August
2015
ISSUE 53
Building success
Standing as one of the top three independent retailers in South Africa, Build it now has over 300 stores, specialising in hardware and building materials. Celebrating 30 years of success, the company is looking to looking to expand its ever increasing footprint and maintain its high level of customer service. IndustrySA speaks with CEO, Ray Whitmore‌
NUTRI Feeds Quality animal feed
Elegant Group The niche fuel provider
FGG Architects Shaping the Durban skyline
ArcelorMittal SA Transforming tomorrow
WWW.industrysa.co.za
Leading Manufacturers of HDPE Jointing Systems in sizes from 20mm to 3000mm
Durban: Unit 3, Mt Edgecombe Industrial Park, 65 Marshall Drive, Mt Edgecome Tel: +27 31 539 7451 Fax: +27 31 539 7053 or 086 618 3056 Email: shawn.pretorius@stp-sa.com
Johannesburg: 8 Greenstone Place, Block C, Stoneridge Office Park, Greenstone, Johannesburg Tel: +27 82 828 2312 Fax: 086 545 5390 Email: michael.pretorius@stp-sa.com Email Sales: Lee-Ann Pillay - lpillay@stp-sa.com
www.stp-fittings.co.za
EDITOR’S PAGE
EDITOR Harriet Pattison SUB-EDITOR Ajuanne Payne WRITERS Colin Chinery Alex Montgomery Rebecca Bingley Richard Hadley Stephen Lewis Sarah Dickens Mark Douglas ADVERTISING SALES SALES DIRECTOR Andy Williams SALES EXECUTIVE Holly Graham STUDIO STUDIO DIRECTOR Martyn Oakley DESIGNER Harvey Tarlton ACCOUNTS Mike Molloy ECP LTD MANAGING DIRECTOR David Hodgson FINANCE DIRECTOR Scott Warman 2a Ardney Rise, Norwich, Norfolk, NR3 3QH, United Kingdom If you would like more information about ways in which IndustrySA can promote your business please call +44 1603 411568 or email andy@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. Any resemblance to real persons, living or dead is purely coincidental. Whilst every effort is made to ensure the accuracy of the information contained within this magazine, no legal responsibility will be accepted by the publishers for loss arising from use of information published. All rights reserved. No part of this publication may be reproduced or stored in a retrievable system or transmitted in any form or by any means without the prior written consent of the publisher. © East Coast Promotions Ltd 2015
Welcome to issue fifty three...
Construction and manufacturing remain two of the key industries in South Africa today – with more and more companies venturing into and succeeding in the market. In this month’s issue, we look at one of the leading independent retailers in the country – Build it. Speaking with CEO, Ray Whitmore, he reveals how it is that this company has built upon its reputation as a household brand, cementing its aim to provide the full solution to customers – from foundation to finish. Despite the mirage of companies that operate in the manufacturing sector, they all seem to maintain that air of originality which is so vital to success. Whether concentrating on family values and historic roots or focusing on maintaining excellent customer service and employee satisfaction, many of the companies we have featured this month, whether in the steel making or business furniture industry, continue to thrive despite the indefinite market economy. Michael Stein, Managing Director of Ukhuni Business Furniture, attributes much of the company’s continued success over the decades to its above average level of staff commitment: “The economy is under pressure and we need the economy to grow in order to grow our business. The protection of the level of employment we have is critical to our business, the staff really need to trust that this is their home.” It is certainly true that staff contentment and subsequent dedication is paramount – surely it is more beneficial to hire 25 happy employees than 250 who are disengaged and unmotivated? Staff satisfaction forever comes up trumps when we speak with our feature companies, month on month, and perhaps this is why many South African companies continue to prosper and maintain a healthy client base. A company is only as good as its employees and without these, customers will certainly be far and few between. “Customer is king. You must do what the customer wants and you must look at the customer like they are your last breath, because they are the ones who continuously pay you. If you lose them, you are not going to be sustainable,” explains Lebo Gunguluza. A serial entrepreneur and making his first million at just 27, Mr Gunguluza is a shining example of sheer dedication with an indomitable flair – standing as the epitome of deserved success for the entrepreneurs that will assuredly follow in his footsteps.
Harriet Pattison editor@ecp-ltd.com
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CONTENTS
50
3 EDITOR’S PAGE Cementing the foundations of South Africa
6 NEWS All that’s happening in South Africa
14 EnTREPRENEUR A rags to riches tale
18 Innovation Helping to solve poor sanitation
20 Lifestyle SA Luxury in the wild
24 Influential SA Euvin Naidoo
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CONTENTS
26 Build It
68 Process Vacuum
Making home building simple
Providing an industry essential
36 Columbus Stainless
74 Remkor Technologies
SA’s premier stainless steel producer
Offering the finished solution
42 ArcelorMittal SA Transforming tomorrow
80 John Thompson Deep roots in SA’s boiler industry
50 Elegant group Fuelling diversity
86 Ukhuni Business Furniture
56 FGG Architects
92 Rolfe Laboratories Pharmaceutical success
Building the foundations of success
62 NUTRI Feeds Quality animal feed
Comprehensive office furniture
COMPANY PROFILES
56
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NEWS All that’s happening in South Africa
SA, Russia sign energy agreements
South Africa and Russia have signed two Memoranda of Understanding (MoU) that are aimed at strengthening efforts between the two countries in the field of nuclear energy, said the Department of Energy. The MoU were signed at the 7th BRICS Summit in july between the Department of Energy and the Russian state-owned company, Rosatom. The summit is taking place in Ufa, Russia. The first memorandum signed is the memorandum on cooperation in training personnel for the South African nuclear power industry followed by the memorandum on cooperation in enhancement of public awareness of nuclear energy in South Africa. Regarding the memorandum on cooperation in training personnel for the South African nuclear power industry, the two countries intend to implement several joint projects for education in the nuclear power industry. “The countries will cooperate in order to provide training for five categories of specialists for the South African nuclear industry: nuclear power plant (NPP) personnel, engineers and construction workers, staff for operations not related to the power industry, personnel for nuclear infrastructure, students and teachers,” said the department. In accordance with this memorandum, both parties will strive to realise education programs for 200 South African candidates at Russian universities and educational organisations.
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The memorandum also stipulates the development of educational materials and scientific literature on nuclear power, student exchange programs for students of various levels of training, organization of internships and summer courses, student competitions and teacher training. The memorandum on cooperation in enhancement of public awareness of nuclear energy in South Africa stipulates joint efforts of the parties aimed at promoting nuclear power in South Africa, increasing the awareness of local residents of modern nuclear technologies used in the power industry and in other industries, and ensuring public acceptance of nuclear power. “In particular, the parties have agreed to work out a plan for the implementation of a joint communication program to be launched in South Africa. The program will involve the organisation of round tables and other events aimed at the promotion of nuclear power and modern nuclear technologies,” explained the department. Rosatom and the Department of Energy will also consider the creation of a Nuclear Energy Information Centre in South Africa. The parties seek to exchange information and best practices in the nuclear industry by organising working visits and international conferences and exhibitions. “The memoranda signed in Ufa represent another stage in the cooperation between the two countries aimed at strengthening joint efforts between Russia and South Africa in the field of nuclear energy.”
NEWS
Minetec expands in South Africa M i n e tec, a d ivis io n of Codan L imite d (ASXCDA ) , is p leas ed to announce the ope ning of i t s new w h o lly -owne d subsidiary in Jo h a n nes b u rg, So u th Africa: M ine te c RSA P t y Ltd . The es tablishme nt of this corporate pr e sence d emo ns trate s M ine te c’s commitme nt t o t h e Af rican marke t. The ne w company will pr ov id e a s o lid p latform for Mine te c to furthe r i m pro ve its p ro d u ct de liv e ry and se rv ice c a pa bilities in the re g ion and build close r r e l a tio n s hip s w ith ke y custome rs. “ Th is is an imp o rtant mile stone in M ine te c’s e x p ans io n,” s aid R ory L ine han, E xe cutiv e G e n e ral Man ager. “ We are committe d to pr ov id in g all o f o u r custome rs with hig h t e c h n o lo gy s o lu tio ns and world-class throug h l i f e s u p p o rt. Given the de mand for Mine te c’s un i q u e p ro d u cts and syste ms, it is a log ical n e x t s tep f o r Min et e c to inv e st in the African m a r ket. Th e creation of M ine te c RSA P ty L td pr ov id es a p latf o rm to re cruit local e xpe rtise i n o rd er to s erve o ur custome r’s more e f f e c tively. ” T h is s trategic d ec ision also re cog nise s the e m e rging o p p o rtu nitie s in South Africa in
l i g h t of t h e re c e n t l y l e g i s l a t e d D e pa rt m e n t of M i n e ra l R e s ourc e s (D M R ) re g ul a t i on s for Col l i s i on Av oi da n c e S ys t e m s . “ I t w i l l s oon be m a n da t ory t h a t e v e ry ope ra t i n g m i n e i n S out h A fri c a w i l l n e e d t o be c om pl i a n t w i t h t h e l e g i s l a t i on for Col l i s i on Av oi da n c e S ys t e m s . M i n e t e c ’s s a fe t y s ol ut i on s a re c om pl i a n t w i t h t h e n e w l e g i s l a t i on a n d w e a re e x pe ri e n c i n g un pre c e de n t e d i n t e re s t i n our S a fe D e t e c t produc t .” s a ys A l a n F e n e l on G M Com m e rc i a l D e v e l opm e n t . T h e D M R n ow re qui re s t h a t a m i n e ’s s a fe t y s ys t e m a ut om a t i c a l l y s l ow s -dow n a n d s t ops a m a c h i n e i n orde r t o pre v e n t a c c i de n t s . M i n e t e c i s t h e on l y s ys t e m s s uppl i e r t h a t c a n prov i de a s i n g l e D M R -c om pl i a n t s ol ut i on for bot h s urfa c e a n d un de rg roun d m i n i n g ope ra t i on s . T h e s e s ys t e m s form pa rt of t h e M i n e t e c U n i fi e d Pl a t form , w h i c h e n c om pa s s e s t ra c k i n g , s a fe t y a n d produc t i v i t y a ppl i c a t i on s . “ We a re un i que l y qua l i fi e d t o h e l p S out h A fri c a n m i n e ope ra t ors de m on s t ra t e c om pl i a n c e w i t h t h e s e n e w re g ul a t i on s a n d a l s o prov i de a pl a t form for ope ra t i on a l s a v i n g s g oi n g forw a rd.” a dde d M r Fe n e l on .
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NEWS All that’s happening in South Africa
Starbucks to arrive in SA
Rob Wilson | Shutterstock.com
Starbucks Coffee Company and Taste Holdings today announced a licensed partnership that will see Starbucks stores open across South Africa. For the first time in Southern Africa, Starbucks will open full-format stores bringing the entire range of its food and beverages, including its ethicallysourced Arabica coffee, to South African consumers. “We are proud to be bringing Starbucks to South Africa next year,” says Kris Engskov, president, Starbucks Europe, the Middle East and Africa (EMEA). “Working with Taste, our partner, we’re going to deliver a great Starbucks experience. The coffee market here is vibrant and growing fast – we want to be part of that growth, bringing the passion and energy of this remarkable country into the design of our first store and our first barista team. We can’t wait to get started.” The license agreement sees Taste owning the exclusive rights to develop Starbucks retail outlets in South Africa. As Taste is the licensee, it will own and operate the stores directly. “We are very excited to be Starbucks partner in Southern Africa. As we’ve visited numerous Starbucks markets and partners around the world we’ve come to realise that we share similar core values, including a commitment to localisation and uplifting both direct and indirect partners,” explains Carlo Gonzaga, CEO of Taste. “Starbucks supports the development of local suppliers and is fully committed to our Changing Lanes program wherein we have provided employment to previously unemployed people and expose them to
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global training initiatives and skills. Overall we’re a good partnership match.” The partnership will see direct job creation opportunities as each Starbucks store opens, in addition to opportunities at the Taste support office in Johannesburg. Taste expects that the indirect impact of skills transfer into South Africa, and the localisation opportunities in the supply chain will be material. In addition, Starbucks and Taste have committed to continuing Taste’s Changing Lanes program, employing predominantly from currently unemployed youth directly from the communities in which they trade. “Young people are the key to our success,” says Engskov. “The majority of our workforce is aged between 17 and 25 so talented youth has always been a priority and we will equip our new partners with the skills necessary to succeed in today’s economy. We look forward to using our partnership to leverage Taste’s strong track record of creating jobs and developing great people.” “Starbucks sources a considerable amount of its global, high-quality coffee from farms in subSaharan Africa, in partnership with our network of farmer support and agronomy centers in Ethiopia, Rwanda and Tanzania. We are proud to be able to offer some of the best African coffees in the world to more customers in the region.” “We’re looking forward to bringing the entire Starbucks experience to South Africa for the first time. That includes 100% ethically sourced Arabica coffee, Starbucks full menu offering and of course beautiful coffee houses,” Gonzaga concludes.
NEWS
Sappi sells Cape Kraft recycled packaging mill to Golden Era Group Following on Sappi’s recent announcement of the sale of its Enstra Mill and recycled packaging business, Sappi wishes to announce the sale of its Cape Kraft recycled packaging paper Mill to the Golden Era Group. In March 2015 Sappi initiated a closed tender process after receiving many expressions of interest to buy the mill. It is expected that the transaction will close in September 2015. The disposal is not categorisable in terms of section 9.5 of the JSE Listings Requirements. Sappi will receive just short of R600 million from the two transactions. Commenting on the transaction, Sappi Southern Africa CEO Alex Thiel said: “The sale of the Cape Kraft and Enstra mills and the recycled packaging paper
business is in line with Sappi Southern Africa’s strategy to unlock value from non-core assets and free up resources for investment in dissolving wood pulp, virgin containerboard and other new business opportunities. The sales also support the Sappi Limited strategy to strengthen the group’s balance sheet and focus on highgrowth opportunities.” Golden Era Group CEO Kishor Chhita remarked: “We are very pleased to be able to acquire this top quality asset from Sappi. It will strengthen our position in the market as a service-oriented company that offers packaging solutions and will further help us to achieve our goal of creating lasting team-based partnerships with our customers.”
Harmony CEO Graham Briggs to retire
The Board of Harmony Gold Mining Company Limited (“Harmony” and/or “the Company”) advises that Graham Briggs, Chief Executive Officer (CEO), has indicated his wish to retire as CEO and member of the board. Graham (62), has had a long and distinguished career in the South African mining industry, including 20 years of service with Harmony. He was appointed as CEO in 2008. The chairman of Harmony, Patrice Motsepe, extended to Graham the well wishes of the board, adding that “it has been a privilege to work with
Graham and we wish to thank him for the valuable contribution he has made to Harmony and the mining industry. The global mining industry is currently experiencing challenging times and we are committed to ensuring that Harmony continues to be a globally competitive company.” The Harmony Board will now commence a formal search for the new CEO. Graham has agreed to remain in the role of CEO until a suitable candidate has been appointed and to ensure a smooth handover. When the new CEO has been appointed, a further announcement will be made.
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NEWS All that’s happening in South Africa
Endeavor Excelerator entrepreneurs celebrate their success at the JSE
The Johannesburg Stock Exchange (JSE), in association with Endeavor South Africa, hosted an event to showcase early-stage, black-owned businesses that have grown substantially, and in some cases, doubled their number of employees over a period of two years. The event marked the graduation of the founders of these businesses from the Endeavor Excelerator Programme, for which they were selected in 2012. Mohlakoana Mokoena of Drift Brands, Ashley and Tania Mulligan of Kushesh; and Tsakani Mashaba of Michael Mikiala Men, were declared Endeavor Alumni in celebration of their success. Johannesburg Stock Exchange host and sponsors, Carla De Vasconcelos, Capital Markets, and Donna Oosthuyse, Director, Capital Markets, welcomed their guests, while Catherine Townshend, MD of the Endeavor SA, and Endeavor Mentor, Clive Butkow, Non-Executive Director, Grovest Venture Capital, guests an insight into the determination and grit that these entrepreneurs had shown in working with Endeavor to grow their businesses. Guests experienced the thrilling count down to the opening of the market and the sounding of the Kudu Horn, which on this occasion, was done solely in honour of the Endeavor guests. The graduating entrepreneurs are exceptional role models for other business owners who wish to build their entrepreneurial skills. Tsakani Mashaba says, “Being part of Endeavor is the best thing that entrepreneurs can do because it sharpens your business acumen. You also get to meet other entrepreneurs, so you do not feel alone.” Tania and Ashley Mulligan, who, like their fellow
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graduates, were provided with services that included access to a business road map, an advisory board, legal advice, access to investors and markets, are extremely proud of their company’s 67% growth in turnover since joining the Endeavor Excelerator Programme in 2012. “Through Endeavor we have had great access to opportunities and have been able to meet people we would not have otherwise met,” says Tania. Endeavor SA has replicated the success achieved globally with the Endeavor model through its unique Excelerator programme, which is aimed at black-owned businesses that have not yet reached the high-growth stage of the typical Endeavor Entrepreneur. The programme applies Endeavor’s global best practices to earlier-stage businesses that have the potential to become high-growth companies within a defined timeframe. “We believe that developing high-impact entrepreneurs is the best way to promote an economy in South Africa that is sustainable and creates jobs,” says Catherine Townshend, MD of Endeavor SA. Endeavor further believes in pushing these earlier-stage entrepreneurs to take their businesses to the point where they not only become Endeavor Entrepreneurs, but also Endeavor Board members and leading role models in the South African entrepreneurial space. Many of the Endeavor Mentors who had worked with these entrepreneurs to build their businesses were present at the event. The core of the Endeavor model is mentorship, which means that Endeavor Entrepreneurs are supported by a network of world-class CEOs, business leaders, investors and academics in thinking bigger, making better decisions and multiplying their influence.
NEWS
R36m make-over for Solomon Mahlangu Square The newly renovated Solomon Mahlangu Freedom Square, which commemorates the struggle heroes and heroines, in Mamelodi, east of Pretoria, officially opened on 27th July. The square, which is a multifaceted landscape, narrates the heritage and history of the location and its people. Speaking at the official opening, Tshwane Mayor Kgosientso Ramokgopa said the city spent about R36 million for the first phase of the Solomon Mahlangu Square. The Memorial Square, as it is also known, was upgraded to inspire, educate and offer economic opportunities to the local community. The renovations included strengthening the Solomon Mahlangu Statue’s landmark qualities. The Statue is now an anchor point for reflection on the proposed meandering ribbon pathway and the new Liberation Spine, with the latter further enhancing the aesthetic value of the Statue. The existing status quo has been changed by rotating the Statue to face down the proposed new Liberation Spine across the park. A new sloping plinth has been constructed behind the Statue in order to accentuate its importance and for a gateway artworks intervention fronting onto the adjacent intersection of Maphalla Drive with Tsamaya Avenue and Stormvoël Road. This constitutes a positive impact, as it strengthens the landmark qualities of the Statue as the central focus element of the proposed new Liberation Spine while at the same time, augmenting the symbolic meaning of the proposed new Liberation Spine. The Statue contributes to an understanding that Solomon Mahlangu paid for his beliefs with his life. At the same time the statue is a tangible reminder of one of the darkest chapters in the history of South Africa, which is the struggle against racial oppression and the fight for a free and democratic South Africa. The Statue is consequently of notable historic and symbolic
importance as it celebrates both an icon and an iconic struggle. “This is honour of all the people who paid dearly for our democracy with their lives. We have to ensure that Solomon’s death is not in vain,” he said. According to Mayor Ramokgopa, the second phase will consist of a museum and a theatre among other things. He said the Solomon Mahlangu Precinct is for all the people of Mamelodi and all those who fought for democracy. “Through the struggle, we managed to achieve our democratic government in 1994,” he said. With regard to services, Mayor Ramokgopa assured Mamelodi hostel dwellers that their lives will be improved for the better. “The freedom fighters fought for a better life for all,” he said, adding that the Re ya Vaya bus service will be extended to Mamelodi. With regard to employment, Mayor Ramokgopa assured the locals that the city will create more job opportunities for them. Also speaking at the same event was Chief Lucas Mahlangu, who spoke on behalf of the Mahlangu family, saying as the family they were honoured by the event. “Solomon played a role in our democracy. He fought against the injustices,” Chief Mahlangu said. Chief Mahlangu told the audience that Solomon Mahlangu was a brave young man who was not afraid to die. The Solomon Mahlangu Statue is an integral layer of the historic development of the site of the Solomon Mahlangu Freedom Square. It was first unveiled in September 2005. The then Minister of Defence Mosiuoa Lekota and the then Executive Mayor of Tshwane Father Smangaliso Mkhatshwa officiated at the unveiling ceremony.
