IndustrySA Issue 5

DEC

2012 ISSUE 5

CAMERON VAN DER BURGH THE BEST STROKE

REZIDOR HOTELS

RESOUNDING QUALITY

A.S. VILJOEN BOERDERY A FAMILY AFFAIR

FORESTRY SA REFORESTATION OF THE RAINBOW NATION

Engineering the Future IndustrySA speaks with DCD Mining & Energy group marketing manager, Henk Schoeman, about the towering successes of this highly regarded engineering and manufacturing company.

CHOC20042012_LSMSINGLE

Please assist us in “Keeping more than hope alive.”

If you detect any of these warning signs in a child, please SMS the name of your province to 34486.

A CHOC representative will contact you shortly thereafter.

(SMS cost R2)

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Contact us tollfree at 086 111 3500 or visit our website at www.choc.org.za

Many children in our country are never diagnosed because their symptoms are not recognised, or they are diagnosed too late for effective treatment. To help solve this problem, the South African Children's Cancer Study Group has prepared this list of Warning Signs, for distribution to primary health care centres. CHOC has supported the printing and distribution of posters. They have been adopted by the International Society of Paediatric Oncology (SIOP), for distribution throughout developing countries.

CHOC is a member of the International Confederation of Childhood Cancer Parent Organisations www.icccpo.org

EDITOR’S PAGE

EDITORIAL EDITOR Joe Forshaw WRITERS Colin Renton Tim Hands Roland Douglas Christian Jordan PROJECTS MANAGERS Tonnie Geddes Hal Hutchison Lauren Grey Leslie Kemp Janis Billington ADVERTISING SALES David Hodgson Chris Bolderstone STUDIO STUDIO DIRECTOR Vishnu Joory LEAD DESIGNER Ian Williams STUDIO MANAGER Michelle Cassidy OFFICE MANAGER Tricia Plane ACCOUNTS Mike Molloy, Jane Reeder IT DIRECTORS Daniel Sizeland, Dionne Smith ECP LTD MANAGING DIRECTOR David Hodgson OPERATIONS DIRECTOR Chris Bolderstone FINANCE DIRECTOR Scott Warman Ferndale Business Centre, 1 Exeter Street, Norwich, NR2 4QB If you would like more information about ways in which IndustrySA can promote your business please call +44 1603 618000 or email info@industrysa.com East Coast Promotions Ltd does not accept responsibility for omissions or errors. The points of view expressed in articles by attributing writers and/or in advertisements included in this magazine do not necessarily represent those of the publisher.

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Welcome to the fifth issue...

A fundamental part of business is being able to consistently perform at a better level than your competitors.

Competitiveness is a part of human nature, we see it in sport, we see it in politics and it is easy to see how it filters through into the business world.

One competition that took place recently that will have an effect on business everywhere was the Presidential election in the US. Barack Obama was elected for another four years in the hot seat but how will this effect South Africa?

While his African policy in the past has been criticised, his economic policy is robust which will hopefully mean that trade between South Africa and the US can increase. President Zuma shared this hope as he congratulated Obama after his election.

In business what is it that allows us to stay ahead of our competition? Money? Innovation? Commitment? Whatever it is, the companies that lead the way in any industry have it in abundance. Wherever there is success, there is competition so this month we speak to more fantastic companies including General Motors SA and Bearing Man Group to find out how they stay ahead of the competition and what they are doing to keep themselves on top of the pile.

Join us online for previews and discussions at www.facebook.com/ECPindustrysa and Twitter @industry_sa

Joe Forshaw

editor@industrysa.com

Š East Coast Promotions Ltd 2012

DEC 12 PAGE 3

CONTENTS

34

3 EDITOR’S PAGE

Outperform your competitors

6 NEWS All that’s happening in South Africa 10 ENTREPRENEUR Properties golden girl 12 INNOVATION First by name, first by nature 14 GADGET BOX License to thrill 16 PLAYBOYSA More than just a pretty face 18 CAMERON VAN DER BURGH The best stroke

PAGE 4 DEC 12

18

20 FORESTRY SA

Reforestation of the rainbow nation

28 DCD MINING AND ENERGY Where there’s wind, there’s a way

34 GENERAL MOTORS SOUTH AFRICA

Driving innovation forward

40 BMG

Acquisitions and market positions

46 CITY OF CAPE TOWN The city that works for you

60 WITS GOLD

Breaking the gold mould

64 A.S. VILJOEN BOERDERY A family affair

70 G4S

Securing its people

76 CGF RESEARCH INSTITUTE High standards set, high standards met

82 REZIDOR HOTELS Resounding quality

50 NEOTEL

88 PETROLEUM INDUSTRY OF SOUTH AFRICA

54 COEGA IDZ

94 INDUSTRY RECOMMENDED

Keeping SA connected A billion reasons to invest

All the tools for traditional fuels This month’s showcased organisations

COMPANY REPORTS

CONTENTS

DEC 12 PAGE 5

NEWS All that’s happening in South Africa - By Lauren Grey / For more news stories visit industrysa.com

Gibela Rail Transportation seal R51 billion contract Gibela Rail Transportation Consortium, led by French company Alstom, has been chosen as the preferred bidder of a multi-billion rand contract to develop South Africa’s railway system and improve public transport.

The Gibela Consortium was selected by The Passenger Rail Agency of South Africa (PRASA) to design, manufacture and supply new trains and wagons for the Rolling Stock Fleet Renewal Programme as ‘part of a broader strategy to acquire modern technology to meet changing demands.’

The programme is looking to acquire 7224 electrical multiple units, with an estimated investment of R123

billion over a period of 20 years between 2015 and 2035 and has been divided into three components.

The first of these components will require 5256 vehicles to meet existing rail passenger demand on the current network until 2020, followed by 456 vehicles to satisfy growth in rail passenger demand on the existing network until 2030, and a further 1512 vehicles to meet long-term rolling stock needs as part of future expansion.

As well as delivering 3600 vehicles over a ten year period, preferred bidder Gibela will also provide maintenance, spares supply and technical support over 18 years from 2015 to 2033 whilst creating 8088 direct jobs.

PRASA chief executive officer, Lucky Montana says that although the development of South Africa’s transport system is at the forefront of the programme, it has also been ‘designed to achieve a number of key government objectives.’

Including ‘delivery of quality services to citizens, revitalisation of South Africa’s rail engineering industry through local manufacturing and ensuring local content as part of government’s Industrial Policy Action Plan, employment creation, skills development and broad-based black economic empowerment’.

Cape Town to get cruise liner terminal South Africa’s biggest ambassador for transport, Transnet has finally approved plans for a dedicated berthing terminal in Table Bay Harbour to encourage more international cruise liners into Cape Town.

The decision came after months of protest subsequent to a ban by the Department of Home Affairs of the docking of cruise ships at the V&A Waterfront. In a statement release on 13th January 2012, the department claimed that the docking of liners exceeding 200m in length was ‘posing a security threat to the country’ and all ships were later redirected to Duncan Dock.

Shipping agents and tourism figures alike lamented the new plan, claiming it was an inconvenience and unfriendly to well-heeled travellers on the liners, putting Cape Town in a bad light compared to other destinations.

From January 2013 however, the Transnet National Ports Authority will finalise the process of identifying suitable investors and operators for the new terminal, which is due to be completed within the next two years.

Ports authority spokesman, Coen Birkenstock told the

PAGE 6 DEC 12

Cape Times that the new terminal will feature an arrivals and departures facility as well as restrooms, and aims to encourage more international cruise liner operators to include Cape Town on their itineraries.

Western Cape Economic Development MEC Alan Winde welcomed the authority’s decision, highlighting that last year, 19 visiting cruise liners brought approximately 11,144 passengers to the province which sustained a number of jobs within the tourism industry.

NEWS

Sasol plans gas-to-liquids plant in USA South African energy and chemicals company, Sasol is set to begin the engineering and design phase of its proposed plans to build a gas-to-liquids plant in Lake Charles, southwest Louisiana in the United States.

The gas-to-liquids (GTL) facility will be the first of its kind in the USA, and will provide the country with ‘world-class, cleaner-burning fuel’ whilst contributing to its ‘energy security’ according to Sasol’s chief executive officer, David Constable.

Project costs for the facility are estimated to be between US$11 billion and $14 billion and will produce 96,000 barrels per day (bbl/d) of high-quality transportation fuel, including GTL diesel and other chemical products.

Louisianna Governor, Bobby Jindal said the project ‘will be the largest single manufacturing investment in the history of Louisiana’ representing ‘one of the largest foreign direct investment manufacturing projects.’

The project will be split into two phases, with the first of those coming into operation in 2018, and the second the following year.

Also part of the project, are plans to build a worldscale ethane cracker, which will allow Sasol to expand its ethylene derivatives business in the United States and

benefit from the current low US natural gas prices and the abundance of ethane.

Both the GTL facility and ethane cracker are expected to create at least 1200 permanent jobs and 7000 construction jobs at peak.

Rosebank redevelopment well underway Hyprop Investments Limited announced plans earlier this year for the redevelopment and extension of Rosebank Mall, and with construction well underway, say it will boost the Rosebank node.

The R920 million redevelopment and extension of what was formally known as The Mall of Rosebank, commenced in August 2012 and will take 25 months to complete before its grand re-opening in 2014.

The renovation is set to provide shoppers with a refreshed and modernised retail facility with the mall almost doubling in size to 62,000m² of lettable area.

The mall will trade throughout the construction period

with new retail sections being smoothly phased in from as early as the second quarter of 2013.

On completion of the project, Rosebank Mall will boast approximately 160 stores to dominate the retail landscape in the busy Rosebank node.

DEC 12 PAGE 7

NEWS All that’s happening in South Africa - By Joe Forshaw / For more news stories visit industrysa.com

Schwartzel provides inspiration for Bafana Bafana As the start of the 2013 African Cup of Nations approaches, Charl Schwartzel was on hand to provide Bafana Bafana and South Africa with winning inspiration as he put on a flawless display in the Thailand Open, winning by an 11 shot margin ahead of a talented field.

Schwartzel carded a 25-under-par 263 on the Amata Spring Country Club course. it was his first win on the Asian Tour.

Apart from the Masters, which counts as both a PGA and European Tour win, Schwartzel has six other European Tour titles and five Sunshine Tour victories to his name.

“Making one bogey the whole week pretty much sums up how I played. I played pretty flawless golf,” said Schwartzel after his victory.

With the eagerly awaited continental football tournament starting in just a few weeks the South African players could do with adopting a similar positive attitude to that of Schwartzel.

Bafana coach Gordon Igesund named a 24 man squad to face Malawi in a friendly on December 22nd with one new face – Ayanda Patosi.

The other notable selection is defender Tsepo Masilela making a comeback into the team after a long lay-off due to injury.

Patosi, who has been making a name for himself in Belgium, was touted as a future international star by Anele Ngcongca, who also plays his football in Belgium.

The game against Malawi is the one of the final friendlies before the tournament gets under way and Igesund will name his final squad at the end of December. There will be a mini training camp at the end of the month for the coach to take a final look at some of the players and then the squad will be named to take on Africa’s best.

“We initially intended to name the final squad after the match against Norway on 9th January next year, but after careful consideration, we have decided to name the squad at the end of our upcoming December camp, so that when we start the January camp we have all the players we are going to use in the Afcon tournament.

“That will enable them to play together the last two preparation matches against Norway and Algeria,” said Igesund.

Webber Wentzel signs global agreement In February 2013, Webber Wentzel, South African law firm, will officially begin their collaborative alliance with global firm Linklaters.

The partnerships will allow both firms to expand their African footprint, as well as enable Webber Wentzel to benefit from Linklaters partners in the Asia-Pacific region, particularly China, India, Korea, Japan and Australia, Europe, the Americas and the Middle East.

Linklaters also has specialist Africa-focused resources at its head offices in London, Lisbon and Paris.

Linklaters said: “The alliance will provide clients with a unique advantage in Africa through the firms’ combined experience, know-how and international and on-the-ground resources.”

Chambers Global 2012, independent guide to global law firms, ranked Linklaters as top international law firm in Africa because of its vast experience

PAGE 8 DEC 12

in key sectors including energy, mining, infrastructure, telecommunications and financial services.

Webber Wentzel also operates in sectors including mining, banking, insurance, media, property and telecommunications and has clients in over 47 African countries.

“Demand for cross-border legal services continues to grow strongly. This arrangement is consistent with our strategy of helping clients whenever they do business in Africa.

“There is huge potential for Africa growth - and therefore legal work - in a large and complex market,” said senior partner at Webber Wentzel, David Lancaster.

NEWS

SA wine sparkles at international awards Pongracz Rosé Brut and Boschendal Le Grand Pavillon Brut Rosé, bubblies straight out of the South African wine lands are now officially recognised as some the of the best in the world.

The two fantastic tipples made it onto the top ten ‘Best Sparkling Wines in the World’ list at the 2012 Effervescents du Monde competition held in Dijon, France in November.

Effervescents du Monde is a competition where over 100 judges select the best sparkling wines from 660 entries coming from 25 countries around the world.

The competition’s goal is to “award reliable and representative medals each year, reflecting the founding motto of Effervescents du Monde: diversity, quality and high standards”.

The competition, now in its tenth year, and aims to highlight the efforts made by sparkling wine producers and encourage scientific research and knowledge about these wines.

In the end there were 19 wines selected for the top ten list as organisers said “some wines are rigorously equal” and could not be excluded from the list.

“In 2012, Spain, Italy and Switzerland obtained many medals. These three countries were very closely followed by Brazil, Chile, South Africa and Portugal,” competition organisers said.

Pongracz winemaker, Elunda Basson, said: “To be amongst this illustrious line-up of the best sparkling wines in the world in the land of Champagne, is a wonderful recognition for our Pongrácz team and we are particularly proud of the recognition for our Rosé.”

Unesco award for Archbishop Desmond Tutu In Paris recently, at the Unesco (UN Educational, Scientific and Cultural Organisation) headquarters, South Africa’s Archbishop Emeritus Desmond Tutu was awarded the prestigious Unesco/Bilbao prize for promoting a culture of human rights.

The timing of the award ceremony was significant, taking place on International Human Rights Day. The Archbishop was represented by his eldest daughter, Thandeka TutuGxashe.

The prize recognised Tutu’s ‘courageous activism, particularly with young people, to promote non-violence and oppose all forms of discrimination and injustice’.

The biennial prize, which comes with a US$30 000 cheque, was established in 2008 thanks to a generous endowment from the City of Bilbao. This time around the Mayor of Bilbao, Iñaki Azkuna, was present to see the awarded handed over.

President Jacob Zuma congratulated Tutu, saying he had been “a tireless and visible ambassador of our country all over the world, promoting human rights and justice.

“Even in his retirement he continues to be a beacon of hope, an elder statesman who is highly regarded by the South African people,” Zuma stated.

“He has never veered away from his mission of building a better society. We extend our sincere congratulations on behalf of government.”

Unesco said in a statement: “In selecting Desmond Tutu, the jury recognized the outstanding role he played in building the new democratic, non-racial South Africa and his invaluable contribution as chairperson of South Africa’s Truth and Reconciliation Commission ... which became a model for other post-conflict societies.”

Archbishop Desmond Tutu – a Nobel Peace Laureate and Chair of The Elders; a veteran anti-apartheid activist and peace campaigner widely regarded as ‘South Africa’s moral conscience’: “Despite all of the ghastliness in the world, human beings are made for goodness. The ones that are held in high regard are not militarily powerful, nor even economically prosperous. They have a commitment to try and make the world a better place.”

DEC 12 PAGE 9

ENTREPRENEUR

Pam Golding: At home

in the property industry

By Joe Forshaw

When you enter the property market it is likely that you will come across the Pam Golding Property Group. People from all over South Africa and across the world have bought their homes with the help of a Pam Golding representative.

Our entrepreneur this month has had a glittering career in the property industry and really sets the bar high for lifetime achievements in South Africa.

Mrs Pam Golding is the founder and now Life President of the internationally recognised and locally celebrated Pam Golding Property Group. Not only is Mrs Golding an inspiration and role model for women, she is also widely regarded as one of the world’s leading businesswomen and entrepreneurs.

Founded in 1976, the business had a challenging beginning. During tough economic times, with virtually no capital, no leads, no infrastructure and just one sales assistant, the business flourished thanks to the drive and talents of Mrs Golding including; an unerring talent for successfully matching buyers and sellers, a graceful style, networking skills and a passion for property.

Headquartered from Bishopscourt, Cape Town, the company now has a network of more than 300 offices in Africa as well as international offices in the UK, Germany, Mauritius, Seychelles and France. The Pam Golding group forms part of a strategic alliance with one of the

PAGE 10 DEC 12

world’s largest property groups, Savills PLC, gaining access to its prestigious network of over 500 offices worldwide.

In the beginning Mrs Golding was against using her own name as the title of the business but the personal branding has turned out to be a great success. Thanks to the hardwork, vision and entrepreneurial spirit of Mrs Golding and her team, the business is today a multimillion Rand organisation with around 300 branches, 186 franchises and a staff of around 3000.

Pam Golding Properties was the first South African real estate business to achieve sales turnover figures for a single year of around R18 billion. The company is now so vast; people all over South Africa have bought their homes from a Pam Golding representative.

The company was born out of an idea which sprung to mind after Mrs Golding, her husband (Cecil) and their two young children bought their first home. Mrs Golding

PAM GOLDING

“One of the high points for Mrs Golding and the company was finding a property for the inspirational Nelson Mandela and his wife Graca Machel”

m g Pa ldin Go enjoyed being involved in the industry and had a conversation with someone discussing networking and pointing people with property requirements in his direction. In the end she looked after their needs herself and the idea for the business came to life.

The initial concern was the difficulty of raising capital but after overcoming this, the company saw steady growth before Mrs Golding identified the top end of the market was the area where maximum growth could be found. She has based her business strategy on a remarkable ability to find exclusive properties for people who sometimes didn’t even know what they wanted themselves.

One of the high points for Mrs Golding and the company was finding a property for the inspirational Nelson Mandela and his wife Graca Machel, this was a home that the former President never thought he would buy, but with help from Mrs Golding he did just that. Mrs Golding has said that she feels a sense of achievement after giving people good advice, and a responsibility to do so.

