IndustrySA - May 2014

MAY

2014 ISSUE 21

Global Presence, Local Knowhow

Benteler South Africa is the local division of the global steel processing company, Benteler International AG. According to management, the business is looking to grow and “show the world what we can do here in South Africa�.

Lyle Stewart Addressing African audiences

Pienaar Bros Working hand-in-glove with SA industry

Howden Africa Leaders in environmental control

Rolfe Laboratories upliftment in the Karoo

© Michael Poliza

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MAy

www.innowadays.com facebook /Innowadays weare@innowadays.com 12 PAGE 161

EDITOR’S PAGE

EDITOR Joe Forshaw SUB-EDITOR Harriet Pattison WRITERS Colin Chinery Tim Hands Roland Douglas Christian Jordan RESEARCH DIRECTOR Chris Bolderstone PROJECT MANAGERS James Clark Ajuanne Payne Emily Woodhall Hal Hutchison ADVERTISING SALES SALES DIRECTOR Andy Williams SALES MANAGER Daniel Marshall SALES EXECUTIVE Holly Graham SALES EXECUTIVE Mark Leonard STUDIO STUDIO DIRECTOR Martyn Oakley ACCOUNTS Mike Molloy, Jane Reeder ECP LTD MANAGING DIRECTOR David Hodgson OPERATIONS DIRECTOR Chris Bolderstone FINANCE DIRECTOR Scott Warman 2a Ardney Rise, Norwich, Norfolk, NR3 3QH, Unitied Kingdom If you would like more information about ways in which IndustrySA can promote your business please call +44 1603 411568 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.

Welcome to issue twenty one

20 years of freedom has not only made the country a better place to live, it has also made the country a globally competitive, financially stable, innovative and creative place for business to thrive.

During the apartheid era inflation was high and GDP was stagnant.

Since 1994, the country has seen inflation drop by nearly 4% from 8.9% to 5%. Also, GDP has jumped from around $150 billion to over $450 billion. These figures alone demonstrate the enormous effect that the last 20 years has had on the country.

“Between 1994 and 2013, the South African economy experienced positive growth in every quarter except for two of the 78 quarters,” said Trade and Industry Minister Rob Davies said, speaking to a group of foreign correspondents in April. “In both instances where the South African economy experienced negative economic growth, international crises precipitated the contraction.”

The country’s 76 quarters of growth have been the longest continuous economic expansion since the South African Reserve Bank first started keeping records.

In the two years that IndustrySA has been covering innovation and business excellence, we have seen nothing but success; companies that are hungry to grow and invest heavily in their people; and all of this is because of the country’s growth and development as a free and united nation.

So what does the future hold? According to Davies, “the economy is increasingly well-positioned for another period of sustained growth. The key challenge will be to ensure that the progress made in deepening and widening industrial development is accelerated and that this translates to more job-creating and inclusive economy in the next decade.”

Tell us more about your experiences of business since 1994; how has your industry changed? Find us on Twitter (@industry_sa) and Facebook.

Joe Forshaw

editor@industrysa.com

© East Coast Promotions Ltd 2014

MAY 14 PAGE 3

CONTENTS

3 EDITOR’S PAGE Freedom has changed business

6 NEWS All that’s happening in South Africa 10 EnTREPRENEUR With a little help from Bill & Melinda

12 Innovation Fashionable business 14 Gadget Box Robotic mining

16 Gadget Box 4K for 2014?

18 Lyle Stewart Addressing African audiences

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74

CONTENTS

32

20 Benteler Localisation providing strength

74 Kaefer

26 Howden Africa A bright outlook

78 McCarthy VW

32 Swakop Uranium

82 Palabora Mining

Overcoming the last hurdle

Rejuvenating changes at the top

A master-class in service

Working hand-in-glove with industry

86 Lancet Laboratories

46 Apex Cordset Technologies

A diamond in the African medical industry

Going from strength to strength

52 Rolfe Laboratories

90 Fuchs Lubricants ‘Like a well-oiled machine’

Success in difficult times

Helping to clear the air

94 KWE South Africa Offering and delivering the full package

64 GRW A true industry leader

98 Foskor Providing the boost for SMEs

70 Structural Applications Protection where you need it most

102 SA Metal Group

58 Ash Resources

COMPANY REPORTS

38 Pienaar Bros

Increasingly efficient

Scrapping for top spot

may 14 PAGE 5

NEWS All that’s happening in South Africa

Putting netball on the sporting map The Brutal Fruit Netball Cup, taking place in Pretoria between May 10th – June 8th will be South Africa’s very first semi-professional netball competition. The matches will be played at the Rembrandt Hall Sport Centre at the University of Pretoria Sport Campus over consecutive weekends.

Presented by Netball South Africa, in association with Brutal Fruit, 120 of the country’s best netball players will battle it out to become South African champions and finally put netball on the South African sporting map.

The Netball South Africa President, Mimi Mthethwa said in a statement: “The excitement is building up and there is so much expectation from the netball followers and fans via social media. We at Netball South Africa are not at all surprised by the hype as this tournament has been a long while coming.”

This competition will be the first of its kind so only the most talented of players will take part. “The teams were selected following rigorous trial processes

PAGE 6 MAY 14

held across the provinces, where the most talented players were selected. We can promise that the Brutal Fruit Netball Cup will be a spectacular showpiece the likes of which have not been seen on homes soil.”

Mthethwa said in her statement.

The competition will be divided into two divisions: a Cup and Shield with a promotion and relegation league format in play. With only the best 10 teams selected across the nine provinces, competition will be high. The teams taking place in Division One include: the Golden Fireballs and Jaguars from Gauteng, the Free State Crinum, Eastern Cape Aloes and North West Flames. Competing in Division Two is Southern Stings from the Western Cape, Kingdom Stars from KwaZulu-Natal, the Limpopo Baobabs, Mpumalanga Sunbirds and the Northern Cape Diamonds.

With round one kicking off the show on May 10th and many of the matches to be broadcast live on SuperSport, the competition is proving one not to be missed.

NEWS

The R12.5 billion Mzimvubu Water Project On Friday 11th April, President Jacob Zuma officially launched the R12.5-billion Mzimvubu Water Project at Tsolo Junction near Mthatha in the Eastern Cape.

The Mzimvubu project will involve the construction of two dams, a bulk water distribution infrastructure, infield irrigation developments and a hydropower plant and is placed as one the key projects in the government’s strategic infrastructure development programme.

The Ntabelanga Dam, at 490 million cubic metres, will be built in Ntabelanga on the Tsitsa River and once completed, will be South Africa’s tenth largest dam.

The project will help to meet the province’s domestic, agricultural and industrial water requirements and it is hoped in the future that it will supply the Nelson Mandela Bay Municipality and the Orange/Vaal River System. The second dam, the Laleni Dam, will be

used for hydro power generation and will be capable of generating 35 megawatts of base load power. When it is in joint operation with the Ntabelanga Dam, it is expected to reach up to 180 megawatts of peaking power.

The design work on the project is expected to be completed by June with construction beginning later this year in November. At the launch, President Zuma said the expected completion date would be February 2018 and is hoped to create up to 7000 jobs throughout construction and 6500 during the operational phase with the added bonus of supplying water to over 700,000 households in the OR Tambo, Alfred Nzo and Joe Gqabi districts. “The development of this Mzimvubu catchment will indeed accelerate the social and economic upliftment of the communities in this region” President Zuma said.

MAY 14 PAGE 7

NEWS All that’s happening in South Africa

Putting real estate on the market In a bid to speed up transformation in South Africa’s estate agency sector, a learnership programme has been designed and was launched at the end of April by Human Settlements Minister, Connie September.

Currently, it is estimated that of the 40,000 estate agents registered in South Africa, only 10% are black. September said in a statement: “It is an unfortunate reality that the sector presently remains characterised by an acute underrepresentation of formerly disadvantaged persons. This patent lack of meaningful transformation, notwithstanding the consistent endeavours of the EAAB to inculcate awareness amongst sector role players of the transformation imperative, can no longer be tolerated.”

The “one learner, one estate agency” programme will be administered by the Estate Agency Affairs Board. The

board and partners hope this new programme will help to recruit up to 10,000 new entrants into the sector over the next three years, meaning every year, more than 3300 new entrants will be recruited into the estate agency sector. Pledges of support has been received by The Estate Agency Affairs Board from 20 estate agency firms who collectively, will take on 750 new learners. Will the help of the programme, it is hoped the number of estate agents will increase to 20% also increasing the level of understanding of property as an asset for economic wellbeing and trading and ultimately place real estate marketing as a good career option.

This will increase the number of estate agents by 20% and increase, the board said. It hopes the programme will help promote real estate marketing as a career.

Good news for petrol prices Earlier this month it was announced by the Energy Department that a litre of petrol will decrease by 15 cents in Gauteng from 7th May. A litre of diesel will decrease by 29.78 cents/litre while the price of Illuminating paraffin will decrease by 25 cents a litre. Liquefied Petroleum Gas (LPG) will also decrease by 4.0 cents/kilogram.

The Energy Department said in a statement: “The decrease in the prices of all the petroleum products is due to changes in international factors, namely, crude oil prices, the Rand/ Dollar exchange rate and the prices of finished products. The Rand appreciated against the US Dollar from $10.76 to $10.55 during the period under review. It contributed to the fuel price decreases to be effected on 07 May 2014.”

Energy Minister Ben Martins said in a statement: “The decrease in the price of illuminating paraffin and LPG will benefit households that use these products, as winter approaches.”

Locally, the price changes have been influenced by the reduction of the slate levy by 8.78 cents per litre, in line with the self-adjusting slate mechanism.

A slate levy is the money that is collected from motorists to compensate the industry for cumulative under recovery.

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NEWS

Rebranding of the JSE The Johannesburg Stock Exchange (JSE) revealed a new look on 14th April, demonstrating the bourse’s identity as a modern African marketplace and connecting investors to growth opportunities globally.

The rebranding follows on from an extensive brand audit in which both clients, employees and stakeholders discussed new ideas and where the JSE needed to focus its energies. The logo and colour palette moves to a bold black, white and green combination with the typography redesigned with a clean, sleek and digital feel.

Director of Issuer and Investor Relations at the JSE, Zeona Jacobs said in a statement: “At the JSE we’ve been doing some serious thinking about our positioning in South Africa and the world. Our visual identity needed to represent our position as a leading African exchange which is driven for stakeholder growth and showcase the strong technology component of the business. It also needed to be more accessible to investors.”

In addition to the JSE changing its visual identity, brand names such as the Bond Exchange of South Africa (BESA) and the South African Futures Exchange (SAFEX) will fall away, while

the JSE’s derivatives clearing house Safcom, will now be known as JSE Clear. However, the JSE’s hedge fund platform management business Nautilus will not change its name.

The complete makeover project, involving website redesign, took just over a year to complete. Jacobs explains: “A large component of the JSE’s marketing strategy is digitally focused and our website, as a key part of this, needed a complete make-over. The new website fits well with our desire to become more accessible. We want the website to be a rich source of content for existing and potential investors regardless of their level of knowledge as the being the ideal listing destination for companies to list.”

The JSE rebranding is so much more than just a visual makeover however, with the use of black symbolising identity and the green illustrating growth and prosperity, the links in both the logo and other elements of the visual identity highlight the JSE’s role as a secure platform for growth.

Although the JSE launched its new brand in April, all elements will be implemented in a phased approach until December 2014.

MAY 14 PAGE 9

Entrepreneur

Fashionably Innovative Editorial: Harriet Pattison

Entrepreneurial spirit runs in the family for Stephen Manzini. The son of an entrepreneur, Manzini has been making waves in the South African world of fashion in the last few years as founder of Soweto Fashion Week.

At an age where many are still trying to find their feet and decide on which career path is right for them, Stephen Manzini at just 24, has an impressive long list of accomplishments under his belt. Already the owner of Recycling Services and Technology Services, Manzini attributes his entrepreneurial flair to his father.

ENTREPRENEURIAL SPIRIT Realising a gap in the Soweto market as a township heavily interested and focused on fashion and bursting with creativity, Manzini decided to introduce a Soweto Fashion Week (SFW). Despite having minimal materials and working to a very limited budget, Manzini wanted to showcase the resourcefulness and originality of the designers in Soweto.

Manzini accomplished this in October 2011 with the very first Soweto Fashion Week taking to the catwalk. The show was successfully produced by Jericho Events, another project founded by Manzini and impressive addition to his seemingly endless entrepreneurial list.

With competition of more established fashion weeks added to the mix, Manzini had to make sure Soweto Fashion Week stood out if the designers were to succeed in successfully showcasing their designs to future buyers. He encouraged

PAGE 10 may 14

designers to show a more limited collection and perhaps more noteworthy, Manzini did not charge designers for showcasing at Soweto Fashion Week like more established fashion weeks. These two points highlight Manzini as a true entrepreneur in wanting to helping others succeed too.

SOWETO SUCCESSES Despite only launching three years ago, many designers have already reaped the successes of Soweto Fashion Week as Manzini explains: “A couple have opened boutiques and a few have travelled overseas and sought a market there.”

In 2013, rehearsals for the catwalk shows of Soweto Fashion Week actually took place in an apartment and adjoining parking lot belonging to a friend of Manzini’s.

Despite this unusual setting, it did not hamper the catwalk shows and Soweto have continued to blossom as an integral component of the fashion industry, producing collections that are wonderfully different from many other fashion weeks held across Europe. With an abundance of bold colours and urban edge, many Soweto designers are continually influenced by the 1940 and 1950 eras.

