African Business Coverage
ISSUE
11
Featuring DHL South Africa, Hewlett Packard South Africa, Petromoc, Air Traffic and Navigation Services, Parmalat South Africa... 1
A SIDE OF US
YOU
DIDN’T KNOW BECAUSE IT’S WHAT’S ON THE INSIDE THAT MATTERS LOOK INSIDE OUR BOXES AND YOU’LL FIND A PROMISE – A PROMISE TO ADD VALUE TO YOUR BRAND AND YOUR PRODUCTS. THIS BEGINS WITH OUR RELATIONSHIP WITH YOU, A RELATIONSHIP BUILT ON PROACTIVE COLLABORATIONS AND LASTING PARTNERSHIPS. WE OFFER HIGH QUALITY CUSTOM-MADE AND AUTOMATED SOLUTIONS TO SUITE YOUR PACKAGING LINES, ALL OF WHICH ARE STRENGTHENED BY OUR COLLABORATION WITH YOU. TOGETHER WE ASSESS YOUR SUPPLY CHAIN, ENABLING US TO DEVELOP TAILORED CORRUGATED PACKAGING SOLUTIONS THAT INNOVATE YOUR BRANDS AND BUSINESS NEEDS FOR THE FUTURE.
Packaging your progress from the inside out. For more information, please visit neopak.co.za or contact us on 010 636 (NEO) 0000.
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Neopak – Packaging Your Progress from the Inside Out In early 2015, Ethos Private Equity, having identified the potential of Nampak’s corrugated division, acquired the company and rebranded it as Neopak. This rebrand, however, was far more than a simple rename, but rather a rejuvenation of the company, building off its strong legacy and history in the corrugated packaging industry. Critical to the acquisition and revitalisation, Neopak has refocused on delivering a new take on corrugated packaging. A new outlook on what a box can do for you and your business through modern ways of working, collaboration and innovative solutions led by a team of highly skilled, expansive thinkers who share a vision of a revitalized, innovative packaging company. At the centre of Neopak’s new ways of working is the relationship they hold with their clients. Their approach is to be far more collaborative and involved in the clients business. Having this stronger understanding allows Neopak to add far greater value to client’s supply chains and provide tailored products that work best for their unique needs. Through state-of-the-art equipment and technologies Neopak is able to offer world class paper-based packaging solutions for both the commercial and agricultural markets. From standardised corrugated trays to innovative bespoke solutions, their workforce of over 1000 employees, working at five mega-plants, four specialty plants and their paper mills, supplies corrugated packaging to both the biggest companies in Southern Africa and SMEs of varying sizes. To ensure unrivalled service to these clients Neopak utilises an integrated business system that enables them to provide accurate, on-time deliveries of products 24 hours a day, 7 days a week. Neopak believes that there is more to their corrugated products than just it’s sides and corners; these products are integral part of a company’s value chain and key to the success of their client’s products and brand. If you would like to find out how Neopak can impact your business’s operations visit www.neopak.co.za
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Imagine one independent energy operation with expertise in sourcing, storing, blending, packaging and distributing energy products. Over the past 25 years, our success across sub-Saharan Africa has led to the creation of a number of complementary products and services. Integrating these enables us to offer the benefits of one, smooth, efficient and highly reliable operation. Imagine Oryx Energies—bringing you the fuels, lubricants and LPG that drive your success. www.oryxenergies.com
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Your energy partner of choice in Africa.
ediTOr’S nOTeS Welcome to Issue 11 of African Business Coverage. Just one of the companies we feature this issue is Hewlett Packard, a global technology powerhouse undergoing one of the major transformation in its history and how that affects its South Africa operations. We also feature DHL, which has launched two new facilities in Plumbago, located close to OR Tambo International Airport in Johannesburg. This major investment of just over $38m signals the longterm growth plans for the region as it brings state-of-the-art infrastructure, IT systems and world-class services to support businesses operating in Africa. Elsewhere in the magazine we look at the Air Traffic and Navigation Services (ATNS) in South Africa, the sole provider of air traffic management, navigation, training and associated services within South Africa. We find out what it’s like to operate on a daily basis when responsible for approximately 10 percent of the world’s airspace.
Enjoy the issue Oliver Moy
African Business Coverage OKM Media Ltd, 66 Prince of Wales Road, Norwich NR1 1LT PubLiSHer Oliver MOy okm@AubuSiNeSScoverAge.com DeSigNer SaM WOOd SAm.wooD@AubuSiNeSScoverAge.com HeAD of reSeArcH abi abagun Abi@AubuSiNeSScoverAge.com
Issue 11 Contents
8 - 23 Industry News Company Reports 24 36 48 58 66 74 80 90 100
Hewlett Packard South Africa Petromoc DHL South Africa Air Traffic and Navigation Services Aspen Logistics Vital Distribution Solutions Bloem Water Parmalat South Africa Pro Roof Steel Merchants
110 Events
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ry news 9
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rWandair PuTS PaSSengerS Online WiTH inTerneT and MObile PHOne deviCeS RwandAir will become the fourth African airline to choose SITAONAIR as its connectivity provider. RwandAir has two A330s, both of which will be line fitted with mobile phone and Wi-Fi services. The first A330 will be delivered in October 2016. SITAONAIR is the leading inflight connectivity provider in Africa, with more airline customers in the region than any other provider. RwandAir is an international airline flying to all parts of Africa and the Middle East. It needs to offer passengers with consistent inflight connectivity coverage wherever it flies. SITAONAIR connectivity uses Inmarsat’s SwiftBroadband, which provides consistent global coverage, along with an option to upgrade to GX Aviation when it comes to market, in 2016. Combined with SITAONAIR’s worldwide network of regulatory authorizations, this means SITAONAIR can provide RwandAir’s passengers exactly the same level of service on both African and Middle Eastern routes. “With connectivity expanding in the African aviation market and RwandAir
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continuously trailing blazes in customer services automation, it is imperative for RwandAir to be among the first airlines to offer mobile phone and Wi-Fi services to passengers travelling in the CentralEastern part of Africa,” said Jean Paul Nyirubutama, Deputy CEO & COO of RwandAir. “With SITAONAIR, we can provide our esteemed customers with the connectivity they expect from us, as well as formulate a plan for the easy upgrade to GX Aviation when it becomes available.’ “African carriers are choosing SITAONAIR because of our proven credentials in the region and around the globe,” said Stephan Egli, Regional Commercial VP, ME&A of SITAONAIR. “Only we can deliver the consistent global coverage that passengers want, so they can stay in touch with the family, friends and colleagues throughout their journey.” SITAONAIR’s SwiftBroadband solution has a clear upgradable path to GX Aviation, Inmarsat’s imminent high speed network. SITAONAIR’s service is ready for the next major step in inflight connectivity.
NASPerS SeLLS iTS STAke iN NeTreTAiL South African-based global internet and media company, Naspers Limited, has announced a US$201m transaction to dispose of its holdings in Netretail and Heureka to Czech-based investment firm, Rockaway Capital. For Naspers, the transaction forms part of an ongoing strategy to optimise its group structure. Naspers acquired Netretail (a Czech-based online retailer) and eMAG (the Romanian based internet retailer) in 2012, with a plan to merge the two assets and create a
leading ecommerce platform across Central and Eastern Europe (CEE). Diverging strategic views prevented the merger from being completed. Naspers subsequently decided to focus on eMag as its preferred etail platform in the region. As part of the transaction, Naspers is also selling Heureka, the group’s online price comparison platform in the Czech Republic. Naspers’ other businesses in the region are unaffected by this disposal.
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TanZania TO COnSTruCT la Tanzania has begun the construction of what it says will be the largest port in East Africa at an estimated cost of $11bn. Supported by China Merchants Holdings International and Oman’s State Government Reserve Fund, the project is expected to be a game changer in Tanzania’s quest to industrialize. Officials in Tanzania believe that the construction of largest port in East Africa will not only boost the economy of the tourist town, but also put the country in good stead to compete for regional business, especially with neighbouring Kenya. President Jakaya Kikwete who attended the ground breaking ceremony said that the construction
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of the Bagamoyo port and a special economic zone is geared at realising the government’s goal of bringing about an industrial tranformation in Tanzania. It is expected that the new port will be able to handle 20 million containers annually. It will take two years to complete, and includes building rail and road links. The construction of the port was initially slated for 2014 but has been marred with delays. Shipping agents had opposed the move saying that the port will have no significant impact for the first 20 years after its construction. Earlier this year, Tanzania Shipping Agents Association said that with the
argeST POrT in eaST aFriCa current economic environment in East Africa they are skeptical that larger vessels can dock in the country in the coming 20 years. However, Tanzanian Transport permanent Secretary Shaban Mwinjaka said all plans were in place to have the port constructed. The construction of the Bagamoyo port in Tanzania will involve several phases. The first phase will be completed in three years’ time. Additionally, a 34km road joining Bagamoyo and Mlandizi and 65km of railway connecting the port to Tanzania’s Central Line and TanzaniaZambia railway will be constructed. Tanzania is East Africa’s second-
biggest economy after Kenya, and cargo volumes at the existing Dar es Salaam port are expected to rise as much as 25 percent this year to 18 million tonnes. In a move that is set to change ports scene in East Africa, Kenya’s Mombasa port is currently being upgraded and it is also constructing a hugeport at Lamu, including an oil refinery near its border with Somalia. But, the new Bagamoyo port construction project is expected to dwarf Kenya’s port at Mombasa east Africa’s trade gateway about 300 km to the north, and aims to capitalise on growth in a region seeking to exploit new oil and gas finds.