Today, Mrs Golding’s son, Andrew, is the chief executive of the company and she plays a role of ambassadorial nature as a global networker and facilitator, encompassing both the promotion of South Africa and its diversity of investment opportunities to the world at large – an inspiration to any budding entrepreneur or any business person, in any part of the world. ●

Over the years she has been honoured for her leadership skills and personal achievements with an impressive array of national and international awards:  Business Against Crime WC – Lifetime Service Award  Ernst & Young World Entrepreneur Awards Lifetime Achievement Award (2009)  Honorary Degree of Doctor of Philosophy (Ph.D.) in Business Administration from the Walter Sisulu University (2009)  Honorary Life Member of the Institute of Estate Agents of South Africa (2008)  Provincial Honours Award in the Category: Officer - for her contribution to the economic development of the Western Cape and in acknowledged of her involvement in empowering women in business. (2007)  Cape Times/KPMG Business Personality of the Year (2003)  Die Burger & Kaapstad Sakekamer Sakeleier van die Jaar – (Translated as: Business Leader of the Afrikaans Chamber of Commerce) – the first and only woman to have received this prestigious award (2001)  The Star Group – One of the Leading 50 Women Entrepreneurs of the World (1998)  BWA Executive Women’s Club Businesswoman of the Year (1996)  Previously a member of The Women’s Leadership Board at the John F Kennedy School of Government at Harvard University  International Women’s Forum  Desmond Tutu Peace Trust Board Member  University of Pretoria Business Clinic Pioneer Entrepreneur

DEC 12 PAGE 11

INNOVATION

FNB: The world’s most innovative bank

By Christian Jordan

First National Bank (FNB) awarded for innovations at the BAI-Finacle Global Banking Innovation Awards.

FNB is the oldest bank in South Africa its roots can be traced as far back as 1838 and the Eastern Province Bank. The bank has come a long way since those early days and this was demonstrated in Washington DC recently when FNB was named the most innovative bank in the world at the 2012 BAI-Finacle Global Banking Innovation Awards.

Now in their second year, the awards look for breakthrough innovations that positively impact banks and their customers. Run by BAI and Infosys, the winners are chosen by a panel of industry experts from across the world.

The panel comprises prominent industry thought-leaders, academics and retail banking professionals.

The judges praised FNB’s innovative culture, noting that the bank runs an internal competition that formally encourages and supports innovation, empowering business units within the bank to innovate through leadership buy-in and advocacy.

FNB CEO Michael Jordaan said: “Innovation is fundamental to the way we think. I believe that innovation is critical to FNB’s success. Companies that fail to innovate will not only fall behind their competitors, they are unlikely to survive in an intensely competitive economy.”

After bringing the award back to South Africa, the bank honoured the staff that implemented their innovative offerings and drove the projects over the last 12 months.

The main projects that contributed to the award were the eWallet, the Steve Campaign and the Mobile Banking App. The eWallet, launched in 2009, is an innovation that allows people to send money to anyone in South Africa with a valid mobile phone number. Funds are transferred instantly and the recipient receives a text message to confirm completion. The recipient is then able to withdraw cash at FNB ATMs, buy pre-paid airtime or electricity, send money to another phone, purchase and/or get cash at selected retailers, as well as make one-off payments.

In April, FNB announced that more than one million eWallets had been created, and over R1.6 billion paid into

PAGE 12 DEC 12

them since the launch of the service.

In 2011 FNB followed up on the eWallet with the FNB Banking Application. This allows anyone with a smartphone or a tablet device, quick and easy access to their online accounts. FNB was the first African bank to offer an App to its customers.

“With South African smart device penetration consistently on the increase, and with FNB doing its part to facilitate smartphone and tablet take up even faster, we are accelerating the growth of our App base,” said Farren Roper, head of FNB Connect ISP and business operations.

The Steve Campaign aims to get customers to revaluate what they get from their own bank, and to switch if their bank can’t match the innovative range available from FNB. Following the launch of the Steve Campaign and the banking app, FNB announced its biggest gain of customers in years with a reported 1.3 million joining in the last year.

These campaigns are not the only innovation coming out of FNB. The company recently opened dotFNB branch at Nicolway Shopping Centre in Bryanston.

The branch gives customers a virtual environment in which to experience online solutions, video-conferencing with financial experts for more complex solutions, and unique interactive mechanisms never before seen in branches. FNB has also applied augmented reality technology to this remarkable branch.

In another first for the South African banking industry, the dotFNB outlet will have a large-scale ‘interactive surface’. This presents an extremely easy way for customers to interact with the bank using some very remarkable technology. This is currently the only surface of its kind in the country. The branch is cash-less aside from an advanced deposit-taking ATM. “Innovation is part of the FNB DNA and the dotFNB store is a true reflection of our continuous drive to innovate to improve our customers’ banking experience,” says CEO FNB Banking Channels, Barry de Witt. ●

INNOVATION

“Companies that fail to innovate will not only fall behind their competitors, they are unlikely to survive in an intensely competitive economy�

GADGETS

Are you a director with a 007 lifestyle?

By Joe Forshaw

The new James Bond movie, Skyfall, was released in cinemas on November 30th.

We look at two of the classic Bond gadgets from the movie and tell you what it will take to get hold of something similar for yourself.

It is important for the top people in business to stay on top of what’s cutting edge and what’s cool. The best gadgets can not only be fashionable and expensive, they can also be very useful and helpful when it comes to running a business.

Some of the most important gadgets released in recent times have come from Apple. The iPhone and iPad have made business truly a mobile phenomenon. Handling important tasks such as banking and invoicing on the move is now part of the everyday norm.

The gadgets we are looking at this month are perhaps slightly less functional and more for the business person with an eye on what’s fashionable.

With the release of the 23rd James Bond movie on November 30th in South Africa we have taken inspiration from one of the coolest customers around. For 50 years Bond has been the personification of cool. Gadgets, girls, suits and cars, everything about him is innovative and at the forefront of what’s stylish and sophisticated. In fact, 007 and his gadgets are so cool that a global exhibition opened in London recently dedicated to Bond style.

Although the gadgets we are looking at come with a hefty price tag they both install a hefty amount of suave. They are both classic Bond, things which have become synonymous with the character over the years.

OMEGA SEAMASTER PLANET OCEAN James Bond has always had a wonderfully cool watch and in the latest instalment, Skyfall, continues with this tradition.

PAGE 14 DEC 12

Two Omega models are worn by 007, the Seamaster Planet Ocean and the Seamaster Aqua Terra but we will focus on the former.

Swiss luxury watchmaker, Omega has been the brand of choice for Bond for nearly 20 years. The spy was first seen sporting an Omega in Goldeneye, 1995. Then it was Pierce Brosnan, now it is Daniel Craig but the watch remains as sleek and shiny as ever.

In most Bond films the watch is handed over by Q, the British Government’s gadget expert, and it can usually do something pretty unbelievable. For example, in Goldeneye, the Omega had an in-built laser which Brosnan uses to cut through the floor of a train.

This time around, still unbelievable but unfortunately it will not be just handed to you by Q. The watch will set you back just under R60,000. So how does it justify its association with the world’s most popular spy and the big price tag?

It comes with impressive features including: Chronometer, helium escape valve, transparent case back, screw-in crown, date indicator and unidirectional rotating bezel.

It has a steel case with a black dial and domed scratchresistant sapphire crystal with anti-reflective treatment on both sides. It is water resistant to 2000 feet and has the Omega 8500 movement calibre meaning it’s self-winding with Co-Axial Escapement for greater precision, stability and durability. It also incorporates free sprung-balance, two barrels mounted in series, automatic winding in both directions to reduce winding time. To finish, the bridges and the oscillating mass are decorated with exclusive Geneva

GADGETS

After making appearences in Thunderball, Goldeneye and Casino Royale, the DB5 is back and looking as hot as ever.

Although the car, in reality, is miles behind the modern supercars of 2012 it still has an aura of superiority.

waves in arabesque.

The Seamaster is traditionally made for deep sea divers but is also the watch of choice for the British Royal Air Force, the US army, NASA (used on six lunar landings), the Olympic Games and celebrity names including Elvis Presley, John F Kennedy and Prince William.

ASTON MARTIN DB5 Our next Bond inspired gadget is perhaps not known so much as a gadget.The Bond car is as much a part of the character as the suit or the cheeky one-liner. In Skyfall a classic is bought back. The Aston Martin DB5 was originally driven by Sean Connery in Goldfinger, 1964, and at the time hailed as the most famous car in the world.

After making appearences in Thunderball, Goldeneye and Casino Royale, the DB5 is back and looking as hot as ever. Although the car, in reality, is miles behind the modern supercars of 2012 it still has an aura of superiority.

In Thunderball it had a rear facing water cannon and a boot stowed jet pack, in Goldeneye it was involved in a major race scene with a Ferrari. In Skyfall the car is equipped with a passenger ejector seat, twin machine guns, rocket launchers,

oil slick sprayer and bulletproof shield.

If you are interested in getting hold of one of these iconic cars then you will have to consider raising the near R2 million fund required and as there are not many in Africa you will have to add on the shipping costs.

For a fortune like that you will get yourself 4.0 litre, all aluminium engine with a five speed transmission and three SU carburettors. With 282 brake horse-power and a top speed of 145mph the car is more about elegance than performance but that is just fine considering it is half a century old.

The actual model from the Goldfinger movie was sold at auction for £2.6 million in 2012 so it will not be used in Skyfall but the car will have the same registration plate – BMT 216A. While these two Bond inspired gadgets will help any company director break the bank, they will also help to add sophistication, superiority and refinement. If you are a connoisseur of the finer things in life and, like James Bond, you feel at ease in the casino, boardroom and bedroom then these pricey but worthy gadgets could be the perfect treat for you. ●

DEC 12 PAGE 15

PLAYBOY SA

Content is King at PlayboySA

By Christian Jordan

This month IndustrySA speaks to another magazine, one of the biggest publishing brands in the world, to find out about the challenges of starting up in South Africa.

If you were asked to name a men’s magazine brand that has a presence in 33 countries across the world, it is highly like that the first brand you think of would be Playboy.

After its beginnings in America in 1953, the magazine has been undeniably controversial but undeniably popular.

Today the Playboy brand is recognised as an international phenomenon, an innovation that paved the way for many to follow and the South African edition is now adding to what is a business enterprise as strong as they come.

Charl du

“South Africans fear the brand. It is not a conservative society, but quite hypocritical and people are scared of being found out that they actualy enjoy the brand and buy the magazine. Corporate culture also does not reward risk, but rather not making mistakes, so we have found that the typical media agency and marketing director is very fearful to risk their safe employment by sticking their neck out for this iconic brand.

“So, Playboy got hit with a double whammy of fauxconservatism. Retailers would not help build circulation and advertisers would not risk their brands being associated with an iconic global brand which they do not really understand.”

The second launch came after extensive research and advice from trade specialists explains Mr du Plessis: “Playboy magazine was launched, with big fanfare in April 2011, by a small, independent custom publishing house with no newsstand experience. Research showed demand in excess of 100,000 copies per month and the business case was scaled accordingly. Funds were raised privately, as often with

“ Playboy magazine was launched, with big fanfare in April 2011, by a small, independent custom publishing house with no newsstand experience” Plessis is the editorin-chief for PlayboySA and he tells IndustrySA that the perception of the brand has been a problem but it is changing.

“PlayboySA folded in the 90s because retail groups would not stock the magazine as it was perceived as pornography and the demand came nowhere close to being met.

PAGE 16 DEC 12

start-ups, from friends and family. The strategy was bold and ambitious, assuming that the demand could be serviced “I believe the strategy was no different than anyone else in newsstand two years ago - sell maximum magazines, and make your money from advertising based on circulation.

Digital publishing was still only an inconvenient rumour in SA as far as most print publishers were concerned.”

So, with a sound, well researched business plan and what is one of the world’s most recognised brands surely this time

PLAYBOY SA

around PlayboySA could do no wrong? Not the case explains Mr du Plessis. Top level management of retail outlets were still nervous about associating themselves with the brand.

“To overcome these issues, we set up a project to target retailers directly. To inform them and to show them the money they could make. Yet, despite us having many Spar owners and owners of forecourt retail outlets at filling stations baying for the magazine, their head office people stuck to their guns.

“Next we tried setting up a direct sales team. Friends selling to friends, yet the courier charges were killing the model. We thought of it as a great job creation strategy in a country with 25%+ unemployment, yet we could not really get traction.

“Finally, we became quite aware of the fact that even with us having bent over backwards to address retailer concerns, and publishing month after month the most conservative covers compared to other men’s magazines, we were just not going to get newsstand scale. If this was the 1990s, we would have shut down right there. Yet, in the year since launch, the world of digital publishing had arrived, and what we also found was that digital is a far more private space. So, the uptake on that side gave us new hope that we may eventually overcome misconceptions and hypocrisy alike.

“We know the demand estimates were correct. We live the passion of the brand with our audience at events, activations and in the country’s most dynamic social media space. Bandwidth remains a problem, and we also know that people miss having the famous Playboy Playmate centerfold to turn sideways.

Our strategy for the foreseaable period is to offer the digital magazine for free, as we have no marginal cost of production, and we know that once someone has read just one copy, their whole

perception changes.”

Playboy as a brand can often seem like it is in a world of its own, far away, out in California, in the mansion with Hugh Heffner and his friends. But in South Africa the magazine is given a very local feel with local material from local writers, and using local models. One element remains consistent with their international partners – quality content is the name of the game.

“We have complete control over content. In a digital era, you need strong local flavour, otherwise people might as well read Playboy US online, not? We draw on the best from around the world, where we have 32 sister editions, and have some of the most respected local writers contributing each month. In the past 15 months, we have featured top local novelists, as well as two Nobel prize winners for literature. Playboy is really much more than just a pretty face. In fact, our editorial team remains convinced that if we had to strip out all naked models and just publish the rest of our monthly content, we would arguably still be the best men’s lifestyle magazine in the market by a mile,” says Mr du Plessis.

Another problem that has arisen for the publishing industry in general is the fact that sales of hard copy magazines are on the decline thanks to technology and transportable media such as the iPad. While PlayboySA have adapted to meet the demand for an online publication, development of further digital media has presented more hurdles.

“The iStore would not allow a Playboy app, so we had to work around on a browser-based system. Facebook is very conservative and any implied nudity could get this valuable tool in our arsenal shut down. In fact, we are not even allowed to advertise on Facebook, and our stellar growth has been all organic. To us that is true testimony that the Playboy content mix, after 59 years, is still very attractive to the audience.”

Mr du Plessis is convinced that overall the Playboy brand and the content mix will become more widely accepted and with the rise of technology the demand will continue to grow. He says: “We have no doubt that we have a great future in a competitive market for two reasons: One, the demand and awareness of this fun brand is huge and we have done a lot to grow it even stronger. Secondly, our core business is the generation of quaility content.

Content is king, and we do that better than anyone else in our game. Eventually, it will pay off.” ●

DEC 12 PAGE 17

CAMERON VAN DER BURGH Audi SA

Swimming in success

By Joe Forshaw

Cameron van der Burgh is one of the country’s leading sports stars. His gold medal and world record at the Olympic Games in London helped push his public profile through the roof.

IndustrySA chats to the young sensation about success, swimming, gold medals and the media spotlight.

Q: How is life treating you after the London Olympics? Have you had a chance to relax since your gold medal winning performance?

It has been very busy. Life has been great though, out of the pool. I like to take a break by doing normal things like golf or playing football.

Q: What are the perks of being an Olympic champion? Is there a downside?

Perks are being able to drive an AUDI RS5 which is just amazing!

Q: You’ve been involved with a lot of media work since the London Games, has your training suffered?

Yes. It is a challenge now to balance training and media commitments. From January I am starting to cut them out

PAGE 18 DEC 12

and train properly.

Q: How have you found the media side of things? Do you have an interest in business? Has it been a challenge to promote yourself as a brand or is the main focus to continue with success in the water?

It has been a challenge but I am enjoying it. I’m going to start working on a totally different side towards my career over the coming months and years.

Q: What is the next big goal for you? Upcoming competitions?

The next big goal is doing well and getting on the podium at the World Championships in Barcelona in 2013.

Q: How old were you when you realised you would be good enough to compete? Who influenced you?

CAMERON VAN DER BURGH

“ It is a challenge now to balance training and media commitments”

When I was 16 I went to Australia and did very well that side. I then realised I had the talent to compete with the best in the world.

Q: Although you are the record holder in the breaststroke, do you prefer another style? Could you compete in any different events?

I love breaststroke. They say the stroke chooses you and breaststroke definitely chose me!

Q: Have you been a swimmer from the start or did you ever fancy yourself in any other sports?

I enjoyed football but was never great at it so swimming has always been what I excelled at and my main passion.

Q: In May you were named an Audi ambassador for the second time, they call you cutting edge, stylish and classy.

Does this show just how far you’ve come in your career?

I think it shows the brands loyalty and belief in individuals.

They signed me before the Olympics and I will always be loyal to them because of it.

Q: Finally, your home is Pretoria, your successful training base is in the city, would you consider moving away now that you have an international profile?

I do all my training here but one day I would love to live in Cape Town ● Keep up to date with Cameron’s success online: Cameron is on Twitter - @Cameronvdburgh You can also find him at www.cameronvanderburgh.com or on Facebook.

DEC 12 PAGE 19

COMPANY REPORT

Growing together

Editorial – Roland Douglas Production – Chris Bolderstone

Forestry SA, Sawmilling SA and the Wood Foundation all have one thing in common – wood. We speak to Roy Southey, non-executive officer of the Sawmilling Association and Chairman of the Wood Foundation about the challenges facing the wood/forestry industry in South Africa.

FORESTRY SA

In South Africa, forests and woodlands are an economic resource that is providing great benefits to the country. Wood is used in all industries from construction to retail to administration.

Because of this, it is important that the original source of the wood – the forests – are managed correctly.

The government formed the Department of Agriculture, Forestry and Fisheries in 2009 and in 2010 Ms Tina Joemat-Pettersson was named as the responsible Minister for the department. With nearly 6000 employees and a budget share of R3658 million the department is significant and holds the goals of economic growth, job creation, sustainable use of natural resources, rural development and food security.

An organisation that shares these goals is Forestry SA (FSA). Representing growers of timber in South Africa, the association’s membership includes all 11 corporate forestry companies active in the industry, approximately 1300 commercial timber farmers and some 20,000 emergent small scale growers who between them own or control around 93% of the total plantation area in the country.