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NEWS All that’s happening in South Africa
South Africa’s integrated water system launches
The Department of Water and Sanitation (DWS) took its information sharing initiatives to the next level by successfully innovating and launching a new universal water information system. DWS introduced a new web-based technology called National Integrated Water Information System (NIWIS) on 21 July 2015 in Pretoria. According to Deborah Mochotlhi, Planning and Information Deputy Director-General at DWS, the Department of Water and Sanitation comprises of many units with various needs and these units have been operating in silos for a very long time. Therefore through NIWIS, the information from various business units of the department will be integrated and made available in one system for easy access and convenience. The establishment of the NIWIS is also an important development in government’s ongoing commitment to maximizing the potential benefits of ICT in improving the efficiency and effectiveness of
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Public Service delivery. The primary objective of NIWIS is to provide information to water management institutions, water users, the public, researchers, scientists, decision makers and those interested in getting a deeper understanding and knowledge of the water status in the country. NIWIS is set to be consistent and user friendly, containing essential water related information and can be accessed 24/7 through personal computers and mobile devices. Through the system, the user can drill down and query the most basic data available from the national level to the lowest water management information system. The water sector community and the public will benefit maximally from the National Integrated Water Information System. Even more importantly, the system will enable faster and efficient decision making.
NEWS
Delivering digital TV to all our citizens The recent ruling in favour of government by the North Gauteng High Court regarding set-top-boxes is not only a victory for government but a victory for every South African. The ruling clears the way for government to speed up the process of digital migration and broadband roll-out to the benefit of all. The court ruled against the broadcaster’s challenge to the government’s decision not to encrypt set-topboxes for digital broadcasts. It agreed with us that the encryption will increase the cost of set-top-boxes and make it impossible for lower income households to afford them. Disagreements and legal challenges have contributed to the delay in meeting the deadline set by the International Telecommunication Union to migrate from receiving broadcasts in analogue to digital. All countries that are party to the Geneva 2006 Agreement for Digital Broadcasting were expected to complete the migration by 17 June 2015. South Africa, as a signatory, was unable to meet the deadline largely because of factors that were beyond its control. Countries that did not migrate by the deadline are no longer protected from radio frequency spectrum interference, particularly from neighbouring countries. However, our inability to meet the deadline has not resulted in a blackout or disruptive television signals. Once it became apparent that we would not meet the deadline we immediately implemented plans to minimise the potential radio frequency interference. South Africa has signed bilateral agreements with neighbouring countries to minimise cross-border radio frequency spectrum interference. We have signed agreements with Lesotho, Botswana and Mozambique and are doing the same with Zimbabwe, Namibia and Swaziland. The purpose of these agreements is to harmonise the use of Radio Frequency Spectrum to ensure that there is no interference. They also include the sharing of migration plans, processes to handle frequency spectrum interference and the release of digital dividends timing. We have also prioritised communities along the borders of the country for the distribution of set-top-boxes to mitigate any potential frequency spectrum interference. The government has set aside over R3 billion to provide free set-top-boxes to more than five million poor households in
the country. The information and criteria that will be used to identify poor households who qualify for free boxes will be announced soon. However, all applicants will be subjected to means tests to determine whether they qualify for indigent status. Those who do not qualify will have to purchase them. Television viewers who subscribe to digital satellite television do not have to buy the set-top-boxes because it is already digital. However, they are obliged to pay their television licences in order to receive free-to-air channels. In keeping with government’s policy to grow small businesses, the manufacturing and installation of set-topboxes will be done locally to create work opportunities for the youth to enter the Information and Communications Technology (ICT) sector. We are resolute that digital broadcasting will become a reality within the next 18 to 24 months. This is in line with our National Development Plan to create a robust, reliable, secure and affordable ICT infrastructure. It calls for a National ICT policy that supports the needs of the economy and the migration from analogue will promote industrial development, job creation and access to information. The shift will release limited radio frequency spectrum which is used for the purposes of both broadcasting and telecommunications. It will lead to a more efficient use of available spectrum since digital broadcasts only require a fraction of the spectrum required by analogue broadcasts. It will also allow for more channels and more content to be broadcast in the same bandwidth as one current analogue channel uses. In addition, it will connect rural and urban, rich and poor ensuring that South African citizens transact and communicate more effectively with the use of technology. We are making headway to ensure digital migration becomes a reality. To succeed, everyone in the country must work with government to ensure that it is a success. This is the time to put aside our differences and place the interest of our nation first by ensuring that we move the country forward and deliver digital television to all South Africans
.
By Minister of Communications Faith Muthambi
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Entrepreneur
SA’s most charismatic entrepreneur? Editorial: Ajuanne Payne
From humble beginnings to a multi-million rand fortune, Lebo Gunguluza is the definition of an entrepreneur - the quintessential selfmade man and one of South Africa’s most well-known success stories. The charismatic businessman splits his time between his investments in media, hospitality, technology and property and building a legacy which can provide a blueprint for the next generation of African entrepreneurs and this month we were lucky enough to divert some of his attention away from this to answer a few questions for the August issue of IndustrySA…
Q: Yours is a real story of determination and resilience, tell us more about your background and also what gave you the drive to succeed? I was born in a shack. My father passed away when I was six years old and after that it was difficult for my mother to look after us so she sent us to a boarding school in a rural area. When I was there we used to boycott all the time because it was not a good school, so I had to repeat classes two times because of that. But my mother used the money from my father’s passing to send us to a private school and when I got there, because I didn’t know English well from the rural school, I had to repeat class again. I had a very difficult early experience in life, it was not straightforward at all but when I was at the good school, my opportunities opened up a little bit more. One of those opportunities was to write an essay for
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a competition run by one of the television channels in South Africa. They were going to introduce a new channel so they asked schools around the country to write a one page essay on how you might go about it. I wrote a one page essay amongst 10,000 other young people and became number one after only learning English in two years. That told me that I’m very talented creatively and when I grew up I made sure that whatever business I got into, it would be in the communication or creative space.
Q: How did you get your start in entertainment and media and how was it making your first million at such a young age? Because I know that I am creative and a good communicator, I made sure that when I went to
Lebo Gunguluza
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Entrepreneur university I chose things surrounding this. I eventually chose to work for SABC and worked very hard until I became the Marketing Manager there - one of the most popular radio stations in the country. I made great connections there but saw that I was not making as much money as I was supposed to - putting in a lot of effort and getting very little.
“It is very important for us to mentor young entrepreneurs so that they can succeed faster than us” It was then that I decided to go on my own, and because of my connections with the SABC and my experience, I approached a new radio station that was launching to promote them and because I did not have money at that time they gave me airtime. From then I was creating the capital - I had chosen a space where I can offer services, I bartered and then sold lots more, and that’s how I made my first one million at the age of 27.
careful and take my time. Whether you’ve made the right move or the wrong move, once that money is gone, it’s gone and cash is always king. What I did when I was young, when I made that one million, I invested in a studio to record artists and lost lots of money. The second setback where I had a terrible time is that one time I lost a single key client, which lost me a lot of money. I had asked one of my friends to manage a project for my client and ended up losing that client, so the second thing that I learnt that customer is king. You must do what the customer wants and you must look at the customer like they are your last breath, because they are the ones who continuously pay you. If you lose them you are not going to be sustainable. The next thing I learnt is the importance of having the right people. I’d rather have someone who is very expensive but who will do the right thing than have a cheaper employee who will not, because if you employ the wrong people they can cost you a lot more than it would have costed if you had had the right person in the first place. The last thing is that planning is critical - good planning makes you more sustainable.
Q: Your company, GEM Group, has done well and grown quite quickly, what developments have there been over the past few years? When I started with the company, I started in areas where I didn’t have to outlay cash in order to make money. I started in the media and hospitality space and then later on I started investing in other companies that are already running that have got potential, and those companies helped me to generate even more cash. Now I am investing in technology, especially software development and I am able to hire high-end engineers and software developers to come and develop solutions that are very sustainable. I have invested in property and have focused a lot of energy in Angel investing. I have a very stable cash base – cash is king.
Q: You experienced some big setbacks after making that first million, what are some of the key lessons you learned from that time?
Q: How important is it for you to help the next generation of african entrepreneurs? What are you doing in this area?
The first would be that I was too quick at investing. Now when it comes to laying out cash, I’m very
It i s v e ry i m port a n t for us t o m e n t or youn g e nt re pre n e urs s o t h a t t h e y c a n s uc c e e d fa s t e r
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Lebo Gunguluza t h a n u s . Yo u h ave to inv e st in the future , a n d t he p ers o n that will be that future is the yo u n ger talen t. Fo r me it’s v e ry important t h a t Af rica b eco mes e conomically libe rate d, e sp e cially S o u th Africa, that the re ’s a strong m i dd le-clas s f o r th e contine nt. Whe the r it h a pp en s in my lif e time or it doe s not, I’m g oi n g to make a s erious contribution towards this. O u r p eo p le are ve ry poor, the re ’s pov e rty all ov e r Af rica an d I s e e that if you can stre ng the n e n t r ep reneu rs h ip the n those who hav e g ot t h a t entrep reneu ria l tale nt can rise up and t h e n help o th ers w ho don’t hav e it. I launche d a pr oj ect called 12-1 2 -1 2 , whe re on the 1 2 th D e c e mb er 2012 I committe d to re cruiting 1 2 e ntrep reneu rs o ve r 1 2 months to start 1 2 e n t e rp ris es . I n 2013 and 2 0 1 4 , the y had only m a de 334, 000 ran d which was v e ry little be c a u s e I exp ected lots more from the m. S o , I d ecid ed to kee p the m and me ntor t h e m mo re an d in the following ye ar, wh i ch w as 2014-201 5 , the y jumpe d from 3 3 4 ,000 to o ver 10 million rand, all in on e y ear. I t j u s t s h ows that if you g uide pe o p le th e right w ay you can cre ate a c h a n ge.
Q: Where do you see yourself in 10 years’ time? 10 years is too far! In the next two years I want to finish mentoring these guys - I’m hoping that they’ll be up and running by themselves, and then in the next five years I want to focus more on the technology and the property side of my business and also the investor side. After that I want to become a philanthropist, because half of my life I want to have been working and the other half I want to spend giving back
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Innovation
Š Askwar Hilonga’s Nanofilter
The filter with life-saving potential Editorial: Harriet Pattison
Featuring patented nanotechnology, the specialised water-filtration system, designed by engineer and university lecturer, Askwar Hilonga, will help to provide a solution to the array of water-related diseases found in contaminated drinking water. PAGE 18
Nanofilter With the many innovations we have covered here at IndustrySA, they all seem to have one very important and correlating aim – to help and inspire fellow Africans. This month’s innovative concept is certainly no exception and its founder, Askwar Hilonga, a Tanzanian chemical engineer, was awarded first prize in the Africa Prize for Engineering Innovation for his specialised water-filtration system in June this year. In a report from the United Nations, it is estimated that over 115 people die every hour in Africa due to contaminated water and the poor sanitation conditions – so in a 24 hour period, this statistic would equate to well over 2,700 people. With numerous diseases including TB, Malaria and AIDS all spread through dirty water, it is almost impossible to stop the devastating effects and consequences of these diseases without the availability of safe and clean drinking water. Askwar Hilonga’s design is a sand-based water filter with nanotechnology that helps in the cleaning and purifying of contaminated water and is developed with three main components: firstly, the sand helps in removing water debris, including 97% of bacteria and viruses. Secondly, the nanofilter, which subsequently has now been trademarked, aids in removing the harmful substances sand cannot filter, including minerals, pesticides and hard metals. Lastly, the filter contains a 0.1 µm hollow fibre membrane. Impressively, the filter helps in removing up to 99.999% of micro-organisms and can be specifically designed and engineered for a specific body of water and pollutants – these can vary depending on the geology of the location and human activity. The nanofilter will produce 60 l/d of safe drinking water and will only need replacing after filtering 800 litres of water – Hilonga estimates that for an average family of six, this would equate to every three months and cost just US$5 to replace. The Africa Prize was launched in 2014 by The Royal Academy of Engineering, in a bid to celebrate and reward African engineers and their innovative designs, hoping to inspire Africans to empower their own communities and find solutions to reoccurring issues. Alongside his accolade from The Royal Academy of Engineering, Hilonga was awarded £25,000 (US$38,348) in prize money. With the water filter costing US$130, he has vowed to start buying in bulk in the hope of reducing costs and for those who cannot afford the filter, Hilonga is also setting up clean water stations and selling it five times cheaper than commercial bottled water. Head judge Malcolm Brinded at CBE FREng said: “We are proud to have Tanzania’s Dr Askwar Hilonga as our first
Africa Prize winner. His innovation could change the lives of many Africans, and people all over the world. He has successfully incorporated the training and mentoring from the last six months into his business plan, and shows great promise.” Hilonga competed with entrants from 15 other African countries, with the 12 shortlisted entrants receiving six months of complimentary business training, all with the aim to help them develop their business plans, approach future investors and further market their inventions. The three remaining runner-ups behind Hilonga also received £10,000 in prize money. These were; Musenga Silawa from Zambia with his spot fertiliser applicator, Ernst Pretorius from South Africa who has developed a fence-mounted security system and Samuel Wangui’s team from Kenya for their concept, Chura – a sim card swapping service. Speaking to Engineering and Technology Magazine, Brinded explained: “There is a big shortage of engineers in Africa, but there is also a great wealth of talent. Many of the talented engineers are not able to get the recognition and the backing they need to become successful business leaders or start successful businesses. “First of all we were looking for something that is a real technical innovation, but we were also looking for an entrepreneur who we think is capable of building a successful business. And then we are looking for something that we think might make a real contribution to African development. Something that has the chance to succeed and scale while being applicable across many countries and making a real difference to the development. “It was difficult to pick the shortlist to be honest,” he explained. “First of all, to pick the twelve from the 55, we had at least 20 we wanted to go forward. To pick the four from the twelve, that was again very challenging. We had six or seven that were very competitive.” With a degree in nanotechnology from South Korea, Hilonga is now a university lecturer at the Nelson Mandela African Institution of Science and Technology. He hopes that his new filter innovation could help up to 70% of households in Tanzania who suffer daily with no access to clean drinking water and is due to be ready for commercialisation as early as next year. The Royal Academy of Engineering has already announced the opening of the second Africa Prize for Engineering Innovation for 2016
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Lifestyle SA
Luxury in the wilderness Editorial: Ajuanne Payne
In an increasingly busy world it is important to take time out and re-connect with your surroundings. In this issue we cater for the reader who is pursuing perhaps the most elusive of luxuries: silence and space, two qualities that are found most spectacularly on South Africa’s wide selection of gold-standard safari lodges. We have narrowed it down to just three top picks for when you are looking for a truly refined and secluded break.
South Africa is a land of many faces, from the refined metropolitan city of Cape Town and the rural and idyllic peacefulness of the country’s wine-lands to the unspoilt magnetism of its national parks. And it is these national parks that provide the perfect setting for when you want a real taste of the wild, utter privacy, and luxurious accommodation. The country currently has 22 parks, consisting of over 37,000 km² and accounting for around 4% of the total area of South Africa - a strong tourism pull both locally and internationally for the chance to view the ‘Big Five’ animals. As a result of this, many safari lodges have sprung up to cater to the top end of the market, offering a lavish and relaxing setting from which to immerse yourself in the natural beauty of the surroundings. The oldest and most well-known of these national parks is the Kruger National Park. At nearly 20,000 km² it is the largest, most visited safari destination in the country and serves as the backdrop to our first high-class safari lodge pick. With a plethora of luxury facilities to choose from surrounding this hugely
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popular region, Royal Malewane is perhaps the best of an amazing bunch of safari lodges the discerning visitor can select.
ROYAL MALEWANE In an area with 145 mammal species large and small, and located in prime lion-spotting country on Thornybush Private Game Reserve in the Kruger National Park, Royal Malewane has often been considered the world’s single best safari lodge. Not short of accolades it was voted Best Safari Property in South Africa by the Good Safari Guide, 2014, third Best Hotel on Earth by Travel and Leisure and has won a staggering range of awards – over 25 and counting. The perfect destination for anyone seeking that classic African safari feel and decorated in a neo-classical style with canopied king-size beds, the six palatial suites are decked out with vintage furniture, a private infinity pool and outdoor showers as well as indoor bathrooms and fireplace.
Lifestyle SA
Sunset over Kalahari, Tswalu Kalahari
The two Royal Suites are extra-luxurious, sleep four and include all of the above as well as a private lounge and dining area. Included in the booking, each group is assigned their own chef, butler, Land Rover and dedicated guide. Rates start at R14,600 pp per night in mid-season for a suite, R15,600 pp per night in peak season. For larger bookings, Africa House at Royal Malewane is an extravagant home that can hold up to 12 guests and is popular with large families, groups of couples and celebrities. For the traditional social South African dining event known as braais, the lodge has a barbecue area and usually hosts an outdoor party each week. Rates start at R138,200 per night for eight guests at Africa house in mid-season, all inclusive. Royal Malewane also has possibly the most extensive spa of any safari camp, with four complementary massages included in the price of booking – a real taste of seclusion and understated luxury. With the Drakensberg Mountains towering in the distance, the incredible biodiversity of the local
wildlife and a pervading sense of timelessness and wild splendour, Royal Malewane employs the best animal rangers and trackers to ensure its guests experience the beauty of the national park in all its forms. Game drives are twice daily at dawn and dusk and are tailored to suit your interests, with the opportunity to make use of the lodge’s specialised photographic vehicle if requested.