Manzini’s attitude is certainly to be admired, he is continually proving the importance and necessity of Soweto Fashion Week and what it means to a township that have

Stephen Manzini

faced many challenges: “It has brought change and a sense of competition, it has pushed development and has given hope to the once hopeless people in the industry” he explains.

Such programs as these are now helping to place SFW as the perfect platform for future South African designers to succeed in such a competitive market.

SFW 2014

FUTURE PLANS

Looking forward to SFW 2014, (28th-31st May), it is being held in a rather special venue, the Soweto Theatre. The first of its kind to be held here, SFW will bring the bi-annual fun flair to the historical neighbourhood of Nelson Mandela.

Ngugi Velly Vere, creative director of SFW, explains: “Soweto brings Africa together from its history, so it is very fitting to have an African fashion flair here.” Now in its third year, Manzini reveals there are still moments leading up to fashion week that he gets excited and geared up for: “Shocking and surprising people and my competitors, they still want to push us down but we are like that irritating ball in the water that keeps bouncing back.”

This year there are ten designers showcasing their collections, including Smarteez, Thesis and Jeremy Maku from Cape Town. A selected few will also be given the opportunity of having their collections shown in international showrooms. Manzini explains that designers are carefully selected for SFW with the launch of a program helping to train and mentor some of the up and coming designers.

“One truth holds for most of the designers, the South African fashion industry is growing and the world has become a proper village for our designers through international collaborations however educating oneself further whilst trying to make money and grow a brand is hard if you are not focused and hands on,” Manzini explains.

With plans in the pipeline, Manzini hopes to start his own business distributing designs from SFW and hoping to extend it to a week-long event. Manzini concludes: “Yes we have big plans, multi-million Rand plans and we have international investors for this, we are going to blow a lot of people in the industry out of the water in the next few years, we are definitely growing.”

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“Shocking and surprising people and my competitors, they still want to push us down but we are like that irritating ball in the water that keeps bouncing back” may 14 PAGE 11

Innovation

Making a difference to sanitation Editorial: Harriet Pattison

An innovative and radical sanitation solution is on the horizon to ‘reinvent the toilet’, helping to combat the global issues of poor sanitation with a little help from the Bill and Melinda Gates Foundation…

It is estimated that 2.5 billion people are without safe sanitation today. Collaboration between the Department of Science and Technology (DST) and the Bill and Melinda Gates Foundation (BMGF) hopes to provide an innovative solution to help those that need it most. The aim of the BMGF is to provide universal access to sustainable sanitation services by supporting the research, development and manufacturing of new sanitation products and technology.

A lack of effective sanitation can have a detrimental impact not only on the health of a community but on the environment. To provide a sanitation infrastructure that will consider both of these is a huge challenge when you consider that efficient toilet systems also require land, energy and water and are expensive not only to build but maintain.

REINVENT THE TOILET CHALLENGE The ‘Reinvent the Toilet Challenge (RTTC)’, set up by the BMGF in 2011, is helping to combat the enormity of this challenge by funding the research and development needed to invent an effective toilet system that does not require a water connection, electricity or sewer system and promises to cost

PAGE 12 MAY 14

as little as US$0.05 per user per day. With R30 million commissioned by the DST and US$1 million donated by the BMGF, field testing on this will be carried out later this year and into 2015 in rural schools and communities.

Since its introduction, the BMGF Reinvent the Toilet Challenge has awarded an impressive 16 grants to research organizations all over the world who are using innovative approaches to help global sanitation. Two of these RTTC projects have been implemented specifically in China and India, designed to encourage research and development into these countries, helping to solve the ongoing global sanitation issues. A RTTC exhibition was held earlier this year in New Delhi, India with 45 exhibitors showcasing innovative sustainable sanitation solutions from sludge-to-energy processing technologies to septic tank emptying processes, to promote and generate interest between stakeholders investing in sanitation improvements.

Although not quite ready to enter the commercial world just yet, with the help of the Department of Biotechnology (DBT) and the BMGF investing US$2 million to support and drive developmental research, the ‘next-generation’ toilets will help not only to ensure dignity and privacy in the developing

Innovation

world improves but contribute to the overall economic growth.

these changes effectively in challenging urban areas, it is hoped they can then be transferred, suited and extended into more rural areas in the future.

SANITATION IN URBAN AREAS The Water, Sanitation and Hygiene (WSH) program, introduced by the BMGF, focuses on developing these innovative approaches and technologies that can lead to radical and sustainable improvements in sanitation in the developing world.

Before implementing these sanitation services, issues of waste containment, emptying of pits and septic tanks, transportation to sewage treatment facilities, waste disposal and treatment all need to be considered.

Innovative sanitation solutions are needed more urgently in urban and densely populated areas due to heightened risks of disease and contamination.

The BMGF works with the government, service providers and community-based organisations in urban areas, namely Africa, to adopt an effective policy and regulate an environment that will support the introduction and delivery of new sanitary products. The priority of the RTTC is to develop non-sewer sanitation approaches with new efficient delivery models, which are desperately needed in populated urban areas. If the RTTC implement

TECHNOLOGY IMPROVING SANITATION With the funding the DST has commissioned for research into how the development of technology can further advance the RTTC innovation product, it has partnered with the Water Research Commission to implement it in South Africa.

The technology will be demonstrated in the 23 districts that are in desperate need of safe and efficient sanitation, recognised by the South African government. The Department of Human Settlement (DHS) is responsible for the delivery of sanitation to South Africa and with the help of the DST providing research and technology solutions the DHS will be able to meet the objectives of providing safe and effective sanitation. The collaboration between the DST and the BMGF will also help the DST provide learning skills and advice to further help the DHS implement important policies, helping to market innovative sanitation programs as caring not only for the environment but for the dignity and health of communities across South Africa and beyond.

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MAY 14 PAGE 13

Gadget Box

Autonomous robots for safer mines Editorial: Harriet Pattison

Mining injuries are expected to dramatically decrease in the next few years all thanks to advancements in robots seeing their way through the dark…

Robots are no longer a fictional character within a novel, they are helping to save lives. The mining industry can be volatile and dangerous with a continuing increase in health and safety risks and employee injuries or worse.

To help combat this, the mining industry is heavily investing in a variety of robotic technologies that can help not only to boost safety for the workers but also to increase productivity and drive down costs.

With South African hard rock mining being one of the most dangerous, the majority of fatalities occur post-blast before the roof can be stabilised. A particularly hostile environment with high temperatures and little to no light with few distinguishable landmarks, these challenges are heightened due to no GPS (Global Positioning System).

The Council for Scientific and Industrial Research (CSIR) have set up the Autonomous Mine Safety Platform. This will help support the technology to develop small robots that have the ability to enter hazardous mines to monitor and determine the safety of the hanging walls post-blast in case the rocks are loose, ultimately helping to prevent injury.

PAGE 14 may 14

INFRARED TECHNOLOGY Without GPS, the challenge of localisation arises.

Accurate location information is essential for the robot to navigate in harsh mining conditions. The ‘ground truth’, referred to by researchers, is the accurate estimate of the robot’s real location. To help combat the localisation issue, CSIR acquired the Vicon System; a state of the art infrared marker tracking system that produces 3D motion capture, helping to track objects. Using infrared reflective markers, the exact location can be determined of rigid objects. Infrared sensors then bounce off these objects allowing any movement to be tracked. The infrared thermal sensor also detects changes in temperature underground, helping to establish stable and unstable areas, such as loose rock, detected as a cold spot.

Fitting a robot with an ultrasonic beacon, a receiving device for localisation and a time-of-flight camera, a 3D image of the underground rock face can be captured.

From the information the CSIR receive, a risk map can be kept up to date with the mining danger areas.

The ultrasonic beacon also acts as an underground GPS system by mounting the beacon on the roof bolts of excavations and the receiver placed on the robot platform, the distance between the robot and beacon

Gadget Box

can be determined by calculating the difference in the time of flight between both signals and so allows the robot to localise itself in an otherwise unfamiliar environment.

With the CSIR’s innovative research on autonomous robotics, many industry leaders are investing in both opencast mining and underground for safer mines, including Anglo American who IndustrySA has previously featured, and Sandvik. With the development of these mining robots, CSIR are able to focus on ‘real world’ environments where the dynamic is unknown, providing an opportunity of gaining access to new resources. The advantages of using robots is, of course, that they do not suffer with fatigue or get tired from repetitive tasks, they require little support infrastructure and they have the benefit of advanced sensors.

ASSISTED MINING TECHNOLOGY The National Robotic Engineering Centre (NREC) have also been leading the way in pioneering and developing innovative research into actively using robotic technologies in a variety of ways, including Assisted Mining, developed in partnership with NASA and Joy Mining Machinery.

Robotic sensors are applied to semi-automated continuous mining equipment and machines to accurately measure their position, motion and orientation. This process will

assist in helping the operators to manage the machinery effectively at safe distances and so helps to improve health and safety measures and productivity.

CURRENT DEVELOPMENTS The CSIR has introduced further innovative research developments to its mining robots in the last year including a program for path planning. With the help of cameras and lasers, the robot is able to detect objects in its way, move around them, and continue on its initial path. The Mobile Intelligence Autonomous System (Mias) at CSIR, also want to introduce gas sensors to help test the breathability of the air after a mine blast has occurred. Activision is improving the vision of the robot, allowing it to recognise a specific object in its environment by taking a series of images. Previously, it would have needed to take 360° worth of pictures but with this new technology, it only needs to capture two to understand what it is seeing underground.

With so many advancements in robotic technology, let’s hope it won’t be too long before all safety measures can be determined and evaluated post-blast in the South African mines to eliminate injuries and fatalities in the future.

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may 14 PAGE 15

Gadget Box

Is 2014 the year of 4K? Editorial: Joe Forshaw At IndustrySA we like to stay on top of advances in technology and one of the markets looking likely to be the next to explode on a global level is that of 4K TVs. What is a 4K TV? How is it different from any other TV? Do you need one? We review to see what all the fuss is about…

Sony-XBR®-X950B

TOSHIBA L9400U

Like so many pieces of technology these days, TV’s are almost out of date as soon as you get them home from the shop.

There is always some geeky company coming out with a newer, faster, slightly more defined, lighter or louder TV but often the advances in technology are just sales gimmicks to encourage people to upgrade.

However, the major advances in TV technology such as the development of colour picture, the increases in clarity, the major upgrades in design of sets, and the onset of high definition picture are the things that stand out as important developments throughout the long and complex history of TV. Today, the TV market is dominated big a handful of big name players but throughout history there has been thousands of companies that have set their sights on the top spot of this lucrative industry. Everyone will recognise names like Sony, Samsung, LG, Phillips, Toshiba and Panasonic and these multi-national brands have all recently launched their offerings in the 4K sphere.

But what actually is 4K? The experts will tell you it is when ‘a display device has a horizontal resolution on the order of 4000 pixels’. Basically this means that the resolution is four times better than that of a HD TV. 4K has twice the horizontal and vertical resolution of the 1080p HDTV format, with four times as many pixels overall. This

PAGE 16 may 14

LG 65LA970W

development has coined the term Ultra-High Definition (UHDTV).

While we are still waiting for 4K content to hit the mainstream, some electronics companies have launched their attack on the 4K market and we have investigated some of the sets on offer.

SONY X9 As one of the most innovative and well known consumer electronics companies in history, of course Sony were quick to launch a 4K model to be proud of.

The X9 is wedge shaped, thinner at the top and fatter at the bottom but of course still maintains glistening picture quality and, importantly, leaves room for quality speakers – something which competitors have often failed with because of the ‘thinness’ of their sets.

The wedge shape is not something which affects viewing and is only noticeable from the side.

The speakers provide a really quality sound thanks to integrated subwoofers, designed by Sony. The surround sound is particularly impressive and as for the screen; it is as close to flawless as current technology allows. Sony technology has allowed for a contrast increase of 200%.

Blacks don’t black out, and brights aren’t faded.

Critics have questioned how the X9 will actually fit into a

4K Televisions

home and with hefty price tags reportedly starting at around US$2999 for a 65 inch set, they are probably still out of most people’s budget. But overall, this looks set to be an example for future models to measure their standards against.

TOSHIBA L9400U This is Toshiba’s third offering in the UHDTV market.

Interestingly, the L9400U will feature Toshiba’s new Radiance 4K Full Array LED panels, ClearScan 240Hz and a new thin poster frame cosmetic design. Available in 58 and 65 inch sets to begin with, this is a powerhouse offering from Toshiba.

Scott Ramirez, Vice President of Product Marketing and Development, Visual Products in Toshiba’s America Information Systems, Digital Products Division stated that the company is focussed on high-def picture quality.

“Because the driver for Ultra HD is incredible picture quality, Toshiba has invested in our own Radiance 4K full array LED panels and our third generation CQ 4K Engine to ensure a Wow experience every time you watch TV,” he said.

The L9400U has some impressive features including; SuperBright LEDs, with Super Wide Color Gamut and Quantum Black Local Dimming to deliver improved contrast and a purpose built CQ 4K Engine which uses third-generation 4K processing that utilises a unique

five-point image enhancement system that includes resolution restoration, motion interpolation, dynamic detail enhancement, colour restoration and dynamic noise reduction.

An impressive overall offering, especially on the picture quality side. Hopefully an improvement on Toshiba’s previous releases.

LG 65LA970W The LG 65LA970W has been the polar set of the UHDTV market. People seem to either love or hate it. This is mainly because of its hefty price tag – US$5400, and high expectations that come as a result.

Although the picture quality has never been questioned, users have criticised the limited experience you get when viewing from an angle and native panel contrast has been called ‘average at best’.