The government department and FSA are also closely linked to the Wood Foundation and the Sawmilling Association of South Africa. Between these bodies, agreements are made, regulations discussed and directions decided upon to take wood (as an industry itself) into a sustainable and healthy future.

FSA itself is the largest body in the country representing timber growers and is regarded by the public and private sector as the industry’s representative body. The executive committee oversees three separate entities namely: Small (emergent), medium (commercial) and large (corporate) timber growing groups.

One of the major goals and founding objectives of Forestry SA is to bring the emerging small scale timber grower sector into the mainstream of forestry activities, through membership of FSA. Roy Southey is the non-executive officer of the Sawmilling Association of South Africa and also currently the Chairman of the Wood Foundation and, obviously, he has a strong interest in the activities of FSA. He tells IndustrySA that one of the most recent initiatives put in place within the wood industry is the Wood Foundation. This is a campaign unique to South Africa, put in place to encourage the promotion of forestry and wood.

“For quite some time, Forestry SA, Sawmilling SA and a few other sub-sectors felt that at some stage we need to get together and cooperate to promote the wood industry as one complete segment. We formed the Wood Foundation to encourage all types of businesses to get involved, from forestry to furniture importers.

“The main purpose is to promote the use of locally grown and beneficiated wood in all its forms from furniture to construction uses.”

DEC 12 PAGE 21

COMPANY REPORT

FORESTRY SA

Apart from their commercial interest in wood, members of the wood foundation are also aware of the environmental benefits available from the large-scale use of wood.

“It is a natural, re-useable, eco-friendly product,” says Mr Southey.

RESOURCES ARE THE KEY In South Africa, around 1.7 million hectares of land is covered by plantations or natural forests and anything from 30 to 60 million hectares covered by woodland or savannah depending on definition. The coverage by usable trees is something which FSA, the Wood Foundation and the saw millers association, would like to see grow.

“The greatest challenge facing the wood industry in SA is a resource matter. In the short term the challenge is to overcome the tough economic situation. In the longer term the challenge is to meet the demand made on the resource by other industries,” says Mr Southey.

He goes on to say: “SA is not a forest rich country. All of the commercial forests are man-made. Only 1% of SAs land mass is suitable for forest development and we need to make sure we utilise that 1%. The forestry industry is constantly looking at ways to increase that figure.”

When the land is put to good use and the wood is

harvested correctly a further challenge arises; that of conversion rates of bare wood into saleable product as Mr Southey explains: “For saw millers the challenge is to make more of the current resource available. We are currently only making a recovery rate of 47%. That means from ground log to product only 47% is being used and we need to modernise and get technical specs up to increase our percentage in line with international standards. This will help us make more of the limited resources.”

The challenges do not end there. Like any industry that is constantly adapting and moving the issues change all the time.

“Another challenge is convincing the government to free up more land for forest development. Scientifically we need to develop strains and species that are more suited to SA growing conditions,” says Mr Southey, who is in the fortunate position of being able to open dialogue with the government thanks to his place in the Sawmilling Association.

“Sawmilling SA represents the majority of the saw millers both large and small in South Africa, both corporate and private of course,” he explains. “We concern ourselves with representing the industry with government; we are the voice of the industry with the South African government.”

DEC 12 PAGE 23

COMPANY REPORT SAWMILLING ASSOCIATION Obviously, the business of sawmilling goes hand in hand with the wood industry. FSA and the Sawmilling Association are close partners. The Sawmilling Association has been trying to encourage students and young people into the industry through connections with educational institutes while remaining aware of the problems in Western Cape agricultural sector, as Mr Southey explains: “We are the liaison between the institutions and the sawmilling industry, so between universities, technikons and educational institutions. We sit on the faculty advisory board of Stellenbosch University and Nelson Mandela metropolitan university.

“We look after technical requirements of the sawmilling industry, so research and development etc. We don’t get involved with commercial issues at all. We have nothing to do with price. We don’t involve ourselves with resource supply contract agreements. We busy ourselves essentially with technical issues and governmental regulations and so on.”

The challenges for the industry overall are clearly a concern for the Mr Southey and the Sawmilling Association, just as much as they are for FSA but recently there has been further concerns to contend with.

“South Africa is going through a turbulent time with labour regulations, especially the agricultural sector.

Forestry is very closely linked to agriculture and we fall under the same ministry – the ministry of agriculture, forestry and fisheries.

“We are very aware that labour unrest could spread so we are keeping a very close eye on things to ensure our

PAGE 24 DEC 12

FORESTRY SA members are well versed on what is happening.”

FSA are advising their members to attend provincial public hearings where the government will be reviewing the Agricultural Sectoral Determination. The forestry industry has its own sectoral determination but the Department of Labour is looking for parity between the two so changes in the Agricultural Sectoral Determination could directly affect organisations in forestry.

If there is major labour law changes there could be a significant impact on the industry, something which FSA, the Wood Foundation and Sawmilling SA will have to take into account.

Overall, the message of the Wood Foundation, Sawmilling SA and FSA is exactly correct. Wood is a great product that is green and sustainable. A boost in the industry would create jobs and help the economy. If further plantations can be made sooner rather than later, the government will move closer to achieving their goals.

Be sure to visit the Wood Foundation online (@social_ twf) and FSA (www.forestry.co.za).

Also, many representatives of the wood industry will be present at WoodEx for Africa, the industry exhibition at the Gallagher Convention Centre, Midrand on March 21st-23rd. Don’t miss out.

The FSA mission statement: “To serve the interests of all South African timber growers in a manner that will enhance the long term sustainability and profitability of their activities and which will promote the growth and development of the forestry industry” ●

New Generation Plantations, a game-changing concept Mondi is playing a key role in the development and promotion of ‘New Generation Plantations’ (NGP), an initiative that is changing the world’s perception of plantation forests. The concept of NGP has been adopted by the prestigious World Wildlife Fund (WWF), together with several governments and leading forestry companies around the world, including Mondi. The aim is to develop sustainable forestry solutions for plantation forests and to promote management frameworks that create good environmental, social and economic results.

The NGP initiative was born out of an invitation from Mondi to WWF International in 2005 to visit Mondi forestry operations in South Africa to assess the clear differences between the ‘old’ plantation practice versus what was loosely termed ‘new generation’ practice.

At the time WWF and Forest Stewardship Council (FSC™) were under real pressure from a number of Non Government Organizations (NGOs) to have plantations excluded from FSC™ certification. Instances of bad practice in plantation forests around the world, with consequent negative impacts on the environment and communities, had given plantation forestry a bad reputation.

However when the WWF delegation met a range of stakeholders including conservationists, NGOs and communities, and saw how Mondi had removed plantations from riparian zones, created ecological corridors, protected wetlands and areas of high conservation value, and had involved local communities, they saw that plantation forests could be part of the solution.

One of Mondi’s ‘New Generation Plantations’ Thus Mondi became a founding member of the WWF NGP from the concept stage through to the current phase III where Mondi will help WWF to promote the concept in Sub-Saharan Africa.

incorporating a grassland (foreground) showing biodiversity and protected wetland with trees planted well back from the riparian zone

SQF incorporates part of the iSimangaliso Wetland Park, providing wild animals with more space to roam freely

This initiative represents a breakthrough in international thinking about the role of plantation forests. The world’s natural forests are under increasing pressure to provide fibre for timber and paper, wood energy and crucial ecosystem services, including carbon storage. Currently plantation forests comprise just % of total forestry cover, yet they have the potential to provide two thirds of the global industrial roundwood supply. Therefore they can be part of the solution if they are planned and managed in such a way that they provide fibre AND ecosystem services while respecting the rights of local communties.

In this way plantations can contribute to the protection and conservation of the world’s natural forests.

SiyaQhubeka Forests (SQF), of which Mondi is a major shareholder, has been identified internationally as a model for NGP. SQF shows that you can rehabilitate former plantation land and return it to its natural state, that you can have an intensive commercial forestry operation AND good conservation, sustaining biodiversity and incorporating a world heritage site. In addition, you can engage with local communities so that they can benefit from the forestry operations through job creation and becoming shareholders.

There are a number of Mondi initiatives that feed into WWF NGP. These include the Mondi Wetlands Programme and wetland/riparian delineation, the development of ecological networks for biodiversity conservation, FSC™ certification, the conservation of grasslands and establishment of nature reserves, and Mondi’s contribution to national land reform objectives through its land programme, to name but a few.

There are five guiding principles of Mondi’s approach to NGP: > Good governance and active consultation with local stakeholders. >D etailed planning including Environmental Impact Assessments (EIAs), soil surveys, integrated land use plans and site classification to regulate forestry practices and maintain high conservation values. >T he development and management of highly productive plantation forests that yield timber and a range of other forest products and socio-economic services. >P rotection of plantation forest areas and associated ecosystems from fire, pests, diseases and alien invasive plants using internal and co-operative industry research resources. >S ound socio-environmental management and meaningful participation of stakeholders. hrough this process WWF is confident enough so as to have T recommended that there should be 40 million hectares of plantations established worldwide – this would be far better than destroying natural forests.

“The principles of NGP apply anywhere in the production landscape – if we can get other land uses to apply them it would make a big difference,” said Peter Gardiner, Mondi’s Natural Resources Manager. “You can have intensively managed forestry or agriculture operations, yet the water still flows, the ecosystems still function and biodiversity is maintained. Mondi is the anchor member in Africa to support and promote this concept of NGP.”

COMPANY REPORT

Towering

above the rest

DCD Mining and Energy manufacture products and components for mining and energy projects, including renewable energy projects. With the company looking to grow into Africa we talk to group marketing manager of energy, Henk Schoeman, about their success so far.

Editorial – Roland Douglas Production – Hal Hutchison In South Africa, renewable energy has taken up a place at the top of the list of priorities for many government officials and company directors. The pressure to be environmentally friendly is becoming heavier every month. At IndustrySA we have seen how the majority of the key players in every industry are now giving ‘green’ practice and renewable energy the attention it deserves.

The push for renewable energy to become a bigger part of the country’s overall supply started right at the top. President Zuma himself has placed a large emphasis on hard work in the renewable energy industry.

With energy

PAGE 28 DEC 12

consumption constantly rising, the country is in need of contributions that do not place further pressure on the already stressed power grid and wind projects, solar projects and hydro-electric projects have been identified as capacities which can offer an impact on the energy mix and also bring investment into the country.

One of the companies which has already been heavily involved in offering products and components for mining and energy

DCD MINING & ENERGY projects is DCD Mining and Energy.

DCD Mining and Energy is a cluster of the DCD group. Formerly known as DCD-Dorbyl, the group underwent a restructuring program earlier this year.

Now known simply as DCD, the company says it has ‘bolstered executive management and streamlined business to realise maximum synergistic value and integration for future growth’.

Henk Schoeman, marketing manager for DCD Mining and Energy cluster, explains a little about the history of the company.

“DCD is a company that used to be part of the Dorbyl Group. The DCD-Dorbyl Group started in 1946 and then in 2001 there was a management buy-out and DCD-Dorbyl was born. DCD has an engineering focus and there are ten companies within the group, all focussing on different markets. The ten companies all come under four clusters: Mining and Energy, Rail, Defence and Marine.”

WHAT MAKES THEM SO SPECIAL? Because of the fantastic reputation of DCD and the mining and energy cluster in particular, the company has managed to be involved with the supply of components to all coal fired power stations

assembled in the country from the 1960’s to the 1990’s and are currently supplying the newest coal fired power stations, Medupi and Kusile. The company also has a proven track record in other power sectors and has been involved in all the nuclear energy projects in SA to date as well as hydro-electric plants.

DCD Heavy Engineering, one of the companies in the Mining and Energy cluster, offers different industries facilities that are unrivalled in the country when it comes to the machining and fabrication of custom-engineered, heavy mechanical equipment.

DCD Heavy Engineering has begun working in the renewable energy field, with a special focus on wind energy. As the government continues its push with renewable energy sources and new rules regarding local content come into play, DCD is perfectly positioned to be the business of choice to support a thriving wind energy industry.

“We are focussing on being a tower manufacturer for the local market with wind turbines and we are in discussions with a number of the OEMs (Original Equipment Manufacturer). Wind energy in South Africa is fairly new and we are only in the first stages of making

DEC 12 PAGE 29

COMPANY REPORT

PAGE 30 DEC 12

DCD MINING & ENERGY

‘ The manufacture of products for all the power stations, coal, nuclear, and hydro is our focus’ it part of the energy mix. Throughout the second and third stages local content requirements will come in and towers will have to be manufactured in SA. “DCD as a company has already manufactured the first 80 meter tower for the Aerodyne turbine which was the first locally manufactured and assembled 2.5MW turbine as a prototype in South Africa and our next focus will be to set up a factory dedicated to tower manufacturing and that will be in Port Elizabeth, up and running next year,” says Mr Schoeman.

manufactured components for every power station in South Africa. We have done work with the Koeberg Power Station but the local market for nuclear power is moving fairly slowly. As it grows we will be able to supply products and as other new power stations are built we will be able to supply components there too.

“We will be a player on the renewable wind energy side and we also look at co-generation projects with other companies,” says Mr Schoeman.

FUTURE EXPANSION MORE THAN JUST WIND When it comes to renewable energy DCD do not only excel in wind power projects. The company has worked successfully on various hydro-electric instalments as Mr Schoeman explains.

“We manufactured products for the Ingula Hydro Power Station and in the past we have manufactured penstocks for other hydro power stations. As a company and a group we have great experience in this sector.”

He is also understandably proud of the company’s involvement with the country’s other power stations, away from the renewable industry.

“The manufacture of products for all the power stations, coal, nuclear, and hydro is our focus. We’ve

The growth of the DCD business over the years has been exponential and in the future there is no consideration on letting up, especially with Mr Schoemans concern – mining and energy. With the overall growth of commercial markets on the continent DCD Mining and Energy will look to grow further into Africa and expand our international business.

With renewable energy projects, the company will look to its mining portfolio for inspiration when it comes to growth. Mining forms a major part of the business and that will not change says Mr Schoeman. “Mining is still a big focus, that is where the bulk of our business is coming from. We are an international player in the mining market, that will always be one of our major

COMPANY REPORT

DCD MINING & ENERGY

‘ Where we will be a player is on the renewable wind energy side’

drivers.”

By all accounts, growth and expansion are the logical goals for any business like DCD right now. With the opportunities arising in the renewable energy sector and the attributes of the company there is no reason why DCD can’t go on to become one of the choice companies in the world when it comes to supplying components to engineering focussed customers.

“The company has so much experience,” Mr Schoeman says. “We manufacture products for international markets so the company has an understanding of the commercial requirements. Our products are also well known for quality and reliability.

“There is a solid name behind our products and, locally and internationally, support to the customer is

PAGE 32 DEC 12

second to none.”

The strength of the company has been further demonstrated over the past few years, having seen growth even through the tough economic times.

“Some areas of the mining industry have felt the effects of the economic downturn but we have been lucky as we’ve managed to maintain and even grow our business. We are happy with what we have achieved.”

With the current portfolio of DCD Mining and Energy and the overall qualities of the group, there is no reason why the future will not hold anything but further success for the company. With attention on renewable energy continuing to grow, DCD Mining and Energy has strategically positioned itself perfectly to serve the industry for the foreseeable future. ●

Steel service at its strongest Bekker Steel (Pty) Ltd is a ISO 9001 compliant Steel Service Centre that supplies all Carbon and Stainless Steel products, cut to size.

We also supply standard Merchant Plates and Products.

Our services include: Hi-definition & Profile Cutting • Rolling • Laser Cutting • Bending • Guillotining • Plate preparation • Drilling • Tapping • Milling • 5 Axis 3D Cutting

“No requirement is too big or too small” Contact Details Physical Address 108 Houtkop Road, Duncanville, Vereeniging Gauteng, South Africa Postal Address PO Box 4482, Vereeniging, Gauteng, South Africa 1930 T (+2716) 428 2630/40 F (+2716) 428 2655 info@bekkersteel.co.za

www.bekkersteel.co.za

COMPANY REPORT

Trailblazing

the way to success

Editorial - Joe Forshaw Production - Chris Bolderstone

The Chevrolet Trailblazer has just hit the showrooms and GMSA will look to the new model to help boost sales after a pause in the market.

The automotive industry is one of the world’s most important economic sectors by revenue. In 2010 nearly 80 million vehicles were produced throughout the world with General Motors (GM) producing nearly nine million of those. This means that the company, at group level, is a major contributor to GDP in different economies and through the multiplier effect, the company has a significant interest in the many countries where it is fully operational.

In the last issue of IndustrySA we took a closer look at the business of GM in South Africa and the great work that the company is doing in local communities including initiatives such as the Lapdesk project and

PAGE 34 DEC 12

the General Motors South Africa Foundation (GMSAF) which is helping children across the nation.

This time around we will take a close look at the business of cars and automotive factors, which is of course the core of the General Motors South Africa (GMSA) business.

Firstly, it would be naĂŻve to talk about any heavy industry without considering the impact of the recent strikes that have been becoming more common throughout the country. Some of the bigger players in the South African motor trade, including Toyota, have reported that the strikes have caused production slowdowns but GMSA are yet to feel the ill effects.

A strike at the Goodyear plant in Uitenhage, a major

GENERAL MOTORS SOUTH AFRICA

part of the GMSA supply chain, meant that the company was forced to monitor the situation but all plants remained productive. The transport strike has seen around 20,000 workers step out of their trucks and if the strike continues the company will look at a contingency plan.

“The transport workers strike has disrupted material supply activities in our vehicle assembly facility,” GMSA said in a statement. “The longer the industrial action continues, the more potential it has to disrupt our operations.”

The strike by delivery drivers has caused problems across all industries and the sooner a conclusion is

reached, the better, especially for large companies who rely on flexible transportation of goods, like GMSA.

TRAILBLAZING A positive for the business has been the introduction of the new Chevrolet vehicle into the SUV market. The market sector has been identified by GMSA as “buoyant” and one with a lot of potential. The company has good experience in this particular sector with the Isuzu KB, discussed in our last issue, proving successful year after year.

The Toyota Fortuner is currently one of the frontrunners in the SUV sector but the new Chevrolet Trailblazer is aiming to take a slice of action, and it has

DEC 12 PAGE 35

COMPANY REPORT

“ This great product will further strengthen our Chevrolet product portfolio offering which has rapidly expanded over the past two years”

arrived armed to the teeth with good looks, gadgets and performance statistics which rival the best.