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v&A wATerfroNT ANNouNc The R700 million first phase of a new district at the V&A Waterfront is underway with a corporate head office for British American Tobacco South Africa as the first project in this mixeduse area. Totalling 75 000 m² (or 7.6 hectares), the mixed-use Canal District straddles both sides of Dock Road. The V&A Waterfront’s acquisition of the Amway and Queen’s Hotel buildings in 2014 has a connection to Buitengracht Street. The District as a whole ties strongly into the arterial route that connects the city centre to the V&A Waterfront, and into the main pedestrian route that
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runs along Dock Road. David Green, CEO of the V&A Waterfront, said: “Demand for commercial space at the V&A Waterfront is driving development in this district. This district is also a piece in the jigsaw puzzle that provides a seamless link through to the CTICC and Cape Town’s CBD.” With a canal at its heart, as well as a new urban park incorporating the remnants of the historical Amsterdam Battery, the Canal District is essentially the first point of contact with the V&A Waterfront for visitors entering the property from the City Centre.
ceS r700m ‘cANAL DiSTricT’ The first building in the District, Amsterdam House, is divided into two at the centre, with the multi-national BAT South Africa occupying 8 000 m² in the south wing.
has been designed according to best practice green design principles, and is intended to achieve a minimum 5-Star Green Rating using the Green Star SA Office Design VI rating tool.
“The V&A Waterfront takes a holistic view of development as a space in which people can live, work and play. For a multi-national company the size and calibre of BAT South Africa to select the Waterfront as the preferred destination for the relocation of its head office is of significance, and speaks to the popularity of our development initiatives.”
NMC has been announced as the contractor. Commenting on their appointment, V&A Waterfront Development Executive Martin Kearns said, “With more than 30 years’ experience, we are confident that NMC, as a new partner, will deliver to our exacting standards and tight deadlines.”
As with all other V&A Waterfront developments, Amsterdam House
Completion of Amsterdam House and the car park is expected in November 2016.
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aCTiS inveSTS in PanaFriCan FOOd reTailer, FOOd lOver’S MarKeT Actis, a leading emerging market investor, have announced an investment of R760m in Food Lover’s Market, estimated to be the largest independent food retail group in Africa. Actis is acquiring a substantial minority stake in the business and backing founders Brian and Mike Coppin, together with the existing management team, who have created a remarkable success story based on a market leadership position in fresh produce retail. Food Lover’s Market is one of the last few independent food retailers of scale on the African continent. It has a strong brand and a growing footprint across Africa. With over 120 Food Lover’s Market stores and a presence in 11 countries, in recent years it has added categories such as bakery, grocery, butchery and deli foods to complement its market leading position in fresh produce. The Food Lover’s Market Group also operates over 200 FreshStop convenience stores in Caltex service stations, Market Liquors, a convenience liquor offering, an import export business
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and has recently acquired artisanal coffee brand, Seattle Coffee. The newly launched Food Lover’s Eatery brand with stores in Cape Town and Brooklyn, Pretoria, is testament to the retailer’s ever-evolving approach to retail innovation and growth. Actis’ investment in Food Lover’s Market includes funding into the business to continue the company’s growth in South Africa and other countries within Sub-Saharan Africa. Food retail is the largest retail sub sector in the South African economy, valued at c.US$35bn (R471bn) having grown historically by 9.5% per annum. Actis has a strong track record of backing high-quality food retail businesses in other emerging markets including supermarket chain, Companhia Sulamericana de Distribuição in Brazil and Nigiris, one of India’s best known food retail brands. This latest transaction is Actis’s fourth investment in South Africa in eighteen months, following its recent investments in Coricraft, one of South Africa’s leading home furnishings
retailers, Tekkie Town, the country’s leading independent sports shoe retailer, and CSH a credit bureau and information services business. Commenting on the investment, David Cooke, Director at Actis, said: “Brian and his team have carved a niche in the South African food retail landscape, offering a distinguished value proposition to aspirational consumers looking for high quality products at real value. We look forward to working together to continue the Group’s growth story and expanding
further within Africa.” Brian Coppin, CEO of Food Lover’s Market said: “I am excited to have Actis on board. What drew us to the firm is its experience of working with family-owned businesses and its deep understanding of Sub-Saharan Africa. As a management team, we believe that the firm’s knowledge of what it takes to be successful in retail and its proven track-record of having built 15 retail malls in 7 countries, is a great business fit for our growth strategy in the future.”
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NouPoorT wiND fArm erecTS firST wiND TurbiNeS Noupoort Wind Farm (80MW), in South Africa’s Northern Cape, has announced that it has completed the erection of the first of its thirtyfive wind turbines. This is a pivotal point in the construction of the wind farm, with the next major construction milestone being the energisation of the substation. All the wind turbine foundations were completed ahead of schedule last month and the main transformer as recently delivered to the site. This transformer is responsible for increasing the voltage from 33kV to 132KV, which is the voltage at which the will be transferred to Eskom’s national grid. This ZAR1.9 billion wind farm is expected to start supplying electricity to the national grid by mid-2016 and will be the first wind farm to complete construction in this Province, as part of the third round of the Renewable Energy Independent Power Producer Procurement Programme. “We are extremely pleased be on schedule and on budget,” commented Martina Flanagan, Project Manager for Noupoort Wind Farm.
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The wind turbines, which are 100m tall to allow for optimum energy production, take a single day to construct, assuming that the weather is favourable. The three 53m blades, made from fibreglass reinforced epoxy, are connected to the rotor at ground level before being lifted to the top of the turbine. This is a complicated lifting exercise, in which one crane raises the assembled rotor whilst another smaller crane and taglines guide the rotor into the correct position. “With two cranes working simultaneously, it is really impressive to watch the 108 meter diameter rotor being lifted,” said Flanagan. Siemens Wind Power along with their subcontractors, Fairwind and BMS, are responsible for the instillation. The wind farm is expected to generate approximately 305 000MWh each year of clean, renewable energy to the national grid and will avoid roughly 300,000 tonnes of carbon emissions each year when compared to traditional fossil fuel power plants.
ZaMbia TO COnSTruCT KabOMPO gOrge HydrOeleCTriC POWer PrOJeCT The Government of the Republic of Zambia has signed an Implementation Agreement for the development of the Kabompo Gorge Hydroelectric Power Project at a ceremony held in Lusaka. Represented by the Permanent Secretary in the Ministry of Mines, Energy and Water Development, Brigadier-General Emelda Chola, observed that signing of the Implementation Agreement will enable CEC complete the remaining project pre-implementation activities including the mobilization of financial resources for the construction of the project. She stated that in view of the current power deficit and the load shedding the country was facing, the project would provide a sustainable source of electricity and stimulate socioeconomic development through job creation during and after construction. CEC and CEC-KHPL Chairman, Hanson Sindowe, said the Implementation Agreement is essentially the go-ahead from the Government and an assurance that it [Government] was behind CEC and would do all that it needs to do to
ensure that the project takes off. “The Government has, as witnessed today, given us the concession to develop this project. Certain actions and rights can only be taken and granted by the Government and it is these that underlie the Implementation Agreement�, he stated. The Implementation Agreement provides direct contractual obligations and undertakings on the part of both the Zambian Government and the project developers.
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PeTrA DiAmoNDS AcQuireS AN iNTereST iN THe kimberLeY miNeS iN SouTH AfricA Petra Diamonds has acquired an interest in the Kimberley Mines in South Africa from De Beers Consolidated Mines Proprietary Ltd, in a consortium with Ekapa Mining for around $7.2m.
The diamond mining group will pay around $3.6m for a 49.9% stake in the mines, while Ekapa will own the rest. The Kimberley Miners are anticipated to be cash flow positive in their first year of operation and Ekapa Minerals expects to produce around 700,000 carats per year in the first three years of operation, with revenue of around ZAR920m. African Business Coverage Issue 10
Chief executive officer Johan Dippenaar said: “We are delighted to have formed this consortium with Ekapa Mining in the acquisition of an interest in the Kimberley Mines, and we look forward to working with them to build upon their proven capabilities in tailings retreatment operations in Kimberley, as well as their strong local relationships. “Together we are showing our commitment to shaping a new future for the diamond mining operations of Kimberley, to the benefit of our employees, shareholders and all stakeholders.”
