IndustrySA Issue 17

JAN

2014 ISSUE 17

Lifting African Trade APM Terminals Southern Africa is part of the worldwide APM Terminals corporation. The business is seeking continued growth in Africa and General Manager New Business, Julian Arriaga-Mendoza tells IndustrySA more about how the company plans to achieve this.

Bandile Mngoma Touching lives with Old Mutual

Transnet Fuelling economic growth

Southern Air Conditioning The Western Cape’s largest air conditioning contractor

Jindal Africa Keeping a close eye on Africa

“Education is the most powerful weapon which you can use to change the world”

1918-2013

#BeInspired

EDITOR’S PAGE

EDITORIAL EDITOR Joe Forshaw WRITERS Colin Renton Tim Hands Lauren Grey Roland Douglas Christian Jordan RESEARCH DIRECTOR Chris Bolderstone PROJECT MANAGERS James Clark Ajuanne Payne Janis Billington Leslie Kemp ADVERTISING SALES SALES DIRECTOR Andy Williams SALES MANAGER Daniel Marshall SALES EXECUTIVE Holly Graham SALES EXECUTIVE Mark Leonard STUDIO STUDIO DIRECTOR Martyn Oakley OFFICE MANAGER Tricia Plane ACCOUNTS Mike Molloy, Jane Reeder ECP LTD MANAGING DIRECTOR David Hodgson OPERATIONS DIRECTOR Chris Bolderstone FINANCE DIRECTOR Scott Warman Ferndale Business Centre, 1 Exeter Street, Norwich, NR2 4QB If you would like more information about ways in which IndustrySA can promote your business please call +44 1603 618000 or email info@industrysa.com East Coast Promotions Ltd does not accept responsibility for omissions or errors. The points of view expressed in articles by attributing writers and/or in advertisements included in this magazine do not necessarily represent those of the publisher. 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 2014

Welcome to issue seventeen...

So we are now into a New Year once again.

With the beginning of 2014 comes optimism and hope for many industries. Of course, this is the year that the country marks its 20 years of freedom and democracy. In his New Year’s address to the nation, President Zuma said that while we can reflect on the progress the country has made in the last two decades, “we will also reflect on how we will continue to work together as a nation as we implement our vision 2030 as outlined in the National Development Plan,” a plan which seeks to eliminate poverty and reduce inequality.

Obviously, this means that investment will continue and while we have seen money being plunged into infrastructure, perhaps now we will see investments into other sectors of society; investments which will allow innovation and entrepreneurialism to flourish.

But when there is optimism in a New Year, there is always a downside and for many people that is the rise in fuel prices. As of January 1st, the Department of Energy has announced that the price of petrol and diesel will rise by 39 cents and 32.18 cents per litre respectively. The price of fuel has a huge impact on all industries and can have a major effect on economic growth and market activity so at the start of 2014 we want to know, how will the fuel price increases affect your business? Let us know on Twitter (@industry_sa) or on Facebook.

Joe Forshaw

editor@industrysa.com

JAN 14 PAGE 3

CONTENTS

3 EDITOR’S PAGE New Year, fresh excitement

6 NEWS All that’s happening in South Africa 10 EnTREPRENEUR Working with style

12 Innovation Let there be light!

18 Inspirational SA RIP Madiba 20 Bandile Mngoma More than just special events

PAGE 4 JAN 14

48

CONTENTS

40

24 APM Terminals Lifting Africa to new heights

68 Health and Accident Group

Changing perceptions of the insurance industry

72 Bliss Chemicals Moving up in the FMCG market

32 Meyer Loss Adjusting

76 Bafotech The one stop scraper winch shop

The Eastern Cape’s premier loss adjuster

40 Volvo Trucks SA 15 new models for Southern Africa

48 Transnet Fuelling economic growth and empowerment

56 Southern Air Conditioning

82 Seton Autoleather It’s what’s on the inside that counts 88 SGS Acquisitions bolster the SGS portfolio

There’s something in the air…

94 Anglo V3 Lifting the industry

62 Jindal Africa

98 Industry Recommended

A global player with local ambitions

This month’s showcased organisations

COMPANY REPORTS

They’ve got health insurance covered

30 Thatch Risk Acceptances

JAN14 PAGE 5

NEWS All that’s happening in South Africa

Cost of fuel rises The Department of Energy announced that from January 1st, the price of petrol and diesel will rise in South Africa forcing motorists to cough up more for their travel.

“The retail prices of all grades of petrol, the wholesale prices of both grades of diesel, illuminating paraffin and the maximum retail prices of LPGas will increase with effect from Wednesday, 01 January 2014,” the Department said.

Both grades of petrol will increase by 39 cents per litre and both grades of diesel will increase by 32.18 cents per litre.

Jo’burg NYE customs among strangest in the world A survey carried out by social networking site Badoo.com has found that a New Year’s Eve custom native to Hillbrow, Johannesburg, where people throw furniture out of windows of tall buildings, is amongst the strangest in the world.

Across the globe there are many unusual and bizarre traditions that people like to adhere to when ringing in the New Year but the 7200 members who were surveyed, from over 18 countries, recognised the Hillbrow custom as one of the strangest and most fun.

The Chilean city of Talca’s custom of spending New

Year’s Eve at a cemetery to be with dead relatives won the poll for the strangest custom.

A Romanian custom of trying to hear animals talking – where failing to do so brings good luck – came second, followed by the Irish practice of banging bread on the wall to scare away evil spirits.

The mass kiss-in in Venice, Italy, Mexico’s practice of wearing red underwear for good luck and a three-day water fight in Thailand took the top three places in the fun category.

© Chris Kirchhoff, MediaClubSouthAfrica.com

PAGE 6 JAN 14

NEWS

R2.7 billion rail contract for Siemens In December, Prasa (Passenger Rail Agency of South Africa) announced that it has awarded the South African arm of German engineering company, Siemens, a R2.7 billion contract to implement world-class signalling systems and track upgrades on the Johannesburg and Pretoria rail networks.

According to Prasa CEO, Lucky Montana, the project will result in increased capacity and ensure more flexibility, greater safety and fewer train delays in Gauteng province.

“The need for more effective train control is important as the number, speed, mass and length of the trains in Gauteng increase,” Montana said in a statement.

Siemens will replace some much outdated technology with new, modern, electronic control systems. The overhaul is an important and overdue one with some signalling technology dating back to the 1930’s.

“Key features of the upgrade include the introduction of electronic interlocking systems, the upgrade and/or building of new relay rooms, a brand new train detection system, overhead and track changes, and implementation

of a custom-designed train control operating system across the entire Gauteng network,” Siemens said in a statement.

Siemens was first commissioned in 2011 to upgrade a quarter of the province’s signalling system and to build a state-of-the-art central operations centre. The new contract will involve the modernisation of the remaining three-quarters of Gauteng’s signalling network.

“Completion of the rail signalling project will see the Gauteng railway network aligned with modern urban rail networks across the world,” said Lucio Lefebvre, senior project manager at Siemens South Africa.

“The new system is vandal-resistant, and rigorous measures against theft and sabotage have been incorporated into the full network design,” Lefebvre said, adding: “The whole project is underpinned by stringent testing and safety processes.”

The company is confident that 60% of production will come from local sources and a large part of the engineering, manufacturing and testing will take place at its factory in Northriding, Johannesburg.

JAN 14 PAGE 7

NEWS All that’s happening in South Africa

South Africa’s blue flag beaches among best in world The South African coastline has been recognised for its safety, cleanliness, provision of amenities and environmental information and management and no less than 41 beaches and five marinas have been awarded international Blue Flag status for the 2013/14 season.

Blue Flag is the prestigious, voluntary eco-label for beaches, marinas and boats that is recognised as a trusted symbol of quality. It is regarded by the World Tourism Organisation as the most well-known international eco-label and gives local and foreign visitors the knowledge that their beaches are clean, environmentally sound and adhere to international safety and other tourist standards.

You can access more information about each of the beaches, including facts on location, number of lifeguards, parking, average water temperature, special birds or animals that can be seen and available facilities, at the Blue Flag website – blueflag.org.za.

The first time South African beaches were recognised by the Blue Flag campaign was back in 2001 when the country became the first nation outside of Europe to participate in the scheme. Back then, four SA beaches were given Blue Flag status.

The five marinas to make the grade were: Thesen Island in Knysna; the Yachtport in Saldanha; Granger Bay Water Club and False Bay Yacht Club in Cape Town; and the Royal Alfred Marina in the Ndlambe Municipality in the Eastern Cape Beaches have to undergo close scrutiny and are assessed according to 33 different criteria,

spanning four aspects of coastal management: water quality, environmental education and information, environmental management, and safety and services, which include excellent life-saving standards, top-rate parking and sparkling ablution facilities.

Historically, local communities have reported brilliant side effects from obtaining Blue Flag status including an increase in visitors, improved behaviour on the part of beach-goers and property prices rising for nearby homes.

© Kenton Tourism

The 44 beaches that achieved Blue Flag status: Eastern Cape • Boknes Beach, near Port Alfred • Dolphin Beach, Jeffrey’s Bay • Humewood Beach, Port Elizabeth • Kariega Beach, Kenton-on-Sea • Kelly’s Beach, Port Alfred • Kings Beach, Port Elizabeth • Middle Beach, Kenton-on-Sea • Kleinemonde Beach KwaZulu-Natal • Alkantstrand, Richards Bay • Lucien Beach, South Coast • Marina/San Lameer Beach, South Coast • Southport, South Coast • Trafalgar Beach, South Coast • Umzumbe (Pumula) Beach, South Coast

PAGE 8 JAN 14

Western Cape • Bikini Beach, Gordon’s Bay • Brenton-on-Sea, near Knysna • Buffalo Bay beach, near Knysna • Camps Bay Beach, Cape Town • Clifton 4th Beach, Cape Town • De Bakke, Mossel Bay • Gouritsmond, near Mossel Bay • Grotto Beach, Hermanus • Hartenbos Beach, Mossel Bay • Hawston Beach, near Hermanus • Keurboomstrand, near Plettenberg Bay • Kleinbrak Beach, near George • Kleinmond Beach, near Hermanus • Lappiesbaai Beach, Stilbaai • Llandudno, Cape Town • Mnandi Beach, Cape Town

• Muizenberg Beach, Cape Town • Natures’ Valley, near Plettenberg Bay • Preekstoel, near Still Bay • Robberg 5th, Plettenberg Bay • Santos Beach, Mossel Bay • Silwerstroom, Cape Town • Strandfontein Beach, near Cape Town • Strandfontein Beach, Vredendal, West Coast • Wilderness Beach, near George • Witsand Beach, mouth of the Breede River Northern Cape • McDougalls Bay Beach, Port Nolloth (Richtersveld)

NEWS

2013 – A great year for SA sport The countries sportsmen and women made South Africa proud on the international stage throughout 2013. There were many accomplishments but perhaps the most popular success came in cricket where the Proteas had a fantastic year, ending 2013 as the number one test cricket side in the world.

Both New Zealand and Pakistan, historically two of the more feared sides in international cricket, fell to the wayside when they came up against South Africa in 2013. New Zealand went down by an innings and 27 runs after being bowled out for only 45 in their first innings at Newlands in January.

Pakistan started well but could not match the Proteas stamina when they duelled in Johannesburg in February.

Fast bowler, Dale Steyn spent most of the year at the top of the world rankings but was replaced by compatriot Vernon Philander in December. As for batsmen, South Africa holds three places in the world’s top ten. AB de Villiers (1), Hashim Amla (2) and Graeme Smith (9) look set to drive the team on in 2014.

Then, of course, there is Jaques Kallis who retired after scoring 100 in his final appearance against India.

He is widely regarded as the finest all-rounder of all time and leaves the squad after 18 years, scoring over 13,000 test runs and taking nearly 300 test wickets.

In football and rugby, both of the national teams managed to boost their world rankings throughout the year and one of the most notable results of 2013 came when Bafana Bafana, ranked 62 in FIFA’s world rankings, took down World and European champions Spain with a 1-0 win in Johannesburg, the first time Spain had lost since 2011.

In other sporting news; the rugby sevens captured gold in the World Games in August. In the swimming pool, Chad le Clos, Cameron van der Burgh and Roland Schoeman all put in outstanding performances at the World Championships. Natalie du Toit received an honorary MBE in recognition of her glittering career after it came to an end at the London Paralympics.

In cycling, Greg Minnaar, Daryl Impey, Louis Meintjies and Gerald Ciolek were all successful in their various events, forcing the world to take notice of SA cyclists.

In golf, there was success for Ernie Els (winning the BMW International Open), Charl Schwartzel (winning the Alfred Dunhill Championship) and Louis

Oosthuizen (winning the Volvo golf Championship) and the country’s golfers continue to reign as some of the highest earning in the world.

Finally, the national men’s and women’s hockey teams were both crowned African champions, Giniel de Villiers finished second in the Dakar Rally in a South African-built Toyota Hilux 4x4, Hank McGregor was crowned canoe marathon world champion for a third time and wheelchair tennis player Lucas Sithole won the British Open title and the US Open title.

This is just a collection of the sporting success that the country saw in 2013 and it looks as though 2014 will be just as fruitful with major national and international championships set to get under way.

JAN 14 PAGE 9

Entrepreneur

Bringing together graft and glamour Editorial :Joe Forshaw Vanessa Gounden has faced many challenges throughout her career but each time she has been faced with adversity, she has triumphed and continued to create success. IndustrySA looks further into the career of one of South Africa’s richest female entrepreneurs to find out more about her inspirational story…

Our entrepreneur for this month has a career that has spanned many industries including mining, fashion and government. She is reportedly South Africa’s richest female entrepreneur with a fortune estimated at around R2.5billion. She is, of course, Vanessa Gounden, CEO of the HolGoun Group.

Vanessa’s story began in South Africa in 1961 when she was born to first generation South Africans, after her grandparents had left India for Africa in the late 1800’s to work as labourers on the sugar-cane plantations. Her early life was difficult, growing up on a smallholding near Durban with her grandparents and spending most of her time helping her family by preparing roses for sale to local florists. Her childhood home had no electricity or hot water and was shared between 20 people, six adults and 14 children.

When Vanessa was just 10 years old, the apartheid state forcibly removed her and her family from their home under the Group Areas Act and moved them to a dormitory township with minimal facilities, cutting them off from their previous

PAGE 10 JAN 14

livelihood. This experience had a profound effect on the young Vanessa and ultimately compelled her to join the ANC and campaign for democracy.

During her years of activism, Vanessa worked on her degree and gained a B.Tech Honours degree in Human Resources from University of Pretoria before becoming a primary school teacher. But after the country’s first democratic elections in 1994, Vanessa was contacted by Nelson Mandela himself and he offered her the chance to be part of his administration and help him build a new South Africa.

While serving with Mandela’s administration, Vanessa became heavily involved in the trade union movement and eventually became Director of Change Management for the police, putting her skills learnt at university into practise. She further developed these skills when she became Head of human resources for the National Intelligence Agency, a role which saw her actively participating in recruitment of some of South Africa’s top spies.

While campaigning with the ANC, Vanessa met her husband, Sivi Munsami Gounden, who himself had forged an impressive

Vanessa Gounden

© www.vanessag.co.uk career resulting in his installation as Director General of Public Enterprises. Although both were serving in important government positions, the pair decided to start their own company in 2003 following a fallout between Sivi and the then President, Thabo Mbeki’s regime. This resulted in the birth of HolGoun, an investment holding company with interests in mining, healthcare, property, financial services, media and entertainment, security, film production and fashion.

Speaking of HolGoun, Vanessa told London’s Evening Standard: “We decided to specialise in things Sivi understood as an engineer and we positioned ourselves as high-risk takers in the mining sector doing stuff nobody else would do. We did lots of research - I worked from a desk in our bedroom - but it was a sharp learning curve and in the beginning we burned our fingers and ran up huge debts.”

However, the pair acquired platinum mining rights on a couple of farms when the price of platinum was very low. This, she says, kick-started the growth of HolGoun.

“It was 2003 when we pooled our pensions of £60,000 each and started HolGoun.

“We turned £100,000 into £20 million, which gave us

the cash base to invest in coal, uranium and chrome. Today HolGoun is valued at more than £140 million.”

Today, with HolGoun well established in a number of sectors, Vanessa has been able to focus on one of her lifelong dreams – running her own fashion label.

Under the title ‘Vanessa G’, the label brings together Vanessa’s love for design and arts. The brand is aimed at the contemporary woman of today that has an appreciation of the arts and wants her clothes to reflect her sensibility.

The brand was launched in 2011 and received praise from many industry critics. Vanessa told the Evening Standard: “My aim is to be the next Coco Chanel. I want to create a top-end global brand to compete with the likes of Prada and Louis Vuitton. Nobody has broken into that top echelon in the past 20 to 30 years, and although I am new to fashion, I want to be the one who does it.”

It is this ambition that has typified Vanessa’s career to date and is sure to see her continue to achieve success in all areas.

She is a shining example of what can be done with desire and determination and who would have thought that all of this could stem from cutting roses near Durban.

.

JAN 14 PAGE 11

Innovation

Changing lives with light Editorial – Joe Forshaw

Michael Suttner, creator of The Lightie, tells IndustrySA how he came up with the idea for one of Africa’s most promising innovations.

Many hands make light work; we’ve all heard the old proverb. But in the case of South Africa’s latest innovation it’s just two hands, those of Michael Suttner, a young social entrepreneur whose idea is rapidly becoming one of the most talked about inventions of 2013/2014.

Suttner is the man behind The Lightie™, a small solar powered light bulb, about the size and shape of a test tube, which fits inside a regular PET/soda drinks bottle. This innovation could provide light to millions of people who live without electricity and have to suffer using expensive and dangerous paraffin lanterns.

Suttner tells IndustrySA that as many as two million people die each year using paraffin lanterns or candles, on average people spend 25% of their income on this ‘dirty fuel’ and nearly 200 million tonnes of CO² are released into the atmosphere annually as a result of this ‘dirty fuel’ for lighting.

Previous attempts to tackle this problem on a mass scale have all but failed and one of the main hurdles was the cost of distributing functional products to the vast range of people in need. But Suttner has almost cleared this hurdle by making his product cheap, small and flexible by potentially leveraging some of the biggest existing distribution networks in Africa – for example those of Coca-Cola.

“I looked at the biggest distributors in Africa, Coca-Cola, MTN, Unilever, the corporates that own the distribution channels,” explains Suttner. “Their market penetration is very deep. I looked at Coca-Cola and was very impressed with how they distribute their products and how much reach they have in Africa where infrastructure is pretty

PAGE 12 JAN 14

much non-existent. I thought if I could somehow leverage their distribution then I could potentially get light to millions of people.

“I did some research on who had partnered up with Coca-Cola before, and it quickly became clear that CocaCola were in the market to sell Coke, not solar lights for example. If I wanted to leverage their distribution channels, I would have to come up with something that got them excited.”

THE LIGHTIE™ Using flexible solar technology, a small powerful lithium battery and efficient LED technology, all mounted in a test tube like unit, The Lightie™ can output up to 12 times more light than that of a traditional paraffin lantern.

After researching solar market in Africa for three years, Suttner explains that his inspiration came one day on his way to the gym.

“There had been a lot of talk about lighting up Africa and moving from paraffin to solar but nothing was ever done on a mass scale so I set myself a challenge. The technology was there and the price was right because of mass production, so it essentially boiled down to getting the technology to the end user. The biggest challenge was distribution. If I could find the right distribution partner and the right product, we could have something that could reach the masses and essentially light up the Africa and the rest of the impoverished world.

“One day on my way to gym after realising I had left my water bottle at home, I decided to stop off at my local sport shop to buy a new one. That was when I came across the Bobble water bottle, which had an interesting looking

Innovation

filter screwed into the top of it. This was when I had my eureka moment. I realised with all the technology that I had researched over the years, the battery technology, the flexible solar and LED technology; I realised that this could all fit together in a test tube shaped unit which could screw into a soda bottle/coke bottle borrowing the bottles form as the structure.