However, this TV is beautiful, as you would expect from LG, and it has great audio – even for how slim it is. The pictures are great and the LG comes with a unique ‘Magic Remote’ which is fun and easy to use for pointing at menus on the screen.

As one of the most expensive sets on the market, it is easy to see why people do not universally love this set but as an example of what 4K is about, it’s truly top of the range.

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may 14 PAGE 17

Lyle Stewart

Tuning into Africa…

Editorial: Harriet Pattison Lyle Stewart is the senior vice president for Central & Eastern Europe, Middle East and Africa (CEEMA) for Sony Pictures Television Networks. He holds an undergraduate degree in Broadcast Journalism from the University of Washington in Seattle and an M.A. degree, with distinction, from the Annenberg School for Communication at the University of Southern California in Los Angeles. His illustrious career has taken him around the world, working for some of the biggest names in broadcasting but this month he speaks to IndustrySA and says that the African territory is important and looks set to grow…

Q: You joined Sony Pictures Television in 1999 as Executive Director, how has the company’s focus on African (specifically South African) operations changed in those 15 years?

South Africa and Sub-Sahara Africa is a focus for our Networks business. It is a market that we love and is certainly a priority territory for us where we plan to grow and develop our business. Our popular channel, Sony Entertainment Television, has been in the territory since November 2007 – so just over six years now - and in the case of Sony MAX, it has been available for three years.

Like all territories, I anticipate more significant changes to the landscape once the digital switch is made and it will give us the opportunity to launch new Sony channels. It will be an exciting opportunity for our networks business.

Q: With new shows, including Exposed and Kenny vs. Spenny, being aired in South Africa in April, is there a specific market Sony MAX is reaching towards?

Sony MAX really talks to a male audience. Sony MAX is a completely unique channel to the South African viewers – curated especially for this territory and is not available anywhere else.

Q: With entertainment favourites such as Friends and popular drama series like CSI being listed, are there plans to introduce more shows such as these in the future?

Yes – we are bringing NCIS back from the start and we are very excited about the second season of Crossing Lines which is starting later this year. This is a Sony Pictures Television co-production and has a worldwide roll out on all Sony channels. One of the latest acquisitions for Sony MAX is the entertainment show Hole in the Wall. This is a great show for the whole family and we hope will become a firm family favourite. We have also secured new seasons of popular series

PAGE 18 MAY 14

such as The Amazing Race (S23), Killer Karaoke (S3), Real Husbands of Hollywood (S2) and Boondocks (S4).

Q: Does Sony Pictures have plans to expand distribution in South Africa to include the most recent feature films and TV series from around the world rather than running well-received historic shows?

We have a really good content mix, a balance of new and old favourites. We monitor it very closely and work with our platform partner to provide viewers with the very best content possible. At all times we take our viewers into consideration.

While we do have some older, popular shows we are also focused on acquiring premieres such as our network-produced shows like Crossing Lines and the global ratings-winning hit Hannibal, recently produced Sony products such as The Boondocks and Drop Dead Diva as well as third party acquired shows such as Trisha, Law & Order UK and The Amazing Race from the US, Australia and Asia.

Q: Sony Pictures Television distributes entertainment to over 142 countries, how does Sony MAX decide on the TV schedule for South Africa, especially over busy periods?

We program our networks locally in each territory around the likes of our audience and the message of our brand.

Both Sony MAX and Sony Entertainment Television have dedicated feeds in Africa, which allows us to schedule the channels by analysing the territory data we receive to reflect the local viewing habits and taste.

Q: Are there plans to expand into the African market in the next five years?

.

We are always looking at and considering new opportunities, so watch this space.

Lyle Stewart

Š Sony Pictures Television

may 14 PAGE 19

company profile

Showing the strength of localisation Editorial: Christian Jordan Production: Emily Woodhall

The story of the “full service” steel processing company, Benteler has been one of success since it started out in South Africa in 2003. Benteler South Africa tells IndustrySA more about how the company will be using its strong base to expand its automotive business further and also take on new industries at the same time…

South Africa’s automotive industry has been one of the turbo chargers behind the country’s growing export and manufacturing sectors. Some of the world’s most recognised automotive brands call South Africa their home and of course this means that the need for a high quality, superior class supply chain has developed.

One of the companies providing pioneering innovation in this field is Benteler South Africa, the local subsidiary of the global steel and aluminium manufacturer, headquartered in Austria, Benteler International AG. Benteler arrived in South Africa in 2003, taking over an existing company with pressing facilities in Alrode, Alberton. After establishing its roots in SA, the company immediately went about expanding its

PAGE 20 may 14

footprint, bringing its facilities in Alberton in line with modern standards and also opening up in the home of SA’s automotive sector – Port Elizabeth.

Benteler leadership tells IndustrySA that the plant in Port Elizabeth is one of the most advanced in Africa with high-tech equipment contributing to high-tech output.

“In 2010, the company erected a 21,000m² building in Uitenhage, Port Elizabeth,” they state. “It has modern architecture; it is one big hall, very overseeable and open. Subsequently, to fill this building, we moved certain business from Alberton and moved it here, to bring it closer to the customer. We are now servicing OEMs in Port Elizabeth from here, and the Durban and Gauteng area will be serviced by the Alberton plant.

“Our facilities provide the perfect opportunity for

Benteler SA

localisation, and internally we have identified a strategy to accompany this by going local ourselves. We have the strength of being part of an international company but we feel our South African region should aspire to have mostly local managers and staff. We are very keen on local expertise and we are very proud of what we have done in both of our plants. We want to show the world what we can do here in South Africa.”

However, even though Benteler SA and Benteler as a global group holds a strong position in the automotive industry, the SA company is keen to expand its services across other industries and to develop new streams of income and different types of business.

“We want to expand beyond the automotive industry and we are currently exploring how we can take our expertise and quality standards from the automotive industry into other industries,” the management

explains. “This initiative, although only in its infancy, presents us with some unique growth opportunities in industries such as mining, transport, railway, household goods and possibly even petrochemical. It’s a wide range and we have approached certain organisations, who are promoting in these industries, and we are evaluating what is possible.”

ON HOT FORM Benteler SA is currently enjoying a buoyant business climate and has many projects on the horizon. Of course, this is great news for the company who has seen many competitors fall to the wayside due to the global economic slowdown.

“We have worldwide projects lining up, with big volumes, even for the automotive industry. Because of the globalisation of the automotive industry, we hope

may 14 PAGE 21

company profile

to supply every component for these global businesses out of our plants in South Africa – it’s very positive and we are busy with a lot of opportunities as we speak.”

Perhaps some of this success can be attributed to the constant focus on quality that is instilled into every Benteler SA employee, and also to the technical capabilities of both the Alberton and Uitenhage facilities, the likes of which cannot be found elsewhere in Africa.

“We are presently undertaking extensive upgrades in our Alberton facility,” details Benteler. “We are doing it in stages for financial reasons. We believe that we should earn the money before we invest again. We will be investing in new press technologies which will give us extra competitive advantage. What we have at the moment are presses which can do everything.

Although these presses are right for the jobs, they could be done on a specialised press for much cheaper hence this is why we’re looking at specific press lines and set-up of press lines, so that we can be more economically viable.”

As for Port Elizabeth; when the company cut the ribbon in Uitenhage back in 2010, it introduced a new hot-forming line where blank steel parts, such as the A and B-pillar or Dash Panel on a car, are shaped while heated to red-hot temperatures.

PAGE 22 may 14

“We are currently the only company on the African continent to have this hot forming technology,” claim the Benteler management. “This can heat materials to 900°C, resulting in a red-hot part which is formed and then immediately cooled, resulting in a much stronger material composition. The advantage in the automotive industry is that you need less material compared to cold forming where you would need to weld multiple components together to gain strength. The next step is to cut with a five dimensional laser into the final shape to comply with accuracy requirements of the automotive industry. Altogether weight reduction of 30 to 50% can be achieved with these hot formed parts.

“Although we require a special overseas developed mild steel material for this press, we have managed to source local production and supply.

“Also Torsion profiles for the rear axles are heated and cooled in order to gain additional strength and this is patented by Benteler at the moment.”

STEELY PEOPLE Speaking to IndustrySA, one of the things that the leadership team was keen to impress was the fact that Benteler is now actively seeking localisation when it comes to management, employees, ideas and technology.

“One of the key ideas of Benteler is to be close to

Benteler SA

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company profile the customers,” they say. “Our PE plant was constructed with this in mind but we don’t want to only rely on OEMs; part of our strategy is to expand within the automotive industry and outside of it.”

With this expansion in mind, training is obviously central when it comes to planning for the future.

Continuity, trust and cooperation are three of six values that Benteler includes in its company philosophy and these values relate to both customers and employees.

“Currently, we have 14 apprentices in our Alberton tool room and they are training to become toolmakers.

After three years they will qualify to work in the industry and will be highly capable. Benteler can take them on a full-time basis afterwards and this is very advantageous for both of us; we believe strongly in this system. It has economic benefits as well as the tooling skills are very limited in South Africa at this stage.”

Due to Benteler SA also possessing tool design expertise with its required equipment, this has led to reviving their own tooling production again, which is another pillar of the strategy.

World leading technology is developed at Benteler around the globe by a 1200 strong research and development team in 32 locations. With additional feedback from all of the other additional manufacturing subsidiaries worldwide, Benteler South Africa can assure

PAGE 24 may 14

to use best practices locally. “We work closely with the headquarters overseas and then implement the ideas through the local employees,” the team explains.

Of the approximately 670 Benteler employees in South Africa, many are engineers. Yet, despite the success the company has seen, there is still a shortage in engineering skills and this is why such an emphasis has been placed on quality training at Benteler South Africa.

“Although most of the people in our company are originally tool makers, we have employed mostly engineers. We are always on the look-out for pressing engineers. To have a real press expert who is experienced is very rare. Also, PLC programmers for robotics are rare. We do pressing and value adding, which is welding parts together, so while we have welders and top equipment, programming of the robots is always a scarce skill.

“We can train people in pressing and we are taking advantage of programmes through which, students on the engineering side, can learn about the industry, specifically metal pressing and robotic welding. On the PLC programming side, we had so far chosen to have industry experts who pass on their knowledge to the team, but are also looking into establishing programmes in conjunction with the industry” management emphasises.

Benteler SA ORGANIC GROWTH

AE Manufacturing cc was established in 2006 and is a Level 3 contributor to BBBEE. Certified as an ISO 9001:2008 company and audited by DEKRA, the company provides superior engineering solutions at competitive prices to; industrial, automotive and commercial industries.

SPECIALISED SERVICES: • Designing • Machining • 24 Hour Maintenance • Pressure Testing & Repairs • Machine Building

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• Fabrication • Assembly • Installations • Pipeline Installations • Sheet Metal Work

As the company continues to grow, expanding its service offering and expanding beyond the automotive sector, it looks set to put South Africa on the map when it comes to the innovative production of parts.

Many Benteler customers, including VW, Ford, GM and Toyota are expanding their reach on the continent and this presents opportunities for Benteler but for now, the focus will remain on Southern Africa.

“Benteler has so many opportunities and Benteler SA is trying to keep an eye on the southern African countries. As for the continent of Africa, we are not currently addressing this aggressively but it definitely is somewhere for us to further expand in future.”

So with all of these opportunities on the horizon, who would bet against Benteler SA advancing its industry leading position and becoming the company of choice for businesses across a range of industries? With state-of-the-art facilities, world class technology, backing from the global group and a growing workforce; it seems as though Benteler SA is indeed steeled for the future.

.

MAY 14 PAGE 25

company profile

Environmental control from Howden Editorial: Roland Douglas Production: Chris Bolderstone

Howden Africa is one of the heavyweight names in South Africa’s engineering sector. Continuously generating positive results and completing innovative projects, the business looks set to expand further over the coming years. CEO, Thomas Bärwald speaks to IndustrySA to explain more…

When Howden Africa released its unaudited interim financial results for the six months ending 30th June 2013, there was a lot to be happy about for the industry leading engineering firm.

Operating profit, cash generated from operations and earnings per share were all up, increasing significantly from the same period in 2012. Of course, this news was welcomed by the company which aspires to be Africa’s leading application engineer, providing lifetime solutions in air and gas handling.

Back in April 2012, IndustrySA spoke to Thomas Bärwald, CEO and executive director at Howden Africa, and found out that the company had managed to successfully navigate the global economic slowdown and was seeking opportunities across

PAGE 26 may 14

South Africa and further afield.

This month we speak to Bärwald again and he says that the search for opportunities continues and a big focus for Howden going forward will be with ‘environmental control products’.

The interim financial results from June 2013 revealed that in Howden’s Environmental Control division, revenue had decreased to R79 million, a 48.8% decrease on the first half of 2012. The division however, remained profitable with operating profit (EBIT) of R9.1 million. Operating profit margins improved from 8.5% in June 2012 to 11.6% in June 2013 despite the fall in revenue.

“In the first half of 2013, we had a small slowdown with environmental control products,” explains Bärwald. “In the second half of the year, we didn’t sell high but we had a significant amount of new

Howden Africa

orders which will be converted this year. The opportunities in this sector are huge and we predict a good year for 2014.

“This is down to a couple of things,” he adds.

“We have expanded the product lines and the service portfolio that we offer to the industry; we are continuously improving our cost base, reducing our cost base and improving our supply margins and overheads and this has resulted in good volumes and excellent results. Cost management has been very important.”

The interim results were very positive for certain divisions, namely Fans and Heat Exchangers. The results reported: “Revenue of R691.3 million for the first half of 2013 is 6.8% ahead of the equivalent period in 2012 of R647.1million. The performance of the Fans and Heat Exchangers division was

particularly strong with a 24.3% increase in revenue compared to the first half of 2012.”