Although the Trailblazer is hugely popular, particularly in the USA and Canada, it is the first time GMSA has added an off road vehicle to its local model portfolio.

Interestingly enough, South Africa is also the first country in the world, other than Thailand, where it is built, to get the latest Trailblazer.

So what are the details? What makes this car one with real impact in the marketplace?

The five-model, seven seat Trailblazer range offers the choice of a five-speed manual or six-speed automatic transmission, petrol or diesel engines and 4x4 or 4x2 to appeal to casual and serious off road drivers as well as to leisure drivers who want the rugged, hard looks and top towing ability but don’t really have the need for all-wheel

PAGE 36 DEC 12

drive.

It comes in two specification levels ‘LT’ and ‘LTZ’, with varying on-board technology depending on your budget but all models come with power steering, air conditioning, rear ventilation control, electric windows, cruise control, rear window de-fogger, cargo cover, side steps, mud flaps, leather steering wheel with controls, adjustable seats, on-board computer, CD player, MP3 compatibility, Aux input, Mini USB port and Bluetooth.

The list of standards doesn’t end there. It is also kitted out with ABS, EBD, electronic stability control (ESC), panic brake assist (BPA), traction control (TCS), hill start assist (HSA), hill descent control (HDC), trailer sway assist (TSA), limited slip differential (LSD), a host of airbags, front and back fog lamps, manual headlamp levelling, ISOFIX child seat anchorage, a collapsible

GENERAL MOTORS SOUTH AFRICA steering column, side body protection and many more high-tech features.

A five-year service plan and a five-year, 120,000km warranty with roadside assistance are included in the price and prices start from R364,000.

GMSA vehicles are becoming increasingly popular in South Africa and the Trailblazer fits into a previously untapped area in the manufacturer’s local model line-up, the closest other Chevrolet being the Captiva. Chevrolet is the original creator of the SUV with the introduction of the Surburban back in 1935, so the vast knowledge available will be critical in refining this new offering.

Critics have said that perhaps the Trailblazer could have been more competitive in the one area that counts for the most right now – price.

Overall, this new model signals intent from GMSA. The innovative approach to design and a market leading offering mean that the Trailblazer has become something of a trophy for Chevrolet and GMSA. Considering it is entering into a previously unexplored area of the market it shows that the company are not afraid and not deterred when it comes to expansion, even with the difficult distractions going on around the industry.

Chevrolet is now one of GMSA’s top brands and one of the originals, being distributed in the country since 1913. “This great product will further strengthen our Chevrolet product portfolio offering which has rapidly expanded over the past two years. The response from customers has been very favourable with our Chevrolet sales volumes growing by over 50% in 2011 versus 2010,” says Malcolm Gauld, Vice-President of sales and marketing.

SALES REMAIN STEADY We reported last month that GMSA had announced a levelling off of sales for the month of September, something which the company had predicted and planned for. In October, the company’s sales grew slightly but overall remained fairly steady.

With influences on sales and production such as the strikes and the US government elections, it is promising for GMSA that sales are up but not at the same rate as the previous nine months.

“Vehicle sales in October continued to show growth compared to 2011, with stronger than anticipated sales but with continued evidence of a tightening up in

THE BEST TECHNICAL & RESOURCE FACILITIES AT THE BEST PRICE East Cape Wiring (ECW) is focused on the local motor manufacturers in Port Elizabeth and has the technical and resource facilities to fulfil any contract for wiring looms and battery cables at the most competitive price.

ECW has undergone major changes in ownership and management. The company is now black owned and managed, whilst retaining the technical skills that are an integral part of the Company’s success. ECW has now started to engage with many manufacturers in the Motor Vehicle Sector, both in Port Elizabeth, nationally and internationally. Part of the strategic plan for the company is to explore export opportunities.

and to negotiate technical agreements to increase localisation in our market sector.

The company has revised its pricing structure and ERP programmes to ensure efficiencies and maximise margins. We believe that by creating alliances with our strategic partners, we will be in a better position to supply our customers at highly competitive rates and to manage them at a local fast response level.

We believe that the future of ECW is now secure and exciting prospects are envisaged to expand the company to meet the new demand for our product.

As a vital component of the Company’s Strategic Plan, we have identified the requirement to contract joint venture agreements with technical partners

DEC 12 PAGE 37

COMPANY REPORT

“ The Trailblazer had to appear agile and athletic” trading conditions,” says Mr Gauld.

He continues: “A pause in the market was anticipated for the latter part of the year with a soft landing being forecast, and the indication is that this will be realised.”

The Trailblazer will play a big role in helping to grow sales, along with other new models from Chevrolet and the other powerhouse brands under the GMSA umbrella.

Mr Gauld said in a statement: “GMSA continues to grow its presence in the market with an 11.6% market share for the month and two significant new models.

“The Chevrolet Cruze Hatchback experienced its first full month of sales during October, and the much anticipated Chevrolet Trailblazer has just started arriving in our dealer showrooms. The Chevrolet Utility continues in a commanding position as the most popular small pick-up in the market with close to 54% of sales in its sector with 1763 units sold. In the passenger sector the Sonic was ranked as number eight with sales agonisingly short of the 1000 unit mark at 969 units while the locally manufactured Chevrolet Spark rounded out the top ten passenger rankings for the month with 688 sales.”

With the investments being made by the government into infrastructure, and private companies into their own projects, the future looks good for GMSA and the benefits that come from sharing GM’s global design, engineering, purchasing, manufacturing, sales and capital investment resources mean that GMSA has a real advantage in the local market.

With the Trailblazer now in showrooms GM ‘do’ Brasil design director Dagoberto Tribia spoke about the design process. “The Trailblazer had to appear agile and athletic. It had to be powerful, but nimble in an urban environment, but also superbly capable in an off-road rock-climbing role. This had to be backed up by a high level of refinement, comfort and safety for the occupants.”

It looks as though this is exactly what GM and Chevrolet have achieved and the fight with Toyota for market share in the SUV sector can now begin as GMSA look to return to booming sales figures for every month. ●

PAGE 38 DEC 12

GENERAL MOTORS SOUTH AFRICA

DEC 12 PAGE 39

COMPANY REPORT

Engineering strategic growth Editorial - Joe Forshaw Production - Chris Bolderstone

IndustrySA takes a look at the business of BMG, who have recently made two significant acquisitions to help them grow and prosper over the coming years.

South Africa has an extremely strong engineering industry, a leader on the continent and some of the world’s leading companies. You may assume that since the global recession hit in 2008 engineering would be an industry that would suffer but in South Africa, that has not been the case. Yes, some engineering companies have found it difficult but on the whole the industry has continued to drive the economy along with mining, construction and tourism, following the government’s major investments in infrastructure.

Bearing Man Group (BMG) is a South African organisation that has been servicing the engineering industry since 1974. As the name suggests, the original business was very much involved in the sale of bearings but since the first shop opened in Durban 38 years ago the offering has expanded exponentially and now the stores stock a range of the finest, globally recognised brands. The company now has over 100 branches in South Africa alone and also successful operations in Botswana, Namibia, Swaziland, Zambia and Mozambique.

Of course, like any successful business, BMG is not just about products. People play a major part and this is reflected in the vision of the company: To be a powerful force in the engineering industry, providing superior technical solutions to our customers. ‘This will be achieved through our leading brands of quality products and the best technical skills available. We strive to be a focused organisation of people and branches, trained and dedicated to offering our customers brilliant service’.

Without talented people with vast experience, the company would not be able to offer the industry leading services that complement the top-class products. The

PAGE 40 DEC 12

values of the company and the vision and mission make it clear that customer focus is high on the agenda at BMG. One of the main focus areas in the mission statement surrounds service: To provide a 24-hour service throughout the year to satisfy the requirements of continuous process and multi-shift operations.

Because of this service department, the people BMG employ are all experts and the company fosters a strong team concept. The business calls its employees its most important assets and states that everyone will be provided with the skills needed to meet the demands of the market and everyone will be involved in the achievement of the mission statement.

ACQUIRING A BRIGHTER FUTURE Recently, BMG has added to its impressive portfolio of capabilities by making two high-profile acquisitions. In September the company made a strategic investment involving the acquisition of Gasket and Allied Products (GAP), adding more high-quality products to the range and invaluable industry knowledge to the workforce.

General manager of BMG’s seal division, Ken Steel, said: “This strategic investment in a dynamic sector of the engineering business, which is estimated to be worth over R500 million per annum in South Africa, broadens BMG’s product range and extends the company’s service offering “This acquisition will also be strategic to the growth of the existing GAP business; advantageous for product development and will certainly provide greater opportunities for the team. With the backing of BMG, which has an accredited level three BBBEE status, GAP will enhance its BBBEE scorecard.

BEARING MAN GROUP

“BMG’s new specialist gasket division will be headed by Rodney Leigh, who established GAP in KwaZulu-Natal over 12 years ago. This operation is likely to relocate to the BMG engineering hub in Mahogony Ridge, Durban, later this year.”

The gaskets and sheeting currently provided by BMG include the Garlock seals and sealing systems product range, global leader in sheet jointing material.

The Garlock portfolio, exclusive to BMG, contains the Gylon product range of modified PTFE for the world’s processing industries and this will all be enhanced by the GAP range of seals and gaskets.

MAN-DIRK In November BMG made another prestigious acquisition with the purchase of Man-Dirk (Pty) Ltd - the company’s largest acquisition to date. Man-Dirk is an outstanding supplier of maintenance, repair and operating (MRO) tools and equipment to the mining, energy and government industries across Southern

Africa.

The Man-Dirk business involves the sale of an extensive range of hand tools, tool kits, power tools, personal protective equipment, locks and lockouts, lifting equipment, environmental products, measuring and electrical testing equipment, welding and abrasives, cutting and workshop equipment.

BMG CEO, Charles Walters said this about the exciting deal: “BMG has increased its turnover to R2.7 billion in the fiscal year to March 2012, largely as a result of strategic acquisitive growth. We believe the acquisition of Man-Dirk, the largest local acquisition made to date to BMG’s operation, will significantly extend the Group’s service in the tool and equipment sector – a key area of growth for BMG.” George Angelos, CEO and founder of Man-Dirk says: “We have found a company where there is a strategic and cultural fit between both organisations.

Man-Dirk’s product offering, way of doing business and customer base are complementary to both companies.

Apart from new customers and markets that can be leveraged through BMG, Man-Dirk will now roll-out its product offering into the BMG branch network thereby enhancing sales and creating new opportunities for Man-

DEC 12 PAGE 41

COMPANY REPORT

BEARING MAN GROUP

“ This strategic investment in a dynamic sector of the engineering business broadens BMG’s product range and extends the company’s service offering” Dirk and its staff. We are delighted to be part of BMG and are fully committed to advance the strategy and objectives of the group.”

The deal provides great benefits for both parties.

Man-Dirk, who will retain their corporate identity, will have access to the fantastic distribution network of BMG. BMG will enhance their product offering, gain access to new supply chains and also gain a footprint in other countries including Tanzania, Ghana and the Democratic Republic of Congo where Man-Dirk have an existing export customer base.

Man-Dirk is headquartered in Randfontein and has

PAGE 42 DEC 12

21 branches across South Africa and Mozambique. Importantly, eight of these are Vendor Managed Inventory (VMI) sites.

“One of the fundamental strategic decisions taken by BMG to enhance the product offering and services to our customers was the importance of onsite VMI operations,” says Ian King, sales and marketing director for BMG. “Man-Dirk’s strategic locations significantly improve supply chain performance and also have the benefit of reducing a customer’s total cost of ownership, making it a very attractive addition to the substantial BMG offering,” adds Mr King.

THE BMG ACADEMY Launched in 2008, the BMG academy is an institution set up by the company to train staff and customers in a range of industries and provide them with technical skills necessary to manage different product and services.

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COMPANY REPORT The academy will allow experienced members of staff who have been in the industry for years to transfer their knowledge, providing a base for others to learn from.

The academy is helping to create sustainability for BMG, providing scarce, critical skills to the experts of the future. The learning style is focussed on distance and computer-based learning and everything is closely monitored and accounted for.

While many companies have training schemes, the BMG academy is different. It is more unique, it provides the company with an opportunity to market the values and culture of the business. The academy can help to

PAGE 44 DEC 12

BEARING MAN GROUP create a seamless corporate identity and, of course, help to build fantastic employees.

BMG’s commitment to providing the best service and products in a highly competitive industry, has seen the continued expansion of their core divisions - bearings, seals, geared and electric motors, and power transmission. BMG’s belting, fasteners, filtration, hydraulics, and now tooling sectors, continue to show substantial growth potential for the company and with this in mind it is fair to say that nothing but exciting times are on the horizon for everyone at BMG. ●

COMPANY REPORT

SPRAG HABITAT COMPONENTS INDUSTRIES CC

Still clutching the top spot after 20 years One of the companies at the front of the engineering industry in South Africa is Sprag Components. An internationally renowned business, Sprag provides a broad range of one-way freewheel, back stop and cam clutch solutions.

The company has the unique ability to design, manufacture, repair, stock and supply sprag and transmission related products and components, offering a full service from start to finish.

Established in 1991, the company has been supplying all sectors and industries, from automotive to mining, for over two decades.

Sprag Components is the only company in South Africa which specialises in making a wide range of one-way clutches for a vast range of power transmission applications.

A sprag clutch is a one-way freewheel clutch which resembles a roller bearing, but instead of cylindrical rollers, non-revolving asymmetric figure-of-eight sprags are used.

The company has a state of the art engineering workshop and sprag clutches and other products can be produced using the cutting edge technology available, and the knowledge of a

Sprag Components is a leading provider of a comprehensive range of one-way freewheel, back stop and cam clutch solutions. We design, manufacture, repair, stock and supply sprag and transmission related products and components.

Accredited agents for Stieber Clutches Germany

highly-skilled workforce.

In 2008 Sprag Components was awarded the Agency for Stieber Germany, giving the company the ability to offer customers a large range of all standard sprag bearings, freewheels and backstops straight from Stieber Germany.

Stieber has been certified according to DIN EN ISO:9001 since 1997 and according to ISO:14001 (environment management system) since the year 2000.

In 2012 the Sprag Components family business has some of the biggest companies in the country as major clients.

Brands recognised across the world such as Anglo American, BHP Billiton, Sasol and BMG trust Sprag Components highly qualified team of engineers to provide the best products and offer unrivalled technical advice.

Managing director Wayne Swaffield explains how far the company has come. “Since establishing the company in 1991, we’ve specifically specialised purely in one-way solutions and today cover all the OEM brand transmission systems with equivalent products made locally, so much so that some OEMs are no longer importing their one-way components, they simply order from us.” ●

PHYSICAL ADDRESS 57 Eva Road, Fairleads, Benoni POSTAL ADDRESS PO Box 16355, Atlasville, Boksburg 1465 TELEPHONE +27 11 742 9600 / +27 11 965 0394 24 hr Emergency: +27 82 553 0717 (Wayne) FAX +27 11 965 0330 / +27 86 647 4299 EMAIL info@spragcomponents.co.za

www.spragcomponents.co.za

DEC 12 PAGE 45

COMPANY REPORT

The city that

works for you Editorial - Joe Forshaw Production - Chris Bolderstone

The City of Cape Town is currently commissioning many infrastructural upgrade projects that will benefit the area.

IndustrySA takes a look at a few of the most recent projects to get underway.

Cape Town is one of the most unique cities in the world. With a population estimated at around four million, the legislative capital of the country is South Africa’s second largest city after Johannesburg.

It is unique because of its mixture of metropolitan, urban cityscape and its naturally brilliant setting in the harbour of the Cape Floral Kingdom.

Cape Town is such an important part of the economy it is known as the economic hub of the Western Cape and Africa’s third main economic hub city. Home to many different industry sectors, the city plays a major role in the tourism, government and technology industries.

Recently named the most entrepreneurial city in the country, figures show that people are a lot more likely to pursue business opportunities in Cape Town with wages much higher than the national average. The large government presence in the city, both as the capital of the Western Cape and the seat of the National Parliament, has led to increased revenue and growth in industries that serve the government. The city also hosts many conferences, particularly in the recently expanded Cape Town International Convention Centre, which opened in June 2003 and is due for another expansion within the next year. With the highest number of successful Information Technology companies in Africa, Cape Town

PAGE 46 DEC 12

is a hub for IT. Growing at an annual rate of 8.5% and an estimated worth of R77 billion in 2010, the IT industry in Cape Town is becoming increasingly important to the city’s economy.

So how can the city continue to grow and be recognised as one of the most influential cities in Africa and one of the most unique in the world?

There is mass infrastructure development going on across the nation, with plenty happening in Cape Town so the constant upgrade of the city is something which will fuel growth, and it is not only infrastructural upgrades from the government helping to keep the money moving but also investment from private firms and individuals.

WATER UPRGRADES One of the major infrastructural upgrades underway right now is the being led by the city’s Water and Sanitation Department. The project includes upgrades across the whole city to ensure the city’s water supply network is controlled and effective contingency plans are made for emergency’s like burst pipes.

Currently, the city is in the second phase of the water upgrades and work was recently undertaken in Summer Greens, an area identified as one which has a high incidence of water leaks and pipe bursts. The work

CITY OF CAPE TOWN

includes replacement of defective control valves and the installation of additional control valves on the water distribution line.

Any work on these water lines will cause disruption to consumers. From November 13th to December 13th there were times when the water supply was off and when streets were closed because of works on the road but the city sent a water tanker to the affected areas, twice daily, to cater for consumers with further requirements.

This project shows how needed infrastructure upgrades are recognised and organised by the city. All projects are handled with ISO:9001 accreditation and the Department of Water and Sanitation says it is imperative that it maintains its water supply infrastructure to ensure the continued supply of quality drinking water to residents.

The No. 1 Silo will comprise over 18 000m² triple A-grade office space and will form part of the Silo District. This area is named for the original grain silo building, a Heritage landmark at the V&A. The construction of this building is the first stage in the

“ Managing a complex engineering project of this size has been a phenomenal achievement for the development team”

THE SILO BUILDING One of the more unique construction projects in Cape Town right now is that of the No.1 Silo Building at the V&A Waterfront. Upon its completion, the building will be one of Africa’s most advanced intelligent buildings.

development of the Silo District. Cape Town has long been at the forefront of design trends while the V&A Waterfront is considered one of the most sought after addresses in South Africa.