“I went home and put everything on paper, I got the idea provisionally patented worldwide and I trademarked the name ‘The Lightie™’. My mind went to overdrive as I realised that this could be the solution that Africa has been waiting for. Not only could it give out a lot of light but it could reduce the cost dramatically.

“The units use a flexible solar panel which is around half the price of a conventional mono or polycrystalline solar panel because it gets printed in low cost, roll to roll process.

Flexible solar technology has come a long way in the last few years catching up and having similar efficiency to some of the best conventional solar technology on the market.

By using a coke/soda bottle, I reduced the cost further as there was no need to create a conventional structure for the lantern. The Lightie™ essentially is a solar powered light bulb and the Soda bottle is the fixture.

“I realised that Coca-Cola may be interested in the marketing side of things as they see themselves as the enablers of happiness and through this whole process the idea for The Lightie™ was born.”

‘ALWAYS THE TINKERER’ After School Suttner went on to study mechanical engineering for a short while but before that he was always interested in how things worked. He describes himself as

a ‘tinkerer’, something that would be a source of much frustration for his family.

“I’ve always been a tinkerer, from a young age I was always taking things apart and making things. I would spend all my free time disassembling and building things in the house. My mother used to lock me out of the kitchen as I wanted to take apart the dishwasher but I would never be able to put it back together. Eventually she started buying me electronic kits and I spent most of my childhood playing with these kinds of things.”

His interest in solar technology developed at the end of high school when Suttner created an alarm system for campers in a science competition where a solar panel sits atop a tent or vehicle and powers a perimeter alarm.

In 2010, Suttner was working in Europe, on a yacht in the Mediterranean, where he witnessed how well solar technology was being implemented. This made him think, could solar tech be a viable option for South Africa?

“Over the years I had read a lot about the advances of European solar technology in magazines and newspaper clippings in South Africa but we’ve always been years behind Europe and what was new here was five years old in Europe.

“When I was working on the yachts I noticed the hi-tech solar equipment being used. I thought if I could bring it back to SA it might be a good business opportunity.

However, when I came back every Tom, Dick and Harry was doing it and the market was flooded.

“I subsequently shifted my focus to the rest of Africa and realised it was a totally different ball game. Conventional solar wasn’t that useful in Africa but Micro Solar (or Pico Solar) products were. This refers to very small, highly

JAN 14 PAGE 13

Innovation

PAGE 14 JAN 14

Innovation efficient solar powered products. This was my inspiration,” he says. “With 600 million being forced to live without light and having to spend $38 billion dollars on ‘dirty lighting’ annually and with only 2% market penetration in the solar sector, it was a no brainer.”

The speedy advances in cell phone technology over the past decade have all contributed to the development of effective batteries and other technology which have given Suttner a lot of scope when creating The Lightie™.

“The technology was right thanks to the development of cell phone technology, the price was right because of the mass production of cell phone technology and I couldn’t understand why there were still 600 million people in Africa still forced to live in darkness every day when the sun sets. It just didn’t make sense.

“In my opinion, this small test tube shaped light bulb is the international answer to the worlds lighting problems,” he says.

THE FUTURE? While The Lightie™ is still a conceptual product, Suttner has proven that the idea can work – very effectively. The idea has already been recognised by numerous national and international organisations as an inspirational innovation.

At the 2013 ABSA/Design Indaba DRD Contest, The Lightie™ was chosen as the winner for its ‘ingenious innovation and distribution strategy’. At the 2013 CLIPDC

Lions Den Challenge, The Lightie™ won first prize of R50,000 for being the most promising idea which showed the biggest potential social impact. At the 2013 TIA/ SASOL Step-Up Innovation Competition, The Lightie™ took first prize in the Green Environment category. At the 2013 FNB Ideas Can Help Competition, The Lightie™ won the grand prize of R500,000 seed capital and a one year incubation/commercialisation agreement through Vumela and Edge growth and at the The 2013 GAP Green Awards, The Lightie™ won first prize of R300,000 including enrolment into the Maxum Business incubator and Climate Innovation Centre for its work in the area of clean tech solution such as renewable energy, water and sanitation and sustainable mobility.

“By using a coke bottle, I reduced the cost further as there was no need to create a conventional structure for the lantern” Suttner says that he hopes to take his product to the masses and go on to solve other prominent everyday problems. He says that The Lightie™ could eventually be sold alongside Coca-Cola and paraffin and could be used in various industries including mining.

“Currently, it’s a crude concept but I wanted to get all the electronics in and make sure it works. Does it charge? Yes.

JAN 14 PAGE 15

Innovation

Does it give you light? Yes. Can it give you light for up to 40 hours? Yes. “We are now in the next phase of development. We are talking to manufacturers and getting designers to give us an idea of how the final product could look and work and how we can get it to the masses.

“We are also in the process of creating a mother brand under which The Lightie™, and other products we produce, will fall. I see myself in this industry for the foreseeable future. I would like to form a company that will solve everyday problems and not just provide variations on what is already available. I would like to solve problems on a mass scale, not just in pockets around the world.

“I see The Lightie™ sitting on the shelves next to Coca-Cola, next to paraffin across the world where those two products are easily accessible to the masses.

“Of course, there will be many uses for the product. It could be used in the mining industry, potentially attached to mining hardhats. Miners could have one down in the mine, one charging above ground and then one to take home for use with their families providing light, saving money and improving their health dramatically” he says.

To ensure the smooth transition from concept to final product, Suttner has assembled a team to assist with all areas of business from finance to electronics.

“I’m only 27 and to be honest, my business acumen isn’t up to scratch with a project of this calibre,” he says. “So I have put together a small team of respected businessmen and they are helping me and I’ve made a lot of connections

PAGE 16 JAN 14

in the social responsibile sector. I have a business coach, financial advisors, lawyers, an industrial designer and an specialist engineering company in Holland who I’m looking to outsource the electronics through. They have developed a special patented chip which will make my unit up to 200% more efficient than most of my competitors. It will be able to charge under very low lighting levels and even in dark cloudy and rainy conditions.”

So, The Lightie™ is safe, sustainable, cheap and easy to maintain. It is efficient and can be used in a range of different environments. It has been recognised for its ingenious design and distribution strategy and its creator is focussed on making it a success. With all of this in mind, it is likely that 2014 will be an extremely busy year for Michael Suttner and The Lightie™ and, hopefully, this fantastic idea can being enlightenment to people around Africa and around the world.

Stay in touch with developments from Suttner and The Lightie™ online at: www.thelightie.com or @thelightieSA and @Msuttner

.

“My mind went to overdrive as I realised that this could be the solution that Africa has been waiting for”

Innovation

JAN 14 PAGE 17

InspirationSA

95 years of inspiration

Nelson Mandela

#beinspired By: Joe Forshaw

Nelson Rolihlahla Mandela spent his life inspiring people. Throughout his 95 years in our global community, Mandela became one of the most recognised faces on earth. A symbol of hope, optimism, courage and positivity, Mandela has bought people together and used his power and presence to inspire positive change in a country that could have looked a lot different without his influence.

His influence on the business and legal community has been profound. He worked hard to be recognised as an academic and after leaving the University of Fort Hare after just one year of studying English, anthropology, politics, native administration and Roman Dutch law without a degree, he eventually gained his degree from Unisa and followed up with a degree in Law from Wits University. Towards the end of his studies, Mandela was heavily involved with politics and subsequently failed his final year three times.

A significant moment in Mandela’s life came about in 1953 when he and Oliver Tambo opened the first and only African-run law firm in the country, Mandela and Tambo. Operating in downtown Johannesburg, the firm defended aggrieved people who had been affected by apartheid laws.

After his arrest in 1962, Mandela was imprisoned for 27 years but used his time to study, working towards a Bachelor of Laws (LLB) degree from the University of London which he eventually completed in 1988. To many

PAGE 18 JAN 14

it still seems incredible that one man could gain such a wide following despite spending nearly three decades behind bars.

InspirationSA

Upon his release from prison, Mandela pledged his commitment to peace and reconciliation and stated that his main interest was to bring the vote to the black majority in local and national elections. Mandela is considered responsible for leading the reconciliation between black and white South Africans, a movement which was opitimised by his embrace and presentation of the 1995 Rugby World Cup to Francois Pienaar, the white Afrikaner captain of the national rugby team, formally unpopular with the black community. The tournament was held in South Africa and partly paved the way for some of the world’s major sporting events to be held in the country.

Because of his work on a political front, Mandela is considered the father of democracy in South Africa, the father of the nation and has been pointedly recognised over the years, nationally and internationally. In 2004, he was granted the freedom of Johannesburg and Sandton Square was renamed Nelson Mandela Square. In 2008, a Mandela statue was unveiled at Groot Drakenstein Correctional Centre, formerly Victor Verster Prison, near Cape Town.

In 1993, he received the joint Nobel Peace Prize alongside F.W. de Klerk. In November 2009, the United Nations General Assembly proclaimed Mandela’s birthday, 18th July, as ‘Mandela Day’, marking his contribution to the anti-apartheid struggle. He has also received some of the highest honours from nations including Britain, USA, Canada, Turkey, Pakistan, India, Jamaica, Sweden, Australia and the former Soviet Union.

He also had a nuclear particle (the ‘Mandela particle’), a prehistoric woodpecker (Australopicus nelsonmandelai) and an orchid (Paravanda Nelson Mandela) named after him.

Some of his most notable work has been through his many charitable connections. The Nelson Mandela Children’s Fund, The Nelson Mandela Foundation and The Mandela Rhodes Foundation are just a selection of the causes that he has contributed to, again, changing the lives of people for the better.

Despite his recent battles with illness, one thing that remained consistent and strong throughout his life is his unwavering commitment to his beliefs and the development of South Africa. His life story has remained ever popular because of the uniqueness of his journey and the developments in the methods of news delivery and this is nothing but a good thing as it seems that, even in death, Mandela is universally inspiring, something which cannot be said for many people in recent history.

However you have known Mandela and by whatever name you call him, Madiba, Tata, Rolihlahla, Nelson, his excellency, it is important to remember to be inspired by his selfless philosophy and proactive approach to achieving the greater good.

At IndustrySA, we are sure that Mabida will rest in peace.

Enkosi

JAN 14 PAGE 19

Celebrity

Sponsorship is changing for the better Editorial – Joe Forshaw

Long gone are the days when sponsorship meant paying sky high rates for an advertising board at a national event. Today sponsorship means so much more. It allows for businesses to communicate with customers and achieve various goals but perhaps most importantly, sponsorship helps companies to build their brands. This month we speak to Bandile Mngoma, sponsorship and events manager at Old Mutual to find out more about the organisations fantastic sponsorship programme and how it is used to uplift and develop people and communities.

Is there a theme surrounding the sponsorship that Old Mutual takes up?

We base our sponsorship on four pillars. The first being a brand exercise, so anything that speaks for the brand and what the brand stands for, and how does the sponsorship tie into our values as Old Mutual.

The second pillar speaks to the business mandate. We have to support the various businesses in Old Mutual in terms of achieving business goals, whether it be retaining customers, acquiring new customers or relationship building.

The third pillar surrounds what we call internal brand advocacy. With a global company like Old Mutual which has over 50,000 employees around the world, those 50,000 employees might be customers as well as employees and they are also participants in areas that we sponsor such as sports, education, arts and culture. We like to involve our staff in everything that we do so what is good for Old Mutual has to be good for its employees.

The fourth pillar surrounds socio-economic transformation. As we are in emerging markets, our sponsorship has to touch our societies in a manner that uplifts those communities. We look at what the sponsorship can give back to a community and what it can give the economy of the country as a whole and is there a transformational aspect that it could play.

PAGE 20 JAN 14

Old Mutual has been involved with sponsorship of large scale musical and sporting events over the past 12 months.

Why is it that this focus has emerged?

There are other niche and new sponsorship deals that do happen but at a group sponsorship level we have to show the personality and character of Old Mutual. This means we need to have a wide reach. For example, with the Old Mutual Two Oceans Marathon, this attracts close to 30,000 runners and if you look at the support base that these runners could influence, it’s quite massive. There is also the possibility of advertising outdoors and below the line PR so we like to showcase the talent that South Africa and Africa has and impact upon as many runners, supporters and viewers as possible. This is at the top level. Some of the other business units could undertake sponsorships that are more specific to particular areas of the country.

More than anything else, we like to touch as many people as possible with our sponsorships.

Are there any activities planned for 2014 or is all still in the development stages?

We do have some of the activities planned for this year. In the first quarter, things will surround the sporting arena. We will have the Two Oceans Marathon and the mountain biking event, the Old Mutual joBerg2c. We will also have another

Old Mutual

road running event called the Om Die Dam and all of these events will be in quarter one of 2014. There will also be the Old Mutual Pairs of South Africa which is an amateur golfing tournament towards the end of quarter one.

We also have the music in the gardens, kicking off in Durban and that is quarter one panned out.

quite rare that you will find mothers, fathers, aunts, uncles, sisters, brothers and cousins all going to a rock concert but we have a kids zone and a chill zone so its lends itself to family attendance. Compare this to the standard rock concert; it’s in the evening, it’s at a stadium and people cannot sit and have a conversation so another reason for these events is to bring families together.

The company has held a number of events in Durban’s botanical gardens.

What is special about this location?

How do you attract big name performers to play at these events?

Firstly, it speaks to our pillar around socio-economic transformation. We sponsor events in not only Durban’s Botanical Gardens but also at the Walter Sisulu National Botanical Gardens, the Pretoria Botanical Gardens and the Kirstenbosch Botanical Gardens in Cape Town.

These are green initiatives and we contribute to the green agenda. All of the takings are kept by the various botanical gardens for them to maintain and progress their gardens.

From a sustainability point of view, these gardens need these funds.

Across these four gardens we have hosted 50 shows in a year. This has given a platform to South African artists and international artists and this of course is in line with our pillar of socio-economic transformation.

A key point about these garden shows is that we do them during the day and we market them as a family event. It’s

Because Old Mutual has a variety of customers, we have to take a look what is current in the playlists. Firstly, we have to keep up with the times and secondly, we have to keep up with cross-musical appeal.

For example, Johnny Clegg can appeal to a 50 year old, a 40 year old, a 30 year old and the younger generation. We look at artists who can bring a diverse audience.

We try to theme the concerts around certain times of the year. For example, in February it’s Valentine’s Day so we would look at artists who could appeal to that type of market.

In June, it is Youth Month so we will look at artists who can appeal to that market, who are topical and are relevant. August is Women’s Month so we may look at artists who may have songs or an appeal to mothers or women.

We finish every year with Christmas carols across all of the botanical gardens. At these events we try and infuse classical

JAN 14 PAGE 21

Celebrity

with contemporary so we may have an orchestra accompanying a pop artist or a choir with a solo artist to take everyone through the Christmas carols.

How do you go about arranging the sponsorships that Old Mutual is involved with?

It’s a two pronged approach. We are inundated with requests for sponsorship and we also approach various causes based on our analysis on what our portfolio is like. One of our big focus areas is sport, with soccer, cricket, rugby, swimming etc. but some areas can be cluttered, like soccer, so we have set up an Old Mutual Football Academy, focussing on grass roots. There are some areas that we do not get involved with, such as blood sports. We also have to consider our geographical footprint as Old Mutual. We would see whether we have things around the country, north, south, east and west and if we don’t, we will look hard at a sponsorship in an area where we do not have a presence from a sponsorship point of view.

We will also approach various events, for example there may be a food or wine festival that we would like to get involved with because it seems in South Africa there is a big take up with these kinds of events. Currently, there is a big focus on mountain biking and we are told that mountain biking could be the new golf. Almost every corporate has a mountain biking event in their portfolio and of course Old Mutual has with the

PAGE 22 JAN 14

joBerg2c.

What is critical is that our sponsorships must speak to the Old Mutual values and must also speak to the four pillars of our sponsorship.

The Old Mutual Foundation has seen fantastic success. What examples are there of success as a result of the working with the Foundation?

The Old Mutual Foundation has supported an organisation called Cycle for Mobility. That organisation concerns itself with raising funds and getting equipment, especially wheelchairs, for people in rural areas. What the Foundation has done is donate R20,000 to that organisation and this translates into around 125 wheelchairs and these will be distributed along the route of the joBerg2c which goes through eight towns in South Africa from inland to the south coast of KZN. This is an example of how the Foundation and some our sponsorships work together.

We also have a campaign called More Than Yourself. This means when you run or bike in one of our events, people can log onto our portal (morethanyourself.co.za) and donate and sponsor friends and the funds go directly to different beneficiaries. This is another example of how the Foundation and our sponsorships link up.

With the Music in the Gardens concerts in Durban

Old Mutual and Johannesburg, R5 from every ticket sale is given to a beneficiary. We have one right now called Wildlands Conservation Trust which concerns itself with biodiversity so for every ticket bought, R5 goes to the beneficiary and the Old Mutual Foundation matches that contribution resulting in R10 from every ticket donated to the beneficiary.

What has been your personal highlight from all of the amazing events over the last 12 months?

To me the highlight would be the joBerg2c, realising that a mountain biking event for affluent people actually does so much at grass roots level. There are people throughout the route who have to maintain the tracks and all they use is a spade fork to clear a path. They have to keep the track in good condition for most of the year and these

people get paid to do this. So, you could do 900km along the back routes of the country and you are giving back to those communities. For affluent people to sleep in tented accommodation in a school yard and allow the school to raise funding by hosting so that they can pay teachers and plough back into education – for me this is a real highlight.

For more on Old Mutual sponsorships visit www. oldmutual.co.za/about-us/sponsorship.

.

“We have to show the personality and character of Old Mutual”

JAN 14 PAGE 23

CompANY PROFILE

Lifting trade to new heights

Editorial: Joe Forshaw Production: James Clark

APM Terminals are seeking continued growth in Africa and although times have been tough over the past few years, the company has adapted its strategy to ensure it remains an industry leader. Julian Arriaga-Mendoza, General Manager New Business for APMT Southern Africa tells IndustrySA more about plans for 2014.

Following the global financial slowdown that started in 2008, economies and industries around the world have been hit hard and the difficulties have been plain to see for everyone. Although South Africa’s economy has remained fairly strong over the past five years, there have been detrimental effects for many companies and to avoid problems businesses have had to be efficient and creative with their strategies.

A shining example of this is seen in the business of APM Terminals (APMT) Southern Africa, part of the global group offering port management, container terminal operations, and a wide range of local inland container transportation and cargo warehousing services.

The company has adapted its strategy to operate as efficiently as possible in the challenging economic conditions and their focus on the African market is something which continues to grow.

Julian Arriaga-Mendoza, General Manager New Business

PAGE 24 JAN 14

at APMT Southern Africa, tells IndustrySA that there are many exciting projects in the pipeline for 2014 and the whole group is focussed on growing business, especially in Africa.

“Today, Africa is very high up on the list of interest for our company from a global perspective. If it’s not first, it’s second on that list,” he says.

“We have huge interests, in both inland services and terminals, in East and West Africa as well as Southern Africa.

There are huge opportunities and we want to expand our footprint.

“South Africa itself offers huge growth opportunities. We have a strong presence in South Africa with inland services but we definitely want to set a footprint on the terminal side of the business if possible.

“In 2014, we are planning to open a packing and unpacking facility in Walvis Bay, Namibia, outside of our current premises. Currently, we are located in Namport but we are going to relocate three kilometres away from the port and provide the services of packing and unpacking to our various

APM Terminals

customers. We have identified a strong necessity for this in Walvis Bay and we hope that the new facility will be open by March 2014.”

STRATEGY APMT core business surrounds assisting the container shipping business. The company provides a long list of services including; cargo heating, container sales, container freight station, cross haul operations, empty depot services, inland container depot, port support services, refrigerated container services, refrigerated warehouses and trucking.

Obviously, all of these services are centred on customers in the shipping industry, an industry which in 2012 saw a reduction in port tariffs in order to make the industry more cost effective and attractive to foreign shipping companies.

In 2012, it was rumoured that some shipping companies had threatened to cease operating in South African ports because of the high costs, out of line with the rest of the world, but the reduction in tariffs and massive investments

into facilities at the Port of Ngqura and other ports around the coast have ensured that this important industry remains highly active.