Royal Malewane | www.royalmalewane.com TSWALU KALAHARI With most travellers heading straight for the Kruger National Park area in the east, a hidden gem and less-visited area of natural beauty is the Kalahari. A top-shelf safari location for wildlife enthusiasts, the Kalahari Desert covers a staggering 900,000 km² across Botswana, Namibia and South Africa and is a semi-desert home to a wide range of animals. In the southern region of South Africa’s Kalahari savannah is Tswalu Kalahari, the largest private game reserve in the country at 100,000
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Lifestyle SA
Main Entrance to Marataba Safari Lodge
hectares and owned by the Oppenheimer family, founders of DeBeers Diamonds and Anglo American. Not always teeming with life, Tswalu was previously a hunting reserve and was bought by current owner, Nicky Oppenheimer in 1998 who pledged “to restore the Kalahari to itself.” As such most of the work at Tswalu is focused on conservation; coming second to that is the running of its world-class opulent safari lodge facility. Tswalu’s motto is ‘closer to the land, closer to the people’, and with a maximum of 30 guests at any given time, it feels like your own private and vast grassland paradise. But you are far from alone: on safaris and tracking expeditions, meet stately black-maned lions, rhinos, zebras, leopards, and a plethora of other rare species, by 4x4, foot, or horseback. As a guest staying at Tswalu there is the opportunity to see some of the 80 species
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of mammals resident across the year, and nearly 300 different species of rare bird, all from the comfort of boutique, luxury lodge accommodation. Part of the deluxe Relais & Châteaux association, the lodgings at Tswalu are individual, thatched roof African-style constructions each with beautiful interiors comprising of bathroom, bar, fireplace and four poster bed. The Kalahari is a year-round malaria free zone and guests at Tswalu can enjoy watching the sun set across the unspoilt landscape from the quiet luxury of their large private outdoor deck. As is the norm at luxury safari lodges, all food and drink is inclusive of the price, which starts at around R10,600, but you may want to indulge yourself in some of the extras Tswalu has to offer - the resort has a sumptuous full service spa on site. A place like no other – Tswalu has won over 10 awards and has its own hangers and private
LIFESTYLE SA aviation fleet and offers its guests subsidized flight transfers from both Cape Town and Johannesburg and for those who have their own Jet, you can fly right in.
Tswalu Kalahari | www.tswalu.com MARATABA The Marakele National park in Waterberg with its nutritious soils that attract a large range of animals is home to our final pick luxury safari lodge – Marataba Safari Lodge. A malaria-free 23,000 hectare private concession within the Marakele National Park, Marataba is just a four-hour drive from Johannesburg and a relaxing base from which to explore the national park in all its splendour. Above the park and dominating the view is the high cliff-face Kraskop, home to what is considered to be South Africa’s largest colony of the rare and endangered Cape Griffon vultures, around 800 breeding pairs. Along with this rarity it is possible to see all the large game species, from rhino and
elephant to the big cats, roaming around the grass-clad hills and valleys of the region. In order to see this, Marataba runs twice-daily safaris, by vehicle or on foot, to give its guests the opportunity to experience the beauty of its surroundings. The lodgings at the resort take tented camps to a whole new level of luxury with décor that echoes African ancient tradition with a modern, opulent twist. Constructed from canvas and stone, each of the tented suites are decorated with impeccable attention to detail. The camp is unfenced and as such there is a real chance of seeing wildlife right from your doorstep – the local elephants sometimes like to sip water from the swimming pool. A Trip Advisor certificate of excellence winner for 2015, Marataba is a favourite with both local and foreign visitors and another example of a luxury lodge that is providing a perfect balance between extravagance and wilderness. Rates at Marataba start from R6,480 per person
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Marataba Safari Lodge | www.marataba.co.za
Elephants by the pool, Royal Malewane
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INfluential SA
Connecting the dots Editorial: Ajuanne Payne
What makes a person influential? There are plenty of individuals who are successful in their chosen path, people who have done extremely well but are not necessarily influential. An influential person is someone who not only has a personal power above the norm to make changes and enact what they feel driven to achieve - but someone who inspires those same urges in others. Someone who is a role model and an example - a yard-stick by which others can measure themselves. In this issue we focus on one such person; Euvin Naidoo, a man whose career is enmeshed seamlessly with his passion for social enterprise and the sustainable economic development of the African continent. Š Flickr | Euvin Naidoo | World Economic Forum on Africa, 2012 PAGE 24
Euvin Naidoo
So, why is it that Naidoo was included in Forbes ‘Top 10 most Powerful and Influential men under 40 in Africa’ list? As Forbes says – ‘a line-up of 10 youthful movers & shakers who wield enormous influence in Africa’s political and business circles, they are presidents of nations, chief executives of some of Africa’s largest corporations, politicians, thinkers, intellectuals and young global leaders.’ – and Naidoo is up there with some of the most talented men making a difference not just in his native South Africa, but in the continent as a whole. It is because of his expertise, his shrewd ability to convey ideas in a way that excites and inspires, and his obvious dedication to his own success and to promoting a sustainable African growth story.
“LEADERS ARE NOT BORN, THEY ARE CREATED” Currently a banking executive in Johannesburg, Naidoo is a graduate of the Harvard Business School (HBS) and an alumnus of global international management consulting firm McKinsey & Company. It was at HBS that Naidoo first found his passion for social entrepreneurship and realised that this passion could connect seamlessly with his financial career. Speaking in a community narrative as part of HBS’s ‘Institutional Memory’ archive, Naidoo explains further the beginnings of his career: “Coming from South Africa, growing up under Apartheid, the prospect of attending an institution like Harvard Business School was the furthest thought in my mind. But, I came from a background in which academic excellence was emphasised throughout my childhood and as such joined the offices of McKinsey & Company early on and soon found myself, like many other young consultants, applying to different business schools. “When I was at the school I was President of the Social Enterprise Club and I would say that was one of the defining experiences of my time [at HBS].” It was during Naidoo’s time as president of the SEC at HBS that he experienced a watershed moment in his progression after a chance meeting with the late John Whitehead of Goldman Sachs. “He said – ‘I have some pieces of advice for you. Don’t ever give up engaging your community when you reenter the workforce, be it in banking, be it in consulting’,” said Naidoo. “We all have intensive work schedules and it’s so easy to just play golf on weekends and get drawn into a terrific work regime but he was saying, take the time to engage in volunteering in the non-profit sector and to stay
connected to your community - and I really took that advice to heart. It has had a remarkable impact on me both in my personal development and in my satisfaction at work.” Naidoo emphasises that this is one of the greatest lessons he learned from his time at HBS – to never lose sight of his early passion for social enterprise, and to not look at business, the nonprofit and private sectors as categories, but rather as overlapping sectors. 2003 saw Naidoo co-author the HBS case, ‘Nelson Mandela, Turnaround Leader’, with Prof. Rosabeth Moss Kanter. Kanter and Naidoo’s research and collaboration went on to form the material for the South African chapter in the BusinessWeek and New York Times business best-seller, ‘Confidence’ and it was during this work that he learned a passion for excellence and great storytelling – something which stood him in good stead as today he is regularly called upon to speak publicly in a wide variety of situations. Six years ago in 2009 the World Economic Forum (WEF) selected Naidoo as a Young global Leader and later that year, he was recruited to the WEF’s Global Agenda Council (GAC) USA. He was further honoured by the WEF at the 2012 World Economic Forum on Africa as one of its five ‘Rising Stars of Africa’. Rewind to 2007 and Naidoo led a line-up of international innovators and thinkers as the opening speaker at the TED Global Conference on Africa. Advocating his cause further and inspiring others in the process, one of the key points from Naidoo’s TED talk was that: “We have to move away from what is called the ‘curse of the commodities’; for Africa to truly be sustainable we have to move away, we have to move beyond.” 2007 also saw Naidoo, as President and CEO of the South African Chamber of Commerce in America (SACCA), lead the launch of the Africa Entrepreneurship Platform. Due to his level of expertise and proficiency in financial services, he has been invited to teach and speak by some of the world’s leading institutions from the World Bank to MIT. In May 2013 he delivered the opening keynote address at the Oxford Union, Oxford University for the annual Pan African Oxford Conference. Also a visiting lecturer at the University of the Witwatersrand’s Business School and the WITS Business School (WBS), Naidoo has forged a formidable career in the financial services sector which he continues to use to give weight to his advocacy of sustainable growth for Africa. A man whose passion infects others, Naidoo is one of the people using his expertise to inspire others and is a strong voice in the ongoing narrative on how best to nurture the continuing African growth story
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company profile
30 years of success
Editorial: Ajuanne Payne
In a tough competitive market, Build it has flourished over the past three decades and is today a leading builder’s merchant and DIY retailer in sub-Saharan Africa. The company’s focus on the highest quality service and its shrewd eye for growth opportunities has contributed to its success - the brand has over 300 stores, a fast expanding footprint and an average rate of 27% growth per year. Ray Whitmore, CEO of Build it for 15 years, speaks to us in this month’s issue, explaining the philosophies that have made the company a household name in South Africa…
Build it is one of the top three independent retailers in South Africa specialising in building materials and related hardware. With a market leading growth in the hardware and building materials industry, it is a dynamic organisation and one of the most successful divisions of the SPAR Group. With over 300 stores across a growing Southern African footprint, Build it currently employs around 8250 people, serviced by six regional offices, a central head office and a distribution centre. A builder’s merchants supplying everything you may need to build or renovate a home, the company’s main focus areas are DIY, Build it yourself, SME’s and contractors and embracing all activity within the building and hardware industry, the company aims to provide full solutions from the ‘foundations to the finishes’.
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Over the last 12 years the company has consistently out-grown the market and is the fastest growing hardware and building materials group in Southern Africa. CEO, Ray Whitmore, has played an integral part in the company’s ongoing success story and has a long history, first with SPAR and then as CEO of Build it. “I started in SPAR 30 years ago at SPAR Group. I’m a chartered accountant, I come from auditing and accounting and was in a financial position to start with. I then moved to become Managing Director of one of the Spar divisions in Cape Town and thereafter I’ve headed up Build it. I’ve been in Build it for 15 years.” Build it began life in 1985, with a membership of only 20 largely rural independent retailers in Kwa-Zulu Natal. After moving inland in the 1990s, expansion was slow and steady until a decision was made in 2000 to take the group national. The retail sites grew from 26 to 172 in just five years after this, covering the whole of South Africa, Swaziland, Namibia
Build It
and Lesotho. “It’s 30 years old,” explained Whitmore, “we started in 1985. It started as part of a SPAR store in the rural areas of KZN and some of the SPAR retailers went into Build it stores and it’s grown ever since. It used to be departments within SPAR stores but now it’s stand-alone units only. “There was a need from the SPAR customers to have hardware and we decided it was big enough to have as a separate brand.” Apart from stocking all major brands in the industry, Build it has its own high quality house brand under the Build it name. These products offer the consumer a high quality product at the best value for money.
OUTSTANDING GROWTH With markets becoming tougher and more competitive, quality, tailor-made service is what
sets a company apart. Boasting a market leading growth, Build it has gone from strength to strength since its national launch in 2000 and has spent the years since focusing heavily on staff development, marketing and investments back into the business infrastructure that have cemented its position as a trustworthy brand synonymous with high-quality service and products. “The market’s very competitive and that’s increasing because of the number of entrants coming into the market and that have come into the market recently. But it’s a big industry and there’s plenty of opportunity,” says Whitmore. This is especially true for Build it – the company has grown from a turnover of R231 million in 2001, to an incredible R8.3 billion in 2013. It is clear that its mission to dominate the supply of basic
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company profile
building materials market in Southern Africa is well underway. In order to ensure that it upholds its reputation for superior service, staff training and development is a huge focus for Build it. It operates in an area of retail where product knowledge and a flexible approach to customer service is key and as such recognises the need to not only invest in training such as leadership, selling, first aid, product and service training but also to celebrate the individual successes of every staff member in equal measure. The company holds yearly awards and has various opportunities for staff members to be recognised and rewarded for their hard work. The company’s voluntary trading business model has also kept it ahead of the pack over the years. A flexible model, each member has the advantage of great individual buying power, as well as access to a wide-ranging distribution and delivery network, a strong regional and national advertising programme and a full leadership and consultant service, while still being able to remain relatively independent. It is a structure that enables the retailer to compete with the major chains and within the system each region has its own management structure to cater to local market conditions, fully
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supported by the Build it head office. “These past 13 years have seen our store numbers grow significantly. The foundation of this growth has been huge commitment and teamwork from our retailers, suppliers and Build it staff,” says Whitmore.
A STRONG BRAND Build it is essentially an aspirational brand - it sells products, services, an interactive shopping experience and project solutions that tap into a customer’s pride in their home. It deals with customers making some of the largest and most considered purchases they can make - for most customers building or renovating a home is certainly a huge investment and not to be taken lightly. As well as ensuring that its customers get the right service in-store, Build it has worked tirelessly over the years to strengthen its reputation as a brand that can be trusted and one that can exactly service a customer’s needs. “As a team, with our retailers and suppliers, we have managed to build a great brand,” says Whitmore. “Our people, our retailers and suppliers, we’ve managed to grow and develop a fantastic
Build it brand from virtually nothing in the last 30 years and for me that’s been fantastic to be part of. It’s really a team effort. The support we’ve got from our suppliers, our retailers and everyone, it’s been a fantastic ride.” The strength of the Build It brand can very much be attributed to the company’s dedication to collaboration and working together and also to its continuous investments in high quality marketing and advertising. In order to help the company live up to its slogan of ‘making home building simple’, the company’s advertising endeavours are mostly focused around connecting with its customer’s on an emotional level and reassuring them that Build it is there to help every step of the way. The essence is to let its customers tell their own stories of how the company has helped ‘make home building simple’ for them. One of Build it’s recent, and most successful, campaigns was the SINAWE campaign, launched last year. Translated as ‘we are with you’, the TV campaign showcases Build it customer’s successful home building projects and is the foundation for the
highly successful Sinawe72 TV show, a continuation of the company’s AD campaign. Starting in March last year, Sinawe72 is a homemakeover reality series that helps four families to make their home renovating dreams come true by giving them a chance to make over their homes. Over a non-stop 72-hour period the families, along with a ‘Build it champion’ to mentor each team, renovate their homes in the hope of winning R250,000 worth of building materials and products from Build it. The TV series ran for 13 episodes and was a huge success, not only as an advertising campaign for Build it, but also as a stand-alone show, bringing in over 10 million viewers for host channel, e.TV. The show was a perfect fit for the Build it brand – an aspirational show that helped make customers’ dreams come true and a coup for the brand in terms of showcasing the company’s in-house expertise by way of the Build it mentors featured and its quality and varied product offering.
30 YEARS OF SUCCESS One of the ways in which Build it promotes a culture of collaboration and togetherness
Call us on: 0860 063 325 OR visit our website: www.medalpaints.co.za
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company profile throughout its organisation is through its yearly convention for suppliers, retailers and Build it staff. Usually a two-day event, the 2015 convention was a particularly special one for the company as it was also a celebration of its 30-year anniversary. With around 650 guests and various activities and awards, the convention is a chance for the company to celebrate its members and get feedback from every corner of the business. It is also a prime opportunity for retailers that wouldn’t otherwise interact to see what different areas of the business are achieving and potentially take new practices and ideas home with them. “We just had our annual convention; we had a bit of a celebration. Every year we have a convention and it’s quite a bit of work - we have work sessions and then we have a bit of social in the evenings. We used this occasion to celebrate our 30th; that was the theme of the whole convention,” explains Whitmore. “We (Build it) were born in a time of turmoil and we’ve created a strong brand with a great platform for growth ahead of the market.” The company has achieved an average 27% growth over the years and looks set to continue in this vein for many years to come.
growing the brand there as a region that holds great future potential for the company. Regional Director for Build it’s inland region, Sean Bradshaw, said at the launch that “I can only see BMB Build it getting bigger and bigger and becoming the hardware and building material supplier of choice [in Botswana]”. Certainly an important milestone for the company, Build it is not shy of strategically re-investing in the business to ensure its continued growth and to meet demand in areas that hold potential for the future. One of the more recent large new additions to the Build it family is the R11 million, 1000m², new hardware store at Bothasig Mall in South Africa, completed earlier this year in April. Whitmore explains how the company tries to keep up with demand: “It really is just plugging the gaps, where we’re not
FURTHER EXPANSION With the increasing economic growth being experienced regionally across sub-Saharan Africa and the subsequent growth of upwardly mobile middle classes, Build it is targeting Southern Africa for further expansion and is well on the way to having a comprehensive footprint across the whole region. With stores in South Africa, Namibia, Lesotho, Swaziland and Mozambique, Botswana is the most recent new expansion for the business, with the launch of nine new stores in 2013. BMB Build it is the result of a strategic partnership between PG industries Botswana, trading as BMB, and Build it. With the first store opened in the Botswanan capital, Gaborone, the company went on to open the other stores in Jwaneng, Gumare in the North West District, Maun, Shakawe, Francistown, Palapye, Selebi and Phikwe in the Central District. A natural entry into the Botswanan market for Build it, the company and its partner, BMB, are dedicated to further
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CEO | Ray Whitmore
Build It
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company profile
represented in the towns and cities; we’re looking for sites or business there.
“The teamwork that exists and the strong relationships that exist have been a huge part of our success” “It’s done on a regional basis – we have 300 stores so we’re well represented but there’s a few towns we’re not in across the country and there’s a few cities where we’re not well represented and so we try to address that.” On top of new sites for the company, Build it is always looking at ways to expand on its product offering and anticipate what its customers are looking for. As well as
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stocking all well-known industry brands in its stores, the company has a high-quality house brand under the Build it name that offers great value for money to customers. Looking to the future and this dedication to re-investing in the business is well recognised at Build it as a key contributor to the company’s success and something that will not be changing any time soon – it is a business that always tries to anticipate what is needed and position itself accordingly. “We’ll continue to grow our existing business at a steady pace,” says Whitmore, “and in terms of new products it’s a continuous process - we’re always looking at potential new products. One of the key elements moving forward, in terms of our current builder’s merchant business, is going to be looking at sustainable products to build houses. “And then within the next couple of months we’re going to be launching a new DIY model. We’re builder’s merchants so we effectively do building materials and DIY stuff, but now we’re launching stores under a new format; smaller format stores to cater just for DIY.”
BUILD IT UNDER 13S SOCCER Over the years, Build it has dedicated itself to social projects that benefit the community in various different forms, but one of the biggest of these endeavours is its involvement with under 13s soccer in South Africa. The company is committed to the development of soccer at grass roots level and its Under 13s Soccer Programme is
Build It
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company profile
one of the biggest junior development programmes in the country and a recognised brand in youth soccer. “We encourage all our retailers to host under 13s soccer tournaments. In the next 12 months we’re probably going to do about 200 across the country. So 200 of our retailers are going to be doing a soccer tournament and involved in the community and it’s fantastic,” says Whitmore. The soccer initiative was first launched in 2006 in partnership with SAFA’s local football associations and other National Football Associations in and out of South Africa and is aimed at uplifting young people throughout Southern Africa by giving them a chance to develop their sporting talents. Divisional Marketing Director for Build it, Rob Lister, described the programme as “the perfect opportunity for us to give back to the communities that have supported our brand and have made it into what it is today.” Build it has invested over R12 million in its under 13s soccer since inception and is one of the few companies to not just talk about community development, but to invest time and energy in a scheme that really does make a difference – a scheme that is today one of the biggest junior events in the country.
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Whitmore describes the initiative as one of the bigger milestones for the company in the last decade. “We almost own under 13s soccer in this country. We are the main patron of under 13s soccer in the country - there’s no one else that gives exposure to soccer in terms of breadth that we do.”