A recent milestone saw the final slab of roofing being laid atop the sixth floor of the structure, officially topping out the building. David Green, CEO of the V&A Waterfront said: “We have done Cape Town and South Africa proud in the construction of this world class sustainable building. The No. 1 Silo building attests

DEC 12 PAGE 47

COMPANY REPORT

to South Africa’s skills in constructing the best on the African continent, and in the world.

“Managing a complex engineering project of this size has been a phenomenal achievement for the development team.”

PELICAN PARK A further development which will have significant impacts on the city of Cape Town will be the 3200 house development at Pelican Park – the city’s largest and first fully integrated housing project.

Launched in October, the project will see more than 2100 state-subsidised houses, 696 single-storey, semidetached houses selling from R290,000, 63 two-storey house shops selling from R288,000, and 359 open market units selling from R480,000.

The state-subsidised houses units will be offered to people on the city’s housing waiting list.

The project will help the province make a dent in its housing waiting list, which Western Cape Premier Helen Zille said was 500,000 strong.

“We are able to look forward to this project providing houses to 3200 families in what will be the first integrated housing project in Cape Town,” said Patricia de Lille, Cape Town Mayor.

Chairman of Power Developments, the company behind the project, said: “I’m proud of what is presented here. I would live here.”

BLUE DOWNS RAIL CORRIDOR This month a significant decision was taken by the council that directly affects infrastructure in the city.

A recommendation to

PAGE 48 DEC 12

CITY OF CAPE TOWN prioritise the development of a new Blue Downs rail corridor, in an effort to make it easier for Cape Town residents to move in and around the city was put forward.

This is part of the city’s broader strategy to create more opportunities and break down longstanding spatial planning barriers through an efficient and well-run public transport network.

The recommendation coincides with the National Treasury’s allocation of more than R120 billion to invest in commuter rail networks operated by Metrorail.

The PRASA and the ITP have identified a number of new rail line extensions and improvements.

“Both these processes have consistently identified the three priority corridors as the Blue Downs, the Atlantis, and the Fisantekraal lines,” says Councillor Brett Herron, Mayoral Committee Member for Transport, Roads and Stormwater. “The City’s investigations concluded that a Blue Down’s rail line would have a direct and substantial impact on the quality of public transport service to more than 50,000 daily commuters.”

The Transport Department’s assessment and studies of the situation conclude and recommend that the Blue Downs Rail link is the most in demand, and will therefore benefit the highest number of people. It will also provide travelling opportunities for latent demand which will unlock many more opportunities to a substantial proportion of Cape Town’s population.

Projects like these show just how much of an emphasis the national and local government are placing on improving infrastructure in Cape Town. All the projects will boost the areas in terms of job creation and system management, something which will be openly welcomed by the whole community. ●

Electrical, Mechanical And General Built Engineering Service Suppliers

PTTP PROJECTS cc is a registered close corporation, registration number CK2005/005324/23. A CIDB registered; SARS compliant; 100% HDI/PDI company, with the following services as its primary business activities: ELECTRICAL SERVICES Installation / Inspection, Testing and Certification / Repair / Maintenance Refurbishment MECHANICAL SERVICES Air Conditioning + Refrigeration ICT NETWORK CABLING + PORTS INSTALLATION AND COMMISSIONING GENERAL BUILDING Brick work / Fencing (Normal, Barbed, Palisade etc) / Arc and Gas Welding work TRADING Mthatha Office: 900 Errol Springs Southernwood, Mthatha, 5099 Cape Town Office: 24A McIntyre Road, Parow, Cape Town, 7500 Postal Address: P.O. Box 9062, Mthatha, 5099 Â Contact Person: Mr. Khayalethu Ntlabati T 021 911 0935 F 021 911 0873 M 083 519 1896 or 083 397 6817 F 0865 428 128 khayalethu@pttpprojects.co.za

www.pttpprojects.co.za

Reg number: 2005/005324/23

COMPANY REPORT

Talking up a bright future Editorial - Joe Forshaw Production - Janis Billington

South Africa’s second-biggest fixed-line phone operator, which is 68.5% owned by Indian firm Tata, is looking to expand its network and make a dent in a market dominated by former state-run utility Telkom SA. The telecommunications industry in South Africa is worth billions. Over the past 30 years, the way we communicate has changed dramatically and this has allowed for mass increases in business for major telecom companies.

The major national provider in South Africa is Telkom but in 2005 a new company, Neotel, was formed. This new entity entered the market over the following years and is now one of the most recognised brands in the country. The telecommunications infrastructure in the country has been identified by President Zuma as something which will assist the economy’s growth, and by 2020 everyone in the country should have easy access to communication when they need it.

Although there are improvements needed to bring accessibility to everyone in the country, in general the industry in South Africa is widely regarded as one of the most efficient in the world. The cellular providers have over 30 million subscribers, business customers are demanding faster connections when it comes to internet services and with the development of the West African Cable System (WACS), linking Southern Africa with Europe, there are many opportunities for businesses operating in the telecommunications industry.

This month we will take a look at the business of Neotel, the country’s second biggest fixed-line phone operator and the first converged communications network operator, with interests in voice, internet and data services. The company provides services for business, wholesale network operators, network

PAGE 50 DEC 12

providers and consumers.

There are a few different key partners in the Neotel business, all contributing to the goal – to become the preferred provider of leading-edge telecom solutions.

The Tata Group, an Indian company with business interests across the world, is a strategic equity partner in the company; Nexus Connexion is the company’s black economic empowerment equity partner and Communitel, a major stakeholder, brings additional experience through its various shareholders, including Telecom Namibia.

Connections with these companies allows Neotel to leverage a vast range of expertise. The Tata Group’s global network offers Neotel access to international best practices and a better understanding of customer expectations.

EXPANSION AND GROWTH Since its inception Neotel has seen exponential growth and managing director and CEO, Sunil Joshi, said recently that a continuing push to drive that growth in the future is something very much at the top of the list of priorities.

“Neotel will continue to focus on our five key priorities to ensure our growth trajectory continues. By improving the customer experience, growing revenue and market share, staying focused on our people, and bringing disruptive products to the South African market, we aim to provide innovative and world class communication solutions to our business and home customers,” said Mr Joshi.

NEOTEL

“ Neotel continues to make significant progress in growing our revenue while improving the margins in our business”

The company has seen significant growth in revenues, and in consumer and business subscriptions. In some areas growth of double the industry’s rate has been achieved. Neotel’s products such as NeoOne, an innovative, converged data and voice solution for business, have been making a noticeable impact in the market. It is reported that these products have accounted for the addition of 30,000 consumer clients and 2400 enterprise customers in the half year to September.

“Neotel continues to make significant progress in growing our revenue while improving the margins in our business. We continue to focus on increased asset utilisation and improved productivity, with EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) improving each quarter since it turned positive in the second quarter of the financial year, 2012. Our business customers have grown 18% and our consumer customers have grown 30% in the past six months of this financial year, and we have also seen growth in our key product portfolios across all major

categories,” says Mr Joshi.

He adds: “Increasing demand for our converged services means that Neotel is being acknowledged as a leader in IP and converged services in South Africa and the SADC (Southern African Development Community) region.”

Mr Joshi also spoke recently about the company’s expenditure, making it clear what the priorities are for the R500 million capital expenditure budget. The budget, said Mr Joshi, would be split between IT automation (20%) and network capabilities (80%). He

DEC 12 PAGE 51

COMPANY REPORT

NEOTEL

“ Increasing demand for our converged services means that Neotel is being acknowledged as a leader in IP and converged services in South Africa” said that around 60% has already been spent but a significant amount had been reserved for expanding the fibre network.

future of telecommunications in South Africa.”

Taking this award into consideration along with the announcements about continued growth, analysts across the country are highlighting BEST EMPLOYER 2012/13 Neotel as a real force, a business that will take a bigger Another highlight for Neotel this year is the award and bigger share of the communications market. from the CRF Institute as one of South Africa’s best Because this is such an important market in any employers. The CRF Institute is a specialist firm that economy it is extremely impressive that Neotel has produces the highly anticipated European, Asian and managed to do so well in a relatively short period of African Top Employer Indices each year. Participating time. organisations are assessed against the following criteria: In the six years of its existence, Neotel has battled Primary and secondary benefits and working conditions, start-up costs, a strategy failure and tough competition. training and development, career development, and Two years ago, Deloitte and Touche, the auditors for culture management.

Neotel, raised serious doubts about the company’s The institute said they were particularly impressed ability to continue as a growing concern. At the time, with the outstanding working conditions and employee Tata, Neotel’s parent company affirmed its support for offerings at Neotel. The company’s passion for people, its South African subsidiary and January 2011 saw the drive towards innovation and global reach in terms of appointment of Mr Joshi with the goal of turning the its service provision impressed researchers who said, company around.

“The Neotel culture fosters innovation and creativity.

The strength of product innovation, a strong sales Employees are expected to take team and competitive pricing strategies have all initiative, and be proactive and contributed to the up-turn in business and the fibre committed to finding better ways optic service in metropolitan areas is something which to conduct business. Neotel’s will go a long way towards affirming Neotel’s status as a unique offering is tailor made true alternative to Telkom. to meet the compelling needs Many business analysts have stated a quicker way of its clients and customers. for Neotel to gain market share could be to consider Individuals who enjoy a consolidation. Many company names have been bandied challenge and are inspired around while the talk of mergers remains more by possibilities rumour than anything but cellular network will thrive provider Cell C have been mentioned by Sunil Joshi in Neotel’s many business feeds as an organisation that fast-paced would offer mass benefits to Neotel. environment The most important person however, and Mr Joshi, dismissed all talk of appreciate acquisitions and mergers for the time the fact that being, stating that the they are able primary focus in the short term to play a role would be improving in shaping the the company’s financials. ●

PAGE 52 DEC 12

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COMPANY REPORT

Coega

still looking for potential investors Editorial - Joe Forshaw Production – Hal Hutchison

The Coega IDZ pulled in R4.1 billion in investments in the financial year 2011/12. Continuing to attract these types of major investment is the goal for the CDC as we move into the future.

Situated close to Port Elizabeth in the Eastern Cape, adjacent to the Port of Ngqura you will find the Coega Industrial Development Zone (IDZ). As the government pushes for economic growth, especially following the global economic slowdown, investments attracted to the country from projects like this are essential and provide huge benefits.

The IDZ is an area of land (around 110km²) located in the Nelson Mandela Metropolitan Municipality.

It is a multibillion-dollar industrial development complex customized for heavy, medium and light industries. Managed by the Coega Development Corporation (CDC), the IDZ offers fantastic investment opportunities for global exporting companies and businesses in the manufacturing industry and has, to date, signed investments worth approximately R30 billion. There are currently further deals in the pipeline

PAGE 54 DEC 12

reported to be worth around R140 billion, to be spread over the next five years. These include an oil refinery, a combined-cycle gas turbine power station, a business process outsourcing park, automotive plants, and various other investments in the logistics, chemicals, and foodprocessing industries.

The CDC was formed in 1999 to develop and operate the IDZ, it is a state owned organisation which also helps to attract investors from across the world. Throughout its existence the CDC has expanded its service offering, now providing management services to the Nelson Mandela Bay Logistics Park (NMBLP).

Like the Port of Ngqura, the NMBLP is located on the IDZ and provides infrastructure and services to the automotive manufacturing industry. It is becoming a very attractive location for heavy industries, mainly automotive, because it can help manufacturers to reduce automotive manufacturing costs and improves suppliers’

COEGA INDUSTRIAL DEVELOPMENT ZONE

competitiveness. Investors from the automotive industry in the NMBLP will receive advantages including: Globally competitive prices and services, environmental sustainability, purpose-built facilities, ICT-enablement and services and shared logistical services. There is, of course, also access to the Deepwater Port which provides a vital conduit to international markets.

The port showed its potential in July when the largest container vessel to ever visit a South African port docked successfully. The 132,000 ton, 364m MSC Sola was steered into the harbour and docked at the container terminal by marine pilot Xoliswa Bekiswa. The terminal can handle ships at a maximum size of 397m so this was a real test of the capabilities.

Acting port manager, Rajesh Dana, said: “I believe this is a true translation of the potential of this port and its world-class infrastructure.”

The ship discharged 1872 containers and loaded 3536,

making this (at 5408 containers) the largest load to be handled by a vessel at the terminal.

Ayanda Vilakazi is the head of marketing and communications for the CDC and he recently took the time to speak to IndustrySA about what makes the IDZ a success and their plans for the future.

“We have some great projects underway and about to get underway, a lot of these projects are in the renewable energy sector. We also have automotive and agroprocessing projects worth R15 billion currently being rolled out.

“The deal with FAW (First Auto Works) was finalised this year and is worth R600 million. They will start to build the plant in January 2013. AGNI Steel has made a R400 million investment and they have almost finished building the plant, operations will start in early 2013.”

These big names are not the only well recognised businesses to strategically locate themselves on the

DEC 12 PAGE 55

COMPANY REPORT

Coega IDZ. Automotive heavyweights General Motors and Benteler International already have operational activities and in the future there are more investors to come as Mr Vilakazi explains: “We’ve signed a deal with Afrisam, an investment worth over R600 million.

We’ve signed a deal with Famous Brands, a R50 million investment and we’ve signed something with APM Terminals, another R40 million investment. These are projects being implemented right now. Between now and next year we are looking at projects worth another R7 billion.”

It is not only businesses that will benefit from the development of the IDZ. There are a host of other organisations located in the zone from schools to the deepwater Port of Ngqura, operated by Transnet National Ports Terminals, which provides a huge benefit to exporting companies located in the zone.

Corporate Social Investment (CSI) is also important for the CDC and the IDZ. By contributing to the development of communities in which it operates, the CDC creates future consumers and potential employees.

While it places great importance on improving profitably, the CDC also states that it respects the maxim that profits are not the only consideration in business.

In a CSI push, the CDC partnered with the Provincial

PAGE 56 DEC 12

Department of Education and Department of Sport, Recreation, Arts and Culture in 2008 to sponsor an annual schools soccer tournament and this year the winners, Nkululeko High School, claimed R18,000 in prize money.

The tournament was part of the CDC’s corporate social investment programme and highlighted the role sport can play in a young person’s overall development as well as offering talented football players a chance to play in a competitive soccer tournament.

A TRIED AND TESTED CONCEPT The concept of an industrial development zone is not something new. There are many around the world and many in South Africa. They are excellent drivers of investment and job creation and we have seen this in the IDZ’s of China. We are beginning to see this from the Coega IDZ. Chief executive of the CDC, Pepi Silinga, spoke recently about how far the organisation has come.

“Starting with self-generated revenue of less than R10 million in 2004, last year the CDC generated just over R220 million, which represents about 70% of the grant funding received from government and is a major achievement in the light of South Africa’s continuing power crisis and the on-going global economic turmoil.”

COEGA INDUSTRIAL DEVELOPMENT ZONE The zone only started attracting investors in 2007 and it has been the hope of everyone at the CDC and many within the government that now, with over 20 operating investors, the zone will come closer to achieving its vision – to be the leading catalyst for socio-economic growth.

Mr Vilakazi is confident of this and talks of the success seen with other IDZ’s in the country, “The IDZ concept is not unique. All countries, both developed and developing have successful IDZ’s. In China the idea of an IDZ is very well established. Locally, we have other IDZ’s around the country, in East London, in Richards Bay, even the OR Tambo Airport is built in an IDZ.” The contribution of the IDZ’s and the positive impact that they have had on the economy has inspired a change in legislation to allow private companies to start Special Economic Zones (SEZ). Similar to IDZ’s, SEZ’s will be able to take advantage of incentives and attract investors from further afield. Currently, only government initiated organisations can operate an IDZ but the new legislation will allow private companies to reap the rewards as well.

This will result in multiple IDZ’s and SEZ’s operating together and attracting mass investment and economic

growth in the country.

The Coega IDZ currently offers tax incentives, rebates and is duty-free, as well as offering global competitiveness through world-class infrastructure.

MOVING INTO THE FUTURE Of course, the target for the CDC and the Coega IDZ is growth. The organisation has grown in size and value and continuing this growth is vital.

“The IDZ is 11,500 hectares of land which has been developed since the late 90s. It takes a long time to make what was just a green field into an area which is ready for investors. We had our first investor in 2007 and up until then we probably had less 100 employees just preparing the area, mainly architects, developers and engineers.

From 2007 until now, we have around 250. We are now servicing investors and handling promotions to attract more people to the IDZ so we have professionals in finance, administration and project management,” says Mr Vilakazi.

He goes on to say: “Our mandate is socio-economic development. We need to make sure we provide the necessary training to the people of the Eastern Cape

‘Phiri Ndaleka Consultants are proud to be associated with the Coega Industrial Development Zone’

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Nelspruit Office 68 Kelkiewyn Street Nelspruit 1200 T 083 390 8656 E nomfundo@phirindaleka.co.za Durban Office 709 Nkomo Road Chesterville, Durban 4001 T 082 297 8475 E sandile@phirindaleka.co.za

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COMPANY REPORT

COEGA INDUSTRIAL DEVELOPMENT ZONE

“ The IDZ concept is not unique. All countries, both developed and developing have successful IDZ’s”

and also provide opportunities for SME’s and small businesses to benefit from the IDZ. The Eastern Cape is predominantly rural and a lot of people migrate to the bigger cities. The development of the IDZ will mean that citizens will not have to leave for other provinces and an important part of this is to attract the investment that will bring jobs, which will in turn provide skills required for industry.

“Because of this we will continuously and aggressively look for potential investors.”

Whatever happens over the next 12 months, with new

PAGE 58 DEC 12

projects being set up all the time, the Coega IDZ and the CDC have a lot to be proud of. It is reported that nearly 9000 new jobs were created in the fiscal year 2011/12 and the CDC had also stimulated growth for small businesses in the Eastern Cape, which have benefited from a 31% overall share of the company’s procurement.

There is also encouragement from President Zuma who said in 2011 that the project would see the continued support of the government because of the role the IDZ has played in providing a competitive future for the immediate area and the Eastern Cape. ●

Mdabuka Contractors.

Building confidence!

Construction specialists working with the COEGA IDZ on the KZN School Building Programme.