APMT calls some of the world’s biggest shipping and freight companies its customers and when these companies change their strategies, it can have a knock on effect for APMT. Of course, this means that business strategies are closely monitored and adapted and Julian suggests that this flexibility has allowed the company to remain efficient and maintain its position as an industry leader with more strategy adjustments planned for 2014.

“We are mainly driven, in our Southern Africa cluster, by our customer base of shipping lines; in amongst these names we have Maersk Line, Hapag-Lloyd, CMA CGM, Evergreen and this varies between are different locations,” he says.

“From our point of view, whenever there is a shift with a shipping line and they change their strategies, positioning equipment at different locations, more specifically here in South Africa where recently most shipping lines undertook a

JAN 14 PAGE 25

CompANY PROFILE restructure; that has a huge impact on us because the increase in cost is not passed through to us and we do not get the benefit of the restructure. If anything, we are required to look into improving our efficiencies in order to become more cost worthy for the shipping lines themselves.

“After 2008, there was a new strategy rolled out at group level, making the organisation much leaner, in order to get through those tough times.

“From the perspective of inland services including empty container storage, I would say that we are one of the top three companies. When it comes to reefer management, including the repair of reefer containers and our facilities, I would say that we have to be ranked in the top two.

“In 2014, we are planning on rolling out a strategy revision.

In the past couple of months we have established that we need to reconsider our current business plan, which revolves around storing empty containers, and move into a situation where we are able to deal with full containers; warehousing, unpacking, car unpacking and heating glucose, basically diversifying our business so that we are not stuck doing the same things we have done for the past 20 years.”

STRONG HISTORY APMT at global level is one of the industry’s real powerhouses.

PAGE 26 JAN 14

The company offers the global shipping community a geographically balanced, integrated global terminal network which includes current operations at 63 ports and terminal facilities in 40 countries with seven new terminal development projects and 16 expansion programs now underway, along with over 160 inland services operations in 47 countries. Staffed by 20,000 professionals across a total of 68 countries spanning five continents, APMT serve every major trade lane with a truly global presence, providing customers with the most advanced terminal technology, equipment and operations in the industry.

The history of the company is closely tied in with that of another industry giant, Maersk Line. APMT originated as the terminal operating division of Maersk Line but in 2001 was established as an independent division within the A.P. Moller-Maersk Group. In 2004, APMT moved its corporate headquarters from Copenhagen, Denmark to The Hague, Holland, and in 2008 the company started reporting results as a separate business entity.

Historically, there are strong links between APMT and South Africa as the company’s terminal operations began more than 50 years ago with a general cargo facility at the Port of New York. The company was involved with Sea-Land (a pioneering shipping and containerisation company acquired by the A.P. Moller-Maersk Group) and the very first international

APM Terminals

container operations when the Sea-Land Fairland was loaded with 236 containers bound for Rotterdam at Port Elizabeth.

In South Africa, APMT has grown through acquisitions and innovative service provision as Julian explains.

“In South Africa, we had a very similar concept to the worldwide group,” he says. “The company operated under the local brand, SATI. The SATI organisation was built on a necessity from Safmarine and Maersk Line, from when we were all in the same group, and they needed to create a depot.

That’s where SATI comes in; they became the preferred depot of Safmarine and Maersk Line at the time but it was only considered a cost centre.

“In 2008, following the change in strategy, we began to focus on container inland services and we started operating as a separate business unit with our own profit and loss etc and in 2010 we become part of APM Terminals and operate under the brand APM Terminals Southern Africa.”

As mentioned above, Africa and Southern Africa are highpriority areas for APMT and the world’s major shipping lanes pass along the South African coastline in the south Atlantic and

Indian oceans. Approximately 96% of the country’s exports are conveyed by sea and the country’s ports are some of the busiest and most advanced in the world. For example, Durban is Africa’s busiest port and the largest container facility in southern Africa, Richard’s Bay is the world’s largest bulk coal terminal and The Port of Ngqura is the deepest container terminal in Africa. With this in mind, APMT and the industry more widely are actively investing in their port/terminal activity and Julian explains that in just 12 months, he has seen major progress in this area.

“I’m originally from Latin America and I’ve been with the company for over 12 years. I’ve been in South Africa for just over a year and in that short amount of time I’ve seen the opening of three new high-capital facilities in East and Southern Africa.”

AUTOMOTIVE EXPANSION South Africa’s automotive manufacturing industry is an important one for the country, creating numerous jobs, attracting large amounts of foreign investment and

JAN 14 PAGE 27

CompANY PROFILE

PAGE 28 JAN 14

APM Terminals

Your equipment rental solutions for the marine, mining and private sector Equipment Mobile Offices Ablution Units Waste Skips – 6 CBM 30 Ton Crane – Rough Terrain Crane 80 Ton Crane – Rough Terrain Crane 16 Ton Forklift 7 Ton Forklift 4 Ton Forklifts

3 Ton Forklifts 2.5 Ton Forklifts 14 Ton Flat Deck Truck 12 Ton Flat Deck Truck with Hiab (Truck Mounted Crane) 2x 9 Ton Single Axle Skip Truck 13 Ton Double Axle Skip Truck Welding Machines 20 FT Half Heights

Manager: Mobile: Office: Fax: Email: Email: Address:

stimulating activity throughout the supply chain with local businesses. Many of the major manufacturers; BMW, Mercedes-Benz, VW, Ford, Toyota etc, all have plants in South Africa and all are strategically located near the major ports because shipping remains the cheapest form of long distance transportation.

In 2012, APMT invested in a full-service depot at the Coega Industrial Development Zone (IDZ) in Port Elizabeth. Julian says that although the launch of this facility was initially delayed, it is now running well and the company will look to provide services to the automotive sector, further diversifying its service portfolio.

“Operations in Coega have been going well,” he says.

“Unfortunately the project itself was delayed by six months so obviously the volumes have been smaller than we expected.

This is a clear example of how changes in shipping strategies can affect us.

“Coega is running well. We are looking at diversifying and getting into other types of business such as providing services for brands like General Motors and BMW where will support them in terms of their overflowing containers when their production facilities are filled to the brim.”

Obviously this type of investment is beneficial for the local community as well as the company and Julian says that a number of jobs and other opportunities have been created.

Additional Services Container Packing and Unpacking Cargo Lashing and Unlashing Rigging and Rigging Solutions Storage And any other related services you may require

Thomas Wolff +264 81 128 4283 +264 64 213 200 +264 64 213 201 thomas.w@rssnamibia.com info@rssnamibia.com PO Box 157 34 2nd Street East Synchrolift Industrial Area Walvis Bay, Namibia

“It has a major impact locally with the creation of jobs and opportunities and also from the perspective of our shareholders and our credibility.”

The R25million investment has resulted in the company being able to provide a full range of services for dry and reefer containers, which includes landside services such as repairs, handling, storage, monitoring and container conversion.

Apart from these services, APM Terminals also operates a trucking yard from its depot.

This investment forms part of a larger plan for expansion in Africa and Imtiaz Mahomed-Ally, APMT COO confirmed that the company would continue to search out growth on the continent. “A Nelson Mandela Bay depot has always been part of our plan,” he said. “We were just waiting for the Port of Ngqura to be fully operational and shipping lines to show commitment to use this port before we embarked in a depot investment in the Coega IDZ. “We are here to stay and expand our footprint in depot operations in southern Africa.”

.

“We have huge interests, in both inland services and terminals, in East and West Africa as well as Southern Africa. There are huge opportunities and we want to expand our footprint” JAN 14 PAGE 29

company profile

Changing perceptions of the insurance industry Editorial: Christian Jordan Production: Ajuanne Payne

Thatch Risk Acceptances is the only company to specialise exclusively in residential thatch insurance. After the St Francis Bay fires in 2012, the company was commended for the way it dealt with the numerous claims that came in, so IndustrySA speaks to Managing Director, Natasja Blok, to find out more about the company and its plans for the future.

On November 11th 2012 an electrical fire started in the village of St Francis Bay, a holiday village in the Eastern Cape. Strong winds carried the burning embers from home to home setting alight over 75 homes, many of which had thatched roofs. At the time, there was widespread media coverage and a lot of attention on the area with the fire losses being considered as one of the most severe events in the insurance industry’s recent history.

Controlling the fire proved extremely difficult under the windy conditions and when the flames eventually died down, thoughts turned straight to the clean-up operation.

“In the immediate aftermath it didn’t look like a fire, it looked like a bomb had hit the town. We have never seen

PAGE 30 JAN 14

anything on that scale,” says Natasja Blok, Managing Director of Thatch Risk Acceptances.

The insurance companies started to deal with the losses and reports at the time suggested that the claims could run into hundred-millions of Rands.

Fortunately, South Africa’s financial institutions are some of the strongest in the world and the insurance industry has remained strong even during the tough global economic conditions. In the past we have featured various insurance companies who have all reported great successes and this month we speak to Thatch Risk Acceptances (TRA) who tell us that despite the high value claims made after the St Francis fires, the company is showing steady growth and customers remain happy because of TRA’s unrivalled

Thatch Risk Acceptances

commitment to quality service.

The St Francis Bay fires were a unique incident for the insurance industry and because of the way that TRA and the rest of the industry dealt with challenges, there has been much praise for the company.

“We realised very early that it was going to be a huge claim. We had never experienced losses of these proportions in the personal lines insurance industry in South Africa. Never before have we seen so many homes burning at one time, so it also turned out to be a historical event in our industry. Because the insurance of thatch homes is our niche, we picked up most of those claims,” explains Blok.

“We worked very closely with Compass Insurance

Company Limited and Hannover Re as we realised that the claims settlements would be in excess of R100 million and if we were going to pay out those amounts, we might just as well do it brilliantly. It would ultimately be our biggest marketing campaign and as we all know, it is at the claims stage where your customers will find the most value and benefit in your levels of service. We set out to assist our brokers and clients to settle the claims. Our goal was to ensure that all pay-outs would be done as soon as possible, by increasing our cash flows.

Everyone was committed to doing things as quickly and as painlessly as possible for the clients.

“Insurance is such a grudge purchase and I think people hardly ever see the value, so I hope that we were able to

JAN 14 PAGE 31

company profile

PAGE 32 JAN 14

Jindal Africa

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.

We deal in numerous fields including: Commercial Claims Building Claims – Householders/Homeowners Burglary, Robbery, Theft and Money Fidelity Guarantee Jewellers Block

Surveys Goods In Transit Fire and Allied Perils General Liability, Products, Public Accidental Damage

Agricultural Claims General Marine Claims (Cargo) General Business Interruption Contractors All Risk

Eastern Cape working areas: George Port Alfred Plettenberg Bay East London Outshoorn Mthata Humansdorp

Graaff-Reinet Cape St Francis Grahamstown Jeffrey’s Bay Middleburg Port Elizabeth and surrounding i.e. Uitenhage and Despatch

Physical address: 11 Bendor Drive, Beverley Grove, Port Elizabeth Postal address: PO BOX 70403, The Bridge, 6032 Email: marius@mla-ec.co.za | adele@mla-ec.co.za Tel: 041 379 5402 | 061 404 0357 Fax: 086 767 8310 Cell: 061 405 4501

Reg. no: Ck2009/020952/23 Managing Member, Marius J Meyer is Vice Chairman for the Eastern Cape for the Institute of Loss Adjusters of Southern Africa.

JAN 14 PAGE 33

Providing a focus on quality and service When the St Francis Bay fires caused havoc to many properties in 2012, insurance companies came under the spotlight for the way they handled the response to the damage. After the emergency services had finished in their role it was down to the insurance companies to help people rebuild their homes and in some cases their lives. Meyer Loss Adjusting played a big part and assisted Thatch Risk Acceptances throughout the whole process. IndustrySA finds out more about the Eastern Capes premier loss adjuster…

Meyer Loss Adjusting CC (MLA) was started by Marius Meyer in 2007 after working for local and International Loss Adjusting firms since 1995. Prior to Loss Adjusting, Marius started his career within the insurance market and realised where the market needed to focus.

“As a smaller firm, we focus on quality of adjustments and service with a new and dynamic claims approach. We also believe in sharing our knowledge with our clients and are involved in training, and auditing claims to maintain their set standards,” says Marius.

The company has a wide reach in the Eastern Cape and tends to many different needs, from a range of clients. “As an Adjusting firm, we attend to a broad spectrum of claims over a large geographical area in the Eastern Cape. We also do marine surveys for cargo carriers. We furthermore assist our clients with risk management and surveys,” says Marius.

“We attend to commercial claims, general and property loss for domestic, body corporate’s and bonded properties. We also attend to complex and catastrophic losses between George, Middelburg and Mthata.

“We work for various insurance companies and for some we have service level agreements in place. Then we also assist claims underwriting managers and brokers directly.”

Of course, the St Francis fires were a disaster but Marius suggests that the way the industry dealt with the

situation may have helped to renew faith in the industry.

“We were part of an exceptional group whom swiftly settled the claims and I personally believe that the tragedy of the fire renewed the trust in the industry and the need to insure adequately.

“As for 2014, I am sure we will respond to the challenges that our clients face and will assist them to the best of our ability. We have exciting plans for the future and we are adapting to meet our clients every need.”

The relationship between MLA and Thatch Risk Acceptances (TRA) dates back to 2003 when Marius met the TRA team in Cape Town. “When I relocated to the Eastern Cape, TRA continued their loyal support and remain one of our best supporters in this area. TRA’s approach to modern day claims is truly inspirational and everybody in the team is effective and determined to provide excellent service to their clients and brokers,” says Marius.

“We experienced a similar relationship between TRA and insurers which made the St Francis claim`s a true example of professional insurance when it mattered most.”

As we move into 2014, Marius expects to see growth and change for the company and the industry, saying: “Growth is essential to every business and we shall advise the market and our clients during 2014. We believe that there will be changes but we think that samet will be beneficial to all parties involved.”

Thatch Risk Acceptances

portray to the public that we are there to help when they need us most. It is an amazing opportunity that we in the insurance industry have, to enable our clients to recover financially,” says Blok.

“This sets off a chain reaction of opportunities starting with a huge boost to the local economy as our clients will be able to afford to rebuild their lost homes.

“This in turn will assist with creating much needed employment opportunities. Many builders, building material suppliers and furniture companies did benefit from this as their revenue increased as a result of insurance pay-outs.

“From the feedback we’ve had, I think we did achieve what we set out to. It’s satisfying to hear that we managed to lift the image of the industry through the way we dealt with the situation.

“The rebuild is still on going and as many of the homes were holiday homes it will take some time to restore the area to its former beauty.”

company is now widely regarded as the leader within its niche.

The company is small in terms of number of employees but each member of the team is a competent thatch insurance professional and has vast experience in the industry.

“Our niche has never changed in 15 years and this is one of our key success factors. When you have a niche, you should stick to it and do what you know best,” says Blok.

“Our staff eat, drink and sleep thatch. They work with it every single day and they are extremely knowledgeable about it. They could answer any question that could come up about thatch and this sets us apart from the other players.

“In addition, we don’t run a call centre. We are very focussed on personal service and in today’s fast pace of business, this is still appreciated by many brokers when they experience our personal touch.”

HISTORY THATCH EXPERTS As the company’s name suggests, TRA’s focus is on thatched properties. This focus has remained the same since the company’s inception in 1998. This market is a specialist one and the service offered by TRA staff means that the

Importantly, as well as offering a personalised service, TRA tailors its business to the local market and to clients in South Africa. Before the formation of TRA there was not a dedicated thatch insurance specialist and some customers had to look abroad for their cover as Blok explains.

JAN 14 PAGE 35

company profile

“The company started 15 years ago because there was a need to insure thatched properties in the local South African market.” she says. “At that point in South Africa, there weren’t many players that were prepared to write thatched houses, businesses, lodges, hotels, etc. Most thatch insurance business was placed at Lloyd’s of London on binders, so there was a gap in the South African market for a niche player and that’s how we got started.

“Everyone was committed to doing things as quickly and as painlessly as possible for the client and this is the feeling we wanted to leave there” TRA offers a complete service to its broker base, with a full mandate from Compass Insurance Company Limited (see our June 2013 edition for more on Compass Insurance Company Limited) to provide quotations, issue policies and manage the entire claim settlement process.

“Compass specialises only in UMA’s, and therefor does not conduct any business directly with the broker or the public.

PAGE 36 JAN 14

“As a UMA we are not allowed to deal with clients directly and our only distribution channel is via our broker network,” says Blok. “Most personal lines brokers will have a portfolio of clients where maybe 2% of their total client base will have a thatched roof property. So the broker doesn’t deal with thatched roof properties on a regular basis, whereas we deal with these risks daily. This also sets us apart from our competitors and gives us the opportunity to build on our experience and expertise to understand the risk.”

Dealing with a broker network allows TRA to maintain their focus on the thatch industry, continuously updating their knowledge.

HARDENING INDUSTRY? “We’ve been in a soft market cycle for a very long time across the whole insurance industry in South Africa.

Following various big losses that we faced in 2012, including the fires in St Francis, we were one of the first to implement rate increases. Initially it was met with some resistance as the brokers had been used to years of a soft cycle,” says Blok.

“Apart from the St Francis Fires, the industry also experienced severe floods in various parts of the country as

Thatch Risk Acceptances well as extreme hail storms resulting in huge losses, so we did expect more hardening of the market,” she explains.

“Over the course of 2013, we have seen the market increasing the motor rates up to 20% with the average rate increases being around the 7% to 10% mark. The non-motor rates are also going up and in some cases, even where the client did not lodge any claims during the past 12 months, they received double digit rate increases.”

The challenging economic conditions along with unpredictable natural events resulted in increased loss ratios for the industry.

“In addition, with the slowing down of the economy from 2009, growth remains a challenge for all of us and we have seen some unsustainable ratings to gain new business.

The recession has resulted in less disposable income for many people and, of course, this has an impact on the construction of new and maintenance of existing thatched properties,” says Blok.

“As for the future, I think the market will improve slightly for 2014,” she says. “At TRA we are happy with our results for 2013. I think, over time, businesses may have to consider diversifying to achieve growth targets.

As for working in the industry and being a part of the

Natasja Blok

Servicing Servicing short-term short-term insurance insurancefinancially financially

The models used are actual staff members of Insure Group

Meet with with us usto tosee seewhat whatwe weoffer offer A range range of of services servicesfor forthe theshort-term short-terminsurance insurance market, market, including includingpremium premiumhandling handlingservices, services, premium premium financing financingand andbroker brokeracquisition acquisitionfunding. funding.

Get Get to to know know us usfor forwhat whatwe westand standfor for Comfort, Comfort, convenience, convenience,compliance. compliance.Our Ourcore core values, values, the the essence essenceof ofour ourbusiness businessrelationships. relationships.

Experience Experience what whatwe weare aregood goodat at Servicing short-term insurance Servicing short-term insurancefinancially. financially.

m m

a a

n n

a a

g g

e e

r r

s s

Inadvance Inadvance P Premiumcredit remiumcreditsa sa Alpha Call 0861 4 INSURE Maxi Call 0861 4 467873 Email marketing@insuregroup.co.za AlphaGroup CallManagers 0861 4Holdings INSURE Call 0861 4 467873 EmailFSPmarketing@insuregroup.co.za Insure Ltd isMaxi an authorised financial services provider 2882.

Insure Group is Ltd an authorised FAIS representative of FSP 2882 and registered credit provider (NCRCP 131).

Group Managers ManagersLimited Holdings is an authorised financial services provider FSPa 2882.

www.insuregroup.co.za www.insuregroup.co.za JAN 14 PAGE 37 2571Q

company profile

PAGE 38 JAN 14

Thatch Risk Acceptances

day-to-day issues that affect the industry, Blok says that the insurance industry offers fantastic opportunities and experiences.

“The insurance industry in general offers you an amazing landscape that can take you anywhere. What I’ve been exposed to and what this industry has given me has been absolutely phenomenal and I love working in this industry,” she says.