THE RIGHT WAY IS THE BUILD IT WAY “The package that we offer our retailers is fantastic, from all aspects of business, financial management, IT, HR, the leadership - the whole lot and I think that’s played a huge role in our growth.” Whitmore explains that two of the most fruitful endeavours for the company in recent years has been its marketing campaigns and the growth of the Build it house brands, but that in terms of the company’s overall success, again it boils down to the spirit of collaboration entrenched across the whole organisation. “I think it’s the working together that’s been a major contributor to our success - the working together of our suppliers, retailers and ourselves in Build it. I think the teamwork that exists and the strong relationships that exist have been a huge part of our success,” concludes Whitmore
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company profile
‘Prime, on time, every time’ Editorial: Ajuanne Payne
Stainless steel plays a major role across a wide range of varying industry sectors. From the hygienic preparation or storage of food and drink, to the components used in the automotive industry, it is an essential commodity and one which new applications are found for year-on-year. In this month’s issue we speak to Lucien Matthews, CEO of SA’s premier stainless steel producer and one of Africa’s largest single site manufacturers, Columbus Stainless, who explains to us just what makes the company tick…
The only producer of stainless steel flat products on the African continent and a cornerstone of the South African industry, Columbus Stainless was established five decades ago in 1964 and has grown over the years into the respected market leader it is today. Used as an essential material across a varied array of industry sectors, from the building and construction and fabrication industries, to the automotive and service sectors, stainless steel is an indispensable commodity with new applications for the material found year-on year. Due to the huge potential for stainless steel and the high levels of demand for the product from so many different industry sectors, Columbus has remained completely committed to producing it throughout its 50 year history. It is one of the
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leading suppliers of stainless steel to the domestic market and internationally, and is part of Acerinox S.A. (Spain), a major global stainless producing group that holds a 76% share in Columbus.
A CORNERSTONE OF THE LOCAL INDUSTRY Lucien Matthews, CEO of Columbus Stainless and a man with a long track record in the industry, both locally and abroad, affirms his company’s unswerving dedication to stainless steel – a huge contributing factor to its long-term success: “We have absolute faith in stainless steel, it grows at 5% per year, and from the beginning until today we have been focused on producing stainless steel and haven’t changed that.” As part of Columbus’ commitment to its product,
Columbus Stainless
the company is distinguishable by its vision for the growth of stainless steel consumption in South Africa and its role in providing world-class services and products and in attracting new investors to the country. At present, around 25% - 30% of Columbus’ products are sold locally into the South and sub-Saharan African markets, with the remaining percentage being exported internationally via a network of agents and group sales outlets operating in Europe, the Americas, the Middle East and the Far East. One of the obvious advantages of being part of a larger group, Columbus products are exported to 54 countries around the world. To put some perspective on Columbus’ significance to the local market and just how much the company is producing, as the largest stainless
steel manufacturer in the Southern Hemisphere, it produces more than 80% of all stainless steel flat products used in South Africa and still exports the majority, over 70%, overseas. With a production capacity of more than 600,000 tons per year, Columbus accounts for around 3.5% of the GDP of Mpumalanga and (according to most up-to-date figures) contributes 0.26% to the GDP of the whole country. Downstream industries, such as automotive, building, etc., making use of the stainless steel manufactured by the company, contribute a further 0.14% to South African GDP.
‘OUR PEOPLE MAKE IT HAPPEN’ Offering an extensive range of stainless steel products in a variety of austenitic, ferritic, utility and duplex grades, cold or hot rolled and produced
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company profile in its plant in Middelburg, Columbus currently employs around 1,900 permanent and contract staff to run its complex operation. The company recognises that its growth and success is directly dependent on the expertise and well-being of its employees and as such, has developed a culture of learning over the years. Columbus focuses heavily on the continuous enrichment of its staff members through acquiring new knowledge and the honing of management and leadership skills in its top-level staff members. Recognising that technology and innovation has to be ‘directed by the brightest minds’, the skills profile of Columbus employees is comparable with the international industry average. “We always recruit people with 12 years schooling as a minimum, and they must have maths and science,” explains Matthews. “Those people that we recruit are given further theoretical training for about six months and then practical training inside the factory. Some of the recruits become steel-makers, which means they become operators which move up to various levels in our business. Then we also train artisans, those are the people that will become electricians, fitters and turners and boiler makers.
“We were very instrumental in pushing the use of stainless steel in the automotive industry”
‘Set in Steel’: Air Products South Africa and Columbus Stainless forge a successful long-term partnership Partnerships are long-term commitments. This is the approach characterising the relationship which Columbus Stainless and Air Products South Africa have enjoyed for more than 20 years. This relationship has been further cemented through the recent renewal of the argon gas supply agreement. With a number of strategically located owned and operated facilities around the country, of which the majority are argon-producing, Air Products is the market leader in argon production in Africa, and the largest supplier thereof to Columbus Stainless. Part of the journey with Columbus Stainless has seen Air Products shift its focus from merely producing and supplying argon, to providing complete security of supply. This change of strategy has been a critical turning point in enhancing the customer relationship. Supply chain excellence and efficiencies are supported by Air Products’ long-term capital investment strategy, which leads to direct benefits for key customers, such as Columbus Stainless. This has resulted in the addition of new argon-producing plants, as well as the modernisation of the company’s fleet. Air Products is proud to be a critical supplier of argon to Columbus Stainless, providing quality service, close communication and interaction which together ensure long-term sustainability and supply chain efficiency: ‘Service that delivers the difference!’
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Columbus Stainless “We have a continuous program of training people because we try to encourage them to stay here long-term. We also bring in graduates or engineers in training, expose them to different sides of the business and then also motivate them to grow in the business. We encourage people to stay here for long periods because we always promote internally. “Of course, as people are promoted, the operators will eventually move up to possibly become team leaders and then we will send them for team leader training. Once people are promoted into the ranks of mid to senior management, we normally send them on management development programs.” Columbus likes to share its success with its staff members, and one such occasion was last year when it celebrated a big anniversary. “Last year we had 50 years being on the site and we celebrated that along with the retirement of the previous Chief Executive Officer, Dave Martin. We had a big celebration function with our staff which is how we normally do it at Columbus.”
CURRENT DEVELOPMENTS Because of Columbus’ formidable reputation as a stainless steel giant in South Africa, the company has long recognised the importance of helping to develop the industry locally and subsequently works closely with government for the benefit of the stainless steel industry, as well as for the downstream manufacturers who use the product. “We are very active with the local government and national government in assisting them with getting downstream manufacturers to come in to South Africa and settle,” explains Matthews. “It’s a continuous thing that we’re always in discussion about and promoting and trying to push downstream manufacturing inside South Africa. It’s something we have been doing for many years and that we will continue to do.” “We were very instrumental in pushing the use of stainless steel in the automotive industry, in catalytic converters, and we will keep looking for industries that use stainless steel and that would like to settle and consume in South Africa, like the rail passenger cars which use stainless steel
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company profile
on the sidewalls. “At the moment, it’s a challenge here because the manufacturing industry is under huge pressure in South Africa, and one needs to look at the longer term objectives and benefits and keep pushing that.” In South Africa, the government is keenly focused on factories and heavy industry as an employment creator and economy driver and more than ever public and private sector partnerships are energising investment and innovation both locally and across the continent, with Columbus being one of the companies contributing to that. The next step for Columbus is to continue its focus on local industry while also ensuring it is in the best position to service the growing demands of the fast growing economies of other sub-Saharan African countries. “We will now start looking more actively at Africa for any growth in that region because it is starting to see some areas of activity,” explains Matthews. “We will now start pushing up into sub-Saharan Africa because we do see some development, as mines go in and other kinds of infrastructure development opportunities start opening, so I think
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we will hopefully see more growth in South Africa and Africa. If that does happen then later we may invest in more capacity.” More immediately than any planned growth into Africa, Columbus has plans to invest further in its facilities and product – something which it is continually dedicated to doing and which is a key contributor to its competitiveness. “We will probably invest in some finishing line capacity, that’s where we take the big, 2030 ton coils and we cut them up into one to two ton packs of sheet for customers. We will look at increasing that so that we can push the throughput and improve customer satisfaction by delivering what the end users and customers want. We will also continue to make small modifications to existing lines to further improve quality, yield and productivity.”
A STRONG FOUNDATION Over its years in business, Columbus has shown time and again that it can flourish despite changes in the market and economic landscape. The company has shown itself to be a shrewd and flexible operation and is not shy of investing
Columbus Stainless
in the short term to ensure success in the long term. Matthews explains: “Columbus has had absolute focus on productivity and efficiency, along with commitment and faith. Sometimes you go through a cycle, commodities go through ups and downs and so what we’ve done is we’ve taught our staff flexibility; that things change, it’s a natural part of life and you need to remain open-minded to that. “There’s also been significant investment on two fronts. One is investing in the people. We bring the people in, train them up and keep them here for many years, so they get to know the industry and we get efficiency like that. We are a very supportive company and we offer good working conditions and benefits. “The other one is continuous investment in the facilities to improve productivity through efficiencies and sometimes the move higher up in the value scale of products. “That’s where we are continuously investing - the profits are continuously put back into the business and driving it forward and making sure we stay efficient.”
Another key strategic move that has enabled the company to flourish is becoming part of the Acerinox Group in 2002, with all the benefits that come with being part of a well-established international frontrunner. Columbus is able to benchmark itself not only against its competitors locally, but to its global counterparts in the stainless steel industry. In Matthew’s view, along with an absolute focus on safety and health, the big drivers for Columbus’ success have been its focus on reinvestment in the business and the expertise and well-being of its staff members. “There’s safety, there’s looking after people and then continuous improvement is probably the big driver as well. We always push people for another improvement. Sometimes it changes a little bit, sometimes you want more production, more throughput, more tons, sometimes you need to just improve quality and we generally also introduce new products or slightly different products so it is also a learning and innovative company. People like challenges in Columbus and tackle them with a lot of energy,” he concludes
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company profile
The first name in steel production Editorial: Alex Montgomery
If you know anything about steel production in South Africa, or indeed the world, then you have heard of ArcelorMittal and its South African operation, ArcelorMittal SA, regional leader in the industry by a comfortable margin, is responsible for 57% of the continent’s steel production. With sustainable practice becoming more and more of a prevalent issue within the industry, ArcelorMittal SA is leading the way in investments in this area of its business, ensuring an environmentally sustainable future for the steel giant, and providing a benchmark for public and private sector alike.
As a commodity, steel is an essential part of our global society and one of the most widely used metals in our modern world. With a countless array of applications, its versatility, durability and strength lends itself to almost all industry sectors and with over a thousand different grades, steel can be found in everything from the cutlery we use to eat, to the rockets we send into space. What some may not know is that steel is endlessly recyclable – it does not suffer from degradation and as a result, it can be re-used over and over again; so for every 1,000kg in use, 550kg of that is recycled. According to the World Steel Association (worldsteel), global steel consumption is expected to grow 0.5% in 2015 to a staggering 1,544 Mt, with growth being mainly driven by the developing
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economies of BRICET countries: Brazil, Russia, India, China, Eastern Europe and Turkey. As the well-established world number one steel producer with around 232,000 employees, ArcelorMittal, as a group, is the largest producer of steel in Europe, North America, South America and Africa and the second largest in the CIS region with growing presence in Asia, particularly China.
ARCELORMITTAL SOUTH AFRICA As part of the global steel powerhouse, ArcelorMittal South Africa is the foremost steel producer on the African continent, with a production capacity of 6.5 million tonnes of liquid steel per annum. Through its association with the global entity, ArcelorMittal SA has access to industry-leading R&D, best practice processes, international market leverage and
ArcelorMittal South Africa
aggressive procurement contracts, giving it a strong foundation that puts it in an unshakeable number one position ahead of its competitors. Headquartered in Vanderbijlpark in Gauteng, the company has an annual steel production of 5.0 million tonnes of liquid steel (long and flat) products, over 9,000 employees and a revenue of R32 billion (2013). To get an idea of just how significant ArcelorMittal SA is locally – it currently provides over 57% of domestic steel requirements in South Africa and is a major supplier to the region’s domestic industries, with the majority of supply (71%) going towards construction, automotive, energy, mining and chemical and water sectors. As such a major industry supplier in the region, the company currently indirectly supports 9.7% of GDP and around 900,000 jobs.
LOOKING BACK ArcelorMittal SA has been in existence in South Africa for over 80 years, originally starting life as the statutory parastatal organisation, Iscor, in 1928. The first steel was tapped from the open-hearth furnace at the Pretoria works in 1934, and the rest, as they say, is history. Increased demand and a number of mergers, acquisitions and expansions that have taken place over the years have served to propel the company towards the leading position it is in today. The most notable of these earlier expansions would be the Plate Mill and Fully Integrated Steelworks expansions at Vanderbijlpark in 1943 and 1947 respectively and the investment into an Integrated Steelworks site at Newcastle in 1971. The company’s huge Saldanha Steelworks first started production in 1999 and is the result of a
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joint-venture established with the IDC in 1996. Following the acquisition of the parent company in 2004, the merged company’s name was changed to Mittal Steel Co in 2005 and a further merger between Mittal Steel and Arcelor Mittal South Africa was the final evolution that resulted in the company we see today – ArcelorMittal SA.
TRANSFORMING TOMORROW The modern-day ArcelorMittal SA, is a company very much concerned with a sustainable future for steel production – not only from a cost-saving perspective, but an environmental one also. Currently, the company’s annual electricity consumption stands at 3,736,000 MWh per year and annual water consumption at 15.500 Mlt. Worldsteel has highlighted the need for sustainable practice across all areas of the steel industry, and as an industry leader in this field, ArcelorMittal mirrors this sentiment and is very much concerned with steel’s contribution to a low carbon society and the need for stronger partnership between government and the
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leading players in the steel industry. Edwin Basson, Director General of worldsteel explains further what the organisation and its industry leading members are concerned with for the future of the global steel industry: “The steel industry is CO² and energy intensive by nature but what needs to be clearly acknowledged is the central role it plays in enabling many other industry sectors to mitigate CO² emissions in their applications and products and also in providing solutions to many of the challenges posed by a growing global population. “Therefore, the role of the steel industry needs to be considered within the context of progressive industrial policy and governments need to engage with the steel industry when developing a carbon policy that could impact the industry. “Governments should take into account the full life cycle of products when creating new regulations. This will help to create reliable and predictable frameworks for cost effective energy and environmental policies. Furthermore, governments should promote a circular economy approach leading
ArcelorMittal South Africa to: low waste, reduction in the amount of materials used and encouragement of reuse and recycling of all materials. Lastly, progress in breakthrough technology development in steelmaking must be maintained or accelerated requiring the financial burden to be shared by both government and the private sector.” In order to live up to these aspirations, ArcelorMittal SA has embarked on a program of education and investment over the past five years to bring its practices in line with what it perceives to be the future of steel production and sustainable practice, under the slogan of ‘Transforming Tomorrow’. With such focused investments being actioned for infrastructure development in South Africa and across the continent, steel is a vital commodity in this and one of the biggest challenges facing the industry is being able to meet demand, while also minimising environmental impact and cost.
producing companies, and any improvements in efficiency have paralleled environmental and financial benefits. Improvements in energy efficiency result in reduced production costs and thereby improved competitiveness. Steel production is very much an energy intensive process; however, innovations in sophisticated energy management systems are ensuring efficient use and recovery of energy throughout the steelmaking process for reuse, wherever possible. In fact, improvements in energy efficiency and technology have led to reductions of around 60% in energy required to produce a tonne of crude steel since 1960 in most of the top steel producing countries. ArcelorMittal SA operates in line with global group environmental policy and as such, all production facilities comply with ISO 14001, the internationally recognised standard for environmental management systems. The company aims to be among the world’s lowest cost producers.
ENERGY USE IN THE STEEL INDUSTRY Ranging anywhere between 20% to 40% of the final cost of steel production, energy constitutes a significant portion of the expenditure for steel
EFFICIENCY AT SALDANHA One area of the business in which ArcelorMittal SA has invested significantly since the start of its
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LIFTING South Africa
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“You need to train people - a good technical person still needs to be trained in energy savings� PAGE 46
push to become a more efficient, sustainable, organisation is at its Saldanha Works facility in the Western Cape. A largely export-focused plant, Saldanha Works employs over 550 staff, has a capacity of 1.2 million tonnes per annum and is the single largest electricity consumer in the Western Cape in its production of ultra-thin hotrolled steel coils. As such a huge consumer of energy, and subsequently a drain on finances, Saldanha was an obvious choice for upgrade as part of the company’s energy management strategy, launched in 2010. With potential savings initially identified through an energy audit and an examination of its existing project list, an ISO 50001-compliant energy management system was initiated which cut energy use at the facility by 6.6% a year. By showing such commitment to sustainability and introducing a world-class manufacturing programme optimising energy management at the facility, Saldanha has gone from being one of the
ArcelorMittal South Africa
Group’s highest production cost factories to one of its lowest cost ones. According to a case study conducted by the United Nations Industrial Development Organisation, even without any further investment in the facility, the changes made so far will mean a saving of R362 million for ArcelorMittal SA by 2016. Dhesan Moodley, General Manager at Saldanha Works, says: “Resources were allocated both in terms of people and capital expenditure. Initially the potential was determined through an existing project list and doing an energy audit on the plant to determine further possible savings. ISO 50001 was implemented and energy management is now part of our daily routines. The energy saved in terms of baseline value of 160 MW was 10.6MW or 6.6% and the LPG savings added equivalent of R90 million in 2012. “This has proved to be sound technology given the correct application. We are also very proud of
our waste heat project at the Roller Hearth Furnace where waste heat was used to replace a diesel heater at the Air Separation plant. We have also done some optimisation projects at the water plant on pump systems that required no capital expenditure. “You need to assign resources if you are really serious about energy savings. You need to train people – a good technical person still needs to be trained in energy savings and the NCPC/ UNIDO program (supported by the DTI and DOE) is really an affordable way to train your staff to think and implement energy savings initiatives. Introducing savings is relatively easy. Sustaining these savings can be quite difficult especially if it is achieved by changing human behaviour. You need to incorporate it in your management infrastructure and implement a system such as ISO 50001 to entrench and sustain such savings,” explains Dhesan. Distinguished by its merging of cutting edge technologies to produce its high quality ultra-thin
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company profile hot rolled coil (UTHRC), the plant is a pioneer in the industry and the only steel mill worldwide to have successfully combined the Corex/Midrex process in a continuous chain – essentially replacing the need for coke ovens and blast furnaces and making the plant an industry leading example for emission control and environmental management. Much of this UTHRC product ends up being used for roofing in Africa and the company plans to invest further in the facilities in 2016 to allow the possible tie-in of gas to the iron-making part of the steel process and further contribute to its ability to produce a finished product with virtually no impurities. The savings for the plant and the company will not only increase competitiveness and profitability, but also buffer ArcelorMittal SA against rising energy tariffs locally and the impending implementation of a carbon tax: “We are focused on the export market, specifically in Africa and we are competing against China and India. These countries do not experience any of the cost increases mentioned. The viability of
export facilities is at risk with these increases. This obviously has significant potential impact on the economy, not just local, but also on the fiscal balance.” ArcelorMittal SA is ensuring that, in keeping with its reputation as an industry leader, it preemptively takes steps to ensure it is ready for the increasing drive globally towards sustainable business practices. It is a company unafraid of making the investments needed to ensure its future, a huge company with the ability to be flexible in response to the fluctuating demands of the steel market; embracing sustainability is just one example of this formidable company’s future focus. With a depth of technical and managerial expertise, an unparalleled reputation for reliability in the global arena and a strong culture of innovation, ArcelorMittal SA is the cornerstone of African steel production and a company that will long continue to be a yardstick for both public and private interests in the steel production industry
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Terex MHPS integrates combined company strengths under one brand Demag Cranes and Components is a name synonymous with providing expert material handling solutions across Sub-Saharan Africa. As of July 2015, Demag Cranes and Components (Pty) Ltd officially changed its name to Terex MHPS (Pty) Ltd (Terex Material Handling and Port Solutions), as part of a global integration and business legal entity simplification process within its parent company, Terex Corporation. Part of the name change involved the integration of Terex Material Handling (formally Demag Cranes and Components) and Terex Port Solutions (formerly Terex Port Equipment Southern Africa) into Terex MHPS (Pty) Ltd. According to Terex MH Senior Manager Sales, Richard Roughley, the restructuring and rebranding has resulted in a company that offers complete intermodal handling solutions. “By combining the full expertise of both companies under one roof, Terex MHPS offers a more comprehensive and synergistic portfolio of solutions that can be tailor-made specifically to each individual customer request. I am confident that this will enhance the high level of service and quality that our customers have become accustomed to over the years,” he explains. Further synergy will be created, thanks to the fact that Terex MHPS will have greater access to other leading Terex brands such as Genie Aerial Work Platforms, Terex Mobile Cranes and Terex Finlay. The regional head office of Terex MHPS, which boasts a 54 000 m2 manufacturing facility with over 200 employees, will remain in Boksburg, Gauteng. “One of our key areas of focus will be the Sub-Saharan African countries, whose economies are growing at a healthy pace. With the countrywide network of Terex branches and a growing network of cross-border agents, we can ensure improved support for all our products to the benefit of our customers,” Roughley concludes. To find out more about the Terex MHPS rebranding call 011 898 3500 or email enquiry.sa@terex.com
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Remkor Technologies
201508
30 17
500.000
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company profile
Fuelling growth Editorial: Ajuanne Payne
Recognising a need in the market for a flexible, independent fuel distribution business eight years ago, Elegant Group was founded with a view to making it the niche provider of choice in the region. With demand increasing for its LPG product and an expanding retail business, Elegant has grown rapidly ever since inception and made innovative, strategic moves that are promising exciting times ahead for the company and its industry partners.