But with environmental control products, performance across the portfolio has been relatively even with ‘bolt on’ products adding significantly to the service offering.

“A lot of the newer products are bolt on products.

We have core products and we are now doing more with them; wider scopes of use and different services. We are doing more and more turnkey projects and of course this means not just supplying the core product but also supplying electricals, civil engineering and everything for the entire installation so these kind of bolt on products have improved our trading, our competitiveness and of course our volume,” explains Bärwald.

Green products and environmental control

may 14 PAGE 27

company profile products are not new concepts. Globally, there has been a focus on these type of ‘clean’ products since the 80’s, although today they are much more advanced, but nevertheless Bärwald says that like any product, they have their ups and downs.

“Environmental control is lumpy business. When we get contracts, they are large but they are not frequent. However, environmental control business has been very good for us in the past two years and there is still a lot of good potential in this area.

“On the environmental control side of the business we will be seeing a number of contracts come to maturity very soon. I don’t want to name names at this stage but they will be mostly in South Africa.”

CLEAN AIR Anchoring Howden Africa’s venture into the environmental control products is the Clean Air Act which was introduced to South Africa in 2010. This act made it compulsory for companies to manage and monitor emissions and invest in environmental control.

Bärwald says that this has created a lot of opportunity for the company as the country still has a long way to go to keep up with the Act.

“We are an ISO 14000 company and we actually have products to clean up big plants and install world class standards of environmental control,” he says. “We are all for this; it has been good to us so far and holds a lot of promise for the future. The country and the continent could still do a lot more just to comply with the new Clean Air Act of 2010. There is an enormous amount of upgrade and compliance work to be done in this regard.”

He told us in April 2012 that one of the companies most notable installations for environmental control was a large scale de-dusting plant for ArcelorMittal where the “customer and the community had seen great success in terms of cleaning the plant”.

Bärwald also suggests that Howden products will have a genuine impact on the environment across the whole of Africa, saying: “Our advanced environmental control products at large size industrial plants are well suited to help minimise the environmental pollution impact in Africa.”

AFRICAN OPERATIONS Howden Africa is a truly African company and although it is part of the global Howden group

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(originally from the UK) which is owned by the Colfax Corporation (based in Maryland, USA), African endeavours are very important to all stakeholders. This is no surprise considering the growth figures coming out of African nations. The World Bank expects that most African countries will reach ‘middle income’ status (defined as at least US$1,000 per person a year) by 2025 if current growth rates continue. Countries like South Sudan, Sierra Leone, Ghana, Mozambique and the Ivory Coast were amongst the fastest growing economies in the world in 2012 (real gross domestic product growth rate). For Howden, which opened in Africa in 1952, growth on the continent is inevitable.

“There are some key regions in Africa that we want to focus on. We are very much into deep mining and that is big business in Africa. We have been successful in Ghana, Tanzania, DRC and Zambia.

“It is certainly one of our strategic intents to grow in Africa, most in west Africa and south-central Africa.

“African business is a good part of the Howden business overall. We have grown in South Africa

and the other African countries. Not all African countries contribute a huge amount to the global business but these can often grow faster than the growth we see in South Africa,” says Bärwald.

But business on the continent has its challenges and the CEO is proud to say that so far, Howden has been able to offer its services without too much difficulty.

“When you want to do business in African countries outside of South Africa, it is an entry level requirement to be able to supply turnkey solutions because the infrastructure can be poor and you have to bring infrastructure with you,” he says.

“We use the Howden license so we use all of the same technology that the other global Howden divisions use,” he adds.

A COOL FUTURE With the Fans and Heat exchangers division still proving to be a true industry leader for Howden and the Environmental Control Products division now gathering pace, it seems as though the company is set to extend its dominance of the industry throughout 2014 and beyond. In 2013, Africa was

MAY 14 PAGE 29

company profile the world’s fastest-growing continent at 5.6% a year, and GDP is expected to rise by an average of over 6% a year between 2013 and 2023, according to the World Bank. And with this in mind it seems that the perfect platform is in place for Howden to grow in South Africa and across the border, even though major work on the country’s two new power stations is coming to an end.

“We are winding down with Medupi and Kuseli.

We have supplied almost everything we wanted to.

We were working on some major cooling fans for the power stations,” says Bärwald.

“We are still working with ice plants for the mining business, providing underground cooling. We want to supply ice plants worldwide; in fact, we just commissioned one of the largest ice plants in the world. It makes hard ice and will be able to produce 33kg per second.”

So, the current position is healthy and the interim results reflect this, reporting: “The trading outlook

PAGE 30 may 14

is cautiously optimistic for the Group in the heavy engineering sector of mining, mineral process plants, locomotive fans, aftermarket service, maintenance and in future, the environmental control market.”

And Bärwald says that the company will continue to support the development of the economy.

“For the last 60 years we have supplied huge amounts of equipment for the power stations and the mines in this country and as these industries grow we will be there to support them further,” he concludes.

.

“The opportunities in this sector are huge and we predict a good year for 2014”

Benteler SA

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company profile

The last big hurdle: Power Editorial: Christian Jordan Production: James Clark

Swakop Uranium is going to contribute to the economic development of Namibia in more ways than one. Asides from attracting significant foreign investment, the company and its Husab mine will create jobs, provide training and invest in local schools to align itself with ‘Vision 2030’. IndustrySA speaks to Director of communications and stakeholder involvement, Grant Marais to find out more.

PAGE 32 MAY 14

Swakop Uranium Swakop Uranium’s Husab mine project is one of the most important in the history of Namibia. In last month’s edition of IndustrySA we looked at the history of the project and found that the Husab mine will be one of the most significant in the global production of uranium.

Owned by China General Nuclear Power Company (CGN) through its entity Taurus Minerals (90%), and the Namibian state-owned mining company Epangelo (10%), Swakop Uranium and the Husab mine represent the largest ever mining investment to date from China in Africa. The investment is also the largest investment in Namibia since its independence. More than US$100 million (N$1 billion) was spent to get the project to the construction phase and a further US$2 billion (N$20 billion) will be required to bring the Husab Project to fruition.

The Husab mine has the potential to produce 15 million pounds of uranium oxide (U3O8) per annum.

This is more than the total current uranium production of Namibia and will elevate the country past Australia, Canada and Niger to second place on a list of the world’s leading uranium producers, behind only Kazakhstan.

As we found out last month from Grant Marais, Director of communications and stakeholder involvement at Swakop Uranium, the project has so far not seen any delays and now attentions are turning to the issues that will surround production when the mine is fully operational – water

and power.

“I don’t foresee any problems with water at all; in fact, I see the bigger challenge to be power,” explains Marais.

“We have a temporary water line in place from a nearby reservoir. We are sharing this reservoir until our permanent pipeline is complete, which will happen in 2015. It’s a 70 km pipeline and we’re busy with construction right now.”

When it comes to water, the pipeline (temporary or permanent) is not the worry. Critics have raised concerns over where the water will be sourced from. Again, Marais states that this issue has been addressed and resolved.

“Traditionally in Namibia people use water aquifers; natural water aquifers which water is pumped out of. There are two aquifers on the coast, namely the Omaruru Delta (Omdel) aquifer and the Kuiseb aquifer. If we come on stream using around seven million cubes of water per annum, we’ll quickly deplete those reserves,” he says.

“When the French company Areva were building the Trekkopje Mine, just outside of Swakopmund, they built a desalination plant which has a capacity of more than 20 million cubes per annum. The Trekkopje mine has subsequently been placed in care and maintenance. We have signed an offtake agreement with the Namibia Water Authorities and they will source water from the desalination plant so we will not touch the natural water – at significant cost to ourselves.

“We are very aware of the water issue and I think we have mitigated it.”

MAY 14 PAGE 33

MARSH LEADS THE PAN-AFRICAN PACK

Gadget Box

Two years on from the Alexander Forbes merger, Marsh Africa’s strong capabilities servicing the African continent have seen our growth ambitions as a pan-African leader come to fruition.

“They say it’s the journey, not the destination that matters and our journey over the past two years has seen the business flourish to exceed expectations,” says Debbie Geraghty who heads up Mining, Metals and Minerals at Marsh Africa. Marsh has the strongest mining practice in the industry, with over 200 risk and insurance colleagues specializing in mining, metals and minerals, with more than 10% of that expertise based in Africa.

Mining companies are facing greater challenges as they are progressively moving into more remote areas as they expand into geographies with regulatory regimes that are changing and can vary widely from one country to the next. This challenge not only requires that companies take a more strategic and customized approach to risk transfer, but also brings to light the need to deliver local expertise wherever our clients do business.

“We’re in a fortunate position as the strength of our business and the way we work makes it easy to attract the best talent in the industry. Since the merger, we have had an excellent retention rate for existing clients and in 2013 we had our best year ever for new business,” she says. This has also meant the company has been able to employ additional staff to further bolster their offering to market.

Marsh provides risk and insurance advisory & placement services to 87% of the Fortune Global 500 companies and the majority of the world’s major mining operations. This global expertise along with our ability to deliver economies of scale and international best practice ensure the delivery of consistent quality solutions to our clients.

However, it’s not only about our energy, enthusiasm or our ability to have face-to-face negotiations with decision makers. We also make sure that we innovate and have recently developed our risk analysis tool to provide detailed, focused benchmarking of Assets and Business Interruption programmes. This is the most sophisticated tool of its kind in the industry and allows us to benchmark property damage and business interruption insurance programmes.

Key challenges faced by mining companies range from property challenges to casualty and terrorism and political violence. Marsh provides structured programmes to our clients to deliver policy limit options to reflect our clients’ event risk exposures when dealing with risks such as natural catastrophes. With mining activity spread extending to geographies prone to changing seasonal weather patterns this type of cover has become vital for client consideration.

Companies also need to assess operational challenges associated with more difficult mining environments such as deep underground, under water or high altitude mining and ensure they mitigate this risk effectively. Such risks include sudden and accidental pollution, which can have considerable environmental impacts and affect local populations. Other risks include employee exposure to pollution associated with mineral extraction.

Marsh is the pre-eminent provider of Mining Sector business to the international insurance and reinsurance market. Our client base ranges from small single site operations to some of the world’s leading multi-national corporations and covers virtually every form of mining in all corners of the world. This diversity gives our highly experienced team a broad based knowledge of the exposures and requirements of clients within this very specific and challenging sector.

With the size of our portfolio and our global network, we offer a real advantage to clients who are in need of an Insurance Solution.

PAGE 34 APR 14

Swakop Uranium POWER As for powering the mine, you can probably imagine a serious amount of fuel will be required. A large scale load-and-haul method will be used and this will required the use of 39 haul trucks, each with a payload of 327 tonnes, four front-end loaders, three rope shovels and four hydraulic face shovels.

When the haul trucks are fully loaded they will weigh around 570 tonnes and throughout the life of the mine, it is expected that 680 million litres of diesel will be consumed.

Initially, during the first year of the project, diesel generators will supply the power. These will soon be replaced by a temporary supply from NamPower. After two and a half years, NamPower will provide permanent power at 220 kV. Marais says that discussions about power supply are ongoing with NamPower and ideas for a new power station are already being considered.

“Namibia is very reliant on Eskom which has some major delivery issues right now. These may not be resolved in the short-term, so we are in discussions with NamPower. We have indicated to them our power requirements when we are in full production,” he says.

“We’ve spoken to NamPower about the immediate commencement of construction of at least one 100 MW power station in or around the coastal region. This could take any form, maybe HFO, coal or gas, but whatever they decide, we want them to treat this as a critical issue. In the meantime, we are busy planning alternative power supply arrangements, which should be regarded as a fall-back option.”

Swakop Uranium is always keen on using existing infrastructure so that employment and turnover can be created for the local economy, but Marais says when existing infrastructure cannot provide, the company would look for alternative arrangements in need.

RECRUITMENT DRIVE The creation of jobs has been one of the standout factors when looking at the Husab Mine’s benefit to the local economy. It is reported that during construction, around 6000 jobs will be created. Marais confirms that when the mine is fully operational, Swakop Uranium will employ about 1500 people, increasing employment in Namibia’s mining sector by 17%.

“Our recruitment process is very robust. We advertise in all local newspapers initially, looking for local skills. If we are unable to find skills locally, we would look to the international labour market, including South Africa, as it has a nice mining base.

“Obviously, we are looking for engineers; mining engineers, chemical engineers, electrical engineers, and similar disciplines.

When we have mining sorted, we will start looking at the processing team, which is critical.

“Then we have the support functions including environmental specialists, health and safety people and laboratory people. The list is endless.

“After we’ve done with that skills base, we have to look at supervisory mining, supervisory processing, export people, finance people, operators, drivers and the like,” explains Marais.

Importantly, in-house training is set to be provided for

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company profile various positions providing yet a further benefit to Namibia, building a local skills base that will eventually be able to take care of the day-to-day running of the mine.

“We will train our drivers and operators in-house. They will be driving massive pieces of equipment. We will probably have around 1000 drivers and operators, so it’s an important group,” says Marais.

“There is a significant recruitment drive underway right now. We are finding that there is a shortage of local skills, so we will have to bring in some outside expertise and build training programmes so that local people can take over.”

A RESPONSIBLE CITIZEN Training people and contributing to economic development is part of Swakop Uranium’s input to a national drive which is focussing on improving education in Namibia.

“There is a document in Namibia called Vision 2030.

Part of that is a national vision surrounding the education of Namibians. We have aligned ourselves with that national vision and that is why we are committed to training people as part of our long-term sustainability plan.