“My involvement in the insurance industry stretches further than just TRA, as I have been a Council member and Past President of the Insurance Institute of Gauteng (IIG) for a number of years and I am also a director on the board of the South African Underwriting Managers Association (SAUMA).

I’m fortunate to be exposed to a lot of issues in the industry that are not just related to my own business. This keeps things interesting and my base allows me to participate in all of these other industry initiatives which I really enjoy.

“One of the highlights of my career was when I received the Cover Excellence Award in the UMA Category at the Insurance Institute of South Africa’s gala dinner in July 2013.”

The Cover Excellence Award is awarded to an individual who has made a significant contribution to the industry in the last 12 months. Cover magazine is the medium through which the industry expresses its appreciation and respect for those who have made significant contributions to shaping and uplifting the insurance industry. The Cover Excellence Awards acknowledge a winner for 2013 and a winner for a lifetime contribution in four categories: Short-term, Life Risk, Intermediary and Underwriting Management. Below is an extract of what was said when Blok was called up to receive the award: “Natasja Blok has led Thatch Risk Acceptances, where she is currently is Managing Director and shareholder with great distinction for eight years. Natasja has been on the SAUMA board for several years and was the President of the IIG in 2009.

She, with the President of the IIG of that year, founded the IIG Charity Auction in 2005. Since inception of the IIG Charity Auction, R2.2 million has been raised for charities including Wet Nose Animal Rescue, Frederic Place, Marang House, Just

One Child and Oasis Haven.

“All in the industry are aware that TRA picked up a significant number of claims from the homes that burnt at St Francis Bay. The value of the 30 claims that came to TRA was in excess of R100 million. The way in which Natasja and her team mobilised and dealt excellently with such a devastating fire and the losses incurred, presented the opportunity for the insurance industry to demonstrate the value it offers.

“The company received numerous compliments on how well the TRA/Compass Insurance Company Limited/ Hannover Re team handled all these claims. Natasja was remarkable in her dealings with the media on these claims; the public could witness that, though the insurance industry has been subject to huge losses over the past 14 months, none of the insurers or reinsurers has collapsed – all still have a high claims paying ability with significant financial resources.

“Natasja devotes extra-ordinary effort and dedication to the insurance industry, to enhancing its reputation and to ensuring always that our customers come first.”

So, in the case of TRA it seems that the ‘grudge purchase’ is one that has yielded extremely positive benefits for clients. The way that the company dealt with the St Francis fires and the fact that quality service remains the focus proves that insurance doesn’t have to be a battle. As TRA continues on its growth path, it seems certain that the company will achieve further success and continue to be recognised as the leader in its niche segment.

.

“Insurance is such a grudge purchase and I think people hardly ever see the value so I hope that we were able to portray to the industry and to the public that we are there to help and there to rebuild” JAN 14 PAGE 39

company profile

Committed to Southern Africa

Editorial: Lauren Grey Production: Chris Bolderstone In October 2013, Volvo Trucks SA released 15 new truck models into the Southern African market, reaffirming the company’s commitment to the region and marking “one of the most intensive and exciting periods in the history of Volvo Trucks.”

Internationally renowned for its heavy commercial vehicles and diesel engines, Volvo Group has evolved alongside the modernisation of man since it was founded in 1927.

With operations in more than 185 markets, the company prides itself on understanding the individual transport needs of different regions, allowing it to offer tailored solutions for diverse operating environments around the world.

Vovlo’s commitment and understanding of these different operating environments was demonstrated last year after its South African trucks division announced plans to enhance its service delivery and product offering.

PAGE 40 JAN 14

VOLVO TRUCKS SA With its impressive portfolio, and operations in the region dating back more than 13 years, Volvo Trucks SA is considered one of South Africa’s leading truck manufacturers; the company currently has 15 dealers in the country and employs approximately 500 people.

Managing Director, Torbjörn Christensson says that understanding Southern Africa’s transport needs is very important to the company as it holds “untold potential” as a developing region.

“We believe that the region holds untold potential and we are therefore committed to contribute to its successful development by providing products and services that suit southern Africa’s very unique business and operating

VOLVO TRUCKS SA

conditions,” Christensson says.

“We are making these investments in order to more effectively support our dealers and customers going into the future.”

However, in order to strengthen the company’s future success in Southern Africa, Volvo Trucks’ president, Claes Nilsson says that it is becoming increasingly important to keep careful pace as it develops as a region.

“Going into the future, it is becoming more and more important to explore and understand a region’s local operating environment, and to adapt our business in order to meet our customers’ transport requirements.

“Operating in South Africa for over 13 years, we believe we are able to meet these unique requirements and offer

our local customers total transport solutions and support.”

Nilsson says that as transport operators expand their operations throughout the region, Volvo Trucks SA has to be there to capture this market demand and support customers every step of the way.

NEW MODELS In support of Nilsson’s statement, Volvo Trucks SA recently launched 15 new truck models, strengthening its position in the South African market and reaffirming the company’s dedication to the region.

The company launched its award-winning range, the FH, as well as the new FM and FMX ranges in October, continues on page 44...

JAN 14 PAGE 41

company profile

PAGE 42 JAN 14

VOLVO TRUCKS SA

“The Volvo FH forms the backbone of our product offering and we believe it is also the foundation of Volvo Trucks’ continued market development”

JAN 14 PAGE 43

company profile continued from page 41... marking a “new era” in the history of the company, according to Christensson.

“With the launch, we now have an almost entirely new product offering for our customers,” he says.

The launch of the new ranges will allow Volvo Trucks SA to expand its footprint across the region and effectively capture the market demand for such vehicles.

“The launch of the FH and FM/ FMX model ranges signals of one of the most intensive and exciting periods in the history of Volvo Trucks.

“With the most modern and innovative Volvo line-up ever, we now have an outstanding ability to help customers in all segments to improve productivity and profitability,” says Nilsson.

Each of the new trucks offer a wide range of benefits for the drivers; all cab environments have been renewed or upgraded with the focus on creating an effective, ergonomic, comfortable and safe workplace.

Volvo Trucks SA has already spent many months training its dealer staff in order to effectively support their customers. Innovative support offerings include a new telematics system, a mobile phone application and numerous fuel saving features to effectively assist fleet owners in cutting their transport costs.

FH RANGE The Volvo FH has been Volvo Trucks’ flagship model for almost 20 years, and its new range has been purposefully designed with the driver in mind, providing them with a

PAGE 44 JAN 14

comfortable, profitable and safe ride.

“The Volvo FH forms the backbone of our product offering and we believe it is also the foundation of Volvo Trucks’ continued market development,” explains Christensson.

“The new Volvo FH range represents the start of a fresh chapter in Volvo Trucks’ history and is therefore an immensely important product platform in which we have invested heavily during the five years of its development.”

The launch of the FH range in South Africa followed shortly after it was named International Truck of the Year 2014, chosen by a collection of Europe’s leading commercial vehicle journalists, representing 25 publications.

The FH range claims to “push the envelope of what a premium truck could offer”, including maximum uptime, leading fuel economy, reliability, ergonomics, superior handling, active and passive safety, as well as a range of time-saving features.

Nilsson says that being awarded International Truck of the Year confirms this, “When we introduced the new FH in Europe in 2012, we claimed that it was pushing the envelope of what a premium truck could offer. The International Truck of the Year award confirms that the Volvo FH lives up to this promise.”

With the driver at the heart of the new truck’s development, it was important for Volvo to get feedback from transport operators and drivers during the development phases -3000 to be exact- to ensure the vehicle was meeting their requirements.

Engineering your road to success

VOLVO TRUCKS SA

SAF-Holland is one of the leading global brand names in the manufacture and supply of high-quality systems and components for commercial vehicles as well as buses and recreational vehicles. The company has a strong presence in South Africa and use their know-how, innovative products and perfect systems solutions to meet the requirements of big-name clients across the country.

Sales Manager, Steve Russell tells IndustrySA more that the company has a long-standing relationship with Volvo, something which SAF-Holland would be keen to grow.

“We’ve been supplying them for around four years. We supply fifth wheels, sliders and couplings.”

“Prior to SAF-Holland being in the country, there were a couple of distributors in South Africa and our product is EU approved and used by Volvo in Europe so they were buying the product through a distributor. When we came into the country, Volvo wanted to deal directly with us being an OEM supplier.”

SAF-Holland have adapted their processes in order to take maximum control of their products, ensuring quality from initial manufacture right through to delivery.

“Our headoffice is in Johannesburg and we were using a third party to store and deliver the fifth wheels in Durban as the Volvo plant is there,” says Russell. “We found that the products were getting damaged in storage and this prompted us to open our outlet in Durban which has been running for around 18 months. This means we have our own people storing and handling the goods and we have control over the product.”

In 2014, the company has a number of exciting new products coming into the market which they would like to supply to Volvo.

“We have a total no-lube fifth wheel that we have recently bought into South Africa which a couple of our clients are testing. In the New Year we will look to approach Volvo with this. This is a green product, a totally greaseless fifth wheel,” says Russell.

Of course, Volvo only use premier parts when manufacturing their trucks and Russell says that SAF-Holland goods are widely recognised as top of the range.

“We definitely have one of the best products in the market. The sales numbers worldwide speak for themselves” “We go the extra mile for Volvo, they are an important client to us and we try to look after them as best we can.”

Quality Components & Systems for Truck & Trailer

SAF-HOLLAND South Africa Crn. Crownwood & Modulus Road Ormonde Tel: +27 11 496 3196 · Fax: +27 11 496 3696 · Jo@safhollandsa.co.za

www.safholland.co.za JAN 14 PAGE 45

company profile

“It has been proven time and time again that a driver’s working environment has a direct impact on a transport operator’s costs. When a driver can do his or her job comfortably, efficiently and safely, the work gets done faster and more effectively,” explains Christensson.

“This cooperation has prompted a number of significant changes inside the cab that enhance a driver’s time both on and off the clock.”

Such enhancements include an improved driver’s seat, allowing the driver a better view of the road, as well as a rearrangement of stalks and controls in order of importance, with the more important ones closer to the driver.

The exterior of the truck also holds a range of new efficiencyenhancing features. One example is the optional wireless remote, which aids loading and unloading. With this remote control, the driver can stand outside the truck and adjust the air suspension, operate the tail lift and monitor the axle load of both the truck and trailer.

“This system saves the driver a lot of time because he or she doesn’t have to keep jumping in and out of the cab during loading. Not having to repeatedly climb in and out of the cab also benefits safety,” says Christensson.

The improvements and enhancements made to the new trucks will also benefit the fleet owners, according to Christensson.

“Trucks that are popular with drivers also make it easier to recruit the best drivers in the industry. In turn, because of their effectiveness, they contribute to transport operators’ profitability,” he says.

“Volvo FH owners also form part of an entire ecosystem of support which includes servicing, workshops, intelligent services, driver training and much more. When you invest in a Volvo FH, you’re investing in a complete modern transport solution.”

VOLVO FM/FMX Alongside Volvo’s FH range, the FM and FMX models have also been released for the South African market; although the two are closely related to the FH series, they are designed to be Volvo’s

PAGE 46 JAN 14

most versatile heavy truck range, Christensson explains.

“Firstly, the FM is a highly efficient truck platform that takes especially steering and handling in this industry segment to a whole new level. Meanwhile, the Volvo FMX is extremely robust and packed with innovative solutions, and is comfortable to drive even in challenging operating conditions.”

While the FM and FMX range is in essence identical to the FH, there is one vital exception: the cab is placed lower down, making it easier to get in and out and making it ideally suited for specialised tasks such as car transport, where part of the load can be placed above the cab.

The lower-placed cab means that interior space in the FM/ FMX Series is less than in the FH, owing to the larger engine compartment cover between the driver and passenger seats.

VOLVO FM SERIES Thanks to its impressive flexibility and transport efficiency, the new Volvo FM is the all-rounder of the Volvo Trucks range, and one of the company’s most important models.

“With its multiple application areas, the Volvo FM is one of our most important models, and the new version takes a huge

“Operating in South Africa for over 13 years, we believe we are able to meet these unique requirements and offer our local customers total transport solutions and support” step forward in every major area,” says Christensson.

“It embodies our very latest technological advances, progress on and off road is more stable, and the truck is more comfortable and efficient. Most importantly, the new Volvo FM is easy to customise to suit individual transport requirements.”

VOLVO TRUCKS SA While the Volvo FM is productive and economical for the customer, it also offers the driver a completely new working environment; the in-cab environment is designed with the driver in focus.

The result is an effective, ergonomic and safe workplace with increased space for the driver and more storage capacity than before.

“This is a high-priority area for our construction customers.

The new air suspension is tailor-made for construction work without compromises or connection to other segments,” explains Christensson.

“The suspension system features automatic ride-height control and with ground clearance of 300 millimetres, the result is excellent get-you-there ability.”

VOLVO FMX SERIES

COMMITTED

Unlike the FM range which was designed to be an all-rounder, Volvo’s FMX has been specifically developed to make driving in construction applications easier and safer, including a robust bumper, advanced steering and a new comfortable rear.

“We believe the FMX range sets a new standard when it comes to robustness, handling and driver comfort. With its launch, Volvo Trucks breaks new ground in the construction segment,” says Christensson.

“The new FMX bases its personality on its honest, capable image. What you see is exactly what you get. A fully equipped tool, one hundred percent ready for hard work.”

One of the most essential qualities for a construction truck is a high ground clearance, and the new FMX truck has just that.

Volvo has created the air suspension GRAS-G2 for up to three rear axles, implemented locally on the FMX 440hp 8x4 rigid.

Furthermore, as part of Volvo’s commitment to southern Africa, the Group has also announced plans to establish a new integrated 11,500m² parts facility in Johannesburg.

The Group intends to consolidate the logistics services for its South African operations and create one distribution centre, resulting in customers and dealers benefitting from a more streamlined and effective parts operation.

The new incorporated Volvo Group SA Distribution Centre will house all the parts warehousing, logistics and distribution services for Renault Trucks, Volvo Trucks, Volvo Bus and UD Trucks under one roof.

It will be established on the company’s existing site in Johannesburg, which will be expanded and upgraded from 4500m² to 11,500m² and is close to the company’s headquarters in Jet Park. The project is expected to be completed by the fourth quarter of 2014.

.

We repair accident damaged trucks, over 3 tons, and provide the best possible service in the industry. In so doing we intend to create new and maintain all current relationships with our loyal customers and road users.

Hermans is currently on the panel of all Commercial Insurance Companies. We are also proud to be the only panel beater who is factory approved by all major commercial manufactures.

Pinetown - Kwazulu-Natal Pinetown Kwazulu-Natal P.O Box 237 New Germany 3620 Tel: 031 701 3822 Fax: 031 701 8902 Email: info@htar.co.za

Centurion - Gauteng 875 Freight Road, Louwlardia Ext 13 Centurion, Gauteng Private Bag x3 Wierda Park 0149 Tel: 012 661 1010 Fax: 012 661 0885 Email: info@htar.co.za

Wadeville - Gauteng Cnr Steenbras & Mullet St Wadeville Gauteng P.O. Box 14757 Wadeville 0422 Tel: 011 824 1777 Fax: 14 012PAGE 824 178147 JAN Email: info@htar.co.za

company profile

Fuelling economic growth and empowerment Editorial: Lauren Grey Production: Chris Bolderstone

South African logistics giant, Transnet has announced that its largest ever services contract –a staggering R15 billion- has been awarded to nine black and womenowned companies. The company says that this will be a positive influence on the country’s transport and logistics industry whilst contributing to its own ambitious growth plans.

South Africa’s Transnet, is the largest and most crucial part of the freight logistics chain that delivers goods across the country; delivering thousands of tons of goods every day through its pipelines and both to and from its ports.

However, with the South African government running as its sole shareholder, Transnet’s responsibilities extend far beyond logistics, as it is also responsible for ensuring that the country’s transport industries operate according to world-class standards and contribute towards the overall economy.

Transnet is not only vital to South Africa’s development, but it also combines forces with other businesses in order to expand transport operations across Africa and beyond.

By doing so, Transnet assists in creating valuable business opportunities that extend far beyond the borders of South Africa.

PAGE 48 JAN 14

TRANSNET REBRAND Transnet’s roots can be traced back as far as 1850, when railway transport was first proposed for the harbours in the Cape and Natal.

The company has since developed rapidly alongside the evolution of the country’s transport system, and continues to do so today through strategic investments and business ventures.

One of Transnet’s turning points came in 2007, when it announced plans for a four-point turnaround strategy, prompting the company to completely rethink its business structure.

The strategy aimed to optimise the equity embedded in the Transnet brand but to also communicate the revitalisation of the company, its new corporate structure, its people and its emerging service culture.

As a state-owned company, Transnet plays an important role in supporting and positively influencing South Africa’s

Transnet

freight logistics network, and it was therefore important that the transformation created a coherent set of business units and operations that functioned together efficiently.

One of the main objectives of the turnaround strategy was to bring the company’s five divisions, formerly known as Spoornet, Transwerk, NPA, SAPO and Petronet together under the Transnet name, in order to transform the company from a multi-brand organisation into one single brand.

To achieve this goal, the divisions have been renamed: Transnet freight rail, Transnet rail engineering, Transnet national ports authority, Transnet port terminals and Transnet pipelines, with each division now operating under the same ethos, “delivering on our commitment to you.”

MARKET DEMAND STRATEGY After successfully completing its four-point turnaround strategy set out in 2007, Transnet is now embarking on one

of its largest investments to date; a R307.5 billion project set to be rolled out over a seven year period.

This project, known as Transnet’s Market Demand Strategy (MDS), was introduced by President Jacob Zuma in his State of the Nation Address on 9 February 2012.

The MDS is aimed at expanding South Africa’s rail, port and pipelines infrastructure, resulting in a significant increase in freight volumes, especially in commodities such as iron ore, coal and manganese.

The MDS will also lead to a significant modal shift from road to rail, which will propel Transnet Freight Rail, which has the largest share of the investment programme, into the fifth biggest rail freight company in the world.

The increase in rail freight will have a major impact on reducing the cost of doing business, as studies conducted by Transnet show that rail in South Africa is on average 75% cheaper than road transport.

In addition, the large scale shift from road to rail will

JAN 14 PAGE 49

company profile address costs, congestion and reduce carbon emissions.

As custodian of ports, rail and pipelines, Transnet’s primary objective set out in the MDS is to optimise the freight logistics system, as this will improve the competitiveness of the country’s supply chains, and thus promote additional economic growth.

FUNDING THE MDS The R307 billion investment will see Transnet building new ports, expanding existing ports, buying locomotives, wagon and other rail assets and improving infrastructure. The seven year strategy is supported by a comprehensive funding strategy focussed on raising cost effective capital from a diversity of sources.

The company plans to raise a third of the R307 billion from a variety of funding sources, including domestic and international bond markets, bank loans and export credit agencies among others. The rest, it says, will be funded through cash generated from its operations.

In a press release, Transnet announced that it is on track to raise R15.6 billion of its annual requirement, and over the last six months it had raised R9.4 billion from the following funding initiatives: • R1 billion of commercial paper issuance • R1 billion of bank loans • R5.7 billion of domestic bonds • R1.7 billion from the African Development Bank

PAGE 50 JAN 14

Commenting on the infrastructure investment, Public Enterprises Minister, Mr Malusi Gigaba says that the investment will not only contribute towards Transnet’s growth strategy, but also the country’s logistics and transport infrastructure as a whole.

“Over the next seven years, including the current year, Transnet is spending R307 billion on its infrastructure – building ports and expanding them, buying locomotives, wagon and other rail assets and infrastructure and assets while at the same time spending almost a similar amount on its operational expenditure over the same period.

“Not even a cent of these billions will be spent without taking into consideration this government’s developmental goals.”

EMPLOYMENT OPPORUNITIES Furthermore, Transnet’s MDS is expected to create up to 588,000 new job opportunities across South Africa. The company itself will also be increasing its staff numbers by 25% to support the growth of the business over the seven year period.

The MDS is the centrepiece of government’s growth strategy through investment in infrastructure and a key component of enabling the aspirations of the New Growth Path (NGP), including skills development, youth employment and efficiency targets.