Mdabuka Contractors are an end to end, full service construction company, capable of delivering high quality construction services to either private or public sector organisations.

We are proud to be involved in the COEGA IDZ and wish to express our thanks to the CDC in their efforts to bring Industry to the Nelson Mandela Metropolitan Municipality.

So if you need dedicated, skilled and honest construction services call Mdabuka Contractors.

We are building confidence!

Contact Mr Sphelele Mhlaba P.O. Box 24 Mtubatuba SA 3935 +27 83 51 64572 sphelelemhlaba@yahoo.com

COMPANY REPORT

Mining for the Gold Standard Editorial -Tim Hands Production - Leslie Kemp

The vast Witwatersrand Basin has long been known as one of the most fertile gold mining areas in the world. Wits Gold has taken on the task of mining this location as expertly and effectively as possible, with a view to creating a sustainable set of projects to take it into the future of gold extraction The Witwatersrand Basin is, in the purest sense of the word, an awesome prospect. Home to the largest known gold reserves the world over, it has brought to light almost half the gold mined in history, some 1.5 billion ounces. Being such a highly-sought, finite resource, such extensive extraction has seen the exhaustion of many of the oldest mines in the 300km long Basin, found in the Gauteng province. In testament to the sheer scale of its contribution, the mining taking place to depths of down to 4000km still allows the ‘white water ridge’ to remain a major contributor within global gold production, and responsible for the majority of South Africa’s gold output.

Billed as a relatively new entrant to the mining sector, Wits Gold has nevertheless succeeded in the years following its formation in 2003 in building a unique, expansive geological understanding of the vast Wits Basin.

Specialising in the exploration of gold and uranium, and bringing along with it a comprehensive knowledge of what could be viewed an intimidatingly colossal mining area, Wits Gold is now in the enviable position of having acquired and developed a number of assets deemed highly valuable. This relatively nascent company has also shown great nous in preparing for future developments; its resources are both located strategically and designed to deliver value in both the immediate and longer terms.

It has been the expert management and development of the assets at Wits Gold’s disposal that has led to its maturation from explorer to an emergent gold producer, with its focus now clear: to turn these projects into profitable, viable operations within its self-imposed five year window. Its list of assets reads most impressively;

PAGE 60 DEC 12

with 14 New Order Prospecting Rights spread over an area of nearly 2000km in the various gold-fields of the Witwatersrand Basin, commonly known as the world’s best gold province, The Company has the current focus of fasttracking development at the De Bron Merriespruit (DBM) and Bloemhoek projects, neighbouring locations in the southern Free State gold-field.

An acquisition from the Harmony Group in the final weeks of 2010,The DBM Project area spans a 22km² stretch and is the site of the development of some four gold bearing conglomerates, with their relatively shallow depths of between 480m and 1250m below surface allowing for their effective extraction. Dubbed ‘South Africa’s next shallow gold mine’, over the projected 18 year life of the mine its production is estimated at an average annual toll of 200,000oz, reaping its first rewards just 47 months after the initial shaft sinking. Bordering this and targeting specifically the Beatrix and Kalkoenkrans reefs, the Bloemhoek Project goes even deeper, scouring depths as low as 2,400m below ground in pursuit of that most fervently sought of commodities. Bloemhoek is estimated to endure even longer than its shallower counterpart, with the 23 year lifespan, projected to begin in six years’ time to produce an average figure of 224,000 ounces per year.

For a company so evidently committed to, in its own words, ‘delivering long term value to all of its stakeholders’, the question of sustainability and the ability of Wits Gold to continue to provide such a comprehensive service throughout the years to come, remains at the forefront of its operations. This seemingly comprises two main arms; sustainability of the workplace and that

WITS GOLD

DEC 12 PAGE 61

COMPANY REPORT of the environment. Aware of the skills shortage at risk of seriously undermining the long term sustainability of South African mining, Wits Gold has responded by implementing training and development principles and initiatives to address this challenge and optimise the performance and skill levels of its employees, with the overall aim of ensuring the future profitability of the industry as a whole. These take the form of vital financial assistance, various forms of employee training courses and, underlining its focus on providing for future generations of gold exploration, opportunities for young students to work on discipline-specific projects.

As with all industries concerned with the extraction of a natural resource, Wits Gold has a fundamental responsibility to ensure the responsible consumption and management of the assets at its disposal, with its environmental policy encompassing those areas most likely to be of concern to the casual observer. A commodity so often glossed over as being so easily maintained, water management is in fact absolutely crucial to all facets of the surrounding areas, hence Wits Gold’s commitment to impacting the resource the least amount possible while conducting its operations. Similarly pivotal is the question of waste management, with a policy of re-use and removal even extending to the increasingly rare boast that none of the waste generated is buried underground, or concealed within the boreholes. Clearly conscious, then, of the impact its work could have on what is an area mainly comprising agricultural land, protected habitats are afforded a wide berth from the colossal drilling sites,

PAGE 62 DEC 12

WITS GOLD minimising any impact that could otherwise be had on the sustainable ecology of an area.

To the future then, on which Wits Gold’s focus is firmly planted, as much so as it is on the explorations of the present. With such a clear sustainability framework in place the unique and extensive geographical and practical knowledge behind the company can only lead forward, to further explorations and more advanced developments.

August of this year saw the Wits Gold’s DBM project reaching its final stage, a mine already deemed both technically and financially viable.

The excitement Wits Gold CEO Philip Kotze describes in speaking of the “construction of South Africa’s next shallow gold mine” is a nod to the passion held by this, relatively speaking, burgeoning company; a glimpse of the scale of what can be achieved through this combination of geographical, technological and operational expertise. The company’s chairman Adam Fleming is unequivocal in his stance surrounding the investment in the Witwatersrand Basin, predicting a vast increase in the investments made by fellow companies in the area in order to profit yet further from its rich offerings. Despite having supported a boom in the gold industry that has lasted over a century, and seen with it along the way the exhaustion of many of its mines, the continually improving technology in the industry is combining to allow it to remain one of the world’s leading gold mining locations, with Wits Gold perfectly placed to reap the resources its expertise allows it to locate and uncover. ●

Talk to Royal HaskoningDHV mining & process industry professionals n

Infrastructure Engineering

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Independent Engineer

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Andrew Pooley, General Manager T: +27 11 476 2279 M: +27 82 373 0796 E: jim.pooley@rhdhv.com

www.royalhaskoni

Talk to Royal HaskoningDHV mining & process industry professionals n

Infrastructure Engineering

n

Independent Engineer

n

Mining & Metallurgical Engineering

n

Reviews

n

Feasibility Studies

n

Operational Improvement Initiatives

n

Water Supply & Treatment

n

Environmental and Social Impact Assessments

Andrew Pooley, General Manager T: +27 11 476 2279 M: +27 82 373 0796 E: jim.pooley@rhdhv.com

www.royalhaskoningdhv.com/mining

COMPANY REPORT

Quality Vitaceae from the Viljoen family Editorial – Joe Forshaw Production – Lauren Grey

With over 550ha of land and over 3000 employees in peak seasons, the A.S. Viljoen Boerdery table grape business is one of great importance to the agricultural industry in South Africa. We speak to Gabriel Viljoen, fourth generation owner, about their success so far.

This month our agricultural feature comes from one of the more picturesque settings in the country and has a rather unique story of business excellence and quality family values. A.S. Viljoen Boerdery is one of South Africa’s industry leaders when it comes to the production and sale of table grapes.

The Viljoen family has been farming grapes in the Hex River Valley, Western Cape for generations and exported the first grapes from the area in 1896. Since then the company has grown but remains under Viljoen family ownership. In 1995 a major step was taken to open a grape farming unit in the Northern Cape when Anton Viljoen bought Raaswater on the Southern Bank of the Orange River at Louisvale, 20km west of Upington, near the border with Namibia. The unit is run by Anton’s son Gabriel and he recently spoke to IndustrySA about the business and what makes it such a success.

“We are a family run business and we started down in the Western Cape, in De Doorns. My father (Anton Snr) and

PAGE 64 DEC 12

brother (Anton Jnr) are still based there, in the Hex River Valley. I am part of the fourth generation farming now and our main focus has always been table grapes for export. 95% of our product is exported and 5% goes to the local market.

We export 40% to the UK, 40% to the EU, 10% to the Middle East and 10% to the Far East.”

A WIDE VARIETY With Gabriel running the business in the North, and having been involved in the business all of his life it is easy for him to understand the differences between the two locations.

Unfortunately for him, it is his area that sees much less flexibility when it comes to packing the grapes.

“When we bought the unit in the Northern Cape it was always the idea that I would move up and run the business up here. It is similar to our operations in the Western Cape but up here we only have a window of six weeks to pack the grapes compared to the three months that they have down in the Hex River Valley.

A.S. VILJOEN BOERDERY

Gabriel & Anton (Senior ) Viljoen

“This is because of the different varieties,” says Gabriel.

“We have more seedless varieties in the Northern Cape compared to the Western Cape.”

The company produces seedless and seeded varieties of white, red and black grapes and have gained a reputation over the years for supplying nothing but high quality products.

“We are expanding from the Western Cape to the Northern Cape and our brand can supply fresh product to the world for six months of the year,” says Gabriel.

The business is now physically a very large operation and spans many hectares (ha), so much so that before purchasing some of the farming areas Gabriel’s father had to hire a plane to see the lie of the land from the air, for a clearer overall picture of the sites.

“In the Western Cape we have eight units totalling 275ha,” says Gabriel. “I have six divisions in the Northern Cape with a total of 280ha planted with table grapes.”

Obviously to farm such a vast area you need a large

workforce and Gabriel calls his employees “the most important factor within the business”.

The industry is very labour intensive and because of this, as the company grows, they are continually creating more jobs and providing opportunities for local communities. The job creation is obviously good for the economy but on a more specific level the company has an impact on the lives of its employees by providing on-going training programmes and benefits including aids awareness training, child care centre and management training.

“We have a very big labour force behind us. In the Northern Cape we have 1350 people and up to 1500 in peak times and in the Western Cape we have 1000 people and up to 1800 in peak times,” says Gabriel.

FAMILY AT THE CORE Even with the immense workforce employed by Viljoen Boerdery, the core of the staff remains Viljoen family. The business was founded by Gabriel’s great grandfather and his

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COMPANY REPORT

values and the commitment of the family remains as strong as ever.

“There was obviously my great grandfather and my grandfather, then there was my father who is still involved, myself and my brother, and now also my wife and my brother’s wife. I am part of the fourth generation and hopefully I will be able to carry on the legacy with my children as well. I have a young daughter and another baby on the way and it is definitely an ambition for me to have the children involved in the future,” says Gabriel.

Gabriel says himself that farming table grapes is his passion and a major reason for this is the working environment, one of natural beauty and unspoiled veld.

“I have a unit in Onseepkans, near the Orange River and it is a great environment to work in. In the Western Cape too, in the Hex River Valley it’s beautiful, long valleys with

PAGE 66 DEC 12

mountains on both sides.

“We have a game farm near the river as well. When international buyers come out I will take them for a game drive on the farm after meetings. For a lot of our buyers this will be the first time that they will have seen a springbok live, in its normal habitat.”

A FRUITFUL FUTURE The future looks bright for Viljoen Boerdery, there are always new opportunities within the food and retail industries and the company already has a strong relationship with its international clients.

As they move forward growth is the main target as Gabriel explains: “We are trying to grow each year by 5-10% and improve on quality. We try and send out the best quality possible. If you send out a poor product you will get pricing

A.S. VILJOEN BOERDERY

issues for not meeting standards.

“Our expansion will be in terms of actual size.

I’m planting more hectares each year on my farm in Raaswater. I have spare land and enough water so we will expand there.”

To date, the expansion of the Viljoen Boerdery business has seen no real problems but there are challenges when it comes to continued growth. Firstly, like any business in the agricultural industry, weather can cause problems.

“We have our ups and downs, especially the weather.

The weather is the biggest factor. In the packing season if you have rain the quality can be affected,” says Gabriel.

The second, and most current issue surrounds labour.

With such a large labour force this is something that could have a major impact on business. It has been widely reported that farmers in the Western Cape have become involved with labour disputes over wages and Gabriel says effective management of the labour force is vital.

“Managing the labour is a huge factor but also keeping an eye on the market shares is important. The market is only willing to pay a certain price and our input costs

rise by 20-30% each year so we have to manage the costs constantly at all times as well.

“The SATI (South African Table Grape Industry) controls the export of grapes from South Africa,” says Gabriel. “They are sitting at tables discussing viable solutions to the labour problems and trying to get the government involved which is helpful.”

The sooner the labour disputes are resolved the better for Viljoen Boerdery. With super brands in the UK including ‘the big five’, Tesco, Asda, Waitrose, Sainsbury’s and Marks and Spencer as customers, the smooth running of the business, with no slowdowns in harvest, is essential.

The successful business that the Viljoen family have farmed out of the Western and Northern Capes is a great example of how a sustainable organisation should be managed. With the passion of the employees and the management continuing to grow, the future will hold exciting times for Viljoen Boerdery.

“I grew up on the vineyard so that is my passion and my love. It’s wonderful to plant a vine in the ground and two to three years later to pick product from that tree,” says Gabriel proudly. ●

DEC 12 PAGE 67

COMPANY REPORT

Top African employers Editorial – Christian Jordan Production – Chris Bolderstone

G4S is one of the largest companies in the world. With the growing demand for private security services, the company continues to expand its portfolio successfully in South Africa.

In South Africa private security is big business. It is, in fact, one of the largest industry sectors in any market with government reports showing that last year there was more than 8000 privately owned security firms in the country, employing more than 1.5 million officers.

It is for good reason that this is such an attractive market segment. There are major corporations operating throughout the continent that are spending fortunes on securing their activities. With companies including the likes of Shell and Chevron, and governments, namely South Sudan, looking to secure their oil investments, there is a lot of people looking to private security firms for effective service.

One of the major reasons that the industry is flourishing in South Africa and across the continent is the large number of natural resource projects that continue to emerge. International organisations invest vast amounts of money in these projects and vast numbers of companies are

PAGE 70 DEC 12

lining up bids to protect these significant investments.

Statistics may suggest that we live in peaceful and stable times but many people would say that that is far from the truth. With the global economic downturn gripping many nations and the harsh reality of civil unrest, the role of security firms has become more prominent, and as the world’s commercial attention gradually turns to Africa with its thriving raw materials markets, their contracts have become larger and more valued.

The largest security firm in the world is G4S. It is the largest provider of integrated security solutions in South Africa and of its 657,000 employees worldwide, more than 13,000 work in SA. People are obviously a major part of the G4S operation. The organisation can handle almost any security requirement that arises, with a current portfolio offering services that include: Care and justice services, cash management solutions, event security, journey management, manned security services, mine security,

G4S SOUTH AFRICA

It is significant to note that G4S is the only private security company in Africa that has ever been awarded a Top Employer certification

secure systems technology and risk management and consultancy.

BEST EMPLOYERS In August G4S South Africa was named as one of the Best Employers in the country and one of the Top Giant Employers (over 10,000 employees) on the continent.

The accolade was given by the CRF Institute, an organisation based in the UK who use international standards to identify industry leaders when it comes to HR management.

Each year the CRF Institute produce highly anticipated European, Asian and African Top Employer Indices. The company was founded in 1991 and since then it has had more than 2500 companies participate in its projects. This year only 74 South African companies were selected as Best Employers with G4S being recognised as a company with outstanding working conditions. The CRF Institute commended the company for being a values-driven

organisation with a strict adherence to industry standards.

The assessment in South Africa was based on the following criteria: Primary and secondary employee benefits, working conditions, training and development, career development and culture management.

Separate research, based on the same principles, was conducted across the rest of Africa and the CRF Institute recognised G4S as a Top Employer in eight other countries, namely: Botswana, Cameroon, Cote d’Ivoire, DRC, Kenya, Malawi, Mozambique and Zambia.

Elanie Kruger, regional human resources director for G4S Africa said: “As Africa’s largest employer, we focus closely on providing people with the tools they need to grow in their jobs and enjoy what they do. We create a space for them to deliver value for their co-workers, clients, and the company.

“We see every staff member as an ambassador for our brand and as a cornerstone to our success. It is only by attracting and developing the highest calibre of people

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COMPANY REPORT

that we will meet our ambitious targets for growth in Africa. It is significant to note that G4S is the only private security company in Africa that has ever been awarded a Top Employer certification which is a tremendous achievement, particularly as we have been awarded nine certifications in total.�

EDUCATING AT MANGAUNG In 2000 G4S was given a 25 year contract to manage the Mangaung Correctional Centre in Free State. It is the second largest private prison in the world and after its opening in 2001; the centre ensures that even though facilities are extensive and provide a range of opportunities

PAGE 72 DEC 12

for the nearly 3000 prisoners to learn and develop new skills, security is tight and controlled at all times.

In September, the Mangaung Centre hosted an annual certification ceremony where the Regional Commissioner of Correctional Services for the Free State, Me Moodley, handed out certificates to over 350 prisoners who have completed a range of educational or vocational courses.

The centre has a large adult learning education centre called Liberty, which ranks as one of the best educational institutions in the country. In the past three years the centre has seen pass rates of over 90% and teaching staff winning provincial awards for being top educators.

206 prisoners who spend 40 hours each week on a

G4S SOUTH AFRICA broad range of activities received awards for completing Mother Tongue, ABET levels one to four and Grade 12. Also, 150 prisoners received awards for completing courses in vocational skills development.

Johan Theron, Managing Director of Manguang Correctional Centre, said: “This is always a proud day for me and the education team as we watch members of our community being awarded for their hard work and commitment. We have a clear focus on giving prisoners the best opportunity to gain the right skills in order to enhance their chances of employment upon their release. These award ceremonies are a great example of that approach in action.”

It is projects like this that go a long way towards G4S being recognised as a great employer and the industry leader when it comes to security. The size of the company and its ability to go beyond the requirements of the customer mean that G4S will be able to cope with the biggest, and smallest, of problems. The company can also call on expertise from its international partners.