“There is no legal requirement for us to do this in Namibia.

Bringing in expatriates to fill the gap is a short-term plan. The long-term plan is to train local people for senior roles. That’s why we’re taking people out to China so that they can get their Masters and Doctorates in mining, mining processes, geology and similar disciplines,” explains Marais.

Swakop’s influence, however, goes a lot further than the training of employees and potential employees.

“We are getting involved with local schooling, doubling capacity and improving education more generally there because bringing people into an area has an impact on the number of seats available at schools for employee’s children. We have had board approval to buy land and participate in the construction

PAGE 36 APR 14

of the school.

“We will also be developing SMEs to participate in the supply chain for the life of mine,” says Marais.

NO SLOWDOWN When the results of exploratory drilling in the Husab area were returned and released in 2008, the world was facing a global economic slowdown, the likes of which had not been seen in modern times.

While this slowdown had a major impact on businesses across the globe, the uranium market remained buoyant and Swakop Uranium felt little impact.

“Whilst there was a global slowdown, the resources sector did not suffer in a major way, certainly not the uranium sector and certainly not up until Fukushima.

“I don’t think the global slowdown had too much of an effect, there was already pent up demand from the existing reactors and planned reactors and this had to be met with increased supply and that would have continued despite the financial situation in the world.”

The limited impact of the global financial crisis is demonstrated by the speed in which the mine has gone from exploration to development. “From 2008 to 2015, that is almost record time for getting a mine from discovery to production, it’s been radically quick; some mines take 15 years to come on stream,” says Marais.

And there will be no slowdown in the coming months. With all deadlines met so far, it seems as though this project will fulfil its undoubted potential and help to put Namibia on the global mining map. The next milestone is the completion of all construction activities and the commencement of full scale production in both the mine and processing plant – an exciting prospect and one that Swakop Uranium and its partners are on track to deliver at the end of 2015.

.

Swakop Uranium SWAKOP URANIUM AND M-TECH PARTNERING IN CREATING A SUSTAINABLE MAINTENANCE CONCEPT Years ago, the consequences of failure were relatively slight and the demand for maintenance was activated purely by breakdown. However, due to the introduction of large, complex systems in production and refined production-control as well as the growing awareness of the natural environment and increasing labour costs have made the improvement of maintenance control imperative.

Improvement of control presupposes the introduction of more sophisticated maintenance concepts.

Therefore, when Swakop Uranium enquired from M-Tech (see the advert alongside this article) about the establishment of an ideal maintenance development process for their Processing Plant in the earlier part of 2013 the M-Tech Team went to work. The brief from their Managing Director, Dr Jasper Coetzee was that their proposal needed to include all the components to start the maintenance of the mine on an excellent footing. This, after all, is M-Tech’s focus and area of expertise!

The M-Tech project team knew the importance of having a maintenance environment that is designed to be able to serve the plant appropriately. They also realised that in meeting the longer term objectives of successfully operating the plant system, it is essential that all aspects of the system be considered on an integrated basis. This is especially true of the support capability. Of particular importance is the determination of the maintenance needs of all critical equipment, with a view to ensuring that the necessary facilities and skills exist to service the maintenance demand.

This meant designing a state of the art Maintenance Concept for Swakop Uranium. This Maintenance Concept is the set of rules prescribing what maintenance is required and how demand for it is activated. It includes identifying the critical equipment and their main subcomponents. Thereafter the main tasks to be performed on these units are determined and translated to workshop requirements, maintenance facilities, and equipment as well as establishing which skills are needed to execute the required tasks. A list of suggested support and test equipment is provided and the workshops are designed to ensure provision of adequate logistical workflow to facilitate high Operational Readiness of the plant.

Maintenance information and operational systems guidelines are developed to enable the selection of an appropriate CMMS (Computerised Maintenance Management System) and guidelines for maintenance organisational design are determined. The final step is the generation of a personnel training plan as well as the development of first approach maintenance strategy.

In summary it is clear the development and execution of such a maintenance concept is a huge challenge and we wish Swakop Uranium well in continuing their drive APR 14 PAGE37 towards excellence.

company profile

Innovative protection for industry workers across South Africa Editorial: Harriet Pattison Production: Chris Bolderstone

With over 50 years of experience in the protective clothing industry, Pienaar Bros continue to provide industry sectors with comfortable, innovative and even fashionable safety wear. IndustrySA speaks to Contracts and Marketing Manager, Pieter van Deventer to find out more about the company’s continued success…

Protective clothing giants, Pienaar Bros, started in Cape Town almost 50 years ago. In 1987, Brian Pienaar, currently the controlling shareholder, moved the company into the mining and manufacturing sectors of the inland of South Africa and Southern Africa. Today, Pienaar Bros supply Personal Protective Equipment (PPE) to industry sectors across South Africa, Botswana and Mozambique.

Pieter van Deventer, Contracts and Marketing Manager at Pienaar Bros has over 15 years of experience in this industry, ten of which he has spent at Pienaar Bros. He explains: “We cater for all

PAGE 38 MAY 14

sectors of the mining and manufacturing industry – from pharmaceutical to chemical manufacturing to construction to engineering businesses and the various mines in Southern Africa. In all areas where personnel needs protective equipment, Pienaar Bros are involved.

There aren’t any industries that we do not cover.”

For a business to be involved in all industry sectors across South Africa is certainly no easy task but Pienaar Bros have secured that all important and unrivalled front seat as leaders in an industry which is not only constantly changing and improving, but one where safety is absolutely paramount. Working within so many varying sectors means an increasing array of products

Pienaar Bros

for Pienaar Bros to research and design. “Certain industries make use of certain types of equipment. The manufacturing industry makes use of a different type of portfolio to the mining industry which is then different to construction” van Deventer explains.

THE PRODUCTS

how the goods can be more fashionable and more comfortable. Comfort is a very big demand as far as PPE is concerned.” Of course, alongside comfort and practicality, van Deventer explains that fashionable equipment has seen an increase in demand too: “More fashionable eyewear is more popular than the old square safety spectacle. You’ve got to look good in your PPE!”

Ranging from protective eyewear and respiratory protection to gloves and hearing conservation, van Deventer explains: “Products are being redesigned on a continuous basis, the market demands different criteria for each product. Different manufacturers are continuously developing and researching to see

Working across such a variety of sectors including construction and mining, it is hard to establish the company’s most popular product, as van Deventer explains: “Respiratory has a very high use in all sectors. Hand and hearing protection is also high.

MAY 14 PAGE 39

company profile Every different type of application needs a different kind of glove. Some products are moved a lot in terms of volume and others are moved a lot as far as price is concerned. Your volumes equal the higher price products as monetary value is concerned.”

With a recent new store opening, Pienaar Bros now have 23 branches across Southern Africa. Involved in almost all industries, Pienaar Bros are now looking to expand into Zambia and into the Copperbelt mining areas. Van Deventer explains: “We have already expanded into Botswana and Mozambique. Our next route is to get to where there is high demand, which will be the Copperbelt in Zambia.”

STAFF TRAINING Across the 23 Pienaar Bros stores, the company’s sales staff are a vital addition to ensure not only the success of the company but that health and safety remains at the forefront of the company’s ethos. “Personal Protective Equipment is a life saving device, it is an income protecting device which protects livelihood. You can’t protect livelihood if the sales staff aren’t properly

PAGE 40 MAY 14

trained to give the best and most safe advice for the application of the product,” explains van Deventer. Of course, staff training in an industry which is helping to safe lives is vital, which van Deventer recognises: “Training, especially in our industry, is very important.

On a continuous basis there is continuous staff training, both in house and with our various original manufacturers where more specialised training is given.”

“Personal Protective Equipment is a life saving device, it is an income protecting device which protects livelihood” Pienaar Bros also have 12 “on-site” PPE stores across large end-user premises. These are manned by Pienaar Bros personnel and contribute to the turnover of some branches by as much as 50%. The stores are open during the day, often 24 hours, to provide the

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MAY 14 PAGE 41

company profile end-user with access to PPE. Van Deventer explains: “This method ensures that an end-user has access to the required PPE at any given time during any of the shifts, drastically reducing down-time due to improper personnel protection. The end-user has access to that PPE without having to place an order with the supplier at the branch and wait for a delivery or for the stock to come in. Every month each store is sufficiently stocked with the necessary PPE as far as the history of usage is concerned.”

PAGE 42 MAY 14

Pienaar Bros have introduced an innovative and effective program creating a personal profile for each end-user wearing PPE. Van Deventer explains: “The software package we have designed is a product exclusive to Pienaar Bros. Each end-user who wears PPE is scanned and registered into the system. This package ensures that only the correct PPE and quantity is issued to each individual end-user applicable to the task. It is a measure of control for the employer where the end-user store is, allowing a degree of control over

Pienaar Bros PPE from several reports available on a regular basis or at the client’s request. It helps the employer adhere to their budget without comprising on safety.”

OSH EXHIBITION This year, from 13th to 15th May, the Occupational Safety and Health (OSH) exhibition will be held at the Gallagher Convention Centre in Johannesburg. Aimed at providing end-users with essential information and up-to-date technology and a platform to both engage and educate on health and safety, the OSH exhibition has seen an impressive increase in both exhibitors and visitors in recent years, with a 32% increase in 2013 to the previous year. Pienaar Bros will be amongst the 90+ exhibitors this year for the first time. Van Deventer explains that the company’s main goal in attending the OSH is to gain further exposure in an increasingly competitive industry. “Although Pienaar Bros has been around for a long, time, there are also much smaller organisations coming on board on a regular basis.

What we are trying to achieve is to get to people and to industries where we are weak in or where we have not yet penetrated those markets. I can’t think of any markets we haven’t penetrated yet but it is another way

of getting the Pienaar Bros brand name cemented into the industry and into the market” he says.

“On a continuous basis there is continuous staff training, both in house and with our various original manufacturers where more specialised training is given” He also says that the OSH exhibition will allow the company to target the entire South African market providing a potentially much wider spectrum for Pienaar Bros. In the past, van Deventer explains that Pienaar Bros have exhibited at other marketing events, “From time to time there are mining exhibitions where you exhibit on the mine’s premises but these are often very short exhibitions and industry specific. You spend half a day on the mine exhibiting your product but the visitors are often mining personnel and you tend to target only one specific industry.”

With almost 100 companies exhibiting at the OSH exhibition this year and an increasing number

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company profile of young budding smaller companies coming onto the market, competition to be the industry leader is certainly starting to hot up. Despite the smaller companies having little industry experience, van Deventer explains: “There is competition in the smaller companies. We find that the smaller ‘resellers’ are a lot more aggressive but that the larger end-users still prefer to deal with the larger suppliers because of the long term relationships and supply agreements between supplier and client.

“The larger companies are able to honour the agreement for the duration, whether that be two years or five years, which the smaller companies are not always able to offer.”

What places Pienaar Bros above its competitors then is a vision to not only provide safe and exceptional service to each end-user but to ensure this is implemented through to the end of every agreement.

Van Deventer explains: “On a continuous basis we provide onsite training to the end user. We take the product specialist or specialist from Pienaar Bros to give training with that client on the client’s premises.

This is absolutely essential in South Africa, not just to provide the product but also provide the knowledge as far as usage of the product is concerned. We must look at it not just from the supplier’s point of view but also from the employer’s point of view. Even the employer

PAGE 44 MAY 14

needs to ensure its workforce is adequately trained to use the PPE in order to provide correct usage of the product.”

BEING A ‘GREEN’ COMPANY With so much emphasis on greener business in South Africa, van Deventer says that despite importing up to 80% of PPE from oversees, “Pienaar Bros have entered into agreements with some of our suppliers and local manufacturers to collect the redundant equipment and dispose of it in a controlled manner.

As far as manufacturing is concerned, it is really up to our manufacturers. Pienaar Bros only purchase from manufacturers who comply with those ‘green’ conditions as this is what the market demands.”

FUTURE EXPANSION PLANS In addition to promoting the Pienaar Bros brand at events like the OSH exhibition, van Deventer says that the company’s future plans for expansion include building on the success they have had in different industry markets. “At this point in time, we are trying to enlarge our footprint in the areas where we currently have representation. I find this a much more economical way to increase your existing footprint before you venture into unknown areas. If you have the knowledge and infrastructure to grow your existing base, get

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that up to a different level before venturing into new markets” he says.

Present in industries across South Africa and with plans to continue to expand on these before venturing into new ones places Pienaar Bros on a well-deserved pedestal amongst increasing competition. With expertly trained staff, innovative and effective programs and ongoing business relationships with clients in South Africa and beyond, the future for Pienaar Bros is looking a very secure and bright one indeed.

.

“If you have the knowledge and infrastructure to grow your existing base, get that up to a different level before venturing into new markets”

Meet Pienaar Bros staff at the OSH Exhibition at the Gallagher Convention Centre in Johannesburg between 13th-15th May, showcasing its innovative and comfortable Personal Protective Equipment!

MAY 14 PAGE 45

company profile

The right connections Editorial: Colin Chinery and Christian Jordan Production: Chris Bolderstone

Innovation and rapid response have grown Apex into sector leader in the specialised plug and connector market. But great connections may need smart adapters, and Operations Director Christos Gerasis tells Industry SA how the business has adjusted to economic and market challenges.

A controlled detonation in a mine, the 24/7 functioning of a complex office IT system, an incubator in a hospital delivery room; in each situation Apex Cordsets, the Benoni-based brand for specialised plug and connector systems and wire harnesses plays a crucial role.

“Our ability to provide products of the highest quality in a cost effective and efficient manner as well as our culture of striving for perfection has allowed us to be selected as a preferred supplier,” says Operations Director, Christos Gerasis.

From its formation in 1986, Apex quickly established itself as a manufacturer of specialised, data, audio and video cable assemblies for the manufacturing industry, with quality and outstanding turnaround times giving competitive edge notably in the white appliance sector.

PAGE 46 may 14

By 1989 Apex had expanded into electronic detonator cable assemblies, reinforcing a commitment to continuous development as well as its position as solution provider to a wide range of client challenges.

Since then Apex has expanded through acquisitions and partnerships to become South Africa’s leading manufacturer of moulded plugs, cordsets, wire harnesses and extension cords – and in the electronic detonator cable assembly niche, supplier to some of the largest initiating companies in the world.

SECTOR LEADER Its close relationship with Detnet, the Modderfontein-based world leader in blast electronic initiation systems for the mining

Apex Cordset Technologies

industry, started in 1994 with Apex supplying electronic detonator wire harnesses. The resulting increase in efficiency and competitiveness in the years following has propelled them to sector market leaders.

“We always offer value to our customers by providing them with high quality products, extraordinary service, all in a cost effective package.

“Another feature of our business is the ability to adapt to their needs as well as having the knowledge and expertise to provide alternative solutions for our customers’ ever-changing requirements.

“In cases where our clients require their own unique products and designs, we offer a total solution - from design and development through to manufacture and product supply.”

Apex’s strong value base is built on the integrity and trust that comes through developing strong relationships between employees, suppliers and customers, “and this has been the foundation of our success,” says Gerasis.

“We generate appreciation and loyalty from all our stakeholders by educating them about safety and performance-related issues on Apex products, as well as the effects they have on consumers and the environment.”

A staff of over 500 is employed across five manufacturing divisions - Apex Leads, Kosmolink, Pintek, Evrotek and EDCAP - and Mr Gerasis points to a core reason for outstanding success – Apex’s five P’s of Ethics in Business – Purpose, Pride, Patience, Persistence and Perspective.

may 14 PAGE 47

company profile THE FIVE P’S Apex’s five P’s form part of the company’s unique business strategy and focus heavily on both internal and external stakeholders.

A business strategy, vitally important for success in the modern business environment, is the means by which a company sets out to achieve its desired ends. It can simply be described as a long-term business planning. Typically a business strategy will cover a period of about three to five years but can sometimes last even longer. Gerasis says that Apex looks to do all business with the five P’s of it strategy firmly in the forefront of its mindset; a method that has so far resulted in nothing but success.

“Our PURPOSE is to become the provider of safe, reliable and cost-effective products that will provide a fair return to all stakeholders.

“We have a management commitment to imprint a culture of PRIDE in all that we are defined to do.

This includes everything from keeping our floors clean to providing our customers with products to which we are proud to attach our Signature of Guarantee.

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“As our business plans and models are long term, we realise and understand that these require constant review and modification. We also accept there may be occasions where short-term losses are unavoidable in order to ensure long-term gains.

This requires foresight and PATIENCE. “And no matter how well worded our mission and vision statement, unless we display PERSISTENCE through our actions and stand by our views, it won’t be worth the paper it’s written on.

“The Apex management realises the importance of calling time-out and taking a step back to evaluate where we are and where we are headed in relation to our original goals. It is this PERSPECTIVE that provides guidance as to whether or not these goals remain the same.”

In response to changing market conditions post2008 and the global recession, Apex realised that to maintain leadership in the local market it had to redefine short and medium term strategies.

“As a part of the exercise, the management invited a team of MBA students from the University of Cape Town’s Business School to conduct an in-depth study of the business and possible growth strategies. And out of this we have

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“This brought about a design and innovation culture within the business which is still in its infancy stage. Meantime we have however managed to provide growth through the launch of several new products. Electronic detonator cable assemblies for example, provided solid growth from 2010 through to 2012 in excess of 15% year on year,” explains Gerasis.

CONSTANT INNOVATION To promote and grow the Apex Cordset Technologies brand, the innovative design team is working on both new and existing products, some in the final stage of testing and approval by regulatory authorities.

The last twelve months have been challenging however, with some customers going into liquidation or moving into business rescue owing to the economic conditions.

“With the ever-growing demand for innovative solutions compounded by increasing competition and rising costs of manufacture, we are expecting

tough times ahead. Underperforming emerging markets and rumblings among trade unions further puts a damper on the immediate future.

“As our business plans and models are long term, we realise and understand that these require constant review and modification” “Yet although various industries are under pressure, there are still opportunities for growth, and our emphasis will be on controlling costs whilst being alert to new opportunities and adapting to the changing global environment,” says Gerasis.

Apex has recently launched a full range of extension reels and high level power surge multi

MAY 14 PAGE49

company profile

plugs which it believes will expand market share in the retail and OEM sectors throughout 2014.

“Our ability to provide products of the highest quality in a cost effective and efficient manner as well as our culture of striving for perfection has allowed us to be selected as a preferred supplier” “We are also planning on two Customer Brand launches which should also provide further growth for the coming year.

“In addition, we have earmarked a number of very

PAGE 50 may 14

exciting new projects, including the construction of a 7000 square metre production facility producing exclusive branded products,” explains Gerasis.

NEW HEIGHTS With these exciting plans for the future allowing for genuine optimism, Gerasis says that the company will continue with its robust focus on customer satisfaction.

“We are constantly striving to achieve our goals and reaching new heights, and through our research and development we aim to expand our product range to provide our customers with a complete one stop solution to their product needs,” he says.

“We have established ourselves in this very competitive market by being very conscious of these requirements and being able to deliver large

Apex Cordset Technologies volumes on time whilst maintaining the highest possible quality.”

The company holds the vision of becoming the preferred supplier of the entire range of plug and connector systems globally and Gerasis says that this will be achieved by delivering products of the highest quality and safety standards and pursuing excellence in the service offered to customers.

“All things being equal, and with the knowledge gained through our past experiences, we confidently anticipate achieving our projected growth target.”

As long as Apex sticks to its tried and tested methods and stays true to its values and vision then there is no reason why this innovative company, supplying vitally important products, cannot go on to achieve its intention.

“Our motto has always been to approach our work in an informed and knowledgeable manner. This is demonstrated by thoroughness, competence, flexibility, dependability and efficiency with which we deliver on our customers’ demands,” concludes Gerasis.

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company profile

Pharmaceutical success from the Karoo?

Editorial: Christian Jordan Production: Hal Hutchison

Rolfe Laboratories is one of the most successful pharmaceutical manufacturers and packagers in the country but based in Middleburg in the Eastern Cape does the company struggle because of its location?

Not one bit according to Chairman, Phillip Rolfe who tells IndustrySA that the people of Middleburg are at the heart of this innovative organisation.

When you think of successful, longstanding, innovative business in South Africa, you tend to think immediately of Cape Town or Johannesburg. Obviously, these two cities are rife with successful business and entrepreneurship. Then you have the other major hubs; Durban, Port Elizabeth, East London, Pretoria and Bloemfontein to name a few, but in the more remote locations, especially areas like the Karoo, surely this is not a place where entrepreneurship and innovation can thrive?

In general, this is correct. Not many businesses flourish in this part of the country but there are a few of examples where this is not the case; one of the most prominent being Rolfe Laboratories.

With a long and eventful history, Rolfe Laboratories has been at home in the Eastern Cape for over a century.

Originally founded as a small pharmacy, a kind of makeshift chemist, today the company is one of the largest manufacturers of pharmaceuticals and one of the largest

PAGE 52 MAY 14

contract packagers in the country.

Founder of the business in its current form and Chairman, Phillip Rolfe tells IndustrySA more about this fascinating company’s history.

HISTORIC SUCCESS “The company is probably more than 100 years old and it started off in a chemist shop, a pharmacy in Middleburg in the Eastern Cape,” explains Rolfe. “They started off selling a skin lightening cream which was sold on a mail order basis to the Cape region of South Africa. As the company got bigger, the pharmacist needed more capital and eventually he got ten farming families in the Karoo region involved.

“Each family put in money and each became a shareholder and they bought in more products. The business grew very quickly so they built a factory and the business got involved with manufacturing. During the Second World War period, the business was healthy and was selling a number of products and the organisation became a more sophisticated consumer

Rolfe Laboratories

selling company and it started selling into the larger cities – Johannesburg, Durban and Cape Town,” he says.

After the War, during the 50’s and 60’s, the challenges of being so isolated became more apparent and the company began to suffer.

“Because the company was domiciled in Middleburg, it didn’t keep up to date with what was happening in the wider market, they lost touch with product development. From the beginning of the ‘70s the company found itself in trouble because it hadn’t kept pace with the market.

“The company found that it either needed to get people in who understood the market or alternatively sell the business.

“I had spent a lot of time in New York and when I returned to South Africa, I was doing a lot of consultancy and I was asked to look at this company and give advice. There was one attraction to this company for me and that was that they owned the Playboy trademark - the bunny - but they had done nothing with it. No one had the skills or the knowledge of the market so the company, KA Laboratories as it was

known at the time, just sat with the trademark and when I came along I realised the value, bought the company and launched the Playboy range of toiletries,” says Rolfe.

PLAYBOY The launch of the Playboy range proved to be a turning point for Rolfe Laboratories and the brand became a huge success providing the platform for the company to expand further and grow to become a recognised name and important employer.

“Playboy was the number one selling male deodorant brand in South Africa and it went from strength to strength and ultimately I sold the brand and then started other brands and new products,” explains Rolfe.

“I then realised that there was a lot of money to be made in contract packaging. It seemed that there was a trend around the world for multi-nationals to own brands but not get involved with activities like logistics or packaging. This provided a huge opportunity.

MAY 14 PAGE 53

company profile “Today we work for big multi-nationals like Unilever, Tiger Brands, Colgate Palmolive and many of similar.

“When I bought the company, there was a staff of about 20-30 people in Middleburg. Today we have 500-1000 people, depending on the season, in the factory alone,” he says.

MIDDLEBURG One of the strengths of Rolfe Laboratories is its location.

Despite being around 770 km from Cape Town and around 740 km from Johannesburg, the company draws on its community for much needed skills and expertise and both Rolfe Laboratories and Middleburg benefit from the company’s continuing presence in the region.

“It has been great for the town. I deliberately stayed there as many people who have worked for us have been with us for 30-40 years and sometimes whole families will work for the company.

“Our head office is in Durban and we have two factories in Middleburg. We have developed our own products and we own a number of brands. Everything from sun tan preparation to mosquito repellent – you name it, we’ve got it,” boasts Rolfe.

“From a humanitarian point of view, we have stayed in the Cape because we are so important to the town. We are good

for the whole region. For every one person that we employ, we feed many mouths and that has been the motivation for us to stay in Middleburg.

“I deliberately stayed there as many people who have worked for us have been with us for 3040 years and sometimes whole families will work for the company” “We are a one stop shop for multi-nationals who come into the country who don’t have local knowhow. We can do everything from sourcing materials, developing packaging, creating formulas, controlling accounting – we become their company in South Africa,” he explains.

‘A COMMITMENT TO MYSELF’ Since Rolfe bought the company in the late 70’s/early 80’s, one philosophy has always remained and that is to continue to create employment, no matter how far technology comes and

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how easy and cheap automation can be.

“In the beginning” Rolfe says, “I made a commitment to myself to employ as many people as possible. The more people we employ, the more people we feed and that philosophy hasn’t changed.

“We could wave a wand now and become even more sophisticated but that is now where we want to be.

“Because of the changing nature of our business, we have become a lot more sophisticated. We have more sophisticated technology, sophisticated machinery but we have remained competitive.

“We used to manufacture 50,000 roll-ons per month but today we are capable of manufacturing two million per month.

We have become one of the major contract manufacturers in the country. Everything has increased and with that increase comes improvements in everything but we still try to keep as much as possible manual,” he explains.

And by keeping as much of the work manual, the company can keep control over quality and, perhaps most importantly, continue to contribute to the economic development of the region.

“You get some incredibly bright guys who come out of the Karoo and then go off to top universities around the country and come back with great skills, very employable. When these

people return from university, there aren’t many companies in Middleburg that can offer them careers like we can,” explains Rolfe.

“We train all the time. In our business you have to train, it’s compulsory. It’s an on-going thing; we are always trying to raise the level of competency.”

“I made a commitment to myself to employ as many people as possible. The more people we employ, the more people we feed and that philosophy hasn’t changed” Training at Rolfe Laboratories is generally successful and Rolfe states that there are significant opportunities for unskilled workers to learn important skills and work their way up the ladder and eventually hold senior positions within the company – another positive of the business operating where it does.

“There is no doubt about it. It’s happening all the time; there are numerous examples of this in our factories in Middleburg,” he says.

MAY 14 PAGE 55

company profile

PAGE 56 MAY 14

Rolfe Laboratories A FAMILY FUTURE? As well as benefitting the region, Rolfe Laboratories presence in the Karoo has provided Rolfe and his family with much to be proud of. But with many years of success behind him, Rolfe admits that it is his ambition for his children and his children’s children to take control of the business when he eventually retires.

“I am now the Chairman and my son, Bradford, is the Managing Director.

“There is no doubt about it, that is my vision. When I’m not here, whether that remains the vision for my son, I’m not sure. We also have the desire for my younger son, who isn’t currently involved, to come on-board with us.

“We are regularly receiving offers to be bought out but we don’t want to sell. We are happy with what we do; we are comfortable with our success.”

EXPANSION So how does a company that has seen so much success from a relatively isolated location go about expanding? Rolfe says that the South African market still has a lot to offer and Africa and other international markets have good growth potential.

“Everything in the first instance is made for the local market and then it goes up into Africa” he says. “We have already tried little forays into places like the USA, Dubai, India and we continue to supply there but not on a large scale because we are engrossed with what we are doing here and in Africa and Africa is becoming big. Countries like Nigeria and Kenya are growing rapidly and are becoming big markets.”

But when realising expansion across the border, Rolfe says you have to understand your market place. “We are looking at what we do and what we understand as the South African market is so different. South Africa has had a huge impact on what is happening in Africa. There are a lot of our chains opening in Africa so we do understand Africa but India and the like have very different cultures.

“Africa would make sense first but I wouldn’t rule out going elsewhere. I have spent a lot of time in the UK and the USA and I think when you go into a territory like that you draw on the local people; that‘s where you gather your knowledge and expertise. You have to listen; you can’t just force your ideas on people who have been around for a lot longer than you.”

So expansion plans are likely to continue developing as the African continent continues to post strong growth figures.

SUCCESS THROUGH ADVERSITY One event that had the potential to slow Rolfe Laboratories momentum occurred back in October 2013.

An explosion caused damage to one of the factories in Middleburg with widely reported detrimental effects on the community and on the business.

At the time Brad Rolfe said: “The community has provided

phenomenal support,” again highlighting the company’s brilliant relationship with the region.

Since the explosion, business has returned to full operation and much progress has been made with the damaged part of the building as Rolfe explains: “We are fully operational. We had so much space in that factory so we are doing a full re-design. The portion of the factory where we had the problem is being demolished. The front part of the building, mainly the office area, was affected but behind that was unscathed. We were back up and running within a month.

Because of the need for speed, we bought in builders from Port Elizabeth.”

This event, although tragic, was proof that with drive and determination, business can continue to thrive even during times of adversity. Through its relationship with its employees and the wider community, Rolfe Laboratories has managed to remain one of the country’s industry leaders and with no plans to vacate Middleburg anytime soon, it looks as though there will be much to look forward to for the company in the future.

.

“We are regularly receiving offers to be bought out but we don’t want to sell” MAY 14 PAGE 57

company profile

Lesotho’s Metolong Dam close to completion

Ash Resources is South Africa’s leading manufacturer and supplier of fly ash products. With a proud track record of quality and innovation, the company has pioneered the development of fly ash as a major sustainable material for the construction industry. IndustrySA finds out more…

Ash Resources, South Africa’s leading manufacturer and supplier of fly ash products, is adding the Metolong Dam Water Supply Programme (MDWSP) to its impressive track record of water infrastructure projects in Lesotho.

MDWSP is designed to cater for the long-term needs of the important lowland areas of Lesotho. In particular, it will provide a new raw water supply for the country’s capital, Maseru, and the surrounding area, which has historically suffered from water shortages.

Ash Resources has supplied approximately 22,000 tons to date of its classified siliceous fly ash DuraPozz® to Sinohydro, the Chinese contractor for the key component of the MDWSP, the Metolong Dam, which impounded on 17th February 2014,

PAGE 58 MAY 14

together with its inlet tower and associated pumping station. A further estimated 11,000 tons is required to complete the dam contract, which is expected to be achieved in September 2014. Ash Resources has also delivered approximately 4000 tons of fly ash to other contractors and ready-mixed concrete producers for the construction of the MDWSP’s water purification works, a raw water reservoir and portions of the pipelines.

Metolong Dam is a 83m high roller compacted concrete (RCC) dam with a design crest length of 280m, constructed on the Phuthiatsana River, approximately 35km from Maseru. Contractor, Sinohydro, established an on-site batch facility to provide the estimated requirement of 280,000m³ of RCC and 40,000m³ of conventional vibrated concrete

Ash Resources

(CVC). The Beijing based contractor is a global top-ranking construction and hydropower group that is involved in a range of projects on the African continent and has worked on major international projects such as China’s Three Gorges Dam, the world’s largest water scheme.

“Our association with Sinohydro began over three years ago with the construction of the Kariba North Bank project in Zambia,” said David Kanguwe, Ash Resources’ Commercial Manager. “For Metolong Dam, they required a consistent quality classified fly ash and wanted to deal with a company that had a track record for reliable supply of large quantities of quality fly ash to major dam construction sites.”

A high fly ash content in the RCC for construction of a dam helps to control heat of hydration during

mass concrete pours. Arising from discussions in Maseru with consultants, Arcus GIBB, and Sinohydro, Lafarge’s Quality Department Southern Africa (QDSA) advised on the mix designs for RCC and CVC and conducted laboratory evaluations. The outcome was that Sinohydro accepted QDSA’s mix design recommendations for the RCC mix to contain 66% and the CVC mix (grade 25/38) 52% of Ash Resources’ DuraPozz® classified siliceous fly ash.

The recent abnormal rainy season has had a significant impact on the Metolong Dam construction programme, which has contributed to pushing back the anticipated completion time of April by five months. Delivering to the Metolong project site had its own challenges: in addition to coping with border crossing delays, the final 18km of dirt road were

MAY 14 PAGE 59

company profile frequently flooded and damaged by the rains. Apart from this, the very nature of dam construction leads to considerable variance in the fly ash usage – when the conditions were right, the contractor did major non-stop pours, and the consumption of cementitious

“For Metolong Dam, they required a consistent quality classified fly ash and wanted to deal with a company that had a track record for reliable supply of large quantities of quality fly ash to major dam construction sites” materials increased dramatically. However, Ash Resources has a great deal of experience to call on from the days of supplying the Lesotho Highlands Water Scheme and, in particular, supplying almost

a quarter of a million tons of fly ash for the construction of the enormous Katse Dam. “While being able to guarantee supply of large quantities of consistent high quality fly ash from our SANS 50450 certified plants is a major competitive advantage for us, our aim is to satisfy a construction contractor’s needs in all respects,” adds Kanguwe.

“This is where our logistics team plays a major role in ensuring fly ash is always available on site no matter what delivery challenges may be encountered.”

“We are very pleased that we chose the right fly ash supplier in Ash Resources,” comments Mr Xie Yunhua, Deputy Project Manager of Sinohydro.

“They not only lived up to their guarantees but they lived up to their reputation for acting as committed supply partners in a project. The company gave us outstanding support which meant that we never ran out of fly ash. If we build other projects in Lesotho or South Africa, we will select Ash Resources as the fly ash supplier too.”

“Water is such a vital commodity in Southern Africa: it can completely transform the economies and quality of life in disadvantaged communities.

This makes water infrastructure projects especially

Ash Resources

MAY 14 PAGE 61

ltd

Service Excellence is not a skill – It’s an transport Attitude Having started as a one man transport operation with a single Mercedes Benz 1313, delivering gas cylinders in 1995, LTD Transport has evolved into a mainstream logistics, transport and delivery company servicing the Cementitious and Industrial sectors.

The constant growth over the past 18 years has seen substantial growth in the fleet which today comprises 35 Taut Liners and Flatdeck units as well as a fast growing Dry Bulk Tanker fleet which currently stands at 35 tankers and is set to expand further during the current year.

LTD Transport has developed a national footprint with routes extending across many of the SADC countries bordering South Africa and has established an ever increasing reach into areas not previously served.

To maintain optimal levels of service and financial fitness a transport service provider needs to extract the maximum utilisation from all resources while still meeting the stringent quality and safety expectations of a client such as Ash Resources.

We at LTD Transport believe that service excellence begins with each employee’s commitment to improve every aspect no matter how small that is directly within every employee’s control.

By keeping an “at your service” attitude and striving to exceed customers and each other’s expectations, we are working hard to become a benchmark for superior service - not just for transport companies, but for all sector’s that we have dealings with.

LTD Transport - 011 979 0995/6 Alternatively

Duard Pretorius duard@ltdtransport.co.za

0826533341

Ian McKenzie ian@ltdtransport.co.za

0824517378

Ash Resources important to all of us at Ash Resources,” says Kanguwe.

“We are proud to maintain our status as the preferred supplier of fly ash for water schemes in Lesotho and look forward to building on our good relationship with Sinohydro.”

For over thirty years, Ash Resources has achieved international recognition for its pioneering development of fly ash, a by-product of pulverised coal-fired power stations, into a versatile range of environmentally-friendly, cementitious building materials and industrial fillers. Ash Resources’ products help to provide the construction industry with solutions for more effective cement and concrete formulations that extend the boundaries of performance, while significantly reducing greenhouse gas emissions. The company operates five plants in a widespread production footprint that enables it to give unique assurances on the supply of fly ash quantities required by any project, regardless of size or distance.

“We are proud to maintain our status as the preferred supplier of fly ash for water schemes in Lesotho and look forward to building on our good relationship with Sinohydro”

The ideal partner for all your transportation and logistics requirements Partnering with Ash Resources for the past decade, transporting fly-ash from Mathla (Kriel) and Lethabo (Vanderbijlpark) to Port Elizabeth, Knysna, Plettenberg Baai to Cape Town and East London

BTW No. 4810171092

Office Phone: (011)964-1135

P.O. Box 9161

Office Fax: (011)964-1061

BRENTWOOD PARK

E-mail: Groblers@global.co.za

1505

junior_g@global.co.za

New MD for Ash Resources Ash Resources, South Africa’s leading manufacturer and supplier of fly ash products, appointed Tshepiso Dumasi as Managing Director on 1 March 2014. South African born and educated, Dumasi has been the Commercial Director of Lafarge Chilanga Cement in Zambia since 2011.

For over thirty years, Ash Resources has pioneered the development of fly ash, a by-product of pulverised coal-fired power stations, into a versatile range of ‘green’, environmentally-friendly, cementitious building materials and industrial fillers.

Dumasi holds a B Tech degree in Marketing Management and a Masters in Business Administration from Vaal University of Technology. He has extensive experience in sales and marketing and joined Lafarge South Africa’s cement business line in 2008 as a

Key Accounts Manager, later to be promoted to Regional Sales Manager before his move to Zambia. A strong believer that providing genuine customer service is vital for any company’s success, Dumasi is credited with increasing Lafarge Zambia’s market share from 51% to 75%.

“Ash Resources has a proud track record of achievement in technical innovation and has a wide range of interesting new innovations in the pipeline,” adds Dumasi. “I see an immensely exciting time ahead, building on our traditional business areas and expanding into new markets.”

When he is not working or at home, Dumasi can be found on the golf course or engaging in challenging sports: one of his most memorable achievements was climbing Kilimanjaro. He is married and has two young sons and a daughter.

MAY 14 PAGE 63

company profile

True industry leaders Editorial: Roland Douglas Production: Chris Bolderstone

It seems as though there is no slowing the development of GRW, the country’s leading trailer and truck body manufacturer. The company is involved in all aspects of design, testing, manufacture, service and maintenance of some of the most advanced trailers and bodies in the automotive industry and despite tough times, the business continues to thrive.

It is not often that you come across a company that can be genuinely described as the industry leader.

It is such a difficult position to achieve and maintain; it requires innovation, persistence, determination, skill and of course, visionary forward thinking.

Back in July 2013, we looked at one company who does fit this description; Worcester based GRW Engineering. The trailer and truck body manufacturer has been servicing South African and international markets for nearly two decades and over the past

PAGE 64 MAY 14

12 months, the company has continued to grow and expand, embracing some very exciting new developments.

One of the most interesting changes was the investment in a new facility in Johannesburg. The new facility, a R90 million world class service centre in Ekurhuleni, replaced the Devland branch and offers customers ‘an exceptional experience in service and sales’.

GRW CEO, Gerhard van der Merwe told Tanker Talk magazine last year: “We have invested in a

GRW

number of people, especially management positions, throughout the company, and specifically in Gauteng for the new operation, which will be headed up by General Manager, Francois de Villiers.

“The infrastructure will transform our image in Gauteng and take the service side of the business to a new level, elevating efficiencies to an extent that has not been possible in the current premises. Our focus will be on improving customer communication in respect of service delivery and availability of spare parts,” he said.

GRW Holdings sub-Saharan Africa group commercial executive, Johan Richards told Engineering News that the development of the new site would contribute to company’s goal of scaling up production from 800 units a year to 3000 units a year within the next five years.

Richards, the former CEO of UD Trucks Southern Africa, was appointed at GRW on July 1st 2013 and he said that another expansion plan, to install truck-body service points at existing truck dealerships, would allow the company to be more efficient when dealing with customers.

MAY 14 PAGE 65

company profile “When a customer sends a truck in for service at a dealership, the truck body has to be sent to another facility to be serviced, which is a timeconsuming process. We want to change this. We want to provide customers with a one-stop service at truck dealerships,” he told Engineering News.

To ensure that the highest quality standards are met, the company is willing to work on trailers and bodies from different brands for its valued customers. “We are not concerned about the brand of truck linked to the trailer or body – it’s all about looking at the truck and truck body as a holistic entity,” Richards said. This is not a sales ploy to generate more business, this is simply a “requisite standard demanded by GRW’s customers in the transport industry”. Of course, this is not a problem for GRW who already have strong relationships in the industry, particularly with other major truck brands.

CONTINUED GROWTH As well as expanding the company’s presence when it comes to servicing trailers and bodies, there has also been physical growth, providing GRW with an increased footprint across the nation, allowing the company to provide more innovative services to clients.

Away from the growth in Gauteng, there have been other developments as van der Merwe told Tanker Talk: “We have completed the new stainless steel production facility - it is fully operational and providing promising results.”

The new facility is home to the ‘Special Projects Division’ which manufactures products specifically in either stainless steel or carbon steel.

Albert Liebenberg, Special Projects Executive told Tanker Talk more about what happens in the new facility.

“Our re-engineered LPG tanker, featuring a substantially lower centre of gravity, and providing increased capacity and payload, has been fully 3D-modelled, FEA- and design-approved.

“We are going to be testing various American and European equipment brands to offer potential clients options.

“I am also very excited that in our stainless steel line we are currently developing prototype semi tri-axle and rigid drawbar food grade tanker configurations that will be utilised on a large dairy contract.

“The advantage of a dedicated plant to special

PAGE 66 MAY 14

products is that we can offer clients flexibility and a clear-cut delivery date,” he said.

THE FUTURE Back in July 2013, we found that the future was looking particularly rosy for GRW, with all of its planned expansion and today nothing has changed.

The visionary forward thinking has remained and the pipeline of activity remains fully loaded with more contracts consistently arriving.

Van der Merwe told Tanker Talk last year that the company was working on some major developments that could “revolutionise the fuel transport business in South Africa”. The prototype in the spotlight is “fitted with a differentiated fuel measuring system utilising new technology that has not yet been seen in this country”.

The CEO also said that the company was readying a move into KwaZulu-Natal where

GRW

TANK TRUCK EQUIPMENT

GROUNDING & EARTHING DEVICES

LOADING ARMS

INSTRUMENTATION & FLOW CONTROL

FALL PREVENTION EQUIPMENT

INDUSTRIAL HOSES & DRY BREAK COUPLINGS

COUPLINGS (BREAKAWAY & EMERGENCY RELEASE)

“You can delay a new build but you cannot delay maintenance”

INTEGRATED SYSTEMS

VAPOUR RECOVERY & COMBUSTION

GAS COMPRESSION

Tel: +27 (0) 11 792 2196 Email: sales@soliflo.co.za

www.soliflo.co.za

MAY 14 PAGE 67

company profile Manufacturing, asseMbling and Welding

Address: 16 Triangle Street, Paarl Tel:021-862-1000 • Laser Cutting • Hi-Def Plasma Cutting • CNC Punching • Cutting & Bending • Forming (Sheet Metal) • Stainless Steel Polishing • Stainless Steel Brushing • Guillotine Cutting • Mig, Tig and Stick Welding done on: Stainless Steel, Mild Steel & Aluminium

Machining: Address: 18 Kaplan Street, Paarl Tel: 021-862-4440 • CNC Turning • CNC Milling • Broaching • Fitting • General Repair Work • Sub Assembly Projects

We service the private as well as the public sector with the manufacturing of everyday parts and components.

Making use of our skilled staff and innovative designs, we strive for customer satisfaction.

Passionate and dedicated, we are always willing to be of assistance.

CONFERHEUR ENGINEERING “Your one stop engineering solution”

coating

Address: 8 Boland Street, Paarl Tel: 021-862-4932 • Expoxy Powder Coating • Twin Pack Spray Painting • Chemical Treatment • Shot Blasting • Glass Blasting

customers are demanding a dedicated outlet. “We are actively looking for an opportunity to expand our presence in KwaZulu-Natal. While we have a sales person based permanently in the area, customers have for some time been requesting a dedicated service centre. We hope to satisfy that need in the near future,” he told Tanker Talk.

Also, over the last 12 months, the company has looked to jump start its exports and has hence employed people with the specific aim of generating international business.

“We have also contracted the services of a business development manager to conduct a survey into the ever-growing opportunities in Africa,” van der Merwe told Tanker Talk.

If exporting can add further business to the already extremely impressive portfolio, then it looks likely that GRW will be able to extend its position on the top of the pile and continue on the road to achieving its vision of ‘becoming a partner for your modern logistical needs and ensuring total life cycle cost to each customer’.

.

PAGE 68 MAY 14

GRW – The facts Established: 1996 Employees: 600+ CEO: Gerhard van der Merwe Headquarters: Worcester, Western Cape, South Africa

Mission: To be the leading supplier of transport solutions worldwide, enhancing our customer productivity through superior customer service and support, innovation, quality and commitment.

GRW

Specialising in the manufacture of: • Tanker fittings • Sealed compartment delivery systems • Fuel and gas flow meters • Pumps • Aviation refueling systems • Hose Reels • Elaflex agents (Hoses and fittings) • Manntek agents (Dry disconnect couplings)

Contact

Cape Town –

021 982 5474

info@alfonshaarsa.co.za

www.alfons-haar.de

MAY 14 PAGE 69

company profile

Innovative industrial protection Editorial: Christian Jordan Production: Hal Hutchison

Structural Applications is looking to expand its business beyond the mining industry where it has made its name over the past 35 years. Experts in industrial painting, corrosion protection and a range of associated activities; the company is keen to grow in all areas. Founder and MD, Dave Howarth tells IndustrySA more…

Corrosion is one of those words which people the mining industry, or any industry for that matter, don’t like to hear too often. It usually means that some sort of spend is coming and it can potentially be disruptive to business. But if you choose the right partner to assist with your corrosion needs then you will not have to be worried when the word corrosion rears its head.

One of the country’s leading corrosion protection specialists is Structural Applications; a company with 35 years’ experience in the industry, founded by Dave Howarth.

Howarth says that the company is now a leader in its niche and has been developing strongly ever since its inception.

“The business was started by two of us back in 1979.

PAGE 70 MAY 14

We decided we need to make some money in an industry that we’d been involved with. I’d been in contracting on the civils side and my partner at the time had been in sales of building products,” he says.

In the early days, the company dealt with Denso’s Petrolatum Tapes which have been around over 80 years and provide above and below ground and underwater protection to pipelines, fittings, tank bases, steel structures and many more. As successful as this venture was, it had its limitations and was not conducive to the company’s aspirations for growth.

So, in true entrepreneurial fashion, the company expanded its offering and found the mining industry to be one of great opportunity.

“The protection of steel structures was a business that we were quite interested in and subsequently went into

Structural Applications

and did some fairly big projects but it wasn’t enough and not something we could expand into,” explains Howarth.

“After two years we looked into painting, as I had a painting background and had worked for two painting companies in my earlier career, and we decided to start an industrial painting division. Our first contract was with Matthey Rustenburg Refinery and we worked there for some time, giving us a ‘kick-off’ into the paint industry and naturally, because it was a platinum business, we lead ourselves into the platinum industry and the Rustenburg area.

“We’ve niche marketed into that industry and currently we are very mining and maintenance orientated. There is a distinct difference between new work and maintenance work; the disciplines are totally different. We leaned towards maintenance and stayed with it ever since.”

A LASTING RELATIONSHIP A good indicator of any strong business relationship is the time-period that the relationship has endured. Structural Applications is proud to say that some of its relationships go back over two decades and Howarth says that longevity is something that the company looks for when investigating new business.

“We’ve been on some sites in excess of 20 years.

I firmly believe that the longer you are on a site, the more you understand it. This way, we learn not only what we’re doing and what the customers corrosion needs are but we also understand their production and any work that we do will not interrupt their production.

“We work very closely with the mining houses and we have some very long-term contracts and that is what we look for in new business,” he says.

MAY 14 PAGE 71

company profile Structural Applications offers an onsite presence to its clients, something which not all competitors can match, and it is through this presence that the real value of the company is witnessed.

“A surface plant used for refining will have multiple structures and they don’t all corrode at the same time in the same way,” explains Howarth. “Most of the corrosion is located in the ground floor where they are continually washing down. In most situations, the customer would pay for the whole structure to be treated when only the ground area needs it. This is the benefit of having us on site; we can be moved to where we are needed, we can treat smaller areas and we understand how to do it without compromising company output and effecting cost.

“The other advantage is that we can be used for other things if necessary. Our people can be trained up quickly to take care of certain jobs if there is a strike for example. We could maintain a smelter or furnace while it is just ticking over during a strike because our people are familiar with the processes as we have been on site for a long period of time.

The cost of shutting down a smelter is catastrophic,” he says.

Even though Structural Applications calls many of the country’s leading mining houses its clients (including Anglo American Platinum, Impala Platinum, Kumba Resources and many more), this does not guarantee more contracts but from

LBA G AS Striving to enable productivity Alba Gas & Welding Supplies offers: • GAS o A full range of industrial gases kept in stock.

• WELDING MACHINES o Full range of Panasonic, Matweld, Sip and Thermamax machines in stock • WELDING & CUTTING o A full range of gas cutting equipment and accessories are always in stock.

• CONSUMABLES o Complete range of welding consumables from the best names in the industry.

Email: saleseast@albagas.co.za | malcolm@albagas.co.za Tel: (011)524-0950 / (011)524-0403 Fax: (011)452-1787 7c Tsaka Rd, Sebenza, Edenvale

www.albagas.co.za PAGE 72 MAY 14

time to time it can attract big names as Howarth explains.

“Our industry is very price orientated so our list of previous contracts is not always the draw. De Beers approached us after seeing what we are doing on some other sites and we are now building a long-term relationship with them in the north of the country. The main draw is that we can add value to a customer’s operation.”

But even though a lot of the company’s business comes directly from the mining industry, don’t be fooled; these services are vital across a range of industries and because of this Howarth says the business will be looking to expand in the future.

“The main draw is that we can add value to a customer’s operation” “We are not entirely tied to the mining industry. We have done a fair amount of work for other industrial organisations but it’s not the bigger part of our business,” he says.

“We are now looking to spread our wings and move away from our niche slightly but we will definitely remain in corrosion protection. We’ve expanded the type of corrosion protection that we do; we are now doing flooring as well. We do acid proof flooring and fire proofing, and we do a lot of sheeting and we have also looked at steel fabrication.”

Howarth also states that the company will continue with its focus on maintenance work as this is something which “cannot be put off”.

“Budgets tend to allow for maintenance work,” he says, “you can delay a new build but you cannot delay maintenance - the results would be horrific.”

AFRICAN CORROSION As discussed, Howarth expects the business to grow and expand in coming years, building its reputation outside of its niche but one plan that is still under consideration is expansion across South Africa’s borders. This will be the task for son Greg when he eventually takes control of the business.

“There are an enormous amount of opportunities north of the border but I am coming to the end of my career and my son will be taking over so that will be his target for the future.

“We’ve looked at work in Zimbabwe and we weren’t too successful with it. Mozambique, Angola, Botswana and Namibia are our target areas for the immediate future,” says Howarth.

If expansion into the rest of sub-Sahara Africa does go ahead in the future, then the company will need to look at expanding its employee base which currently sits at around 285 people. Recruitment is a challenge for Structural

With over 23 yearsStructural of experienceApplications and outlets in all major cities, Storm Machinery continues to be a leading supplier of abrasive sandblasting and spray painting equipment in South Africa

For full product range please visit

www.stormmachinery.co.za Head Office - Gauteng

Kwazulu Natal

Western Cape

Eastern Cape

Tel: +27 (0)11 894 2005 Fax: +27 (0)11 894 2006

Tel: +27 (0)31 700 8332 Fax: +27 (0)31 700 8334

Tel: +27 (0)21 510 6385 Fax: +27 (0)21 510 1873

Tel: +27 (0)41 367 5120 Fax: +27 (0)41 367 5120

sales@stormmachinery.co.za

salesdbn@stormmachinery.co.za

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Applications but over the years the company has built a robust workforce through training its people from the ground up.

“We really like to get new guys who have not been involved and train them in our own way to our own standards,” explains Howarth. “Sometimes people who are fully qualified can pick up bad habits so we have an active training scheme so that we can bring people up through the ranks. When recruiting we will sometimes bring in people with industry experience depending on the position that we need to fill.

“Industrial painting has only recently caught the eye of industrial educators so now we have NACE courses but they can sometimes be too sophisticated. Paint manufactures are offering training and this is great as they will come along and not only sell their product but make sure the people who apply them are doing it properly.

“It’s great to take people up through the business as they pick up the ethic and develop loyalty to the team so we do this where we can,” he says.

FAMILY FUTURE Of course, the company’s ethic comes from the top and filters through all aspects of business and in the future it will be up to Greg to continue what his father has built over the

past 35 years.

“My son has been with the company for around 14 years now. I don’t spend too much time on site at all now so he is taking over. We have three African shareholders and I hold the balance of the shares and these will eventually go to him.

“You can delay a new build but you cannot delay maintenance” “I think that he wants his children to take over at some point but they have to want to. He was very keen from an early age. I took him to an Impala site when he was 14 and he was fascinated,” says Howarth.

One thing is for certain as we move through 2014; whichever member of the Howarth family is overseeing the business, the focus on quality, safety and technical expertise will remain and this will allow Structural Applications to grow to the position where it can address of the corrosion protection maintenance needs of all industrial operations throughout the country.

.

MAY 14 PAGE 73

company profile

Eliminating energy waste across South Africa…

Editorial: Harriet Pattison Production: Hal Hutchison

Offering professional insulation solutions to help combat energy waste and increase resourcefulness, KAEFER is leading the way in offering efficient and sustainable solutions to its clients across South Africa.

IndustrySA speaks to Managing Director, George Wardrope about the company’s continued success, staff training and exciting expansion plans.

Established in South Africa in 1976, KAEFER SA operates in three main business areas; industry, marine and offshore and construction. Its vision?

To eliminate energy waste. Managing Director, George Wardrope started in the insulation industry over 20 years ago as Commercial Director of Thermal Insulation and he tells IndustrySA how KAEFER SA is now leading the way in helping its customers make the most of their resources and epitomise energy potential.

“Our core business is the design and application of hot/cold insulation solution, access scaffolding and surface protection (industrial painting and specialised coating).” Passive fire protection, acoustic engineering and asbestos removal for maintenance projