
PRESS CONTACT
RACHEL JAMOUS
rjamous@butec.ocm