COnveyOr belT COMMiSSiOned aT SOuTH aFriCa’S laCe Mine DiamondCorp, the Southern African diamond mining, development and exploration company, has reported that installation of the 400 tonne per hour underground conveyor belt system from the first production level at the Lace mine to surface has been successfully commissioned. DiamondCorp Chief Executive Officer, Paul Loudon, said: “This marks a game changer with respect to the development of the Lace mine as commissioning of the conveyor belts results in an effective ten-fold increase in our capacity to haul ore out from the mine.
front end capacity of the processing plant so that future opportunities for increasing the underground mining rate are not constrained by an inability to transport ore to surface, as well as providing an ability to handle both kimberlite and development waste. The Company can also confirm that the current drought conditions in South Africa will not impact kimberlite mining ramp up as the additional storage dam capacity constructed last year is full and holding enough water to process all kimberlite mining planned for the next 12 months.
“Not only does the conveyor belt provide Lace with the ability to increase development rates, the cost of future development will decrease in the absence of the need for trucks for waste hauling as the underground loaders will now empty their buckets directly onto the end of the conveyor belt which keeps getting extended as the development goes deeper. Until block cave production commences, the use of trucks will be confined to hauling kimberlite from the Upper K4 Block production level to the tipping point on the conveyor belt.” The conveyor belt capacity has been sized at double the current
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miNiNg commeNceS AT kArmA goLD miNe iN burkiNo fASo True Gold Mining Inc. has announced that mining has commenced at the Goulagou II (GGII) deposit at the Karma Gold Mine in Burkina Faso. The GGII deposit is the first of six deposits that will be mined over an 11.5 year period. The Company remains on track for gold production at the end of Q1, 2016. The GGII deposit has reserves of 273,000 leachable ounces of gold (contained in 7.6 million tonnes at 1.12 g/t gold), and will be mined during the first two years of production. “As we transition into gold production over the next few months,
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our team is increasingly focused on operational readiness,” stated Christian Milau, President & CEO of True Gold. “Karma will produce approximately 120,000 ounces of gold per year during our first five years at the lowest quartile of cash costs, laying the foundation for True Gold to become a mid-tier producer.” Karma mine construction is rapidly progressing with nearly 1,000 staff and contractors active on site. Overall, the project is approximately 73% complete and is funded through construction to production.
Old MuTual aPPOinTS FOrMer Sa FinanCe MiniSTer aS nOn-eXeC direCTOr Old Mutual has announced the appointment of former SA finance minister, Trevor Manuel as a nonexecutive Director and member of the Board Risk Committee of the Old Mutual Board with effect from 1 January 2016. This appointment is being made in anticipation of Mr Manuel joining the board and becoming the nonexecutive Chairman of Old Mutual Group Holdings Limited (“OMGH”) after the current Chairman of OMGH, Paul Hanratty, leaves the Group during 2016.
Board, given his wealth of experience in advising and guiding the development of the financial services sector in emerging markets. His track record of leadership in developing sound regulation for financial services over many years will be of great benefit to the Group, in particular as we prepare for forthcoming changes in the regulatory environment in South Africa.” Mr. Manuel said: “I am very much looking forward to being able to contribute to the Old Mutual Group’s further development over the coming years.”
OMGH is the parent company of Old Mutual Emerging Markets and Nedbank Group Ltd, both of which have been designated by South African regulators as Domestic Systemically Important Financial Institutions. It is anticipated that the OMGH board will be mandated by Old Mutual in due course to fulfil the obligations that are expected to arise under the planned South African “Twin Peaks” supervisory regime applicable to financial conglomerates. Patrick O’Sullivan, Chairman of Old Mutual, said: “We are delighted to be able to appoint Mr Manuel to our
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Hewlett Pac soutH afric
Global technology giant making bo to stay ahead of the market
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ckard ca
old strides
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he HP brand has become synonymous with the latest technology, represented all over the world including Africa. Yet Hewlett-Packard wasn’t always a global powerhouse. The company was formed through the friendship of Bill Hewlett and Dave Packard, who started out making products in their garage in California in 1939. From these humble beginnings, HP has grown into a company known the world over as producers of information technology systems. In fact, the company’s history is regarded so integral to the world of technology that the same garage in Palo Alto where the idea of HP was born was in 1987 officially declared the Birthplace of Silicon Valley.’ Almost 80 years later, HP is an organisation that still operates by its founding principles. Success hinges on consistency of leadership, focus, execution, and most importantly, great products and services,” says HP President & CEO Meg Whitman.
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ORGANISATIONAL STRUCTURE HP is undergoing a major reorganisation, where it will split into two companies. Hewlett Packard Enterprise will sell hardware, focusing on business services, data centres, mobile services and both private and public cloud computing. HP Inc. will sell printers and personal computers. This structural change is part of a four year turnaround journey that began when current CEO Whitman took up her role. Separating the personal computer and printer business from its corporate hardware and services operations allows each specific company to concentrate its financial resources solely on its own operations.�
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The key to a successful business lies in good collaboration, communication and relationships that assist customers derive value from their investments.
www.cornastone.co.za info@cornastone.co.za
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“We are in a multi-year journey to turn HP around, and we have put in place a plan to restore HP to growth. We know where we need to go, and we’re making progress,” states Whitman. HP has had to adapt to a rapidly changing tech market, where in the past decade advancing technology has meant a decline in PC and printer sales, two of the organisation’s core products. With laptops replacing desktop PCs, and cloud based storage reducing the need for hardware, HP had to reassess their business model to meet the ever-changing needs of the modern consumer. Splitting P into two companies will allow the ewlett Packard Enterprise business to focus on growth where it is most likely, including data centres and IT infrastructure. “We continue to drive product innovation in our core markets, with a focus on cloud, security, and big data,” says Whitman. African Business Coverage Issue 10
ABOUT ZTE
As one of the world’s top providers of telecommunications equipment, network solutions and mobile devices, ZTE is committed to technology innovation to keep the company at the forefront of the global ICT industry, delivering superior products, solutions and services to clients in more than 160 countries, generating value for shareholders and business partners.
DYNAMIC ORGANIZATION To create a higher-performance operational structure optimized for the evolving industry landscape, ZTE reorganized into three primary business groups and divisions: Operator Solutions, Mobile Devices and Enterprise Business. The new corporate structure will sharpen the company’s strategic focus and channel increased investment to grow the three primary operations.
Headquarter Office No. 55, Hi-tech Road South, ShenZhen, P.R.China Postcode 518057 Tel +86-755-26770000 31
“We see big opportunities ahead, and we are well positioned to take advantage of these opportunities with our remarkable set of assets and strengths. We have the people, the plan, and the foundation in place to help us succeed on the next phase of the journey.” SOUT A RICA P’s operations in South Africa are headquartered in Sandton and caters for everything from home office products to small to medium business and corporation and enterprise clients. The division is headed by Pieter Bensch, who was appointed Managing Director of P South Africa earlier this year. Bensch was previously with Oracle, where his various roles included vice-president of Oracle Europe, Middle East and Africa (EMEA), vice-president of customer support for MEA and, finally, then since 2010 vice-president and MD of Oracle SA.
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USINESS INSITITUTE South Africa has suffered from a specialised skill shortage for some years - a problem which HP is dedicated to helping solve for the next generation of IT professionals. Offering development courses and learning programmes to staff is now the norm for HP SA’s employees. “HP is meeting the need for local IT skills development through multifaceted training and development programmes,” says Bensch. “For example, each employee has a personal development plan in place; the company makes virtual and live technical and business training available; and the P Business Institute extends the benefits of this high-end training to local SMEs and aspiring IT professionals.” The HP Business Institute, which opened in 2007, has already launched over 1000 learner ships and engaged over 0 SMEs participating in over 826 short courses.
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Bensch believes that these kinds of initiatives not only boost saff morale and IT service standards but also the improvement of the IT sector nationwide. It is HP’s ambition to grow a localised skills pool and improve their own productivity and ability to deliver, too. RES ONSI LE SUSTAINA ILIT Companies the world over have been forced to reexamine the way they do business in order to become more environmentally sustainable. HP is not one of them. That’s because HP set out an objective as far back as 1957 to integrate sustainability into its business strategy. “We consider human, economic, and environmental impacts across our entire value chain as we develop our products, services, and solutions, manage our operations, and drive interactions with our customers, partners, and communities,” says CEO Whitman. Framework entitled HP Living Progress was introduced in 2013, designed to not only tackle the world’s environmental challenges but to empower our people to pursue human, economic, and environmental progress in all of our work.’ With a rapidly growing global population and finite resources, business as usual’ is no longer an option, says HP. “Through HP Living Progress, we make the environment stronger as we grow by improving the efficiency of our supply chain, operations, and products and solutions, as well as by making community investments that help tackle sustainability challenges. “We reduce our climate impact through energy efficiency, including use of innovative P technology and consolidation in our data centres. Smart building design, lower impact business travel, and clean energy are other focus areas. In 201 , we increased our installed capacity for on-site renewable energy by 150 percent.” African Business Coverage Issue 10
P became the first global IT company to set G G emissions-reduction goals for all three parts of its value chain by adding an ambitious products goal. It also received the highest possible CDP carbon disclosure score—100 points—and an A rating on carbonreduction performance. HP doesn’t stop there. Across all of its locations it is extremely dedicated to improving on all aspects of its supply chain and day-to-day operations, and not forgetting producing products with smaller emissions and focusing on less carbon-intensive devices. As the company splits into two organisations, this is not a focus that will change for either on the exciting path ahead for HP.