The Elegant Group is a fuel and service provider with a solid commitment to impeccable service and a flexible approach to business. But before that and perhaps most importantly for the business, explains Rocco Strydom, director of the family business, Elegant is a proudly South African company. “First of all Elegant Group is a locally owned and founded company, so we’re proudly South African. Economic transformation is a big issue and we’re committed to bringing sustainable job creation and empowerment to help transform the country and to help its people go forward. We are not a company that looks at the bottom line first, we look at our people and how we can employ more people with sustainable job creation.” A relatively young company – Elegant was founded eight years ago and has grown incredibly
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in the years since into a diverse operation, offering a retail service station business that is growing year-on-year, wholesale operations, pioneering LPG distribution in Limpopo, a variety of services and a distribution network to support the entire operation. In a relatively short amount of time Elegant has been able to make solid strategic partnerships with major oil companies operating in South Africa while maintaining its appetite for innovation – a combination that has made it a leading independent in the fuel distribution market.
ENTREPRENEURIAL SPIRIT “Elegant Fuel is part of the Elegant Group. It was started eight years ago when we saw a niche market developing because of the major oil companies divesting in their downstream activities,” explains Strydom.
Elegant Group
Despite the substantial growth in oil demand not only in South Africa, but across the African continent, there has been a trend towards divestment in downstream operations by oil companies operating in the region. This has allowed for non-traditional and mid-sized players such as Elegant to step in and meet demand in these markets – a development that has definitely proved lucrative for the company. “In the beginnings we got a transporter, we helped them to get two trucks financed and we got the supply and then started delivering to smaller sites. That eventually just grew year on year and we became more successful until a couple of the bigger players noticed what we were doing. “We started with two million litres a month and now, last time I checked, we’ve got a fuel output of 20 million litres a month - only eight years since Elegant Fuel was started,” says Strydom. After setting up its fuel distribution operations, the
company realised that the key would be for it to diversify its operations – to aim to provide services that others were not providing. “About two years ago we realised, we are more than a fuel company - we are an entrepreneurial company. So, we started an LPG business, we bought a PPE company and we started our own construction and maintenance division that does other projects for Elegant Fuel. We incorporated everything for the company into what we call the Elegant Group of companies. “You need to diversify – in South Africa if you are a onetrick pony then someone’s going to come and unseat you,” says Strydom.
LIQUID PETROLEUM GAS (LPG) Discovered over a century ago in 1910, LPG is a gaseous fossil fuel and a by-product of natural gas processing and oil-refining. The fuel is a non-
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toxic mixture of propane and butane and although a fossil fuel, it is relatively clean when compared with fuels such as coal and oil, producing far less air pollution and carbon dioxide emissions. As an example – when used in vehicles, LPG produces up to 40% less carbon dioxide emissions than traditional petrol fuels. “It’s what you use at home to cook. Although South Africa isn’t as big as Europe is on using gas as a power source, what we saw was an opportunity to get into the market while there are only a couple of big players,” explains Strydom. “We started with one of the biggest companies, called Easigas, which is a French holding company, and we are now the only distributor of Easigas in the Limpopo Province.” Currently in sub-Sahara Africa, per year consumption of LPG is only at an average 2.5 kg per person, however this is predicted to grow quickly over the coming years. It is the third most commonly used transportation fuel globally and has applications in many industries – from transportation and construction to home uses such as cooking and heating. Aside from its obvious potential as a greener
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choice of fuel, LPG burns hotter than coal, natural gas, petrol or diesel, making it a more efficient resource. In a time when economic and environmental sustainability is becoming increasingly prevalent to individuals and organisations alike, Elegant Group is tapping into a market with a lot of promise and is ensuring it is in the best position to service the growing demand for this alternative fuel. “I think we’ve only scratched the surface in terms of LPG usage and applications - in South Africa we haven’t even started using LPG for transportation. I know in Europe they’ve got a lot of sites where cars run on a mix of petroleum and LPG and so that’s one thing that we’re trying to exploit on this side, but it’s an educational thing because people are scared. If you don’t know about something then there’s a hesitancy to pick it up, so we’re just trying our best to educate people and make them aware of the safety of gas. “In the rural communities they use paraffin to cook with and it’s actually a very dangerous substance because it looks like a drink and a lot of the time toddlers ingest it by mistake and it’s also very ignitable. LPG is a very green energy in the
Elegant Group
“You need to diversify – in South Africa if you are a one-trick pony then someone’s going to come and unseat you”
sense that it’s clean burning and it’s a by-product of the distillation process of fuel, so it’s there in abundance.”
FUTURE PROSPECTS With significant growth potential in the retail side of Elegant’s business and demand increasing for its LPG product, there are multiple opportunities for the company to expand on in the years to come. Strydom explains that the company is continuously looking at avenues where it can expand its footprint. “We are always looking for synergies crossborder and there are a couple of leads that we’re working on, but we’re quite comfortable growing our market share in South Africa,” says Strydom. “I think that South Africa is a country with an amazing growth potential. It might not be experiencing the growth that emerging markets are experiencing, but for businesses that can be innovative and with a flexible supply chain, South Africa has great growth potential.” One area which the company is looking to grow further is its retail network. “We’ve got a relatively small retail network at the moment
Milliken Industries would like to take this opportunity to congratulate
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“Last time I checked, we’ve got a fuel output of 20 million litres a month”
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Elegant Group with about eight sites, adding two or three a year constantly, but as you know it’s quality over quantity. People have warmed to the brand and they are quite taken with it. “We are obviously looking to expand the retail platform to wherever we can take it. We’ll look to partner with other independent wholesalers to grow the brand. “On the LPG side, our partner Easigas has a national account with Boxer – a supermarket in South Africa. We’ve partnered with them to bring LPG to their stores so that the rural community can buy it and don’t have to go into the larger towns. It makes LPG more accessible. That’s one big thing that we’re working on and that should be up and running in the next year or so – the rolling out of those sites.” Not only will the partnership with Easigas be a lucrative one for Elegant but it will also contribute to its long-term goal of increasing the product’s visibility in South Africa. With a fleet that currently stands at around 30 tankers and four vehicles for transporting fuel and LPG, Elegant expects to continually invest in expanding this further in the years to come to ensure it has the infrastructure to service its growing business. “You have to expand quite fast,” says Strydom. “We differentiate ourselves on service - our major selling point is always that we’ll give you the best service at a market-related price. For that you need a flexible supply chain and you can only have that if you have the best assets for your logistics.” “I like to think of us as the underdog, doing what the big companies think we can’t do. If you group our operations together and take a look around then I say there’s not many here that are doing what we’re doing - we’re expanding our divisions, acquiring companies, being innovative.”
of,” says Strydom. “On the fuel side, signing a big supply contract with Sasol was a big milestone. They are one of the largest fuel companies in the world, so for a little guy to sign a big supply contract with a multi-national oil company, that’s a big deal. And then on the gas side the depot that we built in Limpopo is one of the biggest inland LPG depots in South Africa, built to European specs.” Strydom firmly attributes Elegant’s success to its focus on customer service - “Service delivery – putting the customer first. It sounds like a cliché when you say it but it really is about customer service at the end of the day. Not forgetting where you’re coming from, staying humble and remembering that it’s those customers that got you where you are today and you need to look after them every day. You’re only as good as your last delivery,” he concludes
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COMPANY MILESTONES In a short space of time, Elegant has achieved a lot. In a market usually dominated by large, multinational companies, the family business has proven itself to be reliable and efficient and in a relatively short space of time, has built itself a good reputation in the industry. “The retail networks were a big milestone for us - the network is something we’re very proud
Director | Rocco Strydom
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company profile
Shaping the skyline Editorial: Rebecca Bingley
Shaping the skyline of Durban since 1960, FGG Architects has built the foundations of a successful and reliable company manufactured solidly from expertise and industry knowledge. IndustrySA speaks with co-director, Kevin Bingham, who explains that with a change in architectural practises in recent years, the company is looking to concentrate on securing provincial projects and retaining its fundamental ethos, making it an enduring success for many more decades.
The subject of architecture can be traced back through the centuries to the early 1st Century AD to Roman architect, Vitruvius, who recognised in his works of De Architectura, the three fundamental principles which still stand in modern architecture today: durability, utility and beauty. Of course, with two millenniums passing, the process and designs used to construct so many of the historic and influential landmarks located across the world today demonstrate these changing times with huge advancements in labour, construction and technology. But the majestic build of Notre Dame in the heart of Paris, the uniform design of one of London’s biggest tourist attractions – the Houses of Parliament – or the magnificent pose of the Taj Mahal in India, all firmly showcase these fundamental values highlighted all those years ago.
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While the aesthetic values of an architectural design holds much weight; the social, environmental and functional implications must also be carefully considered before the scheduling, cost estimations and construction administrations can be implemented.
AN ARCHITECT’S PROCESS The official process of the architect’s role, from the initial design brief to sketching the rendered drawings of a proposal and the final ‘close out’ phase, can be divided into six stages. Naturally, the first stage welcomes the approach from the design client to discuss what it is the client wants done and to assess the project budget. Conversations with local municipalities follow and a contextual review of where the site is to establish whether the building can be constructed
FGG Architects
taking legal issues and building restrictions into consideration. Following this approval, the architect reverts back to the client with both the fee proposal and a local agreement (client architect agreement) to sign. The next stage involves the rendered drawings which highlight the intention of the building design, between both the client and architect and from there, the commission and planning approval drawings are completed. Further approval is then needed from the local authority before converting the commission drawings into working drawings – the latter are what both the builders and contractors will work from. At this stage, the architects assist with recommendations for building contractors, playing the role of Principle Agent and working with the Structural and Electrical Engineers and Quantity surveyors, before reaching
the final stage. The architects will go on site and manage the project accordingly before a ‘close out’ with the municipality and building sign off is settled.
STRONG FOUNDATIONS Initially started by two architects in 1960 - Deryk Franklin and Patrick Garland - Patrick Gibson joined four years later following a stint working with the firm as a student, and so formed the wellestablished Durban company, FGG Architects. Following its inception, the firm established its second office in Pietermaritzburg in 1969 and was joined by many more associates and partners over the years, growing extensively in the early 1990’s and building a team of 40-plus staff working across both offices. FGG Architect’s stature over the years has
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grown tremendously following many notable and landmark buildings, shaping the skyline of Durban city. From the Durban Sugar Terminal, recently voted in the top five regional landmark buildings in an architect’s vote held in KwaZulu-Natal to the former Head Office of Standard Bank in Durban. The firm’s first hospital - Greys Hospital in Pietermaritzburg – was built in the 1970s, and stands as the first of 20 medical facilities FGG Architects has since built globally. More than five decades on and with Jeremy Hathorn and Kevin Bingham proudly at the helm, the company has continued to establish a hugely successful history. Speaking to IndustrySA this month, Kevin Bingham explains that although both he and Jeremy initially joined the company in 1980, their paths took a rather different route: “Jeremy started with FGG on gradation from university in 1980 and I also joined as a student in 1980 for holiday work at the company. Jeremy has
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“There’s a big push on our side to encourage local students, both at the technician level and professional architect level”
FGG Architects been with the company ever since and soon became a partner. I however took a different career path. “I had been an architectural technologist and decided to go to university to become a professional Architect. I worked in the UK during the late 1980s and returned to South Africa in 1990. I returned to working with FGG in 1993 before I was approached by the local university to consider a full time academic post. Accepting this, I lectured at the architectural school of the Natal University / University of KwaZulu-Natal for a decade. On leaving the university in 2008, I was approached and decided to merge with FGG. I re-joined as an associate and have been a director now since 2012,” Bingham explains.
STUDENT SUPPORT As with so many successful and long-serving companies, the employees remain integral to the success and day to day running. Joining himself as a student back in 1980, Bingham explains he is very passionate about the company’s intake of students,
providing opportunities and education. A dedicated advisor for the local university’s architectural department, Bingham explains FGG Architects takes on between two and three students every year: “With a team of only 15, this is a relatively large percentage for the company. We take them mainly on their year out, after their third year of study – yesterday we had a request from a technician to come and do his in-service training with us for six months, so we have accepted him. There’s a big push on our side to encourage local students, both at the technician level and professional architect level.”
A CHANGE IN DEMAND Inevitably, over the last 55 years and with the current and enduring state of the world economy, the industry has seen a shift with larger architectural practises not as much in demand today as perhaps they were ten years ago. Despite this change, Bingham explains the firm is managing a comfortable work load
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“I believe we have made a mark provincially and internationally, and we have a number of landmark buildings we are proud of� PAGE 60
Kevin Bingham
FGG Architects and has the advantage of a strong network of expertise and a sterling reputation within the industry, provincially and internationally. “We now have a team of 15 which we find to be an ideal number, allowing us to comfortably manage the work load we have,” he explains. “Having purposefully come down from a team of more than 40, it is now more fitting and an ideal number for a smaller practice.” Exercising its expertise within the medical industry – Bingham explains FGG Architects has worked on many local and international hospitals. Completing the Inkosi Albert Luthuli Central hospital during the 1990s, commendations on its design are still received today. “This is a landmark building and I believe a good example of how hospitals should be laid out and planned,” adds Bingham. Completing a number of medical projects internationally in Mauritius with hopefully another on the horizon, Bingham explains the company continues to build on its medical building research skills whilst currently focusing on residential and shopping mall projects. “In any field of business there will always be competition. I think one’s expertise and skills should be the defining factors but it’s becoming apparent that clients want their jobs done for much less these days in trying to save money,” explains Bingham. While Architects rely on a guideline to set their fees – “this used to be 6% of the contract value but it’s now open season,” explains Bingham – companies are now bidding on projects at unviable rates, inevitably raising the competition and the danger of companies not breaking even month to
month. However, Bingham has a refreshing take on this and on the competition the company will unavoidably meet, and that is to continue to build upon the respectable name FGG Architects has assembled for itself over the decades and through its many expert consultants that have graced its walls. “I believe we have made a mark largely provincially, and we have a lot of landmark buildings here. The Hilton Hotel, The Sugar Terminal and many residential blocks on the Umhlanga coastline,” explains Bingham.
SHAPING SUCCESS Responsible for so many of Durban’s landmark buildings and provincial projects, FGG Architects certainly has no plans to slow down. “Jeremy and I are well into our careers and we will no doubt look to bring on associates over the coming years. The hope would be that FGG could continue forever, but looking at the history of many companies globally, they only last for a few generations; I see FGG going from strength to strength.” Despite changes in the industry, with fewer people looking to remain with a company for the entirety of their careers, Bingham has unwavering faith in this company that was started over five decades ago by three young architects and has little doubt that FGG Architects will continue to shape the skyline of Durban and beyond for many more generations yet. “We have such strong support and a good name, I think having a strong background and ongoing mentorship from our past partners is key, and I hope Jeremy and I will continue that ethos going forward. I think FGG will continue far into the future,” concludes Bingham
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Maximising profit and production Editorial: Rebecca Bingley
The manufacture of animal feed in South Africa has become big business and this month, IndustrySA speaks to Fanie Schoeman, National Sales and Marketing Manager at NUTRI Feeds – a company that has successfully established a sterling reputation as a leading South African animal feed manufacturer and with its new and unique products on the market, NUTRI Feeds is helping customers to maximise both profit and production.
With the manufacturing of corn gluten feed first introduced in 1882, the late 19th century saw many changes, not least the start of the industrial-scale production of animal feeds. As advances in the benefits of both human and animal nutrition and that of a balanced diet became known, so did the importance of raw materials in processing methods. The content quality of the fodder fed to our livestock on a daily basis is absolutely imperative – cattle, dairy and poultry in the care of farmers do not have the freedom to forage and so therefore mealtimes must be carefully planned, ensuring the necessary nutrients are provided and catered for. What is fed to our livestock of course has important implications on the quality of the products – eggs, meat and milk - subsequently produced. The leading South African animal feed
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manufacturer, NUTRI Feeds, has mills located in Viljoenskroon, Mafikeng, Bloemfontein, Botswana and Zambia. With a growing footprint, the company’s products are now distributed across 280 outlets in South Africa with exports to Lesotho, Botswana and Namibia.
DEEP ROOTS IN SOUTH AFRICA The roots of NUTRI Feeds – with its main activities currently focused on the developed South African animal feed – date back to 1949 as Sentraalwes Coop began its production of animal feed at Viljoenskroon under the brand, Senwesko Feeds, in its ‘A’ plant. Two decades later and a new modern feed mill is constructed – ‘B’ plant, in 1972. Both feed plants underwent extensive upgrades in 1984, allowing both to reach a capacity of 40 tons per hour.
NUTRI Feeds
Through various acquisitions – the company bought Westa Feeds from Suidwes Coop in 1992 and became a private company in 1995 - Senwesko Feeds formed a joint venture with Vaalharts Feeds and Vryburg Feeds at Christiana (Midwes Feeds) in 1996, before becoming the sole owner of Midwes Feeds in Christiana just two years later. From 2002 to 2004, Senwesko Feeds consolidated its production at Viljoenskroon and closed down Christiana before it was sold to its new owners in 2007 with Senwesko Feeds re-branding to NUTRI Feeds.