R15BN FUEL CONTRACT As part of Transnet’s MDS, the company recently awarded a R15.5Bn fuel contract to black and women-owned fuel

Transnet

‘If Transnet can trust us to keep SA’s ports operating, shouldn’t you?’

As a 100% Black Women Owned, Petroleum Company, Gulfstream focuses on providing innovative fuel supply

solutions to a wide range of customers within specific market sectors of the South African economy. Gulfstream

differentiates itself on its ability to offer reliable supply, innovative and competitive pricing, flexible fuel credit, quality administration and service excellence, second to none.

Gulfstream Energy supplies and distributes fuel for all industrial and automotive applications. These products are

sourced only from licensed and reputable suppliers and will at all times conform to the required national specifications.

Diesel 500 ppm Diesel 50 ppm Petrol ULP 93 & 95 Petrol LRP 93 & 95 Illuminating Paraffin Jet A1 Lubricants

SANS 342 SANS 342 SANS 1598 SANS 1598 SANS 1913 DERD 2494 Relevant SABS specification

46 Alexandra Road, Centurion 0157 P.O. Box 11064, Centurion, 0046 Tel: 012 667 5382 Fax: 012 667 6295

www.gulfstreamenergy.co.za info@gulfstreamenergy.co.za

JAN 14 PAGE 51

company profile

suppliers. This is the single biggest contract awarded by Transnet for services or goods to date.

Following an open, public bidding process overseen by a committee of the Board of Directors, Transnet appointed nine companies to cover its fuel requirements for the next five years; eight of the nine suppliers are 100% black owned, five of them are more than 80% women owned, and three new entrants have been introduced into the industry.

Announcing the award of contract in Johannesburg last month, Public Enterprise Minister, Malusi Gigaba said that it would “go down in history as the day black economic empowerment took a giant leap forward.”

The successful bidders, Afric Oil, Borutho Gas Supply, Gulfstream Energy, KZN Oils, Mzumbe Oil, NRW Trading and Logistics, Tlhokaina 21, Women Of Africa Fuels and Oils, and Yem Yem Petroleum were assessed on price, which accounted for half of the scoring, supplier development, B-BBEE and technical ability among others.

In addition, Transnet conducted a thorough assessment of the short-listed bidders to ensure that all of them had the required capability and capacity to service Transnet’s operational requirements.

Transnet Group Chief Executive, Mr Brian Molefe said that these assessments were important due to the “size and quantum of the contract”, allowing Transnet to feel safe in its decisions.

“Given the size and the quantum of the contract, and the central role fuel plays in Transnet’s operations, this assessment meant we could comfortably award the

PAGE 52 JAN 14

contract knowing that security of supply for the company is assured,” Molefe says.

The contract covers the supply of fuel primarily across three areas of the company’s operations; firstly its tanks, installed at Transnet facilities across the country, which serve the fuel needs of the company’s vehicles and road equipment.

The second component of is the supply of diesel to fuel the 737 diesel locomotives that the freight and logistics parastatal uses to haul goods by rail, and the third is marine fuel that the group uses for its tug boats and dredgers.

Minister Gigaba said that when awarding these contracts, the Board had the targets of the MDS in mind, “When the President announced Transnet’s Market Demand Strategy in his state of the nation address in 2012, he said it was intended to revitalise South Africa’s Transport and logistics infrastructure which Transnet has custody of.

“Further, he challenged us to use programmes like these to create employment, develop skills and pioneer the creation of a new class of industrialists – especially among black people. Transnet has successfully met the challenge.”

FUEL SUPPLIERS The first of the nine fuel suppliers, Afric Oil is a black-owned and managed fuel distributor situated in Johannesburg. The company markets and sells diesel, petrol, paraffin and lubricants to a client base that comprises leading companies in government, parastatal organisations and industry.

Transnet Already established and fully operational in South African, KZN Oils and Borutho Gas Supply are both involved in the manufacture and resale of fuels, lubricants and petroleum products, whose services will now be used

by Transnet in the supply of fuel for its road equipment and transport.

“This day will go down in history as the day black economic empowerment took a giant leap forward.”

Gulfstream Energy, a 100% women owned petroleum company situated in Centurion, was awarded the contract for the supply of fuel for Transnet’s marine business. The company has been entrusted with the supply of fuel to all of South Africa’s ports; Richards Bay, Durban, East London, Port Elizabeth, Mosselbay, Cape Town and Saldahna bay.

Women of Africa Fuels and Oils is a Black Women Empowered organisation with a 100% Women shareholding, the company forms part of the Women Of Africa Investment Group, and was established with a view of expanding its portfolio into the Fuels, Lubricants,

Minerals and Energy sector of business.

WOA Fuels and Oils specialise in the supply and delivery of petroleum and petroleum related products nationally and internationally, sourcing its products from mainstream suppliers within South Africa.

The sixth company awarded contract for the supply of fuel is Yem Yem Petroleum, a division of the South African group, Yem Yem Holdings. The 100% black-owned company prides itself on its understanding of the South African fuel, oil and mining industries, as well as its sound grasp on the legislation that governs trade.

The company has established relationships with suppliers from the Middle East, West Africa, Eastern and Western Europe as well as Asia, with the capacity to provide large volumes of petroleum.

Finally, the three new entrants being introduced into the industry are Tlhokaina 21, NRW Trading and Logistics and Mzumbe Oil. Through their affiliation with Transnet, each of these companies is set to benefit greatly, and will, over the next five years, have the opportunity to grow their businesses.

BBB ACHIEVED Following its ambitious investment plans, Transnet recently received confirmation that its hard work and dedication is already starting to reflect positively on the business.

JAN 14 PAGE 53

company profile

On October 30th 2013, the company announced that Fitch Ratings had upgraded its credit rating to ‘BBB’ from ‘BB+’, confirming that Transnet has a robust execution plan and appropriate mitigating strategies for its investment programme.

Announcing the upgrade, Fitch Ratings said it had “…. upgraded South Africa-based Transnet SOC Ltd’s (Transnet) Long-term foreign currency Issuer Default Rating (IDR) to ‘BBB’ from ‘BB+’ and its Long-term local currency IDR to ‘BBB’ from ‘BBB-’.

“The stable outlook incorporates our expectations that Transnet’s operations will remain strong, despite possible weakening in improving export markets, and that management would scale back its capex in case of weaker demand expectations to maintain the company’s financial profile in line with stated targets,” Fitch said in a statement.

The upgraded credit rating confirms that Transnet has the appropriate processes and controls set in place to execute the MDS. It also confirms that the company is in a position

PAGE 54 JAN 14

to raise the R307 billion needed to execute the MDS, without relying on government guarantees. This allows for government to channel the funds towards the country’s other pressing needs.

Going forward, Transnet’s ambitious growth strategy looks set to further enhance its business operations and enable South Africa’s transport and logistics industry to thrive; paving the way for more employment opportunities and increased skills development across the country.

.

“When the President announced Transnet’s Market Demand Strategy in his state of the nation address in 2012, he said it was intended to revitalise South Africa’s Transport and logistics infrastructure which Transnet has custody of”

Transnet

Compressor & Engine Engineering (Pty) ltd (C&E) is a compressed air specialist company. C&E was founded in 1989 with our head office located in Boksburg East Gauteng.

We pride ourselves on offering bespoke tailor made air solutions to large and medium sized organizations in South Africa in the private and government sectors.

We Specialize in‌ Refurbishment and Repair of Electric Locomotive Compressor & Vacuum Systems Refurbishment of Espresso’s used in Diesel Locomotives Sales of Compressors Service & Maintenance of Compressors Turnkey Solutions for the Compressed air Industry

Find us and Contacts 6 Bain Street Boksburg East Gauteng PO Box 71 Boksburg East 1478

+27 11 914 1093 +27 11 914 1113 info@ceeng.co.za Scan me with your Smartphone

www.ceeng.co.za

JAN 14 PAGE 55

CompANY PROFILE

The Western Cape’s coolest company Editorial: Roland Douglas Production: Ajuanne Payne

Southern Air Conditioning is Western Cape’s largest air conditioning contractor. Founded in 1971, the company has built up years of first class experience. IndustrySA speaks to Director, Mark Botha to find out more about the company’s plans for continued growth.

In today’s modern building projects, especially structures looking to attract large amounts of people, customer comfort is often the first thing to be discussed at planning meetings. Of course, a buildings external aesthetic appeal is of huge importance but internally there are also a number of factors that have to be taken into account. Everything is designed with customer comfort in mind and one of the most important considerations in any building that houses people is temperature – too hot and people will complain and leave, too cold and people will not want to come back.

While this may sound obvious, solutions to temperature issues are far from easy. There are also health and safety concerns that have to be addressed.

How many times have you heard people complain about the lack of air conditioning in hotel rooms or the noise

PAGE 56 JAN 14

and environmental impact that these systems have? Many modern systems are designed with ingenious systems that make the most of airflow and ensure that minimal detrimental effects on the environment are realised.

Take the Eastgate Centre in Harare, Zimbabwe.

This structure (providing 5,600 m² of retail space and 26,000 m² of office space) was designed to be ventilated and cooled by entirely natural means. Then there is the Mall of America in Bloomington, Minnesota. This mega structure (2.5 million ft² shopping centre) utilises traditional air conditioning systems but heating the enormous space has been met with an altogether more creative solution. The mall uses solar radiation through skylights, lighting fixture heat and people heat. The skylights let in light which is converted into heat, like a giant green house, and the lighting fixtures give off heat, which is typically considered waste energy, but is

Southern Air Conditioning

SAC supplied and installed air conditioning in Cape Town’s Canal Walk an important part of heating the building. The people inside generate a lot of heat too. In fact, the guests generate enough heat during peak winter hours that the air conditioning system runs on high to keep the mall comfortable.

In South Africa, the major shopping centres and other high profile buildings, such as the V&A Waterfront, Canal Walk, Cavendish Square, Mountain Mill, SHG House and Stellenbosch Square, have all required complicated and high-tech air conditioning systems to ensure the comfort of customers and they all turned to one of the country’s industry leaders in this sector, Southern Air Conditioning (SAC).

SAC was established over 40 years ago and specialises in the design, supply, installation and maintenance of air conditioning and ventilation systems. The company’s focus on service excellence has gained it a reputation

as ‘the Western Cape’s largest and most successful air conditioning contractor’.

Director, Mark Botha tells IndustrySA that following on from a list of high-profile completed projects, the company is busy with a number of major new developments, notably the Baywest and Motlosana malls in Port Elizabeth and Klerksdorp respectively.

“We are busy with a project called Eikestad Mall and the V&A Waterfront, we’ve just finished a project refitting the Media24 building on the Foreshore and we’ve recently finished a number of other local and regional shopping centres.

“Another big project for us is the Motlosana Mall in Klerksdorp, a project from the same developer as the Baywest Mall,” he says.

When complete in early 2015, the R1.7billion Baywest Mall will cover 80,000m² and will be the one of the

JAN 14 PAGE 57

CompANY PROFILE

SSD Controls specializes in the sales, engineering, installation and maintenance of energy efficient building control products and building management systems (BMS).

We are a complete solutions provider and are able to design and implement control solutions for any building that requires automation, whether for heating, cooling, ventilation, humidification, dehumidification or pressure control.

We are proud suppliers and installers of Honeywell, Centraline, Alerton and Tridium.

Physical address:

Postal address:

Contact numbers:

Email:

Unit 8 Cavi Court Killarney Gardens Cape Town

P.O. Box 50098 West Beach Cape Town 7449

Tel: 021 557 2056

Admin: yvonne@ssdcontrols.co.za Service: luke@ssdcontrols.co.za General: paul@ssdcontrols.co.za andre@ssdcontrols.co.za petrus@ssdcontrols.co.za

Fax number: 086 684 8369 Web: www.ssdcontrols.co.za

largest shopping centres in the Eastern Cape. “The construction has started and we are due to be on site with the builder in January,” explains Botha.

“The products and brands that we use are different for each project and are very much project dependent. On the Motlosana and Baywest projects we predominantly use HPI (Heat Pump International) equipment and Dunham Bush equipment.

“These are some of the flagship projects for the company, some of the biggest we’ve undertaken in terms of value,” he says.

YEARS OF STRENGTH One of the aims for SAC in the coming months and years is growth. The company is well set for expansion as it has a strong, longstanding, experienced employee base, many of whom have worked for SAC for a number of years.

“The business was founded in 1971. The current owners are the second generation owners of the company; we bought out from the original owners between ten and 15 years ago. It’s still the same philosophy, in the same premises; we have looked to continue and grow on the success,” says Botha.

“Our projects are very labour intensive. We try to be as automated as we can when it comes to manufacturing but

PAGE 58 JAN 14

the site installation is very labour intensive.

“On all of our projects we use our own people who have been with us for a number of years. We retired an employee earlier this year who had been here for 41 years. Most of our staff stay with us and this means we don’t have to hire and fire and we try and keep people employed all the time.”

It is because of the emphasis that the company places on its employees that they are recognised as one of the best in the business. Botha explains, as we have heard from many businesses in the past, that happy people equals happy product and happy product equals happy customer.

“The staff are very happy because they are well looked after and because we look after them we get a good result at the end of the project. Because we get a good result, we are first in line for the next project and the cycle continues.

“We do a lot of training and spend a lot money in this sector. Most of the labour force and artisan training is done via an initiative that has been set up by SARACCA (South African Refrigeration and Air Conditioning Contractors’ Association) and other engineering staff are mentored within the company and sent on whatever courses are needed.”

Southern Air Conditioning Of course, with this sort of training and development comes opportunities for career expansion and this keeps employees hungry. Botha explains that there are many examples within the SAC business where employees have started at the bottom and worked their way up.

“There are absolutely opportunities for development.

We have many people working for us now who joined us a school leavers and labourers and are now supervisors and foremen.”

AFRICAN EXPANSION SAC is based in Motague Gardens, Cape Town and has completed major projects all over the Western Cape, and further across the country. The company has worked with some of the country’s largest and most reputable contractors including NMC, Murray and Roberts, WBHO, Group 5, Grinaker LTA and Power Construction.

When operating on projects outside of the Western Cape, SAC likes to take members of their experienced team to lead local contractors so that they can maintain their extremely high service standards.

“We take our core artisans and supervisors from Cape Town but we often employ a lot of local labour when we go away on projects. In Port Elizabeth, for the Baywest project, we will employ a lot of local people there,” says Botha.

This is obviously has a fantastic impact on the communities in which SAC operate.

“It’s not just individuals in the community; we have an impact on the local suppliers of materials, equipment and everything we need for the job,” he says.

In the near future, operating in more remote locations, especially on the continent, will become easier for SAC as the company has recently invested in some new technology that will allow for onsite duct manufacturing – previously a prolonged and complicated part of the process.

“We’ve just spent a huge amount of money on a mobile workshop which we can put up on a building site and manufacture all of our ducting, which is the time consuming part of our job,” explains Botha.

“We will save a huge amount of time and transport costs and we can take this workshop anywhere in Africa.

We’re self-sufficient; we’ve got our own generators and as long as we have a satellite connection we can make the workshop operate. With the infrastructure we have put in place we could look at expansion into anywhere in Africa, but it is not something we are considering at this stage.

“It’s nice that people have the ambition to do jobs faster and faster and you have to stay on top of technology.”

Of course, installing first class systems is only part of

JAN 14 PAGE 59

CompANY PROFILE

PAGE 60 JAN 14

We’re proud to be associated with Southern Airconditioning!

APM Terminals

As part of the ever-growing national Fourways Airconditioning group, we at Fourways Aircon Cape are proud to be part of Southern Air Conditioning’s success as they expand their current operations within South Africa and beyond.

Sales of our range of top-quality Samsung airconditioners and Eco Heating systems, as well as our popular Alliance airconditioners and Heat Pumps are also on the up-andup throughout Southern Africa, and we look forward to a continued mutually beneficent partnership with Southern Airconditioning in the years to come!

68A Lauda Road, Killarney Gardens 7441 Tel: (021) 556 8292 . Fax: (021) 556 8294

CAPE

www.samsungair.co.za www.allianceair.co.za www.allianceheatpumps.co.za

the job for SAC. When installation is complete, the company’s 12 month maintenance program begins. Both the Baywest and Motlosana mall projects and the other contracts on the horizon for SAC will have 12 month guarantee and maintenance options to ensure on-going quality.

“We have one or two long term projects in the pipeline and all of our contracts include a 12 month maintenance and guarantee option so, with Baywest for example, for at least the first year we will look after the project and if it is successful we will hope to look after it

Air conditioning refers to the process of altering the condition of air in order to cool, heat or disinfect.

There are often academic arguments surrounding the historical origin of air conditioning but the widely accepted theories suggest that in ancient Egypt reeds were hung in windows and were moistened with trickling water. The evaporation of water cooled the air blowing through the window, though this process also made the air more humid (also beneficial in a dry desert climate). In Ancient Rome, water from aqueducts was circulated through

going forward.”

With the government investing in infrastructure projects and many private companies investing in large scale industrial projects, now is a good time for SAC. With a long list of successful projects, SAC boast a staff a huge amount of experience and a commitment to fantastic service. With the demand for air conditioning not likely to wain anytime soon, it looks like SAC has an exciting future.

Botha concludes by saying: “We are very proud of our installations and we like to maintain them.”

.

the walls of certain houses to cool them. Other techniques in medieval Persia involved the use of cisterns and wind towers to cool buildings during the hot season.

Modern air conditioning emerged from advances in chemistry during the 19th century, and the first large-scale electrical air conditioning was invented and used in 1902 by Willis Haviland Carrier. The introduction of residential air conditioning in the 1920s helped enable the great migration to the Sun Belt in the US.

JAN 14 PAGE 61

company profile

Big plans for Africa Editorial: Christian Jordan Production: Chris Bolderstone Jindal Africa is making big moves on the continent. The company is an expert coal miner with a lot of experience and a firm backing from its parent company, Indian conglomerate Jindal Steel and Power.

IndustrySA takes a look at the company’s journey into Africa and its plans for growth across the region’s growing economies.

In 2014, the global consumption of energy is under the spotlight more than ever. The emphasis placed on green initiatives is increasing all the time and the focus on conserving the world’s natural resources is always welcomed as the problem continues to attract a variety of different ideas. But even with all of the hubbub surrounding alternative energy, one fact remains – coal is still the dominant energy source in South Africa and its production is vital for the economy and important for the growth of the continent.

South Africa produces over 260 million tonnes of coal annually and around 75% of that is consumed domestically.

This meets over 75% of the country’s entire demand for energy. On the continent, over 90% of the coal used is

PAGE 62 JAN 14

produced in South Africa and this makes the country’s coal miners vitally important.

One of the country’s leading coal miners is Jindal Africa, a subsidiary of Indian multinational conglomerate Jindal Steel and Power Limited (JSPL), which in turn is part of the US$15 billion, diversified O.P. Jindal Group. This industrial conglomerate is a leading player globally in the steel, power, mining, coal to liquid, oil and gas, and infrastructure sectors.

In its marketing material, Jindal Africa states that it ‘recognises that Africa is endowed with great mineral wealth and hardworking and committed people and has the intent to pass on its inherent knowledge and experience to the continent by enriching lives, creating job opportunities

Jindal Africa

and adding value’.

The company’s operations in Africa are spread across a number of different nations, namely South Africa, Mozambique, Zambia, Tanzania and Madagascar and the focus is on mining coal, iron ore, copper and limestone.

The coal comes from South Africa and Mozambique, iron ore comes from South Africa, copper comes from Tanzania and Zambia and limestone comes from Tanzania and Madagascar.

As we move into 2014, Jindal Africa has plans to expand its African footprint as the company’s profile explains: “Jindal Africa is working vigorously to entrench and expand its foothold in Africa to the benefit of its holding group and its local stakeholders. To this end, the company is currently

involved in numerous exploration and mining operations across five continents while also looking out for and planning projects in the steel, power and related industries.”

The company oversees its African operations from its headquarters in Johannesburg, opened in November 2008.

It is from here that it manages its main operation at the Kiepersol Colliery located just outside the town of Piet Retief in Mpumalanga.