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PETROMOC
Delivering petroleum to Mozambique and its neighbouring countries
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etroleos de Mocambique, also known as Petromoc, is a stateowned distributor of petroleum products in the African country including liquefied petroleum gas (LPG), petrol, aviation fuel, kerosene, diesel, fuel oil, various grades of bitumen, and lubricating oils and greases Formed in 1997, it is now the second largest oil and gas firm in Southern Africa. The company is responsible for the purchasing of Mozambique’s petroleum product requirements and for setting selling prices. Petromoc operates more than 100 service stations nationwide, with around a 50 percent share in that market. It is a crucial cog in the energy wheel, owning 20 of 28 depots in Mozambique. It also provides fuel to neighbouring countries such as Zambia, Zimbabwe, Malawi and the Democratic Republic of Congo. The company owns and operates storage facilities and pipelines found across all the main Mozambican ports, including 19 inland and coastal depots which boast a combined storage capacity of around 500,000 cubic metres. OPERATIONS As the largest supplier of fuel to Mozambique’s leading industrial and commercial companies,
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Petromoc is also able to provide customers with complete technical support. With annual sales of approximately 407,000 cubic metres of petroleum products, 375,000 of which are distributed to Mozambique’s domestic market, which equates to a domestic market share of around percent. About , cubic metres are supplied within the company’s foreign markets. Petromoc s assets include the Lingamo ceanic il Terminal (I L), the eira ceanic il Terminal (I ) and the acala ceanic Installation (I ). All of these are integral to diffrent aspects of operations. The I L, which is located in the port area of Matola City, acts as the gateway for petroleum products into Mozambique and is the largest facility of its kind in the country. il tankers deliver African Business Coverage Issue 10
petroleum products which are then transferred via a pipeline to the fuel terminal and has a capacity of , cubic metres. The I is crucial for foreign e ports thanks to its location in Munhava, and despite its smaller capacity of 26,000 cubic metres is responsible for handling huge volumes of fuel. Petromoc recognised this importance and invested in a powerful, state-of-the-art loading gantry. The Mozambique imbabwe Pipeline Company pipeline gives it a unique opportunity to pump products into imbabwe. The I is responsible for the supply of fuels to the northern region of Mozambique and is connected to the fuel terminal by a 4km long pipeline which means products can be pumped separately to maintain their high quality and improve durability. 41
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YOUR BUSINESS IS FULL OF CHALLENGES AND OPPORTUNITIES. WE CAN HELP Intertek is a world leader in petrochemical and chemical bulk commodity cargo inspection, surveying, measurement, and testing at all stages of the production cycle and the supply chain. Some of the extensive solutions offered include: t "DDVSBUF UJNFMZ SFQPSUJOH PG TIJQ TIPSF JOWFOUPSZ RVBOUJUJFT t 4IJQ $BSF t #VOLFS 4VSWFZT t "UNPTQIFSJD .POJUPSJOH t 1SPEVDU 4BNQMJOH t 5BOL $MFBOMJOFTT *OTQFDUJPO t 5BOL 8BMM 8BTI t *OTQFDUJPO PG QJQFMJOFT UFSNJOBMT TIJQ UP TIJQ USBOTGFST t %FNVSSBHF FWBMVBUJPOT
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Intertek Mozambique Tel: +258 23 324 521 / +258 23 320 253 Fax: +258 23 324 262 info.africa@intertek.com www.intertek.com African Business Coverage Issue 10
Intertek is the trusted provider of quality solutions to many global brands. Intertek has been inspecting bulk commodity cargos around the world since 1885 and offers professional inspection and testing services for shipments throughout Africa. Intertek can verify and monitor the quantity and quality of petroleum and other valuable liquid commodities at load and discharge ports. The monitoring process includes the inspection and sealing of road and rail tankers at load point in order to minimise the risk of losses and contamination during transit. Intertek is the ideal partner for companies handling bulk liquid projects involving speciality liquid chemicals for the oil and gas, and mining industries. Where refined petroleum cargos, including diesel and gasoline, are shipped across borders, additives are often used to treat and improve specifications due to varying quality requirements of fuel grades from one country to the next. Intertek is able to coordinate inspection, hand blends, additive additions and testing to meet these needs. Intertek also offers services to clients throughout Mozambique from their offices in Maputo, Beira, Nacala and Pemba. In all four of these locations Intertek operates petroleum laboratories, from which they provide independent services to their clients to ensure that their products meet the quality requirements of the market. In addition, Intertek’s Maputo laboratory also has LPG capabilities available. Intertek also offers Calibration & Metering services, Environmental services, Oil Condition Monitoring, SHEQ Training and Consulting, and Industrial Inspection services across a broad spectrum of industries.
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It is able to stop petrol, kerosene, aviation fuel, diesel, and lubricating oils and greases to the volume of 45,000 cubic metres for transportation domestically and into ambia and Malawi. SASO PARTNERS IP In September , Sasol partnered with Petromoc in a groundbreaking deal to purchase condensate from the Central Processing Facility in Temane, Inhambane province. Fernando Uache, CEO of Petromoc, says: Sasol is and will continue to be a natural partner for Petromoc. It was with Sasol that we set our first oint venture in the conte t of activities that constitute our core business.
African Business Coverage Issue 10
ohn Sichinga, Senior ice President, Sasol ploration and Production International said that promoting local content is key to ensuring that the oil and gas industry promotes incounty economic development. “We have been focusing on identifying, and sustaining Mozambican suppliers that can support and help develop our activities and participate meaningfully in the value chain of the growing hydrocarbon industry, he said. To earn the trust of Sasol in a contract of this dimension, confirms the affinities of both companies and the role of complementarity that Petromoc can play for the upstream activities developed by Sasol in Mozambique .
Enviroshore. Cradle to grave oil solutions for you and the planet. Established in 2006, Enviroshore has enjoyed rapid growth as a specialised oil solution company, incorporating our environmental technology services and specialised environmental products for the Petroleum, Shipping and Mining Industries. Enviroshore has a global footprint, operating in the Middle East, Angola and Mozambique, with our domestic headquarters in South Africa. e are focused on improving our clients nancial performance, and enhancing their reputation, through effective hydrocarbon waste management solutions. A E To establish partnerships that will provide meaningful and rewarding opportunities for all involved, and in so doing, clean up and create a healthier environment for our children. To provide our Partners with state of the art processes and product technology in hydrocarbon waste management across all industries. E
S E I aste il ecovery isposal through Specialised Technology Tan leaning and Slop Sludge emoval aste il Processing and il ased Product Production Petroleum Product Trading Soil round ater emediation Environmental emediation leaning Product Manufacture
www.enviroshore.co.za info@enviroshore.co.za / +27 (31) 764 3065
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This partnership with Sasol fits in perfectly with Petromoc’s main goal - which is to aid the development of the country in its operations while protecting the environment. Sasol has been involved in Mozambique for over a decade, when, together with its partners, CM and I C developed the Pande Temane natural gas pro ect. This resulted in significant benefits owing to Mozambique, with the investment unlocking the country’s natural wealth and providing a platform for much-needed foreign investment, economic growth, skills and social development, says the company. African Business Coverage Issue 10
SO IA EN IRON ENTA RESPONSI I IT Petromoc takes its corporate social and environmental responsibilities very seriously. To this end, it is always aiming to support events related to the development of Mozambique’s national culture and identity. This includes educational needs, such as investing in the rehabilitation of the agamoyo Primary School, where the company financially supported students who struggled with financial resources. Healthcare campaigns are also supported, with senior staff being involved in training activities and workshops aimed at combating I . T RE OA S Like any ma or organisation, Petromoc isn t comfortable one eating on its laurels. It has clear, defined strategic goals. These are - Regional expansion The ma imisation of the logistics network iversification of its energy portfolio by developing new products and services that add value and stability Led by its guiding principles that have been in place since its inception, Petromoc is in place to continue its high levels of performance and deliver petroleum products to the people of Mozambique and beyond.