COUNTRY BIRDS HOLDINGS Today, NUTRI Feeds is part of Country Birds Holdings Ltd (CBH), which prides itself on providing South African families and households with high quality products. Executive Director
since March 2005, Kevin William James has an extensive and experienced poultry career which began with managing a small laying operation in Zimbabwe, before establishing Ross Breeders Zimbabwe (Pvt) Limited and merging it with Crest Breeders International (Pvt) Limited. Using his achievements in the South African poultry industry, James set up Country Bird Holdings in 2005. With a 100% shareholding in Supreme Poultry and NUTRI Feeds in South Africa, the group comprises of the Poultry South Africa and Animal Nutrition South Africa segments. CBH now owns 60% of the Botswana operations, 100% of the Zambian operations and 85% of the Zimbabwe operations to date. With operations now extending into Botswana, the DRC, Malawi, Mozambique, Namibia, South Africa, Zambia and Zimbabwe, Country Bird Holding’s strategy is to expand
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further into Africa, looking to seize opportunities in sub-Saharan Africa and existing growing markets. Speaking with NUTRI Feeds’ National Sales and Marketing Manager, Fanie Schoeman, he explains to IndustrySA that the company’s current focus is on the South African animal feed market: “It is important for NUTRI Feed’s future development that it gains access to new, less-developed or developing markets with an above average growth potential. “The Mafikeng and Viljoenskroon Mills are ideally situated within the maize producing belt of South Africa and in close proximity of the Senwes and NWK Silo storage facility.” Scheman joined NUTRI Feeds in 2009, working for the company for almost four years before moving to a different sector of the business for 18 months but now heads up the sales and marketing department. Today, NUTRI Feeds retains its vision as a responsible leader within the South African animal feed industry, ensuring it complies with environmental initiatives. Becoming the first Animal Feed Manufacturer in the world to be both ISO 9001 and ISO 22000 certified, the company
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“It is important for NUTRI’s future development that it gains access to new, less-developed or developing markets with an above average growth potential”
NUTRI Feeds is also the first Animal Feed Manufacturer in South Africa to have attained OHSAS 18001 accreditation, helping to cement its strong position within the increasingly competitive South African animal feeds industry.
UNIQUE PRODUCTS With a wide range of unique and competitive animal feed produce now available, NUTRI Feeds holds an enviable position in the market by ensuring its products help to maximise both livestock production and profit for the client – largely achieved through unique manufacturing processes and careful procurement strategies. This includes: optimal weight gain, optimal food digestion, absorption and conversion which helps to utilise the least possible feed to achieve maximum marketable weight, healthy bone and muscle growth from birth through to slaughter, maintaining a healthier rumen environment for the best production results and providing safe and easy mixing with minimum wastage. One of the company’s new and innovative products - NUTRI Milk feeding program – is a concept within the dairy feed market which offers a range of customised feed options and solutions. Truly unique, it helps to address the differences in feeding management, milk production potential and available roughage. The fractional analysis process helps to establish the exact NUTRIent profile of farm-produced roughage amongst other feed sources which helps to provide exact customised feed formulation on the farm and more specifically, protein and energy quality and content. This helps to ensure maximum rumen microbe protein production. The new concept will also allow for effective interaction between the energy and protein sources in the products. NUTRI Milk’s product line varies in crude protein percentage with protein content options ranging between 15% and 23%.
FURTHER EXPANSION With a vast history working within the poultry feeds industry in South Africa, Scheman explains that for NUTRI Feeds to continue to grow successfully, it must increase its volumes following a number of strategies. For example, the possible synergies and the potential for cost reduction by either closing down excessive production capacity or by introducing single
species production. The possible increase in margins by further enhancing NUTRI’S differentiation strategy or the volume growth by entering new market areas with the NUTRI brand name. “We must ensure that we regain lost broiler business through highly active and aggressive feed formulations and customer support and service and lastly, to regain lost ruminant business through improved product quality and visible quality control and follow up procedures (ruminant pellet quality).” Looking to gain access into new and developing markets, Scheman explains the company has identified a number of future growth potential areas which includes competing for external broiler business in the market, acquisitions or mergers with competitors and increasing high margin ruminant volumes. “The Zambia mill, together with the mill in Botswana, represents an excellent base for future expansion and growth in these
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“The Zambia Mill together with the mill in Botswana represents an excellent base for future expansion and growth in these lucrative markets” PAGE 66
lucrative markets,” explains Scheman. “The NUTRI challenge will be to minimize the risks associated with these markets (currency risk, raw materials) respectively and to transfer mill management and formulation skills to these markets.”
CONTINUED SUCCESS A strong regional player in South Africa, Scheman explains that looking to the future, NUTRI Feeds is looking to sustain this position and dominate existing regional areas. “In the last few years, there have been a number of smaller companies that have started supplying these areas. The reason for that is that transport became very expensive due to the fuel prices, so
NUTRI Feeds
the bigger players operating in the cities could not reach the outage areas in South Africa. So the competition became quite strong and we saw the opportunity in that – we supply the people located in the more rural areas and those in the open market too so that’s how we grew the open market.” Growing the business steadily over the last few years since it was established, NUTRI Feeds has successfully reached and is now running at full plant capacity, not only supplying in-house business but operating within the open market too – “this gives an indication of how well our products are working,” adds Scheman. NUTRI Feeds has also concentrated heavily on staff development and training, especially
in the last six months, helping the business to successfully move forward and grow regionally. So, what can much of this company’s success be attributed to? With roots dating back over five decades and a strong presence in South Africa in recent years since its inception, Scheman explains: “Much of our success can be attributed to the quality of the products we produce. We don’t sell products on price but on what it can do for you – so you look at what income you can produce from it. We have a very cost effective product that we sell to customers which is different to companies that just go out and sell a product. Customer service is also very important to us, together with the quality products that we continue to produce.”
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An industry essential Editorial: Harriet Pattison
Used in an array of different industries, from mining to petrochemical, food to power generation; vacuum pumps play an integral role in so many industry processes and applications. Started in 2007 by Esta van Aswegen, Process Vacuum is now looking to expand its ever-growing footprint into further and more favourable international markets over the coming years…
The vacuum has been used for many centuries and has become an integral component to modern research and all industry sectors – with many industrial processes now proving implausible without a reliable vacuum system. Although the suction pump design can be traced as far back as the Roman era, with subsequent improvements made by history greats including Pascal and Galileo, the world’s first vacuum pump was built in 1650 by Otto von Guericke – also famous for the Magdeburg hemisphere experiment – the pump consisted of a piston, cylinder and oneway flap valve.
PROCESS VACUUM A l t h o u gh a relatively ne w company in te rms o f st a r t -u p s in So u th A frica, P roce ss Vacuum
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cert a i n l y boa s t s a w e a l t h of e x pe ri e n c e a n d know l e dg e of t h e i n dus t ry. Foun de r a n d M a n a g i n g D i re c t or, E s t a v a n As w e g e n , h a s bee n i n t h e i n dus t ry for 3 5 ye a rs a n d fol l ow i n g an i n v i t e from U K-ba s e d c om pa n y B O C t o re pre s e n t t h e m i n A fri c a , v a n As w e g e n s t a rt e d P r oc e s s Va c uum i n 2 0 0 7 . S pe a k i n g t o I n dus t ryS A , v a n A s w e g e n e x pl a i n s h ow t h e i n dus t ry h a s c h a n g e d s i n c e th e c om pa n y’s i n c e pt i on : “ I t h a s c h a n g e d qui t e a bi t a n d w e w ork a l l ov e r t h e w orl d n ow. We work i n v a ri ous i n dus t ri e s a n d from a s m a l l co m pa n y, w e ’v e g row n t re m e n dous l y. I t h i n k th e fa c t t h a t w e don ’t jus t w ork i n S out h Afri c a , but e v e ryw h e re e l s e , c e rt a i n l y h e l ps a lo t .” S t a n di n g a s a v a c uum s ys t e m s uppl i e r a n d spe c i a l i s t , Proc e s s Va c uum di s t ri but e s t o a
Process Vacuum
w i de range o f d if f e re nt industrie s including ; p e t r o ch emical, mining and food – “Whe re v e r y ou think a vacu u m pump is ne e de d, we supply t o t h at ind u s try,” van Aswe g e n adds. S pecif ically tailo re d to the custome r’s r e qu irements - “We also do a lot of work o n site f o r clien ts and look at the v acuum s ys t em f o r th em and point out are as and ways t o i mp ro ve - I th ink that’s one of our big g e st s t r e ngths ,” van As we g e n e xplains. “We ’v e g ot a gr e at team th at re ally unde rstands v acuums a n d p lants w hich has he lpe d us to g row and p u t o u r n ame o n the map.” With many s u p p lie rs locate d ov e rse as, Pr oces s Vacu u m im ports pumps - name ly the B a r e s h af t p u mp - f rom all ov e r the world b e f o re th ey are s y s te mise d in South Africa. T h e p ackages are built at the company’s
M e ye rt on ba s e pri or t o be i n g s h i ppe d t o t h e de s i g n a t e d s i t e a n d h e l pi n g t o e n s ure i t prov i de s t h e v e ry be s t i n re l i a bl e a n d c om pe t i t i v e s ol ut i on s , Proc e s s Va c uum h a s a c c e s s t o t h e v e ry be s t l i qui d ri n g v a c uum e qui pm e n t m a n ufa c t ure rs i n t h e w orl d.
THE DESIGN The basic vacuum pump is a very archaic design, with some of the ‘latest designs’ going as far back as 80 years. There are two types of vacuum pumps with the liquid ring vacuum pump considered the workhorse of the industry. “There hasn’t really been any significant design changes by the big companies; they might do small internal changes but if you look back 100 years to the designs today, there hasn’t been any major changes. It’s a very simple machine, we’ve only made small changes to
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what we’ve found on site to some of our product ranges, with regards to power, but nothing major,” van Aswegen explains. Many of the pump systems vary according to the industry Process Vacuum services and while some are very simple, others are more complicated. A pump used within the food industry in a small sweet factory for example, is relatively simple compared to the huge machinery needed for the mining industry, which mechanically, is much more complicated. The most difficult packages the company supplies are to the petrochemical and power generation sectors. These industries necessitate a different calibre of specifications and instrumentations and require Process Vacuum to build more complex systems in preparation. The company’s busiest sector to date is mining, supplying vacuum systems to all the major belt filter companies in the world, van Aswegen explains that the size of the project will depend on the
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“I’ve got a great team, they are extremely passionate with what they’re doing and they all have a love affair with vacuums!”
Process Vacuum vacuum pump used. “They are our big clients and it’s very seldom that we deal directly with the mine, we will work via the belt filter companies. Depending on the size, we will size the vacuum system to that so it’s either a belt filter, a drum, a disc filter or ceramic filter needed for mining dewatering.” To date, Process Vacuum has been involved with some of the biggest projects within Africa’s mining industry, not to mention supplying a large package to the petrochemical industry – “This was quite a milestone for us,” explains van Aswegen. “So we’ve evolved quite a bit from small packages to complicated systems. There’s a lot of prospects which is great.”
FOOTPRINT EXPANSION For a company supplying such an integral component to so many industries, it was inevitable that before long, Process Vacuum would soon be looking outside of South Africa into larger and more favourable markets. With the current rate of exchange proving poor, the export market is certainly an attractive prospect. Taking the leap and venturing outside of South Africa within the last two years, van Aswegen explains much of the company’s work further afield has honed in on the international mining sector and its potential. “With our knowledge base, we believe we can deliver good products,” she explains. “We are really excited about that and we’ve already supplied units to Australia, Malaysia, Argentina, pumps in Russia and lots of pumps in Africa, but we want to try and expand further. “We are looking at partnerships in Europe and are already in talks with clients but it’s finding the right way to do it. With regards to Africa, we will still work from our South African hub but for European and Russian markets, we will look at starting a little shop much closer by.” With an already simple and highly effective design, van Aswegen explains Process Vacuum’s expansion will be concerned more with its footprint and targeting other industries it is not currently present in, rather than trying to improve on the vacuum design. “We’ve got a couple of ideas that we have been playing with over the last few years but it is still in early phases to see if we can do something different,” she explains. “It’s not going to be rocket science but our footprint will expand to get our products out there and later, with our improved units, we hope this will
help to grow the market.” With 24 employees, van Aswegen explains the training process for such a niche market is a long one, largely due to all the applications and industries vacuums are used in and how these vary accordingly. A subject which is not currently studied extensively in universities, few people have the sufficient and desired vacuum knowledge prior to joining the company. “We spend a lot of time and money training people which can take between 5-10 years. Due to the
“We also do a lot of work onsite for clients and look at the vacuum system for them and point out areas and ways to improve - I think that’s one of our biggest strengths”
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company profile
different industries, every application is different and the projects vary a lot too,” van Aswegen explains.
TECHNICAL EXCELLENCE Although a specialised market, there are a number of competitors operating within the South African market but van Aswegen e x p l a i n s t h e c o m p a n y ’s t e c h n i c a l a b i l i t y i s certainly advantageous in helping it to stay a h e a d a n d s u c c e s s f u l l y l e a d t h e i n d u s t r y. “ We a r e t e c h n i c a l l y t h e b e s t c o m p a n y i n t h e s o l u t i o n s t h a t w e o f f e r. O u r t e c h n i c a l ability is really good so that makes us a f a v o u r i t e i n t h e i n d u s t r y. I n r e g a r d s t o t h e rest of the world, there are a lot of big players which we will target in the future –
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“So we’ve evolved quite a bit from small packages to complicated systems”
Process Vacuum
b u t I t h i n k t h e r e ’s a n o p p o r t u n i t y o n a g l o b a l s c a l e .” With such a prominent focus on implementing greener initiatives and becoming a more sustainable company, van Aswegen explains this can be challenging for a smaller business, especially with the expectations and demands from clients. “You have to lay out a lot more money which can be challenging to comply with the new schemes. Also, to be ahead, you have to be able to comply with the demands from clients, adding value to their systems and projects – so it’s like a snowball effect which creates more competition. All the sustainable changes have been in the manufacturing of our systems but we haven’t had any imminent changes, it’s been a gradual process.”
THE THREE KEYS TO SUCCESS Today, Process Vacuum stands tall as one of the leading companies within the South African vacuum industry. Van Aswegen attributes its ongoing and future success to her hard-working employees, suppliers and loyal clients. “ I ’v e g ot a g re a t t e a m , t h e y a re e x t re m e l y pa s s i on a t e w i t h w h a t t h e y’re doi n g a n d t h e y a l l h a v e a l ov e a ffa i r w i t h v a c uum s !” s h e e x pl a i n s . “ I ’v e g ot w on de rful s uppl i e rs w h o s upport m e a n d I h a v e a re a l l y c l os e re l a t i on s h i p w i t h m y c l i e n t s – s o I c e rt a i n l y c oul dn ’t l i v e w i t h out e i t h e r on e of t h e t h re e , t h e y’v e be e n s o s upport i v e a n d l oya l . M os t of our c l i e n t s a re bl ue c h i p c om pa n i e s , t h e y t oo a re v e ry l oya l a n d prov i de us w i t h l ot s of re pe a t bus i n e s s .”
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company profile
Manufacturing excellence Editorial: Alex Montgomery
Family companies often seem to be able to engender a strong combination of longevity, trust and unwavering dedication that is not easily replicated in the corporate world. Remkor is just one of these types of companies – a family business that covers a wide range of metal manufacturing and one which has built a brand that is well-known and trusted across all the industries it services. In this issue we speak with Raffaele La Monica, son of Remkor’s founder, Nino La Monica and current head of the business as he tells us more about the history of the South African operation.
A diverse and multidisciplinary manufacturing operation – Remkor Technologies is a TUV – ISO accredited company operating out of Johannesburg, South Africa. A family business that has been running for over three decades, R emkor has a long le g acy o f m a n u f actu ring co mpone nts and products f o r v a r i ou s in d u s tries such as automotiv e , t e l e c om s, min ing, ap p liance s, construction – t h e l i st go es o n . A bl e to o f f er clients the assurance of quality s e r v i c e a n d w o rld -clas s products, Re mkor e m pl oy s a h igh ly -traine d workforce who are s pr e a d a cro s s its 9, 000 m² of CAD facilitie s, f a c t or y sp ace and o f f ice s. N i n o L a Mo n ica f o u nde d Re mkor in June of 1981 a s R emko r To o ls and g re w his ope ration
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fr om t h e re . T h e c om pa n y w a s re -n a m e d Re m k or Te c h n ol og i e s i n J ul y 2 0 0 2 t o re fl e c t th e di v e rs i fi c a t i on of t h e bus i n e s s a n d i t s co n t i n ue d g row t h – t h e e a rl y 2 0 0 0 s s a w t h e bu s i n e s s e x port i n g t e l e c om s e qui pm e n t t o co un t ri e s a c ros s A fri c a , A s i a , S out h Am e ri c a , N ort h A m e ri c a a n d E urope . “My father started the business in 1981 primarily as a tool and die-making business,” explains Raffaele La Monica, Remkor’s current Director. “And as time went on, from the early 80s to the mid-late 80s, it was still very much a tool and die-making company but the types of tools became quite a lot bigger. The main market for that is the automotive industry. “Then, from the 90s the company started moving more into component production and later sheet metal assemblies, product assemblies,
Remkor Technologies
welded assemblies and painted products until we developed to more or less where we are today, where we have a complete solution for our customer. We go from a flat sheet to the finished product, in carbon steel or stainless steel depending on the product.” Remkor has long pursued a qualitative approach to all its ventures and as such is well recognised as a superior supplier of engineered products in South Africa. Its main focus is on producing various metal enclosures, telecoms products, coated seals, aluminium, public seating and cooker hoods, but the company has the facility to provide turnkey solutions to clients looking for almost any metal produced product or component. In order to service the sometimes extremely varied nature of demand, Remkor offers solutions
encompassing computer aided design (CAD), tool & die manufacture, laser cutting, punching, press brakes, presses, welding, brushing, powder coating and finishing and assembly.
A FOCUSED OPERATION Although Remkor’s origins in manufacturing has its1 roots in the automotive sector of the 1980s, in its continuous drive towards diversification as a key contributor to growth, the company embraced the opportunity to enter the telecoms industry many years later through the manufacture of payphone products and booths with a major contract with Telkom. It was an operation that proved lucrative for the business – resulting in over 75,000 products being manufactured by the company for use locally and abroad. “If we go back to the early 2000s, we got awarded
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a contract to supply payphone booths with the local operator and we made probably about 70,000 of them over a number of years,” says La Monica. “This then gave us the opportunity to export a lot of our product. After that, in 2005-2006, we started going into the appliance market and those two points were very much where the business started to turn, which allowed us the opportunity to buy different types of machines and get ourselves involved in different types of businesses.” As ever, markets change and businesses need the ability to be flexible and adapt – an ability which Remkor has certainly displayed over the years. With the advent of cellular technology, the market for public telephones naturally declined and Remkor then took the steps to diversify its business further, investing in machinery to produce various different types of products. It was at this time that Remkor first entered the domestic appliance market with extractor hoods, public seating, outdoor advertising products and electrical panels. “I would say the telecoms industry is probably our biggest market revenue. We also work in the
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appliance industry, components in the appliance industry but our business is quite varied, quite diverse, so we get involved in all sorts of other types of products. Structural steel, fibre optic network infrastructure, low and medium voltage electrical cabinets and enclosures and related products, medium voltage types of electrical cabinets and enclosures and things like that,” explains La Monica.
STAINLESS-STEEL EXPERTS “Our situation and what makes us unique compared with a lot of the other guys in the market, is that we basically offer the finished solution. We do everything from a flat sheet right up until a finished, assembled product and that includes quite big metal stamping and things like that which is not very common,” says La Monica. “Usually when people get involved in steel production they either take the route of being involved purely in sheet metal or they go into the route of stamping. We’ve got a combination
Remkor Technologies of the two which, on the scale we’ve got, is not very common and we obviously try to emphasise that. We are in a position where we can offer everything in one place.” A couple of Remkor’s more recent and notable projects include the roof assembly, clamps and components for the roof structure of Moses Madiba and Nelson Mandela Bay stadiums for the 2010 FIFA World Cup and powder coating work and access control gates for Johannesburg’s high-speed rail system, the Gautrain – project wins that are a testament to the company’s reputation and expertise. “More recently we’ve got involved in access control kiosks, for bus stations and also rail, where you present your card and it automatically opens and closes the gates. That work goes right up to mechanical and electrical assemblies, again to try and give the customer a finished product,” explains La Monica. “This has served to broaden the scope of the business further.” Knowledge is perhaps the most valuable asset for this South African manufacturing company and, even with a turbulent and sometimes
challenging market environment, the company has become the first choice of partner for some of the largest and most successful companies in Southern Africa. “We normally do work with quite a lot of the bigger, multinational companies who’ve got local facilities,” says La Monica.
MARKET CHANGES, NEW DIRECTIONS H a v i n g be e n a roun d for a n um be r of ye a rs , R e m k or i s ful l y v e rs e d i n h a v i n g t o a da pt t o a n e v e r c h a n g i n g m a rk e t . O n e a re a i n w h i c h t h e c om pa n y i s s e e i n g g row t h i s i n t h e fi e l d of e l e c t ri c a l c a bi n e t s a n d e n c l os ure s – pa rt l y a s a re fl e c t i on of t h e de di c a t e d i n fra s t ruc t ure i n v e s t m e n t s be i n g m a de by t h e S out h Afri c a n g ov e rn m e n t . “ For us , t h e l oc a l m a rk e t s e e m s t o be g oi n g i n t h e di re c t i on of e l e c t ri c a l t ype c a bi n e t s , pa n e l s a n d produc t s a n d t h i n g s l i k e t h a t w h i c h a re l oc a l l y m a n ufa c t ure d. T h e g ov e rn m e n t doe s t ry t o pus h a l ot of l oc a l c on t e n t a n d i t ’s m os t l y a l l g ov e rn m e n t fun de d w ork . S o w e ’re fi n di n g t h a t m a rk e t qui t e l uc ra t i v e a n d s t i l l
ADVANCED FASTENING SYSTEMS MINING AND INDUSTRIAL (PTY) Ltd. WE SPECIALISE IN THE FOLLOWING: • • • • • • • • •
Pneumatic tools Electronic torque measurement equipment Electronic DC tools Hydraulic rock breaking tools Specialised / customised solutions for your advanced fastening needs and software Sanas (Lab 841) and Dakks calibration laboratory (torque equipment) Tools repair workshop Ceramic welding (specialised ceramic welding / lining of volutes, pump casings, pipes & elbows) Specialised stainless steel manufacturing and specialised welding by coded welders
MANUFACTURING | CALIBRATION | REPAIR | SERVICES | SALES 222 Battery Street Silverton Pretoria South Africa Phone number: +27 12 803 5456 Fax number: +27 12 803 3302 Email: sales@afsmi.co.za
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www.afsmi.co.za
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“We normally do work with quite a lot of the bigger, multinational companies who’ve got local facilities” PAGE 78
g ro w i n g ,” s a ys L a M on i c a . La M on i c a e x pl a i n s t h a t due t o t h e s om e w h a t dif fi c ul t m a rk e t c on di t i on s a t t h e m om e n t , t h e com pa n y i s n ot s pe n di n g a l ot on g row t h , but is i n s t e a d foc us i n g on i t s c on t i n ue d de di c a t i on to k e e pi n g a l l fa c i l i t i e s a n d e qui pm e n t upto-da t e by i n v e s t i n g i n n e w m a c h i n e ry for i t s ma n ufa c t uri n g fa c i l i t i e s . A s i de from re -i n v e s t i n g i n fa c i l i t i e s , L a Mon i c a e x pl a i n s t h a t , a s e v e r, R e m k or i s ke e pi n g a n e ye on t h e t ype s of m a rk e t s t h a t wil l h ol d t h e m os t de m a n d i n t h e n e x t t h re e to fi v e ye a rs . “ We w oul d l i k e t o be c om e m ore spe c i a l i s e d i n c e rt a i n i n dus t ri e s , w ork i n g on a m ore fi n i s h e d produc t ra t h e r t h a n a l ot of com pon e n t ry or s m a l l e r t ype s of produc t s .
Remkor Technologies T h i s is o b vio u s ly all de pe nde nt on the way the m a r ket go es and w he re the opportunitie s lie in t h e market.” Re mko r co u ld n’t maintain quality across su c h varied p ro d u ct offe ring s without also i n v e sting s ignif icantly in its staff me mbe rs and a s s uch , the co mp any maintains a hig hly skille d t e a m co vering all aspe cts of the busine ss. “ Ob vio u s ly th e env ironme nt in South Africa i s v e ry mu ch o ne whe re hig hly skille d staff are h a r d to f in d . We try to prioritise and promote pe o p le in tern ally within the busine ss. A lot of t h e mo re s killed and more traine d pe ople we h a v e w ith in the b u sine ss are pe ople that hav e st a r t ed f ro m mu ch lowe r le v e ls and the n ov e r a pe rio d o f time w e’v e upskille d the m whe n t h e y’ ve s h o w n the pote ntial for it. We spe nd a l o t o f res o u rces , both in time and mone y, on t r a i ning acro s s all a re as of the company,” says L a M o nica.
CUSTOMER-FOCUSED The main contributor to Remkor’s long-term success has been its ability to intuit what its
customer’s requirements are and its dedication to high levels of service in all areas. “If we get involved in a business we back ourselves 100% to make sure we give the customer everything they need. If the customer’s volumes double, we will always find a way to help him make double the volume. We don’t draw a line and say, we can only go so far - whenever the customer needs to grow, we grow with them. I think they find that an additional value - that there isn’t that limitation from us. “Al s o, t h e fa c t t h a t w e c a n g o ri g h t t h roug h t h e proc e s s from a de s i g n l e v e l ri g h t up un t i l t h e fi n i s h e d produc t i s a bi g pl us poi n t for us . O v e r t h e ye a rs , a s our c us t om e rs h a v e g row n a n d a s t h e i r s c ope h a s g row n , w e ’v e a l s o e x t e n de d our s c ope t o g e t m ore i n v ol v e d i n a s s e m bl y a n d g e t m ore i n v ol v e d i n di ffe re n t t ype s of t h i n g s t h a t w e w oul dn ’t n orm a l l y do. I f w e h a d t o i n v e s t c a pi t a l , or w e h a d t o i n v e s t i n re s ourc e s w i t h pe opl e t o do t h a t n e w pa rt of t h e bus i n e s s , w e w oul d a n d i t w oul d a l w a ys be s om e t h i n g w e w oul d t ry t o a c c om pl i s h a n d a c h i e v e ,” c on c l ude s L a M on i c a
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company profile
Generating success Editorial: Alex Montgomery
With roots stretching back to 19th century England, John Thompson is the first company to manufacture an industrial boiler in South Africa and is the region’s premier boiler and environmental solutions company. Celebrating 60 years after that first boiler was produced last year with a huge factory expansion, we spoke with Divisional CEO, Andy Abbey, who explained to us the day-to-day operations of this industry leading company.
John Thompson manufactured South Africa’s first industrial boiler in 1954 and over sixty years on the business – now the power division subsidiary of ACTOM, Africa’s largest manufacturer and distributor of electrical equipment – is the go-to name in South African boiler manufacturing. Last year saw the huge R30m expansion of its facilities to mark the seminal anniversary – facilities which are already the largest and most modern heavy engineering manufacturing facilities in the Western Cape. An extra 2,000 sq metres of Greenfield site adjoining the company’s Bellville plant was added , including a new workshop for the manufacture of industrial watertube boilers, incorporating new machinery, including three 15 ton lofting capacity cranes and a furnace corrugating machine.
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John Thompson focuses on delivering sector-best boiler and environmental solutions, and the record is impressive. In 60 years it has supplied over 4000 firetube, 100 watertube, and numerous waste-heat boilers to customers throughout southern Africa and around the world.
HISTORY With roots going back as far as 1824, John Thompson has a 140 year history in the boiler industry and originates over 9,000 km away from its present day Cape Town head office, in Bilston in the north of England. The company’s namesake, William Thompson, began his career building iron boats and it wasn’t until 1875, after a move from Bilston to Wolverhampton, England, that he branched out into the manufacture of Lancashire boilers. From
John Thompson Africa
this moment the company’s product development progressed organically into economic-type boilers, into water-tube boilers and from there into steam generators for nuclear power stations. In 1935 John Thompson (Wolverhampton) first came to South Africa and through an agency agreement soon established a promising order book. Due to the market potential in South Africa, the UK parent company established John Thompson South Africa in 1937 as a sales and contracting organisation, further establishing installation, erection and manufacturing capabilities in 1946. The rest, as they say, is history and following a series of mergers and acquisitions that served to grow the business and establish it as an industry leader in the local and export market, the company was acquired by Alstom and became a division of the company in 2001, becoming a division of newly
formed ACTOM in 2009. Last year, John Thompson celebrated 60 years of boiler manufacture in South Africa – marked by its huge factory expansion near Cape Town.
THE BUSINESS OF BOILERS Today, John Thompson is the first name in boiler and environmental solutions and serves the power generation market and industrial markets such as sugar and paper production. The company, both independently and in partnership with international technology partners, designs, manufactures and services industrial water tube and fire tube boilers with steam outputs of up to 320 t/h, as well as related products such as heat transfer and air pollution control technology. “Our business is boilers and environmental equipment such as filters, and our objective is to take
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“Our business is boilers and environmental equipment such as filters, and our objective is to take industrial watertube boilers to the power industry in Africa” PAGE 82
industrial watertube boilers to the power industry in Africa,” says Divisional CEO of John Thompson’s Divisional, Andy Abbey. John Thompson‘s industrial watertube designs include coal fired boilers with travelling grate and CAD spreader stokers and fibrous fuel-fired boilers with CAD spreader stokers for dual-fuel firing, as well as pinhole and dump grates, CFB, industrial oil/ gas-fired and waste-heat boilers. Package firetube designs include coal-fired boilers with chain grate stokers, wood-fired boilers with fixed grates, oil/gas-fired boilers and custom designed waste-heat boilers. “We manufacture industrial boiler components and deliver them to anywhere in the world. We install usually the case here in South Africa - while outside South Africa we send our service engineers along with the components, or engage others to perform the installation work. Whatever is the most cost-effective. We also undertake a lot of extensive engineering and studies for South Africa’s industrial sector.” John Thompson designs and builds two core type boilers; package, and industrial water tube. “A selfcontained boiler built going up to 21 tons an hour and built at the Cape Town factory is erected in a
John Thompson Africa fairly short period of time and in two or three months will be generating steam. We sell this type of boiler all over the world. “Industrial watertube boilers, which again we design and manufacture in-house, are bigger, and work up to 350 tons an hour of steam and to 82 bar pressure or even 105. The components such as tubes, drum, and header are taken to a site and erected, usually over a period of 18 months to two years. “It’s a massive on-site undertaking, and we work on sites ranging from a sugar or paper mill, to numerous power stations including Matimba, Komati and Tatuka. “Much of our business from a financial point of view is with Eskom, not in the supply of new plant though we do supply new environmental equipment - but with the provision of maintenance services,” Abbey explains.
A GREEN FUTURE More and more the manufacturing industry, and in fact industry in general, is investing in ways of lowering energy consumption and reducing costs by promoting sustainable business practices. John Thompson provides equipment for the cleaning up of emissions and with over 20,000 installations in South Africa, offers a competitive range of equipment serving air pollution control, gas cleaning, dust control, product collection and powder processing applications. The company continuously invests in its extensive R&D programme and with the current renewables revolution playing out globally making waves in South Africa also, alternative fuel is a major focus area for the boiler company. “We do a lot of biomass burning - we don’t only burn coal or gas. Whenever a customer wants us to investigate different fields we are very happy to do so,” says Abbey. Particularly tailored to fibrous-biomaa and coal-fired co-generation applications, the development of the MicroGen watertube boiler by John Thompson is a response to the burgeoning demand for green solutions. It is a small, medium-pressure power boiler with a steam output of between 20 and 25 t/h dependent upon fuel type. Configured to facilitate manufacture of the pressureparts in large subassemblies, the MicroGen can be containerised for transportation, minimising expensive and time consuming site construction work. “The whole Green issue is very important for us,” says Abbey. “Being Green means getting the most out of the coal. Coal is a bad word in the minds of many, and from a
carbon discharge viewpoint, it’s certainly not desirable. “However at this point in time the whole world burns coal and the objective for us is to get as much out of the coal as is practically possible. And for this reason we deploy engineering capabilities such as computational play dynamics to extract the last bit out of the coal and ensure the amount needed to generate the maximum steam out of a boiler is the absolute minimum. “Together with other technology partners we also install De-SOx equipment to reduce sulphur dioxide emissions, and are currently installing the low NOx burners for Eskom at the Camden power station - again to remove NOx gases from the atmosphere.
EFFICIENCY AND EXCELLENCE “Among the reasons why we compete successfully with boilers built elsewhere - China for example - is because customers like the efficiency of our boilers, with maximum steam output from minimal coal. “And also because they are long lasting - we have fully operational boilers that are now 35- 50 years old marvellous pieces of equipment and as always with John Thompson, made to the very highest quality standards,”
Experts in inspection and non-destructive testing services We offer a wide range of inspection and NDE services, presently supplying the petrochemical, power generation, solar, mining, marine, chemical and construction industries.
57 Williams way, Racing Park, Table View, Cape Town 7441 P O Box 60194 Table View 7439 Tel: 021 556 4884 Fax: 021 556 6941 e-mail: lance@ritc.co.za & nick@ritc.co.za
www.ritc.co.za PAGE 83
company profile
explains Abbey. As a company, John Thompson has a significant focus on skills retention and development, Abbey explains it is essential that all employees are well trained and up to date on technology and techniques. The company’s in-house training centre provides specialist and advanced education and the company also fosters close relationships with universities and engineering houses. “We have a lot of graduate engineers and we also take people from technical colleges who have technical knowledge but need the practical exposure which we give when we take them into our organisation. We do a lot of that.” This dedication to staff development has definitely had a positive effect on the company – staff turnover
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“We are southern Africa’s premier boiler and environmental solutions company, and we will be building and growing on that great heritage and achievement”
John Thompson Africa
within the organisation is extremely low. “Most of the guys have been with our organisation a long time; 35 or 40 years with the company. Many started their careers with the organisation and have stayed here. The people reporting directly to me have got something like 200 years of experience.” Currently, the African market provides 40% of John Thompson’s export market, with a further 40% in Asia. “We focus on markets where we see growth and where there are requirements for installation.” With such a high level of expertise and a long-standing reputation in the industry, John Thompson is set to expand its footprint into Africa in the coming years, with development capacity in Mozambique and Zambia, and the possibility of growth in Zimbabwe.
TARGETING SUCCESS “Up to now we have been selling mainly to the sugar mills and the paper and steel industries. Going forward, our intention is to sell more to the power producers. “We can supply the boiler and deliver a turnkey island, and we believe a lot of IPPs will set up power islands in Africa and we very much see this as an opportunity. “This is a fantastic company, and on the industrial side in South Africa and across the continent I see us as the leader in terms of boilers sold - by far in the case of package boilers - and also maintenance. “We are southern Africa’s premier boiler and environmental solutions company, and we will be building and growing on that great heritage and achievement.”
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company profile
A comprehensive solution Editorial: Harriet Pattison
Building upon a reputation as a reliable and innovative supplier of office furniture, Ukhuni Business Furniture has been in the industry for more than 20 years. With less than 1% yearly staff turnover and doing its bit for the local community with a strong focus on sustainability, it’s no wonder Managing Director, Michael Stein, has positive words for his team of dedicated employees.
Office furniture is not just practical but a necessary requirement in so many businesses today. Whether a company employs 30 or 300 staff members, they will need a place to work, to study and ultimately, to be successful. Comfort, cost and design are imperative and this month, we look at Ukhuni Business Furniture, a company that inherently believes it is the dedication and commitment of its long-running team that holds the key to its continued success.
BUILDING A SUCCESSFUL REPUTATION With more than two decades operating within the South African business furniture industry, Ukhuni was initially started in 1993 in a furniture dealership called Business Furniture Centre in Johannesburg. Run by Norman and Michael Stein, it produced a catalogue range of office
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chairs and desks. As with all start-up companies, a sterling reputation is not a title obtained overnight, it takes hard work, reliability and unerring dedication. Speaking to Ukhuni Business Furniture Managing Director, Michael Stein last year, he explains that soon after taking over the Business Furniture Centre, the demand from corporate customers steadily increased for the company. “This necessitated a need for product development and a design for more systemised office furniture,” he explains. “We then started to develop our own manufacturing plant and from there, we commissioned some industrial designers to develop a product for us which we then invested in.” Starting to develop its own systems and products, Ukhuni soon began to attract a much
Ukhuni Business Furniture
larger customer base and it wasn’t long before the commissions started to roll in from popular designers. “We commissioned some really fantastic South African designers, one of the most well-known and best in South Africa, Brian Steinhobel. I didn’t even think he’d take my phone call but he did and we developed our first major chassis base desking system and we started learning the skills and started buying the machinery and developing our manufacturing capability. “It took a while to get our reputation going and our products going but people really loved our service and our way of doing business and we started to land a few contracts,” Stein explains. More than 20 years on since its inception and Ukhuni now produces an average of 15,000 work stations, seating and storage units for its corporate,
architectural and space planning markets with the company’s skills set allowing it to succeed across South Africa and into Africa. In providing a comprehensive range of office furniture and solutions for so many corporate companies, Stein explains remaining true to the company’s core values of sound customer service, inspiring office solutions and business diversity is key in maintaining a leading role in an ever increasingly competitive market place. “We have worked very hard on building a brand, developing products of integrity and a service level of integrity and have tried to operate at a high level of corporate governance. “We are competing with a range of people who don’t necessarily have the range or scope of what we do so that’s resulted in us diversifying our business. We’ve had customers who have been with
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©Ukhuni Business Furniture | Ukhuni Connection
us from the day we started. We offer a consistent service, irrespective of the quantity they buy, so we could be doing a project for 3,000 work stations or for two, but each will receive the same level of love and service.”