KIEPERSOL COLLIERY At the Kiepersol coal mine, Jindal Mining SA (a subsidiary of Jindal Africa) is involved in the mining of metallurgical grade anthracite coal. This type of coal has the highest carbon content, the fewest impurities, and the highest

JAN 14 PAGE 63

company profile

©Jindal Africa calorific content of all types of coal.

This mine is important for the company as it has sizeable deposits, 20 million tonnes of coal reserves to be precise.

Its useful life is expected to run for another 15 years at least and it produces 1.5 million tonnes every year.

The mine has a high-tech wash plant capable of washing 120,000 tonnes of coal each month. This process helps to produce high grade anthracite coal as the primary product along with low grade coal middlings.

The quality of the coal produced from this mine (low sulphur and phosphorus contents) has allowed the company to carve out a specialist niche for itself in the South African market, supplying to the country’s leading Ferro Alloys manufactures. The high class coal has also become attractive in foreign markets and customers in India, the Middle East, Europe and China have all accepted coal from Kiepersol.

Internally, the company has become a logistics leader in the coal mining sector and has the necessary infrastructure in place such as a private railway siding from where anthracite coal is despatched directly to customers and to the port. When it comes to export, Jindal shows the class of its logistical operations. It has an efficient logistics network for despatch, transportation, storage and loading of coal for exports. Presently the company has facility of loading up to Panamax size vessels from its Richards Bay Dry bulk terminal. Exports are something that the company is keen to grow, saying: “Jindal Mining is keen on developing new customers of anthracite and thermal coal in the overseas markets and to be able to meet their requirement on a long term basis. Jindal Mining has always believed in

PAGE 64 JAN 14

maintaining high quality and delivery standards in meeting customer expectations and is consistently working towards achieving that end.”

To achieve this, the company is currently looking into opportunities in both the Limpopo Province and Kwa-Zulu Natal where there is believed to be significant coal and iron ore deposits.

MADAGASCAR Mining in Madagascar has historically surrounded the production of ilmenite, gemstone, nickel, oil and gas. But the interests of Jindal have surrounded the exploration of the sedimentary rock, limestone. In December 2008, the company acquired limestone blocks in Madagascar and has since then developed a strategic plan for development on the Indian Ocean island. In 2009, the company applied for limestone exploration permits within the areas of Toliara and Soalara – Anakao. It is believed that Madagascar could have resources of more than one billion tonnes of limestone containing steel grade deposits making investment in the area a primary focus for Jindal Africa.

The company is planning to build a cement plant which will be supplied by its limestone mines. The cement plant will bring about significant benefits to the local economy and could act as the catalyst for further future investment.

At group level, this investment is significant. Raw materials will be exported to steel plants in India that require over two million tonnes per year. Future plans involve developing a deep sea port allied to the cement plant which can accommodate Panamax vessels, while also investigating the prospects of mining precious stones.

Jindal Africa

©Jindal Africa

There has also been talk of the development of a power plant that will help with the construction of the port, the mines and the cement plant. A thermal power station and a diesel generation unit are currently being considered.

INDIA AND SOUTH AFRICA Relations between South Africa and India have been fruitful in recent years and since the formation of the BRICS association (which South Africa became part of in 2010) the two countries have seen many successful partnerships formed. Jindal’s operations in the country are a perfect example of this and CEO African Business Ventures, Ashish Kumar told the Mail and Guardian that the company plans further exploration in Africa.

“We have an ambitious expansion strategy in Africa and have recently added to our portfolio with the acquisition of Canadian coal firm CIC Energy Corp, giving us access to the resource rich country of Botswana,” he said.

“Our global vision is to enhance the quality of life for our stakeholders through sustainable industrial and business development.

“We see tremendous potential in Africa in delivering returns for our investors and this is underscored by an uncompromising belief in building partnerships with all of

our stakeholders, to the mutual benefit of our communities and countries where we operate,” he added.

The company has a fantastic commitment to social responsibility and the communities in which it operates and this is set to continue. Kumar told the Mail and Guardian that the company wants to change the lives of African’s for the better but to do this they have to start with the roots.

“Jindal Africa is firmly committed to enhancing the quality of life for all, as demonstrated in large-scale sustainable development initiatives that are producing real dividends for the people of Africa. Since our presence in Africa, Jindal has employed 2500 people across the operations; most of the people are from local communities.

“We believe that to bring about a real change, you have to start from the roots,” he said.

The company’s main social responsibility efforts centre on education, health, enterprise development and social development and Kumar detailed examples of each when he spoke to the Mail and Guardian, saying: “After a thorough needs assessment, we embarked on a programme to upgrade and provide new infrastructure for schools in the area (Piet Retief, Mpumalanga). We consider this initiative to be an excellent example of nurturing the leaders of tomorrow.

JAN 14 PAGE 65

company profile

“Jindal is also an equal opportunity employer, where we are running several empowerment projects, in areas in which we operate. To date we have awarded 12 bursaries to students studying at local universities.

“The company’s sustainability programmes also extend to Mozambique, where we invest in education infrastructure development, including a complete renovation of Chirodzi School. We donate books and basic equipment to schools in the region on an ongoing basis.

“Shortfalls in local healthcare facilities led to the construction of a clinic on our Mozambique mine site that is open to community members and distributes much needed supplies to local clinics and health centres. We are committed to the spirit of ubuntu, the African philosophy that promotes humanity, a commitment to investing in the social upliftment of the people of Africa. This protects our unwritten social contract with the communities as a responsible corporate citizen that is active in uplifting its communities,” he said.

As well as having a profound effect on the communities in which these programmes are deployed, CSR projects also contribute to business sustainability. “Our operational excellence and meaningful sustainability projects pave the way in securing our licence to operate in Africa,” Kumar told the M&G.

PAGE 66 JAN 14

BOTSWANA Jindal’s move into Botswana was solidified in September 2012 when the company purchased coal company CIC for a reported $116 million as mentioned above. The acquisition gave Jindal Africa access to CIC’s high quality thermal coal resources in Botswana and made the company

“We have an ambitious expansion strategy in Africa and have recently added to our portfolio with the acquisition of Canadian coal firm CIC Energy Corp, giving us access to the resource rich country of Botswana” a frontrunner in building a 1200MW power plant in Botswana for power supply to South Africa.

The company’s goal in Botswana is to operate three surface mines in the rich coal fields of Mmamabula.

The Mmamabula East coalfield is an extension of South Africa’s Waterberg coalfield which is home to over 40%

Jindal Africa of the country’s remaining coal resources. Jindal Africa has undertaken extensive drilling exploration in this area and the results suggest that the Mmamabula East coalfield could contain around 2.7 billion tonnes of coal. The company is confident that these resources are sufficient to supply all the company’s planned coal and energy related projects in Botswana.

Country Head South Africa, Anthony Zebert reiterated the company’s commitment to Africa when he spoke to Media Club South Africa and said: “We aim to build our first power plant in Botswana, and I would dearly like to build a steel mill in South Africa.”

He added that the company is enjoying mining coal in Mozambique.

“This has the potential to supersede South Africa in coal exports,” he said, “and in Mozambique there are fewer restrictions – we can build and own our own railway.”

The first coal exports from Mozambique were shipped from the country in the first quarter of 2013 and the company has set a target of three million tonnes of production in the first few years of its operations in Mozambique. Jindal Africa also hopes to employ over 2000 people in Mozambique and this will make it a major employer in the country and an important part of the national economy.

So, as we move into 2014 and Jindal Africa’s operations are continually growing, it looks like the company has managed to achieve its initial ambitions on the continent.

The challenge now will be ensuring that growth continues and that the company realises its vision of ‘being a globally admired organisation that enhances the quality of life of all stakeholders through sustainable industrial and business development’.

Ashish Kumar sums up the company’s approach to Africa perfectly when he says: “We come as a foreign entity but we want to work as a local company,” and, to date, this tactic has seen great success for this ambitious and motivated company.

.

“We are committed to the spirit of ubuntu, the African philosophy that promotes humanity, a commitment to investing in the social upliftment of the people of Africa. This protects our unwritten social contract with the communities as a responsible corporate citizen that is active in uplifting its communities”

JAN 14 PAGE 67

company profile

They’ve got health insurance covered Editorial: Tim Hands Production: Ajuanne Payne Health and Accident Underwriting Managers (Pty) Ltd is the healthcare expert in South Africa, providing its innovative products exclusively through the independent broker market. Managing Director, Adrian Hofman has been involved in the personal accident and health insurance market for 20 years, and details some of the operations which help to make the company unique in the country.

Health and Accident Underwriting Managers (Pty) Ltd is an underwriting manager, and has dealt exclusively via the independent broker market. It acts as a provider of innovative products in the accident and health-related markets, responsible also for the development, distribution and administration management of a wide range of products distributed through the broker market.

It is proud to be able to offer a comprehensive choice of accident and health insurance-related products, and to develop innovative products and packages, in order to meet the needs of niche markets at competitive rates. It strives at all times for service excellence, through building long-term, mutually beneficial relationships with its clients. “Where we are different,” says Managing Director, Adrian Hofman, “is we’ve become the healthcare insurance experts.”

PAGE 68 JAN 14

Beginning life in 1990 as Major Medical Expenses (Pty) Ltd, responsible for the healthcare insurance dealings of Aegis, a subsidiary at the time of Rand Merchant Bank, the company then moved on to fulfilling the healthcare insurance needs of Momentum Life. Momentum Health would later become Discovery Health, now the biggest medical aid scheme in South Africa. Alongside this in 1992, Health and Accident also took on the health insurance needs of FedLife, a Life insurance company, who in turn purchased Reef medical aid in South Africa, changing the name to FedHealth medical aid scheme, a company still going strong in South Africa today. Hofman describes Health and Accident’s early years as such; “between 1990 and 1994, we were basically the developers, designers, launchers and marketers of health insurance for those three companies, before each decided to go on their own way.”

Health & Accident Group

1994 saw Hofman become a Lloyds of London agent, and subsequently the winding up of Major Medical Expenses (Pty) Ltd to form Health and Accident Underwriting Managers (Pty) Ltd. “We are an underwriting manager, we design, develop, distribute and administer various products on behalf of our various insurers,” explains Hofman.

Health and Accident distributes solely through the broker market, as Hofman explains; “We deal only through the broker market. The broker is our sole distribution channel, and that is ultimately the client that we look after and give service to. As such, in order to be insured persons on our various policies, their own clients then have to come through them, to us.”

Experts in the healthcare insurance field, this is the one area on which Health and Accident focuses its attentions.

“All our products are health insurance-related,” explains Hofman. “We do Group Life, with risk-only funeral, Medical Aid gap cover, Medical Travel Cover, Aetna cover for ex-pats on the health cover side - in short, we don’t insure assets, we only insure people and/or the health of people.”

This is partly what helps to make Health and Accident stand out in the sector, as Hofman explains; “It is unique to have five underwriters in our game, and the reason that we have ended up in that environment is because, in South Africa, there is no one underwriter who is prepared to write all aspects of health insurance.

“So, they might be prepared to do Travel Insurance cover only, but not Group Personal Accident (GPA) or Group Life, because they don’t have a life license. This means that we get brokers coming to us with unique insurance cases.

JAN 14 PAGE 69

company profile For example; we could have a case of a professional gym instructor who wants income protection. We want to make sure we give ourselves a 99% chance of being able to solve that problem. Of course, the rate might not be so attractive, but at least we’ve got a solution.

“The broker is our sole distribution channel, and that is ultimately the client that we look after and give service to” “As a result, we’ve ended up with multiple underwriters, and so when we deal with a broker and we are presented with the client’s need, we could usually solve the problem.”

Despite the fact that Health and Accident use multiple underwriters and multiple products they never have

PAGE 70 JAN 14

underwriters compete with each other. “We never have any of our underwriters compete with each other, through us but they may compete in the open market,” says Hofman.

The company endeavours to offer unique insurance solutions rather than offering a ‘one fit for all’ type of package as Hofman explains.

“There are certain brokers in South Africa who only have a life license, so they can only look at half our products because they don’t have the short term license, and vice versa” he says. “Once we’ve then established the license they hold, and the area of business in which they operate – the individual or corporate market – we only put forward insurance solutions relevant to their needs.”

With such a vast range of products available – 29 in total – this allows Health and Accident to put forward perhaps only the five or so which really cater to the specified needs of this client, and so streamline the process for all involved.

Servicing Servicing short-term short-term insurance insurance financially financially

Transnet

m

a

n

a

g

e

r

s

m

a

n

a

g

e

r

s

The models used are actual staff members Insure Group The models used are actual staff members of of Insure Group

Meet with us to see what we offer Meet with us to see we offer insurance A range of services forwhat the short-term A range including of servicespremium for the short-term insurance market, handling services, market, including handling services, premium financingpremium and broker acquisition funding. premium financing and broker acquisition funding.

Get to know us for what we stand for Get to know us for what we standOur forcore Comfort, convenience, compliance.

Comfort, convenience, compliance. core values, the essence of our business Our relationships. values, the essence of our business relationships.

Experience what we are good at Experience what weinsurance are goodfinancially. at Servicing short-term Servicing short-term insurance financially.

Inadvance Inadvance P Premiumcredit remiumcredit sa sa Alpha Call 0861 4 INSURE Maxi Call 0861 4 467873 Email marketing@insuregroup.co.za AlphaGroup CallManagers 0861 4Holdings INSURE Call 0861 4 467873 Email FSP marketing@insuregroup.co.za Insure Ltd isMaxi an authorised financial services provider 2882.

www.insuregroup.co.za www.insuregroup.co.za

Insure Group Group Managers Managers Limited HoldingsisLtd an authorised financial services provider Insure an is authorised FAIS representative of FSP 2882FSP and2882. a registered credit provider (NCRCP 131).

Insure Group Managers Limited is an authorised FAIS representative of FSP 2882 and a registered credit provider (NCRCP 131).

With the global economy in such widely-publicised turmoil at present, one could quite reasonably expect a certain ‘hardening’ within the insurance industry, an increase in rates and generally raised costs across the sector.

Not so, for Health and Accident. “I wouldn’t say we live in a controlled environment,” details Hofman, “because potentially we could of course have a health epidemic which would inevitably affect our rates, but as a rule when it comes to health insurance, if we manage people’s lives in terms of underwriting, we might make a mistake in the case of one person, but there is no way that we will have, say, 10,000 births suddenly hit us which we hadn’t planned for.

“It’s the same with heart attacks, and with people being injured and not able to work – it’s a statistically calculated business which, while it could take a hit and have a spike, is protected by measures which aim to limit massive losses.

We’re in a different space to the asset-based insurers, and as such we’re not affected one bit by the regular mishaps which hit other companies.”

2014 looks set to be a particularly exciting, full year for Health and Accident. “We’re expecting quite a lot of growth next year,” states Hofman. “We’re starting a brand new initiative with AIG on the Group Personal Accident

2571Q 2571Q

and Corporate Travel next year, which has taken two years to get into fruition, while Aetna purchased InterGlobal a month ago, and they’ll be coming out to South Africa to re-launch and merge the two aspects of business, which will in turn make a difference to us.”

Alongside this, the continuing challenge, for Health and Accident, is to make sure that when the brokers receive an enquiry, they are consistently able to provide a solution

“When you call us, you’ll receive a quick response, a competitive rate, and one call will solve that type of problem” to the problem. “If you’ve got a health insurance-related problem, you phone us,” states Adrian Hofman, “and all things being equal, you’ll receive a quick response, a competitive rate, and one call will solve that type of problem. Our challenge is to make sure that they know who to call when they get that enquiry.”

.

JAN 14 PAGE 71

company report

An affordable

choice Editorial – Tim Hands Production – Leslie Kemp

MAQ Washing Powder has quickly cemented itself as the country’s number two choice throughout the fabric care aisles and its popularity continues to rise month by month. It has been just 10 years since the opening of Bliss Chemicals, a decade during which the company has continually sought to offer consumers an effective and financially viable household alternative.

2003 was a year notable for many key worldwide events; be it the final communication between Earth and ground breaking space probe Pioneer 10, the breaking of the SARS virus that caused untold disruption throughout Beijing, or the first open-air, wicker-basket hot air balloon crossing of the Atlantic Ocean by one David Hempleman-Adams, it was year packed full of incident. More locally, it was also the marking of a significant change in the washing powder market, when Bliss Chemicals cast itself in the David role against the perennial Goliath of the sector, Unilever, and launched its own MAQ Washing Powder into the South African wholesale market.

This sudden appearance of a new choice for South African consumers had a resounding effect throughout the shelves of washing powder aisles across the country,

PAGE 72 JAN 14

with the new-found competition paying dividends for South African shoppers. Jacqueline Jacobs, Sales and Marketing Manager of Bliss Chemicals, details how this change was sparked by the launch of the company’s product; “When it became obvious that MAQ Washing Powder was making inroads into retail, the price of washing powder in the market dropped, something unheard of in the industry.”

An important factor in shaping habits and trends of consumers since its arrival, the veracity of MAQ’s claims were however called into question in April 2005 following a series of highly popular radio and television advertisements. The product, when put to the test, proved itself more than worthy of its place in the market, in both its standard of washing and the whitening abilities it affords, and continued its quest to establish an affordable

Bliss Chemicals

choice of fabric care.

Now proudly billing itself as the second largest producer of washing powder in South Africa, Bliss Chemicals started commercial production in September 2003, employing at present around 680 personnel. The company is concerned principally with the manufacturing, selling, marketing and distributing of Fabric Care, Personal Care and Kitchen Care solutions in the SADC region, comprising among others Angola, Mozambique, Zimbabwe, and South Africa. MAQ Washing Powder has become the company’s real stand-out product, earning itself a household name throughout the region. It is all the more significant given that this is a wholly South African product, manufactured on the company’s premises in Industria, Gauteng.

The marketing which paved the way for MAQ’s pioneering success is a real testament to the potential of

simple, yet powerful campaigns, which in this case have seen MAQ Washing Powder move quickly from the wholesale sector into the all-important retail market.

When launched in South Africa at the bottom end of the market, Bliss Chemicals’ only promotional technique was the distribution of free samples which, although a simple ploy, led rapidly to an increased demand for the MAQ Washing Powder and a very strong wholesale presence which is still enjoyed today. So effective was the way in which MAQ was placed into the South African conscious that these strategies are being tracked by advertising agency LeoBurnett as a case study - high praise for the little ‘David’ of the market and the foothold it has subsequently gained.

MAQ’s very existence is to be credited to Bliss Chemicals Managing Director, Shoaib Iqbal, who opened

JAN 14 PAGE 73

company report

“One of the reasons JMV has grown from nothing to where we are today, covering 17,000m², is because we are a family owned company and management is in the hands of the family”

the manufacturing company in South Africa after many years of involvement in trading in Africa. Spying a gap in the South African market with the advent of ‘free trade’, Iqbal acted upon his desire to provide the South African consumer with an alternative affordable washing powder, with MAQ’s launch filling this void with its quality, branded, product widening the previously limited range of options. The knock-on effect of boosting the South African economy has also remained a notable aspect in MAQ’s success, with the company boasting exceptional growth over the ten years since its arrival on the shelves, a growth that is being sustained to this day by increased distribution at retail and wholesale level, where MAQ and Bliss Chemicals continue to receive excellent support from the South African trade.

The strong position of MAQ Washing Powder has allowed Bliss Chemicals to branch out further in its business, introducing new products at every turn in its principle facets of trading; fabric care, personal care and kitchen care.

MAQ Auto is typical of Bliss Chemicals’ approach so confident was the company of its multi-formulated automatic washing powder for use in front-loading washing machines, consumers were invited to claim a sample sachet completely free of charge, in order to ensure absolute satisfaction when eventually buying.

PAGE 74 JAN 14

Also brandishing the now inescapable MAQ label is a range of household items designed to offer that same affordable choice to South African consumers. The company’s Securex soap is an active germ protector soap, designed to keep skin hygienically clean and fresh, while its kitchen care range focuses on three key features: natural ingredients, care and efficacy.

Bliss Chemicals is very clear when it comes to the main focus surrounding its ever-growing business; the most critical aspect of its company values is still the need to be ethical in its operations. This integrity extends to its dealings with customers, suppliers, vendors and other external parties, and in turn leads to the mutual respect Bliss feels is so crucial to the way in which these parties interact with each other.

The tenacity which Bliss aims to apply to its work is reflected in its crucial donations to schools in Tlabane.

In this case, ‘going the extra mile’ meant sponsoring 25000 lapdesks to learners in Rustenburg, Limpopo and KwaZulu-Natal, and thousands more in Tlabane in the North West Province.

Similarly to his initial desire to offer South African consumers a more affordable range of household products, Shoaib Iqbal states, “We want to help tackle the shortage of desks and in this way help to improve the lives and learning conditions of thousands of school children

PLASTI-CO has modern solutions for all your freighting requirements. The key to our success is the flexibility to customise our service to meet the needs of the South African client. Dedicated staff is committed to offering a professional,

Seafreight Airfreight

creative and cost-effective service on forwarding and clearing.

Roadfreight 38 CORMORANT DRIVE, BLUE GILL KEMPTON PARK, 1619, GAUTENG SOUTH AFRICA

www.plasti-co.co.za

+27 (0)11 391 7777/8 FAX: +27 (0)11 391 1987

TEL:

Plasti-Co & Bliss Chemicals - partners that deliver!

and teachers.” Clearly this is a crucial initiative; it is estimated that 4.2 million children in South Africa are without this basic element in their education, and the MAQ roadshow team ensured that another basic need was catered for in the same motion - not only were the children furnished with these new writing desks, but samples of MAQ Washing Powder were also sent home with them, a charitable way to introduce yet more South African consumers to the benefits of the affordable choice.

.

“When it became obvious that MAQ Washing Powder was making inroads into retail, the price of washing powder in the market dropped, something unheard of in the industry” JAN 14 PAGE 75

company report

Overcoming all challenges...

Editorial – Roland Douglas Production – Chris Bolderstone Bafotech is the self-proclaimed ‘one stop scraper winch shop’. The Welkom based business has been serving the mining industry for the last 32 years and co-founder, Chris Boone, tells IndustrySA that right now times are tough but Bafotech has many opportunities on the horizon.

The mining industry in South Africa is like a melting pot with many smaller industries and sub-sectors thriving within it and even existing purely to serve it. There are logistics, security, equipment, recruitment, safety and a huge list of other services that are integral for the industry to undertake its daily activities.

As strong as the industry is, it has faced many challenges over the past few years and one of the major obstacles has been the global economic slowdown, a problem which has affected all businesses differently.

Prices of mined minerals have fluctuated, sales have been up and down and mining operations around the world, not just in South Africa, have felt the pinch.

One company that has been right in the middle of the industry and seen the highs and lows over the last 32 years is Bafotech, a Welkom based company renowned

PAGE 76 JAN 14

for the manufacture and sale of high quality, locally made winches and winch components used heavily by the major South African mining houses.

Bafotech Marketing Director, Chris Boone, tells IndustrySA that although the industry is under various pressures, his company is well placed to continue its innovative work and continue to build strong relationships with clients throughout the sector.

“The whole mining industry has slowed down and everyone is asking for extra discounts, squeezing you very hard for the best prices just to keep things going” says Boone. “We are fortunate as we have two very big contracts which haven’t slowed down as such. They are still getting on with mining and are not having labour unrest as yet although they are expecting some unrest in July when the major wage negotiations take place.

“If people begin to strike, that will make things very

Bafotech

tough. People still need to be paid and cash flow is so important.

“The people at Impala have been very positive about the situation and we do a lot of work for them so we don’t expect too many problems.

“This is a tough time and it is important to survive.”

ESTABLISHED OPERATIONS Mining has been one of the main factors behind South Africa’s fixation as the most advanced and richest nation and as technology has changed and new methods of mining have taken over, new players have emerged. That being said, some of the biggest mining houses have been successfully established for many years and Bafotech has been supplying products to all the big names for a long time.

“We have vendor numbers on all the mines” says Boone.

“Implats, Amplats, AngloGold Ashanti, Harmony Gold, Goldfields, Lonmin, Petra Diamonds and all the major groups. For 80% of these, we supply direct to the mines.”

Bafotech has a manufacturing facility in Welkom which is home to nearly 10000m² of workshop facilities and a repairs facility in Rustenburg which covers almost 2500m² but things have not always been so high-profile. Boone explains that in the early days, the company was just a desk and a couple of chairs; a very low-key wholesale style operation.

“My eldest brother Frans wanted to start a business in Welkom, I was living in Johannesburg at the time so I returned to Welkom and we started up. We only had a desk that was borrowed from a friend, two chairs and a computer that Frans had won in a raffle.

“I sold my car to buy a few spare parts and Frans carried on working where he was which kept us going until we

JAN 14 PAGE 77

company report picked up regular clients.

“In the beginning we were just buying and selling and as we picked up contracts our youngest brother joined us and we realised that we needed to start manufacturing ourselves as our suppliers in Johannesburg could just put up prices whenever they felt like it but we couldn’t do that with the mines so we slowly but surely started buying machines and today we have around R14 million worth of machines,” he says.

“In the beginning there were challenges. It’s like getting married, you have to scope each other out and learn how each other think. We all had our own areas of expertise and there were crossovers but Frans and I were together in business for 30 years before he passed and Pat (now MD) and I have been working together for 23 years and with our BEE partner Lesedi Rakgagon for eight years.”

While there has been expansion and growth in the product range, the core has always remained the same and Bafotech is now recognised as the industry leader when it comes to winches and winch components.

“Winches is our core business, double drum scraper winches and mono winches which are used to pull materials up so people don’t have to drag stuff behind them.

“The double drum winches are used after blasting to pull the loose rock into a box hole, then into shoots ,then to the main shaft where it is loaded onto skips and taken out of the mine through to the processing plant,” says Boone.

CNC CLEAR CUT

CNC Plasma Machines Design, Develop and Manufactured in South Africa

Workshop Machine 10 – 12mm piercing

12 x 3m HPR400XD Machine Truehole and Rapid Parts Technology, 50mm Piercing

CNC Clear Cut is regarded as one of the leading CNC Machine manufacturers in South Africa and can compete with any of its kind worldwide.

Fact: Hypertherm rate CNC Clear Cut entry level machines which would normally only accommodate the entry level range, true enough to employ high end Hi-Definition plasma cutters.

CNC Clear Cut offers best quality CNC machines at reasonable prices.

Your investment is secured with machines being highly productive and robust; more than double on your current production, manufacture faster and cheaper than your competition and tender projects that before would have been impossible to imagine.

CNC Clear Cut offers two mobile technical support teams, ensuring minimum downtime.

Not only is every machine subjected to thorough testing but also has to pass the Motion Test for trueness.

When only 100% is good enough

CNC Clear Cut caters for every requirement, from a small quality workshop machine to custom sized beds, accommodating high- definition plasma cutters with TruHole and Rapid Parts Technology.

Quality remains long after the price is forgotten.

12 Fairwood Road Rosslyn, Pretoria South Africa

Tel: (012) 541-0552 Fax: 086 684 6813 Cell: 083 751 9959 E-mail: enquiries@cncclearcut.co.za

www.cnclearcut.co.za

Specialising in: Industrial, Decorative, Automotive, Wood Products, Protective Coating

Your one stop partner for all paint and abrasives Steel Merchants since 1986 Address: 444 Stateway, Welkom, 9465

Steel distribution throughout sub Saharan Tel: 057-352-2344 Bricks van Wyk: 082-322-4223 Fax: 057-352-2412

Email: bricksv@lantic.net

www.spectrumpaint.co.za

THE FUTURE As with many South African companies who are experienced in the mining industry, Bafotech has plans for expansion and growth into new markets, namely the African markets. This sort of growth would obviously help the company financially and this would be helpful considering the tough economic climate. The company already has agents in Argentina and Australia and a transport division which handles all logistics requirements.

While African markets are attractive, two markets in particular are of great interest to Bafotech and those markets are Botswana and Tanzania.

“Our divisions outside of South Africa are rather small at this stage. We are trying to develop them more and more, it doesn’t help that the Rand has gone through the floor.

Unfortunately the overseas operations are not yet in a position to cover our local costs.

“We are busy with expansion at this very moment. We are looking at working in Tanzania, Ivory Coast, Zambia and Zimbabwe. It looks like Zimbabwe is settling and we always look at the stability of a country before we enter.

Zimbabwe is right on the boarder so we can truck our

goods in quite easily, we will just wait for the election to see what happens,” says Boone.

“This is a tough time and it is important to survive” LOCAL QUALITY Bafotech uses a lot of steel in its manufacturing processes and the benefit of using steel from South Africa is the guarantee of quality and the assurances that come with certain grades. Recently, there has been a peak in local steel prices and this has impacted on profits.

“We probably get 75-80% of our steel locally and the prices have gone up by between 12-20%,” says Boone. “We bring in a lot of steel from China. With the Rand-Dollar rate the way it is, it impacts on our profits in a big way but we are carrying on and doing our best.”

JAN 14 PAGE 79

company report

To accompany quality products, you need quality processes and Bafotech is well-known for meeting and exceeding international quality standards. The company is currently working towards its ISO certification and will very soon be recognised for its hard work.

“We are not accredited yet but we have employed someone to look after all the ISO certification; quality, health and safety and the environment. We’ve moved a long way in these areas although we do not have full accreditation yet. They have been and inspected and told us where to change certain things but we are very advanced with our ISO progress,” says Boone.

When the ISO certification is achieved it will mark another milestone in the company’s long history. While

PAGE 80 JAN 14

the economic difficulties discussed by Boone still heap challenges onto the industry, there will undoubtedly be an upturn in the not too distant future and when that time comes, Bafotech will be in a prime position, ready to make further strides in the sector and expand the business further, ensuring that the objective, to become the supplier of choice to the South African mining industry and the international market, is met sooner rather than later.

.

“We are busy with expansion at this very moment. We are working in Tanzania, Ivory Coast, Zambia and Zimbabwe”

Quality castings from China, 17 years experience to South Africa!

GOOD METALS CORPORATION Casting bodies and parts for the valves and pumps industries Castings couplings and fittings for Pipe and Fluid control industries Mill Liners for Metallurgical plants in the mining industries Bowl and Mantle, Jaw plates for Crushing and Palletizing plants in the mining industries Casted and Machined Clutch Gears for the Winch industry Furnace Ladles for Smelting furnaces Forged Shackles to ISO2415 standard High Performance Forged Steel Grinding Balls and High Chrome Grinding Balls SS316 and SS304 Stainless Steel Investment Castings Material standard to SANS936, SANS407, BS3100A2, SANS2415, BS EN 12513 (BS4844), SANS1338.

CONTACT: LARISSA POTGIETER COMMERCIAL MANAGER Email: larissa.potgieter@goodmetals.co.za

TEL: +27 11 4551085, 4551086 FAX: +27 11 4553495

www.goodmetals.co.za

COMPANY REPORT

It’s what’s on the inside that counts Editorial: Lauren Grey Production: Chris Bolderstone

The age-old saying, “It’s what’s on the inside that counts” rings true in the automotive industry, as a vehicle’s interior speaks volumes about its overall design. This month, IndustrySA takes an in-depth look at South Africa’s leading manufacturer of automotive leather interiors, GST / Seton Autoleather.

Established in 1997, GST / Seton AutoLeather is regarded as a pioneer of automotive leather in South Africa, and remains fully committed in creating a sustainable work environment by maximising the use of local raw materials throughout its operations which in turn supports the local community and beyond.

Seton supply’s major automotive original equipment manufacturers (OEM’s) around the world, delivering its upholstery leather to those who have manufacturing facilities in South Africa as well as those in a wide range of European countries.

There are currently seven OEM production facilities in South Africa making vehicles for local and export markets; Seton supplies its leather to five of them, making up only 15% of its total production.

The remaining 85% of Seton’s leather production is exported to Europe, either directly in whole hide or cut-kit form, or via South African sewing plants in the form of

PAGE 82 JAN 14

sewn seat covers.

At its production facility in Nigel, Gauteng - Seton employs in excess of 750 employees and is the town’s biggest employer, producing quality leathers for BMW, Daimler, Toyota, Ford, Nissan and Mini, among other OEM’s on the customer list.

Seton’s facilities cover an impressive 355,000 Sq. Ft and comprise of a stand-alone research and development centre, latest tanning and cutting equipment and a stateof-the-art laboratory with all required equipment for automotive leather testing.

100% SOUTH AFRICAN “As a global supplier of automotive leathers, Seton AutoLeather is committed to utilizing local raw materials and we continuously try an improve our Broad Base Black Economic Program from a level 6 to a level 4 contributor. To give back to the community and the country we operate in, is a GST / Seton Autoleather

GST / Seton AutoLeather

“The leather that we use is currently 100% local, we do have opportunities to import hides but it is very important to us to support the South African community.”

culture” says Managing Director, Shalen Sewnandan.

“The leather that we use is currently 100% local, whilst we do have opportunities to import hides, we remain cognisant of the fact that we need to support local government programmes directed to stimulate local production, our customer needs are clear, more local content and more importantly preserve jobs in RSA by becoming more competitive.

“Local government have an incentive programme in place that recognises automotive production companies in the country that maximises local content, this is aimed at creating an environment that will enable registered light motor vehicle manufacturers to significantly grow production volumes and component manufacturers to significantly grow value addition, leading to the creation of additional employment opportunities across the automotive value chain, as a foreign company operating in South Africa we support this programme fully and we keep to these requirements” Sewnandan explains.

“Our customers benefit and in turn we grow our customer base, production volumes and do well for the country and its people. So although we have the opportunity to import leather, we tend not to go down that route.”

From its South African hides, Seton can produce chrome and chrome free leathers, and its processes include: dyeing and drying of crust leather, 25 different embossing rollers for leather finishing, production of cut leather kits and a full range of side processes required of a modern tannery, such as perforation, lamination, skiving, stamping, laser etching and dry splitting.

INNOVATIVE SOLUTIONS The global automotive industry has, and always will be, an extremely competitive market, however Seton continues to succeed and gain momentum in its production volumes even after an ‘unsteady, challenging’ start to the year, as Sewnandan explains.

JAN 14 PAGE 83

COMPANY REPORT

“Seton has experienced an unsteady and challenging start to 2013 as the cost of raw materials, such as hides and chemicals has increased substantially.

“It’s also a year in which we are launching a lot of new vehicles, so it has been extremely challenging; but so far, so good!”

Part of Seton’s success in the automotive industry is down to its comprehensive global footprint and the capabilities it has to offer OEM’s; a benefit of being part of the global group, GST / Seton AutoLeather.

“One of our global key strengths is the fact that we can draw on other companies in the GST group; our ability to trade production know-how and technology almost immediately puts us at a great advantage” says Sewnandan.

As with many global companies, Sewnandan admits that the economic slowdown had an immediate effect on the business, “but we are a resilient company that works hard to turn things around.

PAGE 84 JAN 14

“Over the last 12 months we lost one third of our production, but coming into 2014 we find ourselves back to where we were 12 months ago, so we see more positive coming out of this than negative.

“To maintain our stability and continue our growth over the last two years, we have been in a constant state of change and restructuring; critically evaluating the way we produce through reverse engineering and technology upgrades.

“We have also done a lot of capital investment over the last 12 months to reduce our operational costs. We fully acknowledge that process optimisation and technology improvements will not get us there alone and to be truly sustainable we need a highly skilled employee base at the forefront of our business. To this effect, we aggressively develop our skills base with a bottom up approach and we go by saying, we do not give up on you and until you give up on yourself”.

NEW VEHICLE LAUNCHES Seton is currently in the midst of five major vehicle launches; the Facelift Hilux & Fortuner, BMW Coupe Series 2&4, BMW GT Series 3 and the Mini 3 door Hatch, all released this year, “We are very far ahead in these programmes,” says Sewnandan, “and so far so good! We are also working aggressively on new leather types and concepts with most of our OEM customers.

“All of these models launch later this year, except the BMW 3 Series GT which was launched in March. We are also preparing for the release of the Daimler C Class Sedan and New Toyota Corolla in January 2014 – so we are very busy!”

TANNERY OF THE YEAR Seton’s hard work and dedication to becoming a leader in the automotive leathers market was recognised this year when the company was awarded the Toyota Supplier Award 2013 and Tannery of the Year Africa 2013.

“We have a strong relationship with Toyota, it was an award for value adding, value engineering; it’s a very prestigious award and one that is not easily earned.

JAN 14 PAGE 85

COMPANY REPORT

Toyota has around 300 suppliers and we were one of five that received that award” explains Sewnandan.

“With regards to the Tannery of the Year Award, we won in the African region; it is a global award that covers manufacturing of leather on all continents. We were judged on our sustainability, green initiatives, production capabilities, product and personnel development, product enhancement and overall business leadership.

“We had representatives from World Leather Magazine spend a week with us; in our plants, talking with our employees, and they put their findings to a panel of judges – it was a pretty tough judging panel, from industry experts to non-industry related judges, and in the end we were successful!

“We just recently (Friday 26 July 2013) received the Silver Award from Toyota Boshoku South Africa for excellent Delivery Performance, testimony of our hard work and dedicated service given to all our customers.”

As competition from within the automotive market continues to rise, Sewnandan says that to maintain the company’s reputation as the industry leader, Seton to

PAGE 86 JAN 14

believe that yesterday’s best is not good enough for today and beyond have to be ‘ten steps ahead’ of the competition.

He also says that whilst competition becomes fiercer, there will always be a place for luxury leathers in the automotive market, “Leather looks, feels and smells unique and these three qualities differentiate it from any competitor product out there. It becomes more beautiful with age and it’s the ultimate recycled product.”

.

company report

Acquisitions give SGS a fully integrated service portfolio Editorial – Joe Forshaw Production – Chris Bolderstone SGS is thriving in Africa and the company is currently going through an exciting period following the acquisition of the Time Mining Group. Vice President Minerals Africa, Derick Govender, gives IndustrySA an insight into what is driving the success of the company.

When a product is manufactured, it is not simply then just sold straight on to an end consumer. In 2013, all products, for all markets, undergo various tests and trials to ensure they are fit-for-purpose.

When it comes to inspection, testing, verification and certification, one company operating globally has made a name for itself by offering best-in-class services.

That company is SGS and in South Africa they offer a full range of services to a host of different industries, an important one being the exploration and mining industry.

In April, SGS acquired the Johannesburg-based Time Mining Group with a view to expanding the service offering of its Minerals Services line of business. SGS Vice President Minerals Africa, Derick Govender, recently told IndustrySA more about the acquisition and the fantastic services offered by this group.

“It’s an extremely exciting time; we are currently busy handling the integration of SGS Time Mining, which brings a new service line to SGS offerings. SGS Time

PAGE 88 JAN 14

Mining specializes in mid-tier mining projects, they provide project management, design, development and operation of small scale projects and we feel that this really compliments the current SGS portfolio.

“In Africa, we are the leading provider of minerals services and one of the reasons for that is that we provide integrated services to the major mining houses, such Anglo American Platinum, Newmont Gold, African Barrick AngloGold, Harmony, Goldfields, Sibanye Gold, and now, with SGS Time Mining, new services like project management, design and engineering.”

PIT TO PORT The work of SGS in the exploration and mining industry goes back many years and the integration of SGS Time Mining is just one of the important milestones in an impressive history.

“SGS Minerals Services has been active in South Africa for many years” says Govender, “but major growth came

sgs

in 2002 when SGS acquired Lakefield Research Limited.

Lakefield Research was a Canadian company with subsidiaries in South Africa, South America and Australia and focussed on providing laboratory and metallurgical services to the exploration and mining industry. In South Africa, the main office was located in Booysens, Johannesburg. This is where the SGS South Africa head office is located now.”

“The mining industry is one of SGS’s target markets, however; it is not only minerals services that we provide to the mining industry. We also provide certification of systems and processes, environmental testing and oil, gas and chemical testing for heavy machinery so that we can forecast and pre-empt the maintenance schedule for equipment.