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DHL Sout
Delivering worldwide logisti on a personal level
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tH AfricA
ics solutions
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t’s rare that a brand resonates the world over through its services quite like DHL. The global logistics giant has a presence in over 220 countries and territories, its aim is to be “the Logistics Company of the World”. DHL is part of the world’s leading postal and logistics company Deutsche Post DHL Group, and encompasses the business units DHL Express, DHL Parcel, DHL eCommerce, DHL Global Forwarding, DHL Freight and DHL Supply Chain. In 2009, DHL set out a company-wide plan titled Strategy 201 to define a clear vision and mission for the company to reemphasise its goal of not only being the first choice for consumers’ shipping needs, but also to employees or investors. DHL South Africa works towards these goals which have four main elements set out by DHL as follows: To simplify the lives of our customers To make our customers, employees and investors more successful To make a positive contribution to the world To always demonstrate respect when achieving our results “We strongly believe that pursuing all of these goals is in our interest and in the interest of all of our stakeholders: customers, employees, investors and the planet as a whole,” says DHL. “We add value to people’s interaction with us, whether with excellent services or products, by engaging our employees and nurturing their talents, or by being a solid, long-term investment on the stock market.” Now, DHL have outlined an updated and even more ambitious set of goals - Strategy 2020, which the African market is a crucial part of. African Business Coverage Issue 10
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A OR IN EST ENT Within the last 12 months, DHL has launched two new facilities in Plumbago, located close to OR Tambo International Airport in Johannesburg. This major investment of just over $38m signals the long-term growth plans for the region as it brings stateof-the-art infrastructure, IT systems and world-class services to support businesses operating in Africa. DHL also announced investments totalling US$38.14mn by both its Supply Chain and Global Forwarding divisions in South Africa. Roger Crook, CEO of DHL Global Forwarding and Freight, commented: “Part of our global three pillar Strategy 2020 is to focus on further expansion of logistics services in the world’s emerging markets. “Today, emerging market revenues contribute just over 20 per cent of the group’s revenues. By 2020, the group expects this figure to climb to 30 per cent.
African Business Coverage Issue 10
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NE ACILITIES DHL Global Forwarding is the department which handles air, sea and road freight services. Its new Plumbago Business Park facility cost US$20m and covers 12,000 sqm of warehouse space and , 00 sqm of office space. “Our new investments are necessary to support our growth and expansion plans in South Africa,” says Twine Mtya, CEO of DHL Global Forwarding, Southern Africa. “In addition to our established air and ocean freight services, we have seen particular growth in our robust intermodal road network, spanning 12 African countries — road freight volumes have more than doubled in the past year, spurred by increasing demand and economic growth on the continent.” The Plumbago facility boats improved cargo handling thanks to an increased and enhanced flow of goods both incoming and outgoing. It also provides more space for bonded storage and re-packing, and increased air and ocean freight export handling capabilities. LI ING RES ONSI ILIT The very nature of DHL’s operations in the logistics sector means that environmental responsibility takes careful consideration and planning to reduce targets, under its motto ‘Living Responsibility. DHL South Africa took the step of consolidating its Global Forwarding Johannesburg operations into one facility to reduce carbon emissions by 700,000 kg per annum. The 25,000 qm warehouse facility was purpose-built for the technology and consumer industries. Speciality designs such as high density storage up to 16 metres in height for FMCG companies as well as optimised operational flows means a flat floor ideal for such highlevel storage and retrieval; and the latest technology on reach trucks. 55
The long-term aim is to provide daily deliveries to almost all retailers across South Africa with 99.8 per cent on-time efficiency. The facility also features eco-friendly features including energy efficient lighting system, and rain water harvesting for vehicle washing. A AR INNING DHL Global Forwarding was voted 2015’s Africa’s International Freight Forwarder of the Year for the third time at the STAT Times Awards. Voted on by readers of the highly respected trade magazine, its further recognition of DHL’s tailor-made solutions to businesses in Africa. “It is a tribute to DHL’s strong African team that their dedication to excellence in international freight forwarding
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has been recognised yet again,” says Roger Olsson, CEO of DHL Global Forwarding Sub-Saharan Africa. “DHL has been supporting the business in Africa for more than 35 years now but what’s most important is that we have continued to anticipate, adapt and create services that clearly meet Africa’s fast evolving business needs and help fulfill its vast potential. Meanwhile, DHL Express, the shipping, tracking and courier delivery services division, was also rewarded being certified as a Top Employer in 12 African markets at the prestigious Top Employer 2016 ceremony for the second consecutive year. The Top Employers Institute consider factors including employee engagement and development, outstanding employee conditions and optimising employment practices. With Strategy 2020 in place, DHL South Africa looks set to continue its impressive performance in what has been a tough economic climate, using its solid foundations to further build in a market that has so much potential.
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Air TrAffic An nAvigATion Se
Keeping Africa’s airspace safe
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ir Traffic and Navigation Services (ATNS) is the sole provider of air traffic management, navigation, training and associated services within South Africa. Responsible for approximately 10 percent of the world’s airspace, ATNS currently manages more than half a million arrival and departure movements every year while maintaining ISO 001 2000 accreditation. ATNS also runs an international training academy (ATA) for aviation professionals, licensed to professionally train air traffic controllers and technical staff. To describe the role of the ATNS, it is best to echo the words of Mr Mpho Mamashela, Chairman of the Board, in his opening notes of this year’s ATNS’ Integrated Report. e talks about a typical passenger’s concerns when boarding a flight in South Africa. Is there enough leg room When will the airline bring out the prepared meals It’s not worrying about colliding with another passenger plane mid-air. There is a presumed peace of mind when it comes to air African Business Coverage Issue 10
safety, and that’s thanks to the work of ATNS’ air traffic control staff who work tirelessly, and with the highest standards of safety to ensure aircraft are scheduled to depart and arrive without incident. Since the Company’s formation in 1 3 there have been no catastrophic breakdowns attributed to ATNS, says Mamashela. Over the past 20 years, we have accumulated in excess of million Instrument Flight Rules (IFR) flight hours. That said, one also needs to consider that, like any other Air Navigation Service Provider (ANSP), we have had our fair share of ATS-related safety events. These, like all others, are fully investigated and safety mitigations are implemented to reduce the likelihood of recurrence. EL ING TO E ELO AN ECONO The African aviation sector has potential to serve as an economic catalyst for the continent. Africa is blessed with commodities such as oil, gas and minerals which have driven rapid economic growth over the past ten years. The riches to be brought from the continent’s talent, energy and ingenuity of its people is a little less untapped. The aviation sector helps to support 6.7 million high quality jobs, with business activity totalling approximately 67.8 billion. One of the main areas for ATNS’s growth is its nonregulated business to support the anticipated growth of intra-continental air traffic. The Africa Indian Ocean (AFI) region is integral for being able to promote products and services. The non-regulated business is already contributing 10 percent to ATNS’s overall revenue and the intention is to grow this percentage sustainably over time, Mamashela adds.
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TEC NOLOG ATNS aims to take a leading role in the development of Air Traffic Management solutions and associated services in Africa and selected international markets. sing the latest technological advances is an important part of this. ATNS’s integrated gate-to-gate solutions, from pre-flight to landing, ensures airport safety, efficient traffic handling operations, data sharing on aircraft and seamless handover operations between territories. Supplier product roadmaps relating to this technology are aligned with ICAO ASB concepts, NextGen and SESAR. A TRANS OR ATI E ORGANISATION Like any successful organisation, ATNS’ attributes its continued success relies on its talented workforce, and with it the company’s ability to attract, recruit and retain diverse, qualified and skilled professionals. ATNS achieved a Level 2 B-BBEE contribution level during the year, and it is committed to organisational transformation, including the running of development programmes for employees to increase the representation of black (African, Indian and coloured - AIC) employees, particularly women, to align with the South African demographic. A major challenge facing the organisation going forward is the growing requirement for air traffic controller (ATC) skills. Approximately 60 of its staff costs pertain to air traffic control related services. ATNS competes with its international peers for air traffic controllers, resulting in high salaries to retain staff. We are also now at a juncture, both in terms of our strategy and the Permission process, where we need to balance a very human-capital intensive business, on the one hand, with the increased focus on technology in the global aviation sector, on the other, says ATNS.
African Business Coverage Issue 10
The right approach to a smarter airport
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Make a World of Difference to your e to your Runway Safety ADB Airfield Solutions: Smarter Approach, Safer Approach If a safer approach is not your airport’s #1 priority, it should be. After all, safety is our primary concern. The solution… An intelligent approach that’s designed to suit your airport’s topographic location, and a complete solution with best-in-class, and proven approach lighting, masts, visual guidance, communication and power systems, working effortlessly, to make your runway safer. Trust on the world’s leading AGL innovator - ADB Airfield Solutions. ADB’s Smarter Approach is a unique end-toend approach offering includes its proven, high-performance LED Approach, flashing lights, Threshold, Runway End lighting (LEAP), LED PAPI, and Exel’s frangible lattice masts and poles for approach lighting, which together deliver the superior energy efficiency, performance and cost benefits of an all-LED solution. Make our Smarter Approach work for you, find out more on www.adb-air.com or contact us at info-sa@adb-air.com.
