The Gauselmann’s Group’s new South African venture with Grand Parade Investments will enable the company to capitalise upon the strong potential within the local market, it has been claimed.
Gauselmann subsidiary Merkur Gaming formed a joint venture with GPI in November. The new company, Grand Merkur, will have its headquarters in Cape Town and will produce and sell gaming and amusement machines. These will include machines with and without stakes and prizes, sports betting terminals and video lottery terminals.
“The market in South Africa offers great potential for us,” said Thomas Niehenke, COO of the Gauselmann Group. “Although the amusement machine industry accounts for about €4.3bn of the South African gross domestic product, there has been until now no local manufacturer in this industrial sector. The machines are mainly imported from Europe and the US.”
The incorporation of these two companies, he explained, enables a pooling of core competencies. This, he said, ought to lead to great success in the South African market.
“We are certain of filling a significant market niche with the joint venture. In addition to this, we see strong business growth potential in the South African market in the amusement machine sector. Likewise, South Africa is an ideal country to reach out and serve further markets in Africa.”