Considering it is the second largest private sector employer in the world there are a lot of partners and this bears testament to how far the company has come and the demand that continues to grow for strong private security solutions. ●

A brief history of G4S: 901 - Marius Hogrefe forms Kjøbenhavn 1 Frederiksberg Nattevagt, a manned security company in Scandinavia 1935 – UK cabinet minister forms Night Watch Services (later Night Guards), a small company made up of four bicycle riding officers 1950 – Securitas International formed by Danish Philip-Sorenson family 1951 – Night Watch Services renamed Securicor 1968 – UK division of Securitas International renamed Group 4 1981 – Group 4 splits from Securitas International 2000 – Group 4 merges with Falck, originally a Danish company, to form Group 4 Falck 2004 – Securicor merges with Group 4 Falck to form Group 4 Securicor 2007 – Group 4 Securicor enters the FTSE 100 and is officially recognised as G4S 2009 – All Group 4 Securicor branding dropped in favour of the new brand name, G4S.

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COMPANY REPORT

CGF - Bringing global business together Editorial – Tim Hands Production – Hal Hutchison

So often overlooked by even the largest organisation, the concept of Corporate Governance is one of the most crucial facets in a truly successful, sustainable company. Since 2004, instilling and developing these principles that unite not only individuals within a business, but global enterprise as a whole, has been CGF Research Institute’s primary focus.

Long esteemed as one of the most crucial systems surrounding the functioning of modern organisations, the importance of corporate governance runs through every conceivable major facet of a successful company. In the broadest sense, it is a system that governs regulatory and market mechanisms, and the roles and relationships between a company’s management, its board, its shareholders and other stakeholders, and the goals for which the corporation is governed. CGF (Corporate Governance Framework) Research Institute (Pty) Ltd is entirely cognisant of just how crucial such sound corporate governance principles and high ethical values have proven to be in the constructing of a sustainable enterprise, viewing the concept as one which transcends the boundaries of any individual profession, process, horizon or hierarchy and vital to organisations of all sizes throughout South Africa.

Established in 2004 in South Africa, the central aim of CGF is described by its company CEO, Terry Booysen, as the desire to, “assist any type of business large small or medium, including government and non-profit organisations -- essentially at the executive or C-suite level -- to understand the various nuances attached to what we term ‘good corporate governance’.” To the uninformed, this concept of good governance may only extend to simply complying with those stringent codes of practice in evidence throughout global business: “Through having an uniformed board, an organisation will simply believe that governance is nothing more

PAGE 76 DEC 12

than following rules and regulations, or separating the duties of some of its executives and calling for more independence, or not taking as much salary and profits from the coffers of the organisation,” delineates Mr Booysen.

“That’s pretty much where an uninformed board may position itself in terms of saying that it is ‘wellgoverned’,” he explains, and this is where CGF is required to perform some of its most vital, educative work: “Companies will collapse through poor governance, and thus we feel that more than the C-suite needs to be involved, such where the topic is more widely applied and understood.”

Evidently, then, a company cannot be expected to survive without a firm understanding of what sound governance actually entails, and Mr Booysen makes clear how its principles run so much deeper than may have been traditionally thought. It is still true that the topic must focus on the obeying of the relevant laws, and applying recommended governance codes such as King III, but for the modern day company, sound governance is altogether more all-encompassing: “Clearly, good governance is really about the discipline of the business.

It can’t be that the discipline is only practised at the level of the board. At best, the discipline of the organisation must be infused at all levels. This must be passed down, from the very top of the organisation to the very lowest levels of its operations,” says Mr Booysen.

Constructing a universal discipline within an organisation - an ease of implementation and the sense

CGF RESEARCH INSTITUTE

that the principles can be passed easily throughout the various levels of the business, ensuring that everyone involved is reading from the same page – may be a daunting prospect for a newcomer.

This concept of ‘infusion’ is central to the various successes of CGF’s work, and instilling these disciplines within an organisation allows for the tackling of major global questions. To underline the extent of the sheer influence that can be had by the instilling of sound governance, Mr Booysen uses a universally prevailing question in modern business ethics: “The topic now goes well beyond the issues contained within many of the recommended governance codes found across the world; now we must consider the implications of global warming, integrated reporting, Terry Booysen CEO corporate greed

and corruption as just a few critical examples.” As such, according to CGF, the board and the instruction coming from within is no longer the only entity within the company who are responsible for good governance.

Through the infusion of good governance, all the subjects of the organisation share the responsibility to ensure that their joint and individual actions and behaviour are aligned to the organisation’s ethical values, policies and accepted business practices.

“It must also be extended to the clerk within the organisation who also understands the importance of good governance and what it means in practical terms at their level. Every person needs to understand why sound governance is so critical to an organisation, and ultimately to the ‘ecology’ of a business environment.”

These clear principles that CGF works to instil go on to reap huge benefits for individuals within an organisation, but the influence of sound governance can extend even further.

The ‘world environment’ that Mr Booysen depicts is simply an extension of the smaller example of a single company. As Mr Booysen makes clear, the discipline must be understood by all the personnel throughout an organisation, in order for its effective progression through future directives. In much the same way, the ultimate aim of CGF Research Institute is that the understanding of good governance becomes a universally adopted principle.

“If only one company, or similarly, if only one department or person sees the value and practices good governance whist others do not, then it becomes a question of why are we even bothering?

“Of course we know better than to give up; good governance is premised upon a basic universal truth that we want good done unto ourselves as we are expected to do good with others. Accordingly, we have to get every like-minded individual to understand what

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COMPANY REPORT

“good risk-taking by an informed board will put more profit on the bottom line.” good governance is about and transfer this knowledge throughout the organisation to ensure better and more ethical business practices occur.”

However beneficial the governance proves to be to a company, Mr Booysen also recognises -- without any ambiguity -- the fundamental reason behind the establishment of businesses with whom CGF work; businesses need to make profit.

Indeed, in an increasingly regulated economy, one must be ever wary not to, “over regulate, or overprescribe the risk within the organisation on an uninformed basis because, ultimately, a company is established to make profit.” When an organisation blindly accepts any risk as ‘a risk’ and over-prescribes the issues, their actions can have a negative implication to the company’s bottom line. Conversely, when an informed board applies their mind to some of their risks, these risks may in fact become business opportunities and through proper governance processes and good risk-taking, will put more profit on the bottom line.”

What then becomes crucial is the ability of a company to strike that often-sought after balance; matching good governance against good risk-taking.

“Regrettably, many organisations around the world do not link governance with good risk management. They

PAGE 78 DEC 12

tend to put governance in a box, and it becomes no more than a tick box exercise,” says Mr Booysen. This is the exact opposite of what CGF is calling for.

At present, governance can end up being merely a means for a company to provide, both internally and externally, what Mr Booysen terms “good news” through their compliance with the respective laws, charters and regulations. Although clearly important that good rules and regulations are both founded and subsequently followed, it is the understanding of what laws are most important to be adhered to on a core basis as opposed to a secondary basis. Thus, the company is then able to calculate risk so much more effectively, whilst not transgressing these laws, as opposed to those who do not have this understanding and, “tend to put everything as a top risk.” Ultimately, it is a crucial factor in determining whether an organisation is likely to prosper, and another is, “quite frankly, going to haemorrhage.”

It is the proper mitigation of the risks taken by a company board that is central in ensuring that the organisation remains ethically driven, relevant, profitable, and sustainable - four key markers of any successful company.

CGF Research Institute can also lay claim to being entirely unique in the services and products it offers

COMPANY REPORT

and to the best of its knowledge there is nobody else providing the nature of its governance services and products in South Africa. This, of course, would be meaningless without the unequivocal backing of the organisations CGF is called upon to ‘educate’ and assist in developing sound corporate governance principles and high ethical values.

As more organisations place trust within CGF, considering CGF’s broad knowledge within the governance sector, CGF is also requested to evaluate the performance of both the board and the organisation as a whole, internally and externally. Such evaluations are vital, “so that the shareholders and other stakeholders can have a greater degree of confidence and understanding of what it is that the organisation is doing and their performance,” says Mr Booysen.

With a client base constructed in the main of listed organisations, CGF has both approached and been

PAGE 80 DEC 12

approached by organisations spanning the financial sector, the mining industry, government departments.

“Each month we provide our clients new information that ordinarily they wouldn’t have known about,” Mr Booysen adds, but this is also a reciprocal relationship.

“Essentially we act as a neutral repository of information. For example, corporates may say to us in a given month, that the National Development Plan of South Africa or the UK Bribery Act are critical to understand in terms of their strategy and operations.”

Even for a company as well-learned as CGF, such unfamiliar topics do still crop up, and this is when CGF is able to glean from its clients, who may be better informed, exactly what this initiative is and what its implications are likely to be.

“We are then able to check with our remaining clients as to whether they are aware of such topics, and whether they too would like to benefit from learning about the

CGF RESEARCH INSTITUTE

possible implications to their organisation,” says Mr Booysen.

This continual uncovering of vital governance information and knowledge transfer is where, as Mr Booysen puts it, “we know we are onto something good.

We can then go and do all the research, and within six to seven weeks we have then completed our research on those particular topics. We are in fact bringing to bear those who don’t know, as opposed to those who do, and enabling everyone to be placed on a level playing field every single month.” To furnish this with an important example, Mr Booysen estimates a figure of as much as 60% of companies in South Africa have no understanding of the implications on their organisations in terms of the UK Bribery Act of 2010.

It is a misunderstanding of the rules in place that is, at present, causing many companies to be unnecessarily cautious when, in fact, in the latest Companies Act of 2008, the regulator permits certain alteration to some of the Act’s provisions. It is, according to Mr Booysen, an absolutely fundamental reason behind why many organisations are currently missing out on productivity and profitability. Again, it is a central factor in separating the most successful organisations from those who are, in a sense, afraid to tackle the risks head-on.

“The less you want to run towards this topic, as opposed to running away from it, or the more you turn it down and somebody else embraces it, the more the ignorant party will be left behind in the regulatory universe,” says Mr Booysen.

In this instance, a simple example of a shoe company highlights the importance of getting ahead in the governance, risk and compliance arena. “The organisation that understands that both shoe companies have one hundred Acts to consider in their compliance universe -- but that only ten of these Acts are core in a given period of time -- will only address the ten Acts in the first instance and gain the advantage. Whereas the company who does not apply their mind given similar circumstances, and blindly instructs their head of risk compliance, audit or legal department to address all one hundred Acts at once, unlike the former company, will

understandably lose their competitive advantage.”

The cost attached to complying with all one hundred Acts at once, when this may not have been necessary, is far more taxing to the company. Not only does this unnecessary compliance bring with it a large financial burden, but it also impacts efficiency in a much wider sense, taking up the time and resources of more people, more systems, and necessitates a greater level of bureaucracy.

So much of modern day business is centred around having the upper hand, both internally and externally, over the surrounding competition, but Mr Booysen also underlines the potentially colossal consequences attached to a below-par cognisance of organisational and governance matters.

“In South Africa, it is ‘all for one and one for all’. The law has changed in this respect, so it is fundamentally flawed for any member of an organisation’s board to believe that they are not accountable for any part of the business.”

He does believe, however, that to a certain extent this grossly ill-informed viewpoint is a potentially massive catalyst for change in the country; “the day a prominent CEO in South Africa is jailed for gross negligence of their fiduciary and statutory duties owed to their companies, is the day that South Africa’s executives and prescribed officers will start taking this seriously. Then, hopefully we will see a more positive change in the manner in which many of our companies are run, not least a positive turn upon the foreign direct investment coming into this country.”

CGF undertakes its endeavours on a two-pronged basis, with both its physical and virtual teams joining forces. The virtual team comprises a very wide representation of subject matter experts and various highly-respected organisations. The job of this bank of experts is to ensure that the work undertaken by the physical team is constantly peer-reviewed by the individuals, and thus assure its clients as to the integrity of the information being fed to them by CGF and subsequently acted upon. Information which, increasingly today, is acquiring influence over the entire collectivity of worldwide organisations. Instilling the sense of a shared responsibility, of clear and collaborative aims, is proving utterly vital to both the avoidance of potentially ruinous problems within the workplace and to constructing a sustainable, efficient organisation, and even more excitingly, a global template wherein the sharing of this information pushes business as a whole into previously unreachable territories.●

DEC 12 PAGE 81

COMPANY REPORT

Resounding quality from Carlson Rezidor Hotels

Editorial – Christian Jordan Production – Hal Hutchison

The Carlson Rezidor Hotel Group has recently announced new openings across the continent. During this exciting time the company is welcoming a new CEO and a new SubSaharan regional director.

IndustrySA takes a look at some of the fantastic new properties that will open in 2014.

PAGE 82 DEC 12

In September, the Carlson Rezidor Hotel Group announced the development of a new, upmarket hotel in Newlands, Cape Town. The hotel, set to open in the first quarter of 2014, is to be marketed under the Park Inn by Radisson arm of the Carlson Rezidor business. This will be the second Park Inn by Radisson hotel in Cape Town, a city which already has two Radisson Blu hotels, one under development and one in full operation.

The Carlson Rezidor Hotel Group was formed in 2012 after a merger between The Rezidor Hotel Group and Carlson. While the legal status and ownership structure of Carlson and Rezidor remain the same, the Carlson Rezidor Hotel Group will pursue the global alignment and

THE CARLSON REZIDOR HOTEL GROUP

management of its brands, the ambitious development of its revenue generation engines, global purchasing opportunities, and people development, on a global basis.

The company is one of the world’s largest and most dynamic hotel groups. The portfolio of the Carlson Rezidor Hotel Group includes more than 1300 hotels, a global footprint spanning 81 countries and a powerful set of global brands (Radisson Blu, Radisson, Country Inns & Suites By Carlson, Park Inn by Radisson, Hotel Missoni and Park Plaza). The Carlson Rezidor Hotel Group and its brands employ more than 80,000 people across the world and is headquartered in Minneapolis, USA, and Brussels, Belgium.

The new hotel planned for Cape Town is an example of the company’s ambitious plans for growth in Africa.

Andrew McLachlan, Rezidor’s Vice President Business Development for Africa & Indian Ocean Islands said: “The energy, excitement and colour of Park Inn by Radisson continue to build momentum. Park Inn by Radisson hotels are highly efficient, fresh and innovative hotels that are global in outlook and local in operation; and we are committed to ambitious growth of this brand in South Africa.”

The area set to host the new hotel is, say the company, a key upmarket business and residential node in the affluent southern suburbs of the city. The Park Inn

DEC 12 PAGE 83

COMPANY REPORT

THE CARLSON REZIDOR HOTEL GROUP

“ South Africa is an important cluster for our young and dynamic Park Inn by Radisson brand”

by Radisson Cape Town Newlands will be the first internationally branded hotel in Claremont / Newlands and it will play host to 122 rooms along with a club lounge, a business lounge, the RBG Restaurant & Bar, a breakfast restaurant, a kiosk and help desk, a gym, multipurpose meeting and function facilities, an outdoor terrace with sculpture garden and an outdoor swimming pool.

When the hotel opens, Rezidor will be confirmed as the largest international hotel operator in South Africa with 1800 rooms open or under development in 10 hotels across the nation.

“South Africa is an important cluster for our young and dynamic Park Inn by Radisson brand, and we are

PAGE 84 DEC 12

delighted to further strengthen our presence in the key market - Cape Town,” said Kurt Ritter, President and CEO of Rezidor.

This development is a joint venture between Meridian Property Holdings, a Cape Town based developer, Deaf Federation of South Africa (DEAFSA), and the Industrial Development Corporation (IDC). DEAFSA represents some 800,000 hearing disabled members countrywide and views the development as a key broadbased empowerment initiative because of the income generating, skills transfer and employment opportunities for its members.

The new hotel will be strategically located amongst tourism and industry hotspots with international cricket

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It is in this respect that dsgn™ have provided Interior Architectural & Design Consultancy Services for a multiplicity of Hospitality & Leisure Projects throughout Africa and the Middle East; not least of all for The Rezidor Hotel Group (Regent Hotels, Radisson Blu Hotels & Park Inn), Starwood Hotel Group (St Regis Hotels & Sheraton Hotels), The Marriott Hotel Group (Ritz Carlton Hotels & Marriott Hotels), Rani Resorts & Hotels, Southern Sun Hotels, Sun International, Three Cities Hotels, Millennium & Copco Hotels, Holiday Inn Hotels, Hemingways Hotels & Resorts, and Sunflower Brio Hotels amongst others, to deliver a comprehensive professional range of Interior Design Services, which fulfil the consultancy requirements of the Hospitality, Entertainment and Leisure Industry.

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dsgn™ offers a bespoke and tailored design solution to each and every Project through their integrated and multi-disciplinary approach, and experience in large-scale projects, enabling them to co-ordinate every element of the design process, from conception to completion.

Renowned for leading the way in design innovation, having won numerous Interior Design Awards, or being associated with Award Winning Projects, as the Interior Designers’; dsgn™ have managed to achieve a rare synthesis of design, through harmoniously blending the project components of Space & Environmental Planning, Interior Architecture, Interior Design, Softs, Furniture, Fittings & Equipment (SFF & E), Contract Administration and Project Supervision, into a symbiotic relationship between Architecture and Interior Design, thereby achieving iconic and fully integrated projects.

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COMPANY REPORT

and rugby stadia close by and also the University of Cape Town, the most prestigious university in Africa and the Sports Science Institute of South Africa, Africa’s leading sports medicine, rehabilitation and high performance centre only a short distance away.

GROWTH ON THE CONTINENT Throughout the year the Carlson Rezidor Group has been investing continually in Africa. June saw the announcement of the very first Rezidor hotel in Cote d’Ivoire.

Scheduled to open in the second half of 2014, the Radisson Blu Hotel, Abidjan Airport will have 252 rooms.

The hotel will also benefit from a business class lounge, an air crew lounge, retail stores, a bar, an all-day dining restaurant, a private dining area, an outdoor terrace, an outdoor swimming pool, a business centre, seven conference and meeting rooms and a ballroom.

The property is owned by Cesse Kome of Ste Koira Investment. Kurt Ritter had this to say about the hotel and the relationship with Mr Kome: “We are delighted to extend

our portfolio to Ivory Coast and to further strengthen our good and personal relationship with Cesse Kome who also owns the Radisson Blu Hotel Bamako in Mali.

The African continent is one of our key focus areas for future business development, and we are proud to have the largest pipeline of hotel rooms under development in sub-Saharan Africa.”

The company has also been making strides in Benin and Senegal in a bid to strengthen their position as one of the leading international operators on the continent.