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Accordingly, ATNS’s long-term planning considers future challenges in terms of the skills that will be required within a globally-competitive, technologically-advanced aviation environment, in which many of the sector’s present skills will either become redundant, being replaced by technological functions, or have to be adapted to match as yet unknown competency requirements. To help combat this problem, ATNS began a process during this past year which will span the next 1 years to 2030, to help the transition into an environment which will combine technological advances while also addressing the challenges of structural unemployment and poverty in South Africa. As a state-owned company ATNS is charged with helping to combat these issues, and the 1 -year timeline for the plan coincides with the South African Government’s National Development Plan timeframe. This enables us to work alongside Government to balance the development needs of our country with the growing infrastructure and efficiency requirements of our industry globally. UTURE O A IATION Looking ahead to the future, the aviation industry faces a huge continuing challenge to help make flying sustainable. Mamashela explains ATNS continues to innovate around sustainable solutions to minimise some of the adverse effects of civil aviation on the environment including emissions and noise. Through advances such as continuous descent operations (CDOs), aircraft can descend from high cruise altitudes to the final airport approach at minimum thrust
African Business Coverage Issue 10
settings, thus decreasing noise in fly-over locations and using up to 30 less fuel compared to standard stepped’ approaches. Further, the use of performance-based navigation (PBN) ensures that the lateral path can also be routed to avoid more noise-sensitive areas. We are one of the few ANSPs in the world to offer approaching aircraft the ability to move directly to the centre fix of the runway when space, traffic and capacity allows. This saves on both fuel and flying time. With more than two decades of success to build on, ATNS is set for a bright future as it adapts and grows with the African economy.
Teltech cc
Thompson’s Electronics & Technology
Phone +264 61 237 533, +264 61 237 534 Fax +264 61 237 536 Email info@teltech.com.na 65
African Business Coverage Issue 10
ASPEN LOGISTICS Specialists in safe, efficient and reliable transportation in the FMCG market
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Most South Africans will be familiar with many of the products that Aspen are involved in transporting, for clients such as Tiger Brands, Massmart Holdings and Parmalat South Africa who need fast and reliable distribution to major retailers. Transporting perishable goods from A to B is a crucial operation, with strict food temperature regulations that must be adhered to. Delays and errors, however slight, could mean the difference between a batch of goods arriving in perfect condition or unsafe to eat. It was this high pressure environment that Aspen decided they could excel in. That’s why in 2003, three years after the company was founded as a transport broking service, it began offering its own bespoke
African Business Coverage Issue 10
service to clients. Being in total control of temperatures and timings meant Aspen could set the highest standards. Since purchasing its own eet of trucks, Aspen Logistics hasn’t looked back. With a footprint that has grown exponentially in the last decade, the company offers both long haul and short haul transportation, either to cities and regions within South Africa or its bordering countries.
FLEET AND FACILITIES The company s strong eet includes horse and 30 pallet reefer combinations for long-haul projects, with short haul vehicles ranging from 8 ton, 14 ton rigid and 24 ton horse and reefer combinations.
McCannJHB912591
WITH AMT, WE LEAD, OTHERS FOLLOW There’s nothing new about Automated Manual Transmission trucks. In fact we’ve been telling you about them for years. We pioneered the technology and introduced it into South Africa and through that became the market leader. But it isn’t just sales that have made us number one. It’s our tried and tested history with this technology and it’s how we apply that knowledge through committed after sales service. Think about this when you’re choosing an AMT.
For more information on our latest range call 08600 47898 or visit www.isuzutrucks.co.za
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The truck tractors are standardised Freightliners while the trailers are PPECB approved, meaning each one has been certified by the Perishable Products Export Control Board to safely export perishable products. Using Caterpillar engines and experienced drivers is integral to the
company’s success. Aspen knows that in such a demanding industry minimising your outlay isn’t the key to ma imising profits. The upkeep of the eet is integral to operations and to this end, regular maintenance programmes for vehicles are always strictly adhered to, to minimise any time a vehicle is out of action.
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Key to Aspen’s services is being able to operate a trouble-free logistics chain from start to finish. Sister company, 3 0 Aspen International Services, specialises in SPECIALIST MANUFACTURERS OF: clearing and forwarding Truck bodies and trailers that are relied upon to help with this process CZ MFBEJOH USBOTQPSU PQFSBUPST t 'JCSFHMBTT and prevent any potential dry freight and refrigerated vehicles offering superior strength and corrosion resistant problems. COOL FOR
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%VSCBO * +)# * $BQF 5PXO African Business Coverage Issue 10 &NBJM JOGP!TFSDP DP [B * 8FCTJUF XXX TFSDP DP [B Supported by national manufacturing and after-sales repair service 36-month warranty.
Sujen Padayatchi has been Managing Director of Aspen for ten years, overseeing a time in which there has been a huge shift towards sustainability and environmentally responsible operations, a consideration that has not passed the company by. “We operate Thermoking SLX refrigeration units which have made enormous strides in reducing CO2 emissions as well as reducing fuel consumption and reduced noise pollution,� Padayatchi explains. The company has also instilled this need to be eco-friendly in its members of staff, with initiatives like paper collections, the introduction of bottle banks and centralised printers.
OPERATIONS In the current market with premium technology, clients desire to know the exact location of its goods at any given minute of the day. To meet these demands, Aspen has installed a state-of-the-art satellite tracking system in each and every vehicle which allows for real time monitoring in the company’s 24/7 control room. In addition, it also outsources a thirdparty tracking company to track things such as alarm signals, vehicle route deviations and compiling data on any factors that impact vehicle utilisation. Aspen is a committed employer with a goal of long term sustainability and recognise black economic empowerment as a business 71
imperative. Aspen is a level 2 BBBEE accredited organisation. Its empowerment programme covers; management; employment equity; skills development and community upliftment through social investment programmes.
WORK IN THE COMMUNITY Aspen takes corporate social initiatives as seriously as its dayt— day operations and invests a lot of time and money in giving back to
African Business Coverage Issue 10
the local community. It contributes to causes that affect the people of the regions it operates in, such as AIDS. One such charity is Oliver’s House, situated in Benoni on the East Rand, which manages two feeding centres, a children’s care centre and a computer training centre. In Durban Aspen provides support to a project ran by local church Beth’Le-Hem Eph’Ra-Tah, which works closely with disadvantaged
communities. ITs work ranges from ensuring children are fed to providing education bursaries. Other charities Aspen donates to include Doctors Without Borders and Gift of the Givers Foundation, helping victims of war and natural disasters.
AMBITION Aspen has two simple objectives: “To create smart partnerships with our clients by providing a tailored,
premium service to them at a cost effective price,” and “to constantly improve efficiencies within the supply chain through ongoing innovation to meet the industry’s ever evolving requirements.” Its investment in the latest technologies and being able to adapt to a wider, cross-continental market outside of South Africa means Aspen has been able to go from strength to strength in recent years. 73
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VITAL DISTRIBUTION SOLUTIONS Taking care of warehousing and transport logistics so that Southern African businesses don’t have to
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Operating within the transport sector, Vital has forged a reputation as a reputable warehousing and transport logistics service provider in Southern Africa. As a third-party distribution service provider, Vital offers dedicated bulk warehousing, multi principal bulk warehousing as well as transhipment warehousing and distribution. Vital’s clients are able to take advantage African Business Coverage Issue 10
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of eet services and staffing solutions provided by its associate companies, such as ital leet Pty and Staffing Logistocs Pty. Employing the core values of transparency, discipline, integrity, selfrespect and respect for others, Vital fulfils its commitment to its clients. e strive to differentiate itself through quality of service constructed around people, processes and systems,� says Vital.
The company has a simple mantra. edicated and well qualified people plus well defined and documented business and operational processes together with integrated best practice information technology systems and reporting equals quality service delivery.” Crucial to Vital’s success is its core management team, which has over 40 years of experience in the industry, with many senior managers having been with Vital from its foundation. They’ve been able to oversee the rise of a start-up company to a well-respected industry expert, with a carefully assembled team of competent and dedicated professionals able to cater
to every client’s needs.
OPERATIONS ital has five facilities that measure a combined total of approximately 40,000m² and also manages several large distribution centres including transport for a number of large FMCG Principals. The company also operates several transhipment depots as well as bulk warehousing facilities across KwaZulu Natal, Limpopo, Mpumalanga, Gauteng and the Free State. Vital currently operates FTL, line haul, long-distance, customer direct deliveries shuttle services and general deliveries within these regions. 77
TECHNOLOGY In the distribution and warehousing industry, technology has become an ever-increasingly important aspect of operations. ith clients requiring to-the-minute location reports and data, Vital has invested heavily in being able to provide what’s necessary. Vital uses several levels of technology within its core business. Transolv, Assetman and Mosaic are three programs utilised daily to monitor everything from transport scheduling and routing, real-time tracking of shipment information, event management, interfacing with suppliers, proof of delivery, freight claim management and management reporting. Vital has also recently implemented a world class ERP system called IFS. IFS applications contain several African Business Coverage Issue 10
cross-functional tool. I S Applications represents a class of enterprise-wide solutions that support day-to-day operations and various internal business processes for many types of manufacturers and other businesses,” says Vital. hile I S is an e tremely comple and knowledge-intensive product, it does not complicate its users’ lives to the same degree, thanks to its clearly arranged user interface, comprehensible logic, and familiar web interfaces.”
BLACK ECONOMIC EMPOWERMENT Vital is committed to transformation and to being a truly representative South African company. It has B-BBEE rating of level and the company is continuosly working hard to improve on it. n an ownership level,
ital has
APPROVED
Andre - Director 082 921 1115 Dirk - Production 084 521 1716 Carlyle - Marketing 076 849 0302
partnered with Zikuliseni Rhafu evelopment Trust (a broad based community trust) and African Revival, which is led by r olile Maqetuka making up 25% of the company shareholding,� the company states. ital has developed a pro active, preferential procurement policy and set procurement guidelines that will contribute towards overall economic growth and transformation of the country, by ensuring the constructive participation by South African black people at all levels of business in the South African economy. The company is committed to establishing relationships with their suppliers that will contribute to the commercial, strategic and empowerment objectives of both the company and its suppliers.�
Andre (Member) - 082 921 1115
Tel 011 822 1803 Fax 086 545 2212
Dirk (Production) - 084 521 1716
Unit D1, Wadeville Business Park Cnr Of Steenbras & Sardine Street, Wadeville
Carlyle (Marketing) - 076 849 0302
Email apa1@mweb.co.za
LOOKING AHEAD The transport industry has faced many challenges in the global recession, but Vital has been able to make steady growth. One of the biggest challenges the industryfaces is collectively working hard to reduce carbon emissions as much aspossible. Vital has commissioned several vehicles through MAN trucks to deploy their latest TGS efficient line truck technology. Each new Vital vehicles willbe the TGS fficientLine trucks as provided by MAN to reduce power andresulting emissions. Going forward, Vital is aiming to become one of the top five distribution and warehousing companies operating in Southern Africa. 79
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BLOEM WATER Providing water for life saves lives 81
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loem Water has a challenge on its hands, but when it’s achieved the company will have saved or improved the lives of thousands. Its job is to provide access to safe, clean and quality water to the Southern and central areas of the Free State, South Africa and it has a newly adopted strategic plan in place to achieve this. Established as a Water Board in 1991, Bloem Water echoes the resounding message that the work of the government, in partnership with all stakeholders, is not complete until the last person in the most remote village has access to drinkable water. The simple truth is that all living organisms require water to survive, in fact up to 60% of any human being on the planet is made up of water. In the human body, water accounts for 75% of the human brain and around 80% of all the blood which ows through the veins. It is so vital to our basic ability to survive that losing as little as 2% of your body weight in water can lead to confusion and reduced mental function and at 4% loss, poses serious health risks.
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It’s possibly therefore easy to understand just how important it is for every living person to have access to clean, safe water for them to drink. What’s possibly harder to grasp then, is the fact that there are still millions of people without this luxury. South Africa is one of the very few countries in the world that enshrines the basic right to sufficient water within its constitution going so far as to state that “Everyone has the right to have access to sufficient food and water”. The challenge facing Bloem Water therefore is a rewarding one, given the important nature of its end goal – to support this very basic need of humanity. As one of South Africa’s water boards, based in Bloemfontein, it is responsible for supplying water to a population in excess of 1.2 million people within its areas of service. The task undertaken by Bloem Water, is by no means a simple one. Sourcing and supplying water to the population within Free State offers many obstacles. Free State, a sparsely
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populated area of South Africa receives almost all of its rainfall during the summer months, making distributing and planning water supply vs demand especially challenging, but they are challenges which have been successfully traversed over the past two decades. Recently Bloem has invested heavily by upgrading and refurbishing ageing infrastructure along with the further exploration of ground water sources. Such endeavours further highlight the
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Water Board’s focus on not only short term, but long term solutions to an increased demand. This growing demand from expanding local communities is in itself a testament to the work which the board has already undertaken as such population growth can only ourish with sufficient access to clean, readily available water. espite already benefiting the local population through its expansion efforts, Bloem also participates in several development initiatives designed to uplift the livelihood of local communities. Its focus has remained to help those communities stricken by poverty in general and have resulted in the company running hygiene related projects within schools, upgrading toilets and distributing water tankers and rollers. Bloem is also committed to the implantation of the bucket eradication program in areas of service and within the province as a whole. Through its continued development and expansion, 36,000 buckets were recently eradicated in the province further drastically improving the lives of many residents. Bloem also continues to invest in the local communities through employment and has identified the need for more skilled plumbers and artisans to work within the industry. As the workforce ages and the company expands, there is a natural requirement to train new personnel to ensure the company remains at the cutting edge of innovation within the industry. It is also involved with the governments ‘War on Leaks’ initiative to train and develop plumbers and artisans to help identify and fi leaking taps and pipes which cost up to R7- Billion a year. 87
Bloem has also laid down a long-term development plan for its infrastructure setting itself goals for significant operational improvements to increase its water provision capacity. Such investments in the infrastructure are not without cost however, but Bloem remains in good financial health despite increased operational costs thanks to its strong long-term strategic plan and the continued leadership under the group board. Dr L Moorosi, was recently appointed as the Chief Executive of Bloem Water and the person to lead Bloem Water, ensuring the viability and success of the company for the African Business Coverage Issue 10
We are a diverse group of experienced and Registered Professional Technicians, Technologists and Engineers.
Maragela Consulting Engineers (Pty) Ltd is a Civil and Structural Engineering Consulting practice, we also specialize in Program and Project Management. The company has been in operation for 09 years, the company principles has more than 20 years in the build industry. We have founded the company on sound business principles and good corporate governance. We strive at all times to exceed Client expectations in all our projects. VISION The vision of Maragela Consulting Engineers is to create sustainable jobs to a considerable number of previously disadvantage individuals in both rural and urban communities. To be also a driving force of commercially sustainable local communities through the provision of the necessary training and development programmes, and to nourish and harness the skills and training within the local communities to off-set present high level of unemployment trend in our country. Maragela Consulting Engineers is a Level 1 BBBEE contributor.