“We also offer industrial services to the mining industry where we support our customers in implementing effective scheduling, budgeting, site safety and logistics, plus assist in sourcing quality materials and

personnel. We conduct studies in construction feasibility, risk assessment and management. Our services ensure quality in global supply chains by performing chemical and physical testing of materials. SGS can work with mining companies from the very early stages of a mining project, right through to the building of a plant and export of final product material. This sort of service is invaluable for mining organisations, providing much sought after components such as skilled labour, quality and safety.

“In the minerals sector, we provide a host of integrated services which are a competitive advantage for clients.

We call it a ‘pit to port’ service. At the early stage, with exploration, we are involved as we can undertake analysis of samples. Thereafter SGS can provide metallurgical services to give an understanding of the extraction requirements of the commodity and then we will provide industrial services to understand the requirements of constructing a new plant. This is a leading edge approach

JAN 14 PAGE 89

company report

to exploration services and SGS is unique in that we have it in the exploration services market. It provides significant value to our clients and is available only at SGS labs globally.

“With SGS Time Mining we can now provide design and engineering services to assist with front-end economic assessments and engineering studies that leverage the technical skills and plant experience of our process engineers.

“Finally, in base metals, such as copper, iron and manganese, we also provide final commercial services.

When a commodity is loaded onto vessels to be shipped off; we do the sampling, inspection and certification thus we are really providing an end-to-end service and all the processes in between,” says Govender.

10 BUSINESS LINES Minerals Services are just one of the business lines for SGS. Globally, SGS has ten different business lines including Government and Institution Services, Minerals Services, Environmental Services, Consumer Testing Services, System and Services Certification,

PAGE 90 JAN 14

Agricultural Services, Industrial Services, Oil, Gas and Chemical Services, Automotive Services and Life Science Services.

Govender says that eight of the ten business lines are offered in South Africa with Government and Institution Services and Minerals Services forming the core activities. In different parts of the world, the services offered by SGS vary according to dominant industry sectors.

“The exploration and mining industry forms a big part of SGS’s business, especially in Africa and South Africa but our activities are not limited and it depends where you are in the world. Consumer Testing Services are huge on the Asian continent with the testing of manufactured products,” says Govender.

The service offerings from SGS are so far-reaching that clients can use the company as a fully integrated solution for their inspection, testing, verification and certification needs from start to finish on a project.

“We offer an integrated service portfolio from project development right across the entire stream,” says Govender. “We are able to improve efficiency, set-up

Together to the top with PANalytical

Partnership with PANalytical offers you around the clock support and access to cutting-edge technology for the challenge of today and tomorrow.

• Unique identification of unknown materials with XRF and XRD testing • Unique application methodologies to assist compliance with international norms and regulations • Performance Testing Program - independent checks on your analytical performance

PANalytical (Pty) Ltd 363 Oak Avenue, Ferndale, 2194

The Analytical X-ray Company

T +27 (0) 11 577 0880 F +27 (0) 11 577 0882 rudy.del.piccolo@panalytical.com www.panalytical.com

company report

and successfully operate facilities in remote locations and add overall value for our clients via our integrated service portfolio and this is what gives us a leading competitive edge in the market.

“We have a strong base of technical expertise and equipment resources that we can draw on to provide the services a client needs globally.”

RESPONSE TO FINANCIAL SITUATION While the global economic slowdown still has a strong grip on certain world markets, South Africa has seen varying effects with various businesses often reporting drastically different stories since the global financial crisis in 2008.

SGS operates globally, in many different industries and this has meant that it has been impossible to completely avoid the tough economic conditions, but Govender explains that where some activities have slowed, others have gained pace.

“Overall, some of our businesses are less active compared to 12 months ago, but some are continuing to increase”.

“For example, the energy minerals business, where we provide on-site laboratory services and exploration services for coal producers, has seven on-site facilities and two major commercial labs which process coal samples.

Since 2011, their business has grown significantly”

PAGE 92 JAN 14

SGS has ensured it is well prepared for any fluctuations in demand for its services by building close relationships with customers and suppliers. This allows the company to keep its ear to the ground and plan effectively.

Despite the tough conditions, SGS’s Minerals Services business is still busy with new on-site projects on the horizon and they are currently busy with 3 new on-site lab builds in Africa.

“In West Africa alone, we’ve got two new laboratories that are in the build phase in Ghana and the Ivory Coast.”

THE FUTURE With developments in West Africa providing excitement for SGS, Govender says that these will not be the only developments for the future. Wherever there are opportunities for more business, SGS will investigate and add to their already far-reaching African operations.

“It’s very difficult to look into that crystal ball at this time but if you look at the way SGS Minerals Services has grown in South Africa since 2002, it’s been substantial.

We are now operating over 50 different locations in Africa, from on-site labs to full commercial labs as well as sampling and inspection services. We are always exploring new opportunities.”

“We work closely with our clients to see how we can improve their processes and efficiencies and add value to their output.”

sgs “In Africa, we are operating in almost every country.

We are not going to rest on our laurels, where we believe there are opportunities; we will be going in and looking to develop those opportunities.”

PEOPLE DEVELOPMENT SGS is always looking to train, develop and up-skill their massive workforce in Africa. There is emphasis placed on people development and Govender says that the opening of a new training academy in Ghana last year is a testament to SGS’s drive towards organic growth of its people.

“Personnel development is massive and is one of our primary operational pillars.

“In March 2012, we opened a minerals training academy in Ghana. The objective was to select students from local tertiary institutions and train them in the various aspects of the minerals industry via practical training at the SGS laboratories and theoretical training at the SGS Ghana training centre.

“It started very successfully in 2012, when we took on the first cohort of 16 and we are now ready for the second cohort. The academy was opened by Chris Kirk, our CEO, Fred Herren, our COO-Africa, and myself. SGS’s commitment to sustainable development through our people goes right to the top. You cannot have a growing business without the expertise of your valued staff. Your business is only as strong as the people you have.”

role in the transfer of technology to the metallurgical facility in Johannesburg. We constantly have staff coming through from Canada to assist with training and equipment, so it’s a big part of our professional expertise network. This award reflects our combined success as a group,” says Govender.

The work of SGS, which sometimes goes unnoticed by end-consumers, is vitally important to so many industries and makes a big difference to many aspects of life as the company’s website details: “From the energy that powers our cars and homes, to the food on our plates and the clothes on our backs, we provide solutions that really make a difference.”

.

“Your business is only as strong as the people you have”

CERTIFIED QUALITY In the arena of inspection, testing, verification and certification, the most important element of business has to be quality, after all, if you’re not operating to the highest quality standards then how can you ensure quality for others?

“The quality of your work is what defines your business” says Govender. “It is key that we operate at or above standards in all of our laboratories. Our laboratories in Johannesburg, South Africa and Mwanza, Tanzania have a selection of tests successfully audited to the ISO/IEC 17025 requirements.

“The base metals testing available at our laboratory in Kalulushi, Zambia now conforms to the ISO/IEC 17025 standard. SGS Time Mining has three laboratories that conform to ISO/IEC 17025 requirements for specific registered tests and is actively pursuing an audit for a fourth. There is a constant drive within SGS to ensure all operations are functioning at the highest level of quality standards” “Our facility in Lakefield, Canada recently received an award for excellence. This facility is one of the premier metallurgical testing facilities globally and plays a vital

JAN 14 PAGE 93

company report

Servicing

SA’s industry Editorial: Lauren Grey Production: Leslie Kemp The key to successfully servicing South African industry is learning to ride the “dips and waves” says Francois Smith of AngloV3 Crane Hire. IndustrySA speaks to the Operations Director to find out how the company stays ahead of its competition.

Established over 34 years ago, AngloV3 Crane Hire has grown from a small family owned business to a successful lifting company with ten branches spread across Gauteng, Free State, Western Cape, Eastern Cape and KZN, with its head office in Midrand.

In October 2008, AngloV3’s true potential was noticed

by Investec Principal Investment who acquired a majority shareholding in the company. In 2012, Investec then facilitated a transaction whereby Concord Cranes Ltd became the holding company of AngloV3 and Elcon Crane Hire.

“Like AngloV3, Elcon Crane hire started as a family business operating in Durban. Investec acquired the shares in Elcon Crane Hire, just like they acquired the shares in AngloV3; now we are working together

PAGE 94 JAN 14

but keeping the brands separate,” explains AngloV3 Operations Director, Francois Smith.

SERVICING THE INDUSTRY AngloV3 specialise in the hire of hydraulic mobile cranes, specialised transport, rigging and CAD-based rigging studies; as a proudly South African company, it is the company’s mission to offer the right crane to clients across South Africa at a competitive rate.

AngloV3’s current fleet of hydraulic mobile cranes comprises of rough terrain cranes, truck cranes and all terrain cranes; with over 100 cranes in its fleet, AngloV3 is confident that it will have the right crane for its client’s specific needs.

The company’s fleet has a capacity range from 8T550T’s and is committed to an on-going program of fleet

AngloV3 Crane Hire

renewal in order to serve its clients with modern cranes and the latest in safety and mobile crane technology.

During 2012, AngloV3 added 12 new mobile cranes and a truck tractor and trailer to its fleet, which included 1 x 200T Liebherr, 3 x 55T Liebherr’s, 4 x 35T Liebherr’s, 2 x Sany 35T Rough Terrain cranes, 1 Volvo Truck tractor, 1 x 35T truck crane and a 40T knuckle boom crane.

AngloV3’s fleet of specialised transport vehicles consist of 16 units; the company own, operate and maintain several lowbed horse and trailer combinations. Within the lowbed fleet, AngloV3 have step deck, semi-extendable, super-link and lowbed trailers in order to cater for most of its client’s transport needs.

Finally, AngloV3 provide detailed 3D CAD-based rigging studies that will have accurate placement on site and safe crane movement as the ultimate objective.

CAD drawing will indicate danger zones, existing structures and other obstacles that require consideration during the planning phase; AngloV3 do a site visit to obtain accurate dimensions and to obtain 1st hand knowledge of site conditions.

“We’ve got a vast presence in South Africa, with ten different branches which help us to ride through dips and waves” JUN 13 PAGE 95

As one of Southern Africa’s leading Construction and Engineering Underwriting Managers, we offer cover for the following classes of insurance: • Contractors All Risks (CAR) • Erection All Risks (EAR) • Plant All Risks (PAR) • Public Liability (PL) Insurance • Electronic Equipment (EEI) • Machinery Breakdown (MB) • Business Interruption (BI) • Deterioration of Stock (DOS)

TRUSTED ENGINEERING INSURANCE

For more information contact us Johannesburg; Unit 29, Consort House, Waterford Office Park, Fourways, 2055, Tel: +27 11 658 1156 Durban; Suite 9, 62 Old Main Road, Kloof, 3610, Tel: +27 31 818 0209 Cape Town; Shop A1, Office 4, Westlake Square, 1 Westlake Drive, Tokai, 7945, Tel: +27 21 030 0054 Consort Technical Underwriting Managers (Pty) Ltd is an Authorised Financial Service Provider. FSP No. 2273

C037 Consort advert.indd 1

COMPETITION AngloV3’s services are highly sought after in the mining and petro-chemical sectors but evidently, the company is fully equipped to service almost any industry in South Africa requiring crane hire and lifting services.

Francois Smith says that the company’s exposure and ability to service almost any sector helps it to ride the “dips and waves” associated with different industries and keep ahead of competition.

“We’ve got a vast presence in South Africa, with ten different branches which help us to ride through dips and waves,” he explains, “dips meaning if you’ve got strikes in the mining sector, then we have exposure to the petrochemical sector where the business will subsidise the rest, and vice-versa; if the petro-chemical sector falls down then we’ve got exposure to the mining areas.

“We’ve also got exposure to Richards Bay and the coastal areas, we’ve got exposure to inland areas and we’ve got the mines, so I think what benefits us is being able to operate in various sectors of industry and the cycles in the sectors can support each other.”

ECONOMIC CHALLENGES AngloV3’s vast exposure to different industries has also helped it to avoid shrinkage as a result of the economic

PAGE 96 JAN 14

2013/05/31 11:09 AM

slowdown, “we’ve seen a slower growth, but we haven’t seen shrinkage yet” says Smith.

He also explains that whilst the global credit crunch has slowed down the amount of expansion projects happening across South Africa, AngloV3 are active in the maintenance and refurbishment market, so work never dries up.

AngloV3 Crane Hire “Company’s always have to do maintenance and refurbishments, and we can defy a lot of work in that area.

So you generally find that if the expansion projects dry up, the guys tend to spend more money on maintaining what they have.”

EXPANSION With the launch of its new website, AngloV3 is ready to expand both into Africa and potentially into new markets, “we haven’t made it public yet because the company registration still has to come through,” explains Smith, “but we are looking to register a new company somewhere on the African continent.”

“There are also opportunities being looked at in the Western Cape; you will see our representation there is not very good, but that’s where Investec comes in with its deep pockets, Investec will be doing the acquisitions and we will manage the crane businesses.”

Potential new markets for the company include alternative energy; Smith explains that although they are happy to tender for such jobs, it’s not the main focus, “Like all the other crane companies, if the opportunity arises we will tender for the job” he explains.

“If we don’t get it its fine, but to retain that market you

really need big cranes, we’ve got those cranes and we’ve got enough of them. So if the opportunity arises we’ll take it, but we’re not going to restructure our business just to do that.”

Smith says that although wind farms are ‘new for everybody in South Africa’, AngloV3 are fully equipped to take on a new challenge, “there are a couple of small wind farms in the Western Cape but wind force is a new thing and there’s nobody with experience here. It’ll be new to us to lift a wind turbine but we’re in the same boat as everybody else.”

.

“We haven’t made it public yet because the company registration still has to come through … but we are looking to register a new company somewhere on the African continent”

INDUSTRY RECOMMENDED

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

AGRICULTURE HIGHVELD HONEY FARM Wholesale and retail honey suppliers +27 11 849 1990 LONA CITRUS Cape Town based Lona Citrus has been exporting quality South African citrus for the past 17 years +27 21 481 8200 www.lona.co.za AUTOMOTIVE BEEKMAN SUPER CANOPIES One of three major canopy manufacturers in South Africa, renowned for its superior product quality and excellent customer service +27 21 948 3701 www.beekman.co.za

PROTEA POLYMERS A leading importer, stockist and distributor of plastic raw materials and additives for the polymer industry in South Africa +27 11 799 6299 www.proteachemicals.co.za CONCRETE SCRIBANTE CONCRETE Suppliers of ready-mix concrete, plaster, topping and mortar 27 41 406 9500 www.scribanteconcrete.co.za CONSTRUCTION BAY WEST MALL Port Elizabeth’s biggest Mall, under construction and set to open in 2015

MAXE STAINLESS STEEL Maxe Stainless Steel has a significant market share in the South African Automotive Accessory market +27 31 713 2200 www.maxe.co.za

ENGINEERING BMG One of South Africa’s leading engineering companies, focussed on supply the industry with a vast range of superior quality engineering components +27 31 576 6200 www.bmgworld.net

CHEMICALS ENTEK INDUSTRIAL CHEMICALS Offers product development to all industrial products with laboratory back up +27 31 766 3325 www.entekchemicals.com

FANCRAFT Maintenance, problem solving, repairs, overhauls and reconditioning of turbines, compressors, pumps, gearboxes, fans & other rotating equipment +27 16 986 0795 www.fancraft.co.za

PAGE 98 FEB 98 SEP 13 13

FINANCIAL SERVICES FINANCE SPEC Offers a wide range of accounting, auditing & consulting services to assist you and/or your organisation with its business & financial needs +27 31 765 6553 www.financespec.co.za FOOD SUNSPRAY South Africa’s largest producer of spray-dried food products has been operating within the local market for more than 50 years +27 11 473 6800 www.sunspray.co.za LIGHTNING PROTECTION SME LIGHTNING Specialists in lightning protection and earthing +27 31 701 7582 www.sme.co.za LOGISTICS HAMBURG SUD Globally operating transport logistics organisation www.hamburgsud.com JJ LOGISTICS A diverse and uniquely structured transport company based in KZN +27 36 633 0121

INDUSTRY RECOMMENDED

M&M TRANSPORT Experts in the transport of citrus, other fresh produce, packaging material, animal feeds, fertilizers and construction materials +27 15 293 2789 TIME FREIGHT One of South Africa’s leading road express businesses providing a comprehensive road network for rapid collections and delivery throughout the country +27 33 341 6100 www.timefreight.co.za METAL HOWICK METAL PRODUCTS Fully integrated brass window and door hardware manufacturer and distributor +27 33 330 3534 www.howickmetal.co.za MINING IMERYS SOUTH AFRICA A multinational company which specialises in the production and processing of industrial minerals www.imerys.com WASTE LEGENDS A total waste management company dealing in different waste streams including hazardous waste 013 235 3047 DANFOSS Leading manufacturer of electronic, mechanical and intelligent “mechatronic” devices +27 11 785 7600 www.danfoss.com PACKAGING TUFBAG Industry leader in flexible intermediate bulk containers +27 32 459 5050 CHIORINO Market leader in conveyor and process belts, flat transmission belts and rubber aprons +27 31 792 5500 www.chiorino.com

PIPE SYSTEMS MARLEY PIPE SYSTEMS Manufacturer of plastic pipes and fittings +27 11 739 8600 www.marleypipesystems.co.za SUN ACE The World’s leading producers of PVC additives and metallic stearates +27 11 552 6200 www.sunace.co.za SICA Globally renowned Italian producer of downstream equipment for plastic pipes +39 0544 88 704 www.sica-italy.com REFRIGERATION ETHEKWINI COLD STORES Premium cold store in Durban +27 31 913 1800 www.ethekwinics.co.za RENEWABLES DCD WIND TOWERS The newly-established Wind Towers subsidiary of international manufacturing and engineering company, DCD www.dcd.co.za +27 16 428 0133 HAILO WIND POWER Hailo is the only supplier of quality tower equipment of its class that installs all over the world and is present in all key markets providing support for its customers +49 2773 82 0 www.hailo-windsystems.com SECURITY G4S The world’s leading international security solutions group www.g4s.co.za SOFTWARE SAGE VIP PAYROLL Providers of a total payroll and HR solution including system implementation, training and call centre support +27 12 420 7000 www.vippayroll.co.za

TEXTILES GROSS & CO. Industrial protective work wear and corporate clothing manufacturer +27 11 624 3300 www.gross.co.za M&P TRIKAM Wholesale textile & trimming merchants distributing nationwide to the clothing industry. +27 11 836 5716 www.mptrikam.co.za TRANSPORT MKONZA TRANSPORT Providing quality, safe and innovative tourism and transportation solutions +27 11 315 3336 VENTILATION CURVENT INTERNATIONAL Ventilation and fire ventilation specialists able to design, manufacture and install a wide range of ventilation systems www.curvent.co.za +27 11 826 5959

For more information about how your company can be recognised for excellence across many areas please get in touch.

Your Industry, Their Future, Our South Africa SEP 13 PAGE 99

© Michael Poliza

Introducing...

The Wilderness Expansion Project The Wilderness Expansion Project is an ambitious initiative aimed at growing and protecting wilderness spaces, relevant to conservation. The Project is as much a humanitarian initiative as it is of conservation, and was set up specifically to address relevant BB-BEE credibility for South African companies. The Wilderness Expansion Project thus promotes conservation and sustainability in the form of humanitarian resources and infrastructure.

Your complete CSI Solution South Africa’s only 100% BB-BEE wildlife conservation project All contributions are 100% relevant for your company’s financial year end and BEE Audits

Priority Partners still needed: Vehicle (4x4 bakkie) – Telecoms

Contact Us

Mobile : +27 82 897 3336 Email : Natalie@forwildlife.org Website : www.forwildlife.org /forwildlife

@_forwildlife

The Wilderness Expansion Project is managed and run by For Wildlife.

Non Profit Trust Nr IT 343/2012

Public Benefit Organisation Number 93 040 739

Official Corporate Partner Web & Design

Design • Web Design Mobile Development • Marketing Digital

www.innowadays.com facebook /Innowadays weare@innowadays.com