The first ever Park Inn by Radisson was announced in September in the exclusive, mixed use development of Cité Tobago between Dakar International Airport and the city’s main highway. It will open its 122 rooms, fitness centre, bar, restaurant and more, at the end of 2014.

“Senegal is part of the ECOWAS (Economic Community of West African States) where Rezidor follows a development cluster strategy,” said Mr McLachlan.

The new opening in Benin is again a first for the company. The Radisson Blu hotel in Cotonou Kurt Ritter

PAGE 86 DEC 12

THE CARLSON REZIDOR HOTEL GROUP will have 203 rooms and is scheduled to open in early 2014. The design of all of these hotels is immaculate and helps them to stand out as first class properties.

“We are delighted to add the Republic of Benin to our country list. It is the 71st country where we are present, and our 21st country in Africa,” said Mr Ritter in August.

The hotel is designed to be an urban resort thanks to its location on the beach. Cotonou is also the largest city and financial hub of Benin so the placement serves a dual purpose. The hotel will have all the usual fantastic facilities and will mainly attract business and government guests because of the location of the country and the ease of trade in the region.

The Rezidor Group arrived in Africa in 1999 when the company opened the Radisson Blu Waterfront Hotel in Cape Town. There are now 49 hotels on the continent with over 11,000 rooms in operation or under development. Further hotels are planned in Maputo Mozambique, Lusaka -Zambia, and Kigali – Rwanda.

WORLDWIDE HOSPITALITY AWARDS The growth in Africa and the excitement of opening fantastic new hotels around the region was capped off in November as the Carlson Rezidor Group, at global level, was honoured as the Hotel Group of the Year at the Worldwide Hospitality Awards 2012.

Mr Ritter of Rezidor and Trudy Rautio, President and CEO of Carlson accepted the prestigious award for outstanding achievements in the areas of: development, innovation human resources and business performance.

After receiving the award the pair stated: “The

Carlson Rezidor Hotel Group launched earlier this year in January. To be awarded as the world’s best hotel company in our first year is a great honour. It is a fantastic complement to our team-work around the globe. A huge thank you to all our 80,000 employees in 81 countries.”

The company was keen to point out the influence of Mr Ritter who has been managing the company since 1989. The company said Mr Ritter had created an entrepreneurial, dynamic and innovative group. He will be succeeded by Wolfgang M. Neumann at the end of the year when he retires but he will remain a strategic advisor to Carlson throughout 2013.

The company also announced recently that it would be appointing a new regional director for Sub-Saharan Africa to replace Han Oldenburger who retires in April after 21 years of service. Friedrich Schaefer will take over and move into the new Carlson Rezidor Hotel Group regional office which will be relocated to Johannesburg in January.

He has many years’ experience in hospitality, previously being employed by Starwood Hotels and Resorts and the Hilton Group.

“I am delighted to be joining such an exciting hospitality group,” said Mr Schaefer. “I am honoured to be taking over from such a respected hotelier as Han Oldenburger. The Sub-Saharan operations of Carlson Rezidor are currently expanding at a rapid pace and I look forward to the future with the company’s scheduled openings and interesting developments in Africa, in addition to leading such a dynamic team.”●

DEC 12 PAGE 87

COMPANY REPORT

Exciting times for African oil and gas Editorial – Roland Douglas Production – Lauren Grey

PetroSA, along with the other big players in the South African petroleum industry, are looking for growth as they continue to drive what is one of the most important industries to the South African economy.

In 2009 President Zuma announced a new cabinet, this saw the division of the Department for Minerals and Energy and the formation of the Department of Energy and the Department of Mineral Resources. This was of great relevance to a significant piece of legislation, the Energy Act 2008, which was signed into law in November 2009.

The establishment of the Department of Energy allowed for a more focussed consideration of the country’s energy needs and more resources being devoted to the Energy Act. The Act focusses on (with other areas) ensuring diverse energy resources are available, in sustainable quantities and at affordable prices, to the South African economy in support of economic growth and poverty alleviation. It further provides for energy planning, increased generation and consumption of renewable energies, contingency energy supply and other energy related concerns.

Another key area contained within the Act was to ‘establish an institution to be responsible for promotion of efficient generation and consumption of energy and energy research; and to provide for all matters connected therewith’. From this area we have the CEF (SOC) Ltd (Central Energy Fund), an organisation responsible for the search for appropriate energy solutions to meet the future energy needs of South Africa, the Southern African Development Community and the sub-Saharan African region, including oil, gas, electrical power, solar energy, low-smoke fuels, biomass, wind and renewable

PAGE 88 DEC 12

energy sources.

One of the major subsidiaries of the CEF is the Petroleum Oil and Gas Corporation of SA (PetroSA).

Formed in 2002, PetroSA reports to the Department of Energy and is the product of a merger between Soekor E and P (Pty) Ltd, Mossgas (Pty) Ltd and parts of the Strategic Fuel Fund, another subsidiary of CEF. The main business of PetroSA involves searching for, and producing, oil and natural gas. The organisation produces unleaded petrol, kerosene (paraffin), diesel, propane, liquid oxygen and nitrogen, distillates, eco-fuels and alcohols.

Other activities include: The marketing and trading of oil and petrochemicals, the development of domestic refining and liquid fuels logistical infrastructure, the production of synthetic fuels from offshore gas at one of the world’s largest Gas-to-Liquid (GTL) refineries in Mossel Bay and lastly, perhaps most importantly, the participation in, and acquisition of, local as well as international upstream petroleum ventures.

Another significant body in the South African petroleum industry is SAPIA (South African Petroleum Industry Association). Formed in 1994 by six of the leading petroleum refining and marketing companies, the official goal of the association is to represent the interest of the petroleum refining and marketing industry in South Africa. The organisation’s aim is to ensure that all interested parties clearly understand the contribution that the industry makes to the economic and social development of South Africa. SAPIA is today

SOUTH AFRICAN PETROLEUM INDUSTRY

made up of BP SA (PTY) Ltd, Chevron SA (PTY) Ltd, Engen Petroleum Ltd, PetroSA (PTY) Ltd, Shell SA (PTY) Ltd, Sasol Ltd, Total SA (PTY) Ltd and the four newest members, as of November, AEMCor, Easigas, Makwande Energy Trading and Royale Energy.

“On behalf of the Board of Governors, I am pleased to welcome our four newest members to SAPIA,” said Gerard Derbesy, SAPIA Chairperson.

“SAPIA is currently processing other membership applications and hope to add further new members during 2013,” said

Environmental Monitoring of the Offshore Oil & Gas Industry CapFish offers a professional environmental monitoring service to the Oil & Gas industry in Southern Africa as well as globally. We provide trained and experienced Marine Mammal Observers (MMO) and Passive Acoustic Monitors (PAM). Our land and sea-going staff advise and support the monitoring and compliance with Environmental Management Programmes.

In addition we work closely with the fishing industry and seismic survey vessels operators to mitigate interactions between the two industries, including the deployment of Fisheries Liaison Officers (FLO) at sea Our team of sea-going personnel has combined experience of over 3,000 sea days on-board seismic survey vessels, ensuring compliance with environmental management obligations. The company has logistical experience in the deployment of Fisheries Observers and MMOs in the Southern African sub-region as well as in many other parts of the globe.

Our company’s MMOs and PAM operators are JNCC certified and all personnel are required to meet the highest industry requirements in terms of offshore medical and health and safety training certifications. We focus on the development of South Africans and capacity development working in both a regional and global context.

Our land-based services include pre-survey environmental and fisheries impact assessments. We are able to facilitate communications with the fishing industry prior to and during survey operations to avoid fisheries interactions and survey down-time. Daily reports on the survey progress and environmental observations are distributed to selected interested and affected parties and comprehensive close-out reports are provided to the client on completion of each survey Please email seismic@capfish.co.za or visit our website (www.capfish.co.za) for more information.

DEC 12 PAGE 89

SOUTH AFRICAN PETROLEUM INDUSTRY

COMPANY REPORT

‘SAPIA is currently processing other membership applications and hope to add further new members during 2013.’

Derbesy.

Considering the size and importance of the organisations involved in the countries petroleum industry and the direct and indirect jobs created, investment attracted and products and services provided, it is fair to say that this is one of the most significant industries in the country and one which makes an impact on the global economy.

STRATEGIC ALLIANCES In the last year Shell SA have been awarded an exploration right in the Orange Basin, BP SA and Sasol have agreed terms on the co-ownership of two depots, Total SA sealed a deal with SANParks to supply their fuel for the next ten years and Engen Petroleum has expanded further into Africa with significant contracts in Mozambique, Namibia and Zambia.

PetroSA, South Africa’s national oil company, has concluded deals with energy companies from all over the globe including businesses in India, China, Korea, Egypt, Ghana and the Democratic Republic of Congo (DRC).

The most recent of the deals have involved Ghana and the DRC, and have been significant as the organisation looks to achieve its vision of being a leading African energy company.

PAGE 90 DEC 12

In August, IndustrySA reported the news that PetroSA had signed a deal with Cairn India Group for crude oil and natural gas exploration in the Orange Basin. At the time, PetroSA stated it was seeking to nurture strategic alliances with experienced international companies across the oil and gas value chain and in September the company completed the acquisition of Sabre Oil and Gas Holdings Ltd, resulting in a stake in one of West Africa’s most prolific oil domains, Ghana’s Jubilee Field.

PetroSA bought out Sabre’s interest in three assets: the producing Jubilee Field, the Deepwater Tano Block and the West Cape Three Points Block. It followed a bidding process that saw PetroSA shortlisted with two other international oil companies.

“This is a significant opportunity for PetroSA. As a result of it, we will be able to increase our reserve portfolio,” said Ms Nosizwe Nokwe-Macamo, PetroSA’s Group CEO. She added: “This deal provides PetroSA with a unique opportunity to establish a presence in this highlyprospective region. We are very happy to be working with reputable partners such as Anadarko, Kosmos, Tullow and, of course, our counterparts, the Ghana National Petroleum Corporation.”

The Jubilee oil field lies around 60km offshore. After

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COMPANY REPORT

SOUTH AFRICAN PETROLEUM INDUSTRY

its discovery in 2007, production began in 2010. It is clear to see why Ms Nokwe-Macamo was excited about the prospect considering it is the largest field in Ghana, with total proven reserves of around 600 million barrels.

Obviously there are many considerations when entering agreements like this, one of the foremost being maintenance and labour requirements. Typically, oil and gas platforms are self-sufficient when it comes to energy and water needs. The main necessities come from engineering, drilling and project

threat to the industry.

management.

Airenergi and oilcareers.com released their Global Oil and Gas Workforce Survey for the second half of 2012 recently and found that East Africa is quickly becoming one of the most exciting locations within the oil and gas world. The survey also found that in West Africa, namely Angola and Nigeria, regulations, piracy and other security issues are causing a loss of significant sums of money.

In the surveys overview of the African region, one of the key points was the increasing demand for subsea specialist engineers, thanks to growth offshore West Africa. PetroSA and the other major companies operating in the area will obviously be keeping a close eye on things in the area and further afield as the survey also found that the majority of oil and gas employees questioned felt that economic instability was the main

PAGE 92 DEC 12

COHYDRO SARL In October, PetroSA signed a deal with Cohydro Sarl, the DRC’s National Oil Company. This agreement was again part of the company’s drive to become a leading African energy company and the move is important considering Cohydro Sarl is involved in the exploration, exportation, importation and distribution of hydrocarbons in the DRC. The company is at the forefront of efforts to explore the DRC’s hydrocarbon potential.

“PetroSA faces an exciting future,” said Ms NokweMacamo. “We are pursuing several growth initiatives.

At the core of this is the establishment of strategic partnerships with several NOCs located on the continent and internationally.”

The agreement ensures that the two companies will develop a network of collaboration and mutually hunt for oil and gas opportunities in the DRC. A co-operation committee, consisting of members from PetroSA and Cohydro Sarl, has been established to facilitate the implementation of the agreement.

The SAPIA says that ‘energy is a key strategic sector in the South African economy because it underpins the growth and developmental objectives set out by government’. While traditional fuel and energy sources such as oil, gas, coal and so on have received bad press because of their reported impacts on the environment, it is clear that they are, and will continue to be, huge contributors.

In 2009 it was estimated that the petroleum industry contributed 2% of the country’s GDP and 18% of South Africa’s primary energy. With the renewable energy industry still developing (although very quickly), it would be unwise to discount the petroleum industry in South Africa.

The figures speak for themselves, the companies in this industry remain vital and their services and products will be imperative in what is a continually growing and evolving industry.●

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INDUSTRY RECOMMENDED

This is the latest installment of our Industry Recommended directory, a list of companies across a range of industry sectors over SA.

YOUR INDUSTRY, THEIR FUTURE, OUR SOUTH AFRICA AUTOMOTIVE GENERAL MOTORS A wholly owned subsidiary of the multinational General Motors Company, manufacturing distributing through 137 dealerships in SA. www.gmsa.com

MDABUKA CONTRACTORS Construction specialists working with the Coega IDZ on the KZN School Building Programme. +27 83 516 4572 sphelelemhlaba@yahoo.com

EAST CAPE WIRING Leading manufacturer of a range of harnesses and battery cable assemblies, made and delivered to the customers individual requirements. +27 41 452 5276 www.eastcapewiring.com

CORPORATE GOVERNANCE CGF A private, proudly South African company that specialises in conducting desk-top research on corporate governance, risk and compliance related matters. +27 11 476 8264 www.cgfresearchinstitute.com

COMMUNICATIONS NEOTEL A telecommunications network operator that caters for wholesale, business and home customer needs.

0860 Neotel www.neotel.co.za

CHEMICALS VIKING A major distributor of a range of agricultural chemicals used to protect crops from threats such as weeds, disease and insects. +27 21 907 3000 www.viking.co.za

CONSTRUCTION PTTP PROJECTS An emerging company whose primary business activities are electrical services, ICT network cabling and ports installation and commissioning as well as general building. +27 21 911 0935 www.pttpprojects.co.za

ELECTRONICS FALCON ELECTRONICS A premier supplier of networking, data centre and communications solutions, powermanagement, cabinets and modem racking equipment, KVM switches, networking switches, cablesand test equipment. +27 21 448 2402 www.fe.co.za

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PHIRI NDALEKA CONSULTANTS Electrical consulting specialists whose services include general building, reticulation and electrification. +27 83 390 8656 ENERGY DCD MINING & ENERGY DCD’s Mining & Energy cluster offers products and components for mining activities and power generation plants including coal, hydro, wind and nuclear. +27 16 428 0133 www.dcd.co.za PETROSA The national oil company of South Africa, a subsidiary of the Central Energy Fund. +27 21 929 3000 www.petrosa.co.za ENGINEERING BMG Vision is to be a powerful force in the engineering industry through leading brands of quality products combined with the best technical skills available. www.bmgworld.net SPRAG COMPONENTS A leading provider of a comprehensive range of oneway freewheel, back stop and cam clutch solutions. We design, manufacture, repair,

INDUSTRY RECOMMENDED stock and supply sprag and transmission related products and components. +27 11 742 9600 www.spragcomponents.co.za GATES EUROPE A top manufacturer of hi-tech rubber belts and hoses for industrial, hydraulic, agricultural and automotive applications. www.gates.com ENVIRONMENTAL CCA ENVIRONMENTAL CCA Environmental (Pty) Ltd is a firm of environmental consultants based in Cape Town. The company provides a broad range of environmental consulting services to the private and public sector. +27 21 461 1118 www.ccaenvironmental.co.za FORESTRY FORESTRY SOUTH AFRICA Forestry South Africa (FSA) is South Africa’s premier and largest forestry organisation representing growers of timber in South Africa. www.forestry.co.za MONDI In South Africa, we own and manage one of the largest Forestry Stewardship FSC™certified plantation units in the world. +27 11 994 5400 www.mondigroup.com FRUIT VILJOEN BOERDERY This family operated business produces approximately two million cartons of table grapes annually and is able to produce grapes for six to seven months as a result of the geographic spread of its production units. +27 54 335 1102 www.asvfarms.co.za HUMAN RESOURCES VIP PAYROLL We provide a total payroll and HR solution. This includes system implementation, training and call centre support – or if you want to outsource we can do it all for

you! +27 12 420 7000 www.vippayroll.co.za INDUSTRIAL DEVELOPMENT COEGA DEVELOPMENT CORPORATION A state owned entity formed in 1999 mandated to develop and operate the Coega Industrial Development Zone (IDZ) which is located adjacent the modern deep water port facility, Port of Ngqura. www.coega.co.za INTERIOR DESIGN DSGN A professional Interior Design Consultancy with a team full of world class experience and expertise ensuring appropriate design solutions across a range of industries. +27 11 507 2700 www.dsgn.co.za LEGAL LEXISNEXIS We are the global leader in business research solutions and software for professionals in accounting, law and tax. +27 31 268 3111 www.lexisnexis.co.za MARINE CAPFISH An International Marine Monitoring and Fisheries Consulting Group based in Cape Town, South Africa. +27 21 425 6226 www.capfish.co.za CAPE DIVING Marine service specialists with expertise in diving and salvage. +27 21 448 4341 www.capediving.co.za MINING WITS GOLD A South African gold and uranium exploration company with specialised geological expertise in the world’s largest gold province. +27 11 832 1749 www.witsgold.com

ROYAL HASKONINGDHV Royal HaskoningDHV - formerly Turgis mining consultants - can offer specialists in all aspects of design, operation and project management of mining, mechanical, electrical and logistic projects for surface and underground mines, and in the study and evaluation of mining projects. +27 11 476 2279 www.royalhaskoningdhv.com/ mining MUNICIPALITY CAPE TOWN The City’s Economic Development Department (EDD) is responsible for monitoring Cape Town’s socio-economic inequalities, promoting local economic growth and initiating jobcreation and poverty reduction measures. It does this via a range of projects and programmes. www.capetown.gov.za SECURITY G4S The world’s leading international security solutions group. www.g4s.co.za STEEL BEKKER STEEL A steel service centre which supplies all carbon and stainless steel products cut-to-size, as well as standard merchant plates and products. +27 16 428 2630 www.bekkersteel.co.za TOURISM REZIDOR HOTELS One of the world’s fastest growing hotel companies. We offer the best of hospitality, with price levels and target markets ranging from family value and high-class comfort to high-end luxury. www.rezidor.com For more information about how your company can be recognised for excellence across many areas please get in touch.

Your Industry, Their Future, Our South Africa

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