Ruimsig OfďŹ ce Estate Corner hole in one and Peter Road Ruimsig, 1732 T 011 - 958 2403 F 011 - 958 1318 admin@maragelaconsulting.co.za www.maragelaconsulting.co.za
future. Her previous experience has been in similar industries having worked as a Head of Department within both the Department of Rural Development and also the Department of Agriculture within Free State. She has also previously worked as the Chief perating fficer for the Free State Department of Agriculture and as Provincial Director of Veterinary Services at the Free State Department of Agriculture. Dr Moorosi is Doctor in Veterinary Medicine with a Masters in Agriculture from the University of the Free State. She is a past lecturer at the faculty of Agriculture, Department of Animal Science at the University of the Free State. 89
Parmalat SO
Innovation and quality helping Parmalat to lead the way in South Africa’s dairy industry
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armalat South Africa has been a staple of the dairy industry in the country since 1998. Since then, the company has enjoyed an outstanding reputation for delivering innovative products with the highest international standards. The organisation operates eight state-of-theart production facilities which make a range of products from T milk, avoured milk, yoghurts, cheese, butter, ice cream, cream and fruit juice.Through its recognised and trusted brands such as Bonnita, Parmalat, Everfresh, Purejoy, Simonsberg, Melrose and Steri Sumpie, consumers are able to en oy the finest tasting dairy produce. Being part of a multi-national corporation means Parmalat SA is able to benefit from its parent company’s worldwide reach and African Business Coverage Issue 10
expertise. It has also instilled a belief that the company won’t just follow trends in the dairy industry, it will set them by working hard to explore new opportunities. T E SO T A RI AN AIR IN STR The South African dairy industry provides healthy, nutritious products to millions of people each year. On average it produces 200 million litres of milk per month, translating into 2.4 billion litres of milk per year, while Namibia produces 22 million litres per year. In an industry which provides work to more than 60,000 people, the dairy trade is vital to the country’s economy and employment market. The industry operates to free market principles and Parmalat is one of the leaders in this highly competitive environment. 93
South African dairy products comply with high safety and quality standards, in accordance with local legislation on issues ranging from safety to packaging and ingredients. N TIONA OO S In today’s health conscious world, being able to eat healthily and nutritionally is more important than ever before. Parmalat’s multinational strategy aligns with this perfectly as it aims to play an integral part in the health and well-being of consumers throughout the world. A pillar of this strategy is the group’s aim to establish itself as a top player in the emerging global market for “functional foods”. These foods deliver improved nutrition and wellness to consumers and provide benefits beyond basic nutrition. African Business Coverage Issue 10
It’s more than an ingredient. It’s the whole solution. Huletts is SA’s No. 1 sugar brand with more than 120 years experience, offering sweetening solutions for every manufacturer in the food, catering, baking,
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wide range of: t XIJUF HSBOVMBUFE TQFDJBMJUZ BOE NJMMFE TVHBST t TQFDJBMJUZ CSPXO TVHBST XJUI EJTUJODUJWF flavours, textures and colours t MJRVJE TVHBST BOE MJRVJE GSVDUPTF
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A variety of packaging solutions (25kg; bulk & semi-bulk) Active Quality Assurance systems Food Safety System Certification FSSC22000
Value Added Solutions 95
While some foods possess these naturally, like fruit and vegetables, it is possible to add nutrients to foods where they aren’t naturally present. An e ample would be adding fish oils rich in omega-3 fatty acids to dairy products, which have been linked to brain and heart health. A AR INNIN PRO TS Parmalat SA doesn’t have to rely on just word of mouth to prove its quality. The company’s products have been consistent performers in the prestigious SA Dairy Championships and other hotly contested industry award categories. The company emerged as one of the top performers at the 2015 Qualité Awards in April, claiming three prestigious Qualité awards,
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while fifteen of its products were named as SA Champions in various classes. A particularly high selling product in Africa has been Parmalat’s individually-wrapped cheese slices, which offer the highest amount of real cheese in a processed slice. The company is also a proud exporter of 20ml longlife Milk Pods, used for catering in hotels and lodges. Parmalat milk pods are cost effective single serve milk pods, unique in quality, packaging and concept. It’s not just the taste of Parmalat’s products that impress. Most recently, the Melrose Cheese team received the World Packaging Organisation (WPO) Packaging Excellence award in Milan.
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This was the proudly South African Melrose Wedges tub’s second international award, with the same Melrose packaging design named as general winner of the AfriStar Trophy for Best Overall Packaging at the inaugural AfriStar Awards in 2014. The 200g tub was also declared the winner in three other AfriStar categories: Best in Plastic, Best in Food and Best in Sustainability. The Melrose Cheese Wedges tub was developed by PSA in conjunction with Dairypack Tubs. SO T A RI A AN E ON Alongside its South African operations, the company also boasts manufacturing, sales and marketing operations in Mozambique, Botswana, Zambia and Swaziland. Parmalat SA has appointed distributors in certain other key countries on the continent to exclusively trade on their behalf, which has been crucial in expanding its reach outside of the South Africa borders. “In collaboration with trusted distributors on the sub-Saharan continent, Parmalat forms a strong network in Southern Africa, allowing us to continuously expand and export a wide range of quality products,” the company boasts, as it looks forward to delivering a strong performance in Q4 of 2015 and beyond.
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Manufacturers of high quality GRP Insulated and Semi-Insulated Truck Bodies and Trailers. Professional repairs to all truck and trailer load bodies including steel repairs and spray painting.
14 Jig Avenue Montague Gardens Cape Town T 021 551 9390 F 021 551 9320 C 082 564 9773
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mwatters@elitefibre.co.za Pantone 541 c Pantone 3015 c
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PRO ROOF STEE
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EL MERCHANTS
Delivering roofing solutions using modern manufacturing 101
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ur manufacturing rocesses
are strictl monitored e
s illed and
erienced tec nical staff
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ince it was founded in 1988, Pro Roof Steel Merchants has grown to become one of the largest manufacturers of roofing solutions in South Africa, delivering roofing solutions across the spectrum from regional offices in ohannesburg, Cape Town and urban employing around staff. The three most common and popular roofing profiles (Corrugated, I R, idespan) used in the roofing industry worldwide, are manufactured in house at various service and steel processing centres in South Africa galvanised and colour coated (painted) finish. It also manufactures and sells roofing accessories. Pro Roof Steel Merchants aren t ust believers in delivering great workmanship, they are focused on empowering people, building relationships and improving lives. ntrepreneurship, incentivisation, decentralised management and communication are the keys, the company says. e subscribe to a philosophy of transparency, accountability, integrity, e cellence and innovation in all our business dealings. OPERATIONS The organisation works across so many industries that effective management is vital in providing the best customer service. ur regional offices in ohannesburg, Cape Town and urban are managed by a dedicated team that report directly to us ensuring that no time is wasted making decisions. In this way we can also ensure that we are constantly accessible to our staff and customers. ur manufacturing processes are strictly monitored by skilled and e perienced technical 103
staff and we manufacture quality products for our domestic and international customer base. hen it comes to roofing solutions, Pro Roof Steel Merchants have all bases covered. The Corrugated Profile (S Rib) is the oldest and most widely used profile for roofing and cladding applications due to its ease of handling and fi ing, relative strength and cost effectiveness. Corrugated sheeting can successfully be factory cranked, curved and bullnosed to a wide range of radii to suit customer specifications. The I R Profile (Inverted o Rib) is one of the most popular profiles used for roofing and side cladding applications in the industrial, commercial and residential building industry. Its bold, angular appearance has many advantages,
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No obstacle to performance While most banks only see obstacles when it comes to funding, we are different. ReichmansCapital has a team of specialists that work together to create unique solutions to even the most complex challenges. We will provide you with alternative, yet viable sources of funding, specifically designed to provide practical finance solutions for your business. ReichmansCapital has been providing trade and asset finance for over 30 years.
Call 011 286 8275 or visit www.reichmanscapital.com
Reichmans Holdings Limited. Reg No. 1974/000813/06. Reichmans (Pty) Ltd is an authorised financial services provider. A member of the Investec group.
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manufactures roll to ridging closure and ridging according to customer re uirements
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such as its strength to weight ratio. This provides optimum load span consistency, and the broad utes that ensures e cellent drainage makes this a popular choice for roofing contractors. The idespan Profile M is a more economical alternative to the I R profile, without sacrificing the popular uted concept so frequently used in modern architecture. The idespan profile offers greater spans and lower slopes than the traditional corrugated profile. In terms of accessories, the company manufactures roll top ridging, closure and ridging according to customer requirements and specifications. These accessories can be supplied in galvanised and in a painted finish. The company has production facilities situated in ereeniging where fencing products are manufactured. These fences are mainly used for security and enclosing purposes for sectors including various agricultural co operatives, builder s merchants, security contractors and the mining industry. It also manufactures a comprehensive range of hot rolled structural tubing and cold formed open sections. T E PRO TION PRO ESS Pro Roof Steel Merchants is committed to implementing the most innovative technology in its manufacturing operations. To this end, it has acquired a fully automated, state of the art elded eam Line . This line produces universal columns and beams as well as T beams in a wide range of sizes for various applications. eams and columns can be manufactured from A, A, grade and corten material. hile the traditional hot rolled welding 107
process is still used to manufacture high quality and lightweight structural solutions, the elded eam Line has several advantages to make more e ible products. sing a welded beam over a hot rolled beam allows for a weight reduction of between and , which means a cost saving for customers. abrication time and labour costs are also saved due to the lightweight properties of the welded product. The production process consists of three coiled steel strips being fed simultaneously into the beam machine to form a web and two anges. The product passes through the beam forming station and is then welded to form a high quality, lightweight product. igh frequency resistance welding
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is a versatile and productive method for the manufacturing of , I and T welded beams, e plains the company. The welded product produced by this line will find applications in a wide variety of industries and sectors such as; building and construction, fabrication, mechanical manufacturing,overheadcranes,truck,containerand trailer manufacturing, roadside guardrails, marine vessel construction, and many more. rom its humble beginnings in , Pro Roof Steel Merchants has been through several e pansions. hen it constantly evolves, making adaptions like the aforementioned newest technology, it is easy to see why it has continued to go from strength to strength.
Construction solutions that work for your business
ffice Solomon Rd andakot Phone ( ) mail steve swcswa.com.au www.S CS A.com.au
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2016 e Mining Indaba 8 -11 February Cape Town, South Africa
Cibex East Africa 1 - 3 March Nairobi, Kenya
Nigeria Oil & Gas 13 -16 June Abuja, Nigeria
African Business Coverage Issue 10
events Electra Mining 12 -16 September Johannesburg, South Africa
Nigeria Com 21 -22 September Lagos, Nigeria
AfricaCom 15 -17 November Cape Town, South Africa
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African Business Coverage Oliver Moy Publisher For enquiries email okm@aubusinesscoverage.com African Business Coverage Issue 10