STAFF COMMITMENT T h i s l e v el o f integrity and commitme nt s t a r t s with Ukhu ni’s em ploye e s - with an i m p r e ss i vely lo w s taf f turnov e r e stablishe d o v e r t h e y ears , the averag e se rv ice for staff a t U k h u ni is ten y ears . Focusing he av ily o n f a m i l y ru n valu es and a similar working en v i r on m en t, th e co mpany offe rs an inv aluable i n - h o u s e train ing p ro gram that is both d e p a r t m ent and co mp any spe cific. N ow e m p lo y ing u p w a rds of 3 0 0 staff, Ste in ex pl a i n s there have b een a numbe r of succe ss s t o r i e s w ith in the co mpany, larg e ly attribute d t o t h e d ed icatio n and training it continue s
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“My management team have been with me a long time, through thick and thin. You have to be there for your staff and be there for your suppliers and your customers”
Ukhuni Business Furniture t o pro vid e. “ My h ead o f H u m an Re source s is a lady who st a r t ed as a s and er in our spray booth are a and t o d a y, s h e’s h ead o f Human Re source s. She has t w o c hild ren in Univ e rsity and owns he r own h o m e . An o ther example is my he ad of Board P r o d u ctio n , a gu y who starte d on the factory f l o o r and w as p ro b ably the most militant shop st e ward y o u co u ld me e t as a re pre se ntativ e of t h e Un io n. To d ay he owns his own car, has h i s ow n ho me an d runs our Board P roduction P l a n t. “ We als o p lace q uite a hig h inv e stme nt, for a sm a ll f amily b u s ine ss, in e xte rnal training wh e re w e are eith er bring ing in facilitators or w e are s end ing staff on spe cific training c o u r ses , s u ch as u p holste ry.” Hi g h ligh ting j u s t a fe w of Ukhuni’s succe ss st or i es an d the gro wth and opportunitie s a v a i lab le to its s taf f, it’s no wonde r the c o m pany has b een re warde d with she e r de d i c atio n and hard work, subse que ntly h e l pin g to p ro vid e a re liable and e xpe rt se rv ice t o c u s to mers . “ The gro w th and opportunitie s av ailable t o ge ther w ith the s ucce ss storie s of pe ople wi t h in o u r b u s ines s has be e n amazing and that h a s res u lted in a lo ng le ng th of se rv ice , g rowth a n d retentio n o f s kills. It has also re sulte d in l e s s t han 1% s taf f t urnov e r in a ye ar, so it’s a v e r y p ro u d reco rd that we hav e built up,” Ste in e x p l a ins .
SUPPORT FOR SUSTAINABILITY With continued allegiance to both its clients and employees, Ukhuni also places a strong focus on the local community and the environment through Ukhuni HOPE – representing the social support of the company’s commitment to sustainable business. Currently holding 1.33% of the company’s annual turnover, Ukhuni HOPE helps to ‘invest in the leaders of tomorrow’ – the employees and their families. Recently joining forces with Food and Trees for Africa, Ukhuni HOPE purchased 111 trees before conducting a planting ceremony in Alex town, inviting its suppliers, staff and clients. It is estimated that these trees will use 41.57 tons of carbon dioxide over the course of 15 years, and in so doing will help to counter the carbon emissions of the company’s entire fleet over the period of a year.
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company profile A RELIABLE FRAMEWORK With substantial growth seen in South Africa over the last ten years, Ukhuni has invested in both the development of its manufacturing and marketing departments and in additional premises, helping to extend its footprint further into Africa and internationally. “In 2013, we achieved about 15% of our sales north of Southern Africa into Africa, so that is a big growth opportunity,” explains Stein. “We’re having the quality of our service and products being confirmed in Europe and we’re finding now that the global corporates are switching the buying to us and appointing us to do their roll outs throughout Africa rather than importing the products from Asia, Europe or America to improve on logistics costs.”
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“We’re having the quality of our service and products being confirmed in Europe”
Ukhuni Business Furniture With the seemingly relentless state of the world’s economy and the impact on so many industries, both in South Africa and globally, it is companies like Ukhuni - that remain so heavily focused on its customers, employees and providing a continually valued service - that survive and so often thrive. Focusing on what’s important, Stein explains that as the economy starts to grow and realign, it too will grow and flourish once more. “The economy is under pressure and we need the economy to grow in order to grow our business. The protection of the level of employment we have is critical to our business, the staff really need to trust that this is their home. We see growth in the form of our diversified products and departments, for example, the branch type roll out business.”
The future for Ukhuni looks bright and with Stein’s unwavering dedication to both his business and staff – it will no doubt continue to exceed expectations, providing some of the country’s biggest businesses with comprehensive office furniture. “I’ve often thought if I had to write a book about the success of business and I think one can put it down to looking after your staff but I think the basic answer is you have to show up. “My management team have been with me a long time, through thick and thin. You have to be there for your staff and be there for your suppliers and your customers. We have all sacrificed a lot to build this company, day in and day out, you must show up and you have to work hard at the balance,” Stein concludes
.
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company profile
True pharmaceutical success Editorial: Sarah Dickens
Standing as one of the most successful pharmaceutical manufacturers in South Africa today, the roots of Rolfe Laboratories can be traced back to over a century. With a low turnover of dedicated employees and continued and international growth on the horizon, the future looks bright for this innovative company, which started out as a small chemist shop in Middleburg.
A South African based company that specialises in the manufacture and marketing of a wide variety of branded and own-branded products, including beauty and personal care products, Rolfe Laboratories has a background that dates back over 100 years. With a product range that includes; washing paste, insect repellents, aftershave and pre-shave preparations, deodorants and roll-ons, perfumery, cosmetics, talc powders, sun-care, lip-care, skin care, shoe care and foot care products. IndustrySA speaks with Chairman, Phillip Rolfe, who reveals
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the secret to the company’s long-running success. “The company is probably more than 100 years old and it started off in a chemist shop, a pharmacy in Middleburg in the Eastern Cape. They started off selling a skin lightening cream which was sold on a mail order basis to the Cape region of South Africa. As the company got bigger, the pharmacist needed more capital and eventually he got ten farming families in the Karoo region involved. “Each family put in money and each became a shareholder and they bought in more products. The business grew very quickly so they built a factory and the business got involved with manufacturing.
Rolfe Laboratories
During the Second World War period, the business was healthy and was selling a number of products and the organisation became a more sophisticated consumer selling company and it started selling into the larger cities – Johannesburg, Durban and Cape Town,” explains Rolfe. While the company is not based in the prominent business hub locations that South Africa has been graced with, Rolfe explains this has not stopped the extensive growth the company has seen throughout the years. “Our head office is in Durban and we have two factories in Middleburg. We have developed our
own products and we own a number of brands. Everything from sun tan preparation to mosquito repellent – you name it, we’ve got it.
STAFF COMMITMENT M ore t h a n R ol fe L a bora t ori e s ’ e v i de n t s uc c e s s w ork i n g out of t h e E a s t e rn Ca pe , i s i t s de di c a t i on a n d c om m i t m e n t t o i t s s t a ff – m a n y of w h om h a v e be e n w i t h t h e c om pa n y for m ore t h a n t h re e de c a de s . “ From a h um a n i t a ri a n poi n t of v i e w, w e h a v e s t a ye d i n t h e Ca pe be c a us e w e a re s o i m port a n t t o t h e t ow n ,” e x pl a i n s R ol fe . “ We
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company profile
a r e g oo d f o r the w h o le re g ion. For e v e ry one p e r so n t hat w e emp lo y, we fe e d many mouths a n d t h a t has b een the m otiv ation for us to stay i n M i d d leb u rg. “ It h a s b een great f o r the town. I d e l i b e r a tely s tay ed there as many pe ople who h a v e wo rked f o r u s h av e be e n with us for 3 0 40 ye a r s and s o metimes whole familie s will w o r k f or the co mp an y. “ We a re a o ne s to p s hop for multi-nationals w h o c o me in to the co u ntry who don’t hav e l oc a l k n o w ho w. We can do e v e rything from s o ur c i n g materials , d ev e loping packag ing , c r e a t i n g f o rmu las , co n trolling accounting – we b e c om e their co mp an y in South Africa,” he a dd s . A l t h o u gh the co mp any’s location may h a v e pr oved a hind rance in the past throug h l os i n g t ou ch w ith the la te st in te chnolog y a dv a n c e m en ts and marke t know-how, it was the Pl a y bo y trad emark w h ich the company owne d, h e l p i n g it to get b ack on track.
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“Many people who have worked for us have been with us for 3040 years and sometimes whole families will work for the company”
Rolfe Laboratories “ With the co mp any domicile d in M i dd leb u rg, it d id n’t ke e p up to date with w h a t w as h ap p en ing in the wide r marke t, it l os t t o u ch w ith p ro duct de v e lopme nt. From t h e begin ning o f the 1 9 7 0 s the company found i t s e l f in tro u b le b ecause it hadn’t ke pt pace w i t h th e market. “ T h e co mp an y f o und that it e ithe r ne e de d t o g e t p eo p le in w ho unde rstood the marke t or a l t e r n atively s ell the busine ss. I had spe nt a lot o f t i m e in N ew Yo rk and whe n I re turne d to S ou th Af rica, I w as doing a lot of consultancy a n d I w as as ked to look at this company and gi v e ad vice. There was one attraction to this c om pany f o r me an d that was that the y owne d t h e P lay b o y trad emark - the bunny - but the y h a d do ne n o thing with it. No one had the s k i l l s o r th e kn o w le dg e of the marke t so the c om pany, K A Lab o ratorie s, as it was known at t h e t ime, j u s t s at w ith the trade mark and whe n I c a me alo n g I realise d the v alue , boug ht the c om pany and lau nche d the P layboy rang e of t oi l e tries ,” exp lains Rolfe .
fa c t ory w ork e rs a l on e , de pe n de n t on s e a s on . “ I n t h e be g i n n i n g , I m a de a c om m i t m e n t t o m ys e l f t o e m pl oy a s m a n y pe opl e a s pos s i bl e . T h e m ore pe opl e w e e m pl oy, t h e m ore pe opl e w e fe e d a n d t h a t ph i l os oph y h a s n ’t c h a n g e d. “ B e c a us e of t h e c h a n g i n g n a t ure of our bus i n e s s , w e h a v e be c om e a l ot m ore s oph i s t i c a t e d. We h a v e m ore s oph i s t i c a t e d t e c h n ol og y, s oph i s t i c a t e d m a c h i n e ry but w e h a v e re m a i n e d c om pe t i t i v e . We c oul d w a v e a w a n d n ow a n d be c om e e v e n m ore s oph i s t i c a t e d but t h a t i s n ot w h e re w e w a n t t o be . “ We us e d t o m a n ufa c t ure 5 0 ,0 0 0 rol l on s pe r m on t h but t oda y w e a re c a pa bl e of m a n ufa c t uri n g t w o m i l l i on pe r m on t h . We h a v e be c om e on e of t h e m a jor c on t ra c t m a n ufa c t ure rs i n t h e c oun t ry. E v e ryt h i n g h a s i n c re a s e d a n d w i t h t h a t i n c re a s e c om e s i m prov e m e n t s i n e v e ryt h i n g but w e s t i l l t ry t o k e e p a s m uc h a s pos s i bl e m a n ua l ,” R ol fe e x pl a i n s . “ You g e t s om e i n c re di bl y bri g h t g uys w h o c om e out of t h e Ka roo a n d t h e g o off t o t op un i v e rs i t i e s a roun d t h e c oun t ry a n d c om e ba c k
THE PLAYBOY BRAND A lucrative and world-renowned brand, Playboy provided the company with the value and potential it needed to succeed and become the leading competitor in South A f r i c a i t i s t o d a y. Rolfe explains: “Playboy was the number one selling male deodorant brand in South Africa and it went from strength to strength. I sold the brand and then started other brands and new products. “I then realised that there was a lot of money to be made in contract packaging. It seemed that there was a trend around the world for multi-nationals to own brands but not get involved with activities like logistics or packaging, so this provided a huge o p p o r t u n i t y. To d a y w e w o r k f o r b i g m u l t i n a t i o n a l s i n c l u d i n g U n i l e v e r, Ti g e r B r a n d s a n d C o l g a t e P a l m o l i v e .”
Proud supplier to
Rolfe Laboratories for over 20 years
Working together to create
Pure Excellence Suppliers of Ozone Friendly Propellants, Special Gases, Fire Suppression products, Ammonia & LPG
SOPHISTICATED GROWTH T h e s e exp an s io ns and v e nturing into ne w m a r k ets w as evid en tly a productiv e de cision f o r R o lf e Lab o rato rie s. Starting out with jus t 3 0 emp lo y ees , the company has g rown e x t e ns ively, n o w em ploying be twe e n 5 0 0 -1 0 0 0
Business with Integrity Committed to Safety & Quality
T 011 903 9760 • F 011 903 9766 www.puregas.co.za • info@puregas.co.za
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company profile
w i t h gr e a t s kills , w h o are v e ry e mployable . W h e n t hes e p eo p le return from univ e rsity, t h e r e a r en ’t man y co mpanie s in M iddle burg t h a t c a n o f f er them car e e rs like we can. “ We t rain all the time. In our busine ss you h a v e t o t rain , it’s co mpulsory. It’s an ong oing t h i n g a n d w e are alw ay s trying to raise the l e v e l of c o mp eten cy.”
GROWING ITS ROOTS So what does the future hold for a company that has roots dating back to over 100 years? With Phillip Rolfe proudly at the helm and his son, Bradford, standing as Managing Director; he explains his hopes and vision is for the business to remain family orientated and employee focused.
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“There is no doubt about it - that is my vision. When I’m not here, whether that remains the vision for my son, I’m not sure. We also have the desire for my younger son, who isn’t currently involved, to come on-board with us. “We are regularly receiving offers to be bought out but we don’t want to sell. We are happy with what we do; we are comfortable with our success.” With plans to expand its footprint further, Rolfe explains the company has already ventured internationally but certainly for the foreseeable future, Rolfe Laboratories is looking to stick to its African roots, where it all began. “Everything in the first instance is made for the local market and then it goes up into Africa.
Rolfe Laboratories
“We train all the time. In our business you have to train, it’s compulsory. It’s an on-going thing; we are always trying to raise the level of competency”
We have already tried little forays into places like the USA, Dubai, India and we continue to supply there but not on a large scale because we are engrossed with what we are doing here and in Africa and Africa is becoming big. Countries like Nigeria and Kenya are growing rapidly and are becoming big markets too. “Afri c a w oul d m a k e s e n s e fi rs t but I w oul dn ’t rul e out g oi n g e l s e w h e re . I h a v e s pe n t a l ot of time in the UK and the USA and I think when you g o i n t o a t e rri t ory l i k e t h a t you dra w on t h e l oc a l pe opl e ; t h a t ’s w h e re you g a t h e r your k n ow l e dg e a n d e x pe rt i s e . You h a v e t o l i s t e n ; you c a n ’t jus t forc e your i de a s on pe opl e w h o h a v e be e n a roun d for a l ot l on g e r t h a n you,” c on c l ude s R ol fe
.
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#BeInspired
Every month we discover awe-inspiring stories of successful entrepreneurship, world-leading innovation and universal inspiration. In the future we will bring you further stories of business excellence and highlight the hard work that is going on in South Africa to grow the nations industries into global leaders.
Your success is our inspiration
MAR
APR
ISSUE 7
ISSUE 1
JUL
2013
2012
2013 ISSUE 11
OAK VALLEY
Hyprop
AN AWARD WINNING FAMILY LEGACY
ROSEBANK TO BE COMPLETED BY 2014
Entering the Era of Wind Power DCD Wind Towers are to open a R300 million wind tower manufacturing facility at the Coega IDZ in Port Elizabeth. Marketing Manager, Henk Schoeman, tells IndustrySA that the facility should be up and running by January 2014.
Arrowhead Properties R10 BILLION PORTFOLIO BY 2016
JOSIE FIELD
La Motte
EVERYTHING IS AS IT SHOULD BE
A CULTURE OF EXCELLENCE
Ross Jack
BRIDGESTONE
BELIEVE THE HYPE
EARTH MOVING INNOVATION
SOUTHERN AFRICAN
SHIPYARDS EXPLORING UNCHARTERED TERRITORIES
Pabi Moloi READY TO DANCE
The Sky’s the Limit
We meet The Denel Group, the largest manufacturer of defence equipment in South Africa.
ABB: Electrifying SA with solar power
Bafotech OVERCOMING all overcoming ALL challengeS CHALLENGES
Calgro M3 18 yearS YEARS of OF SucceSSful SUCCESSFUL proJectS PROJECTS
Aranda Textile Mills FASHION, with faShion, WITH italian ITALIAN influence INFLUENCE
IndustrySA takes a look at the work of ABB SA, the country’s leading power and automation organisation, as they begin important work in the Limpopo Province.
#Innovation www.industrysa.co.za MAR
SEP
2014 ISSUE 19
2014 www.industrysa.co.za
ISSUE 25
Embracing People Power One of the most progressive companies in the country, BMW SA recently launched the 2-Series and 4-Series. However, one of the world’s most recognised automobile brands is more than just a manufacturer; it is in fact a committed and engaged corporate citizen. MD, Bodo Donauer explains more…
MAY
2015
Entrepreneurs This month, Dragons’ Den South Africa is coming to our screens for the first time. The show will attempt to find and support budding local entrepreneurs who have innovative product, service and business ideas. IndustrySA speaks to Dragons’, Vusi Thembekwayo and Gil Oved to find out whether these super-successful entrepreneurs will see potential in any of the ideas put in front of them.
The gold standard in risk assessment The number one provider of risk assessment services in Southern Africa, Marsh Risk Consulting offers customised and innovative solutions across a range of insurable and non-insurable risks. IndustrySA speaks to Managing Director, Volker von Widdern, on the company’s growth and developments within the last year
Rand Mutual Assurance PROVIDING COMPASSIONATE ASSURANCE
ChianoSky
Midvaal Municipality
NEW AUDI AMBASSADOR
DEVELOPING SAVANNA CITY
DetNet
V&A Waterfront
BUSINESS WITH A BANG
CELEBRATING NO.1 SILO
Arrowhead Properties Sneaker Snacks
Rhys Evans Group
CONFECTION PERFECTION
A TRUE AGRICULTURAL SUCCESS STORY
Arrowhead Properties
Siya Xuza
GROWING INCOME FOR YOU
ROCKETING TO THE TOP
FINDING VALUE WHERE OTHERS DON’T
Gearhouse SA STAGE ENTERTAINMENT
De Keur A STRONG FAMILY BOND
Are you an entrepreneur? Do you have an innovative idea that has the potential to change lives? Is your company celebrating a milestone? Get in touch with us and let us know. Some of the country’s biggest company’s use IndustrySA to promote their success and we look forward to hearing more stories of development as South Africa continues to grow. Your industry, their future, our South Africa.
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The Eastern Capes premier loss adjuster... …with over 18 year’s international and industry experience servicing markets such as: Corporate, Commercial, Sectional Title, Bonded Properties, Captives, General Domestic Losses and Catastrophe Losses both local and abroad. We are proud to have supported the insurance industry, especially Thatch Risk Acceptances, who carried the majority of losses through the St Francis Bay fires. No appointments are too small and we are proud to be involved in large complex losses. Meyer Loss Adjusting is BEE compliant and in terms of the new legislation holds Level 5 status. We hold comprehensive Professional Indemnity Cover and certificates can be produced on request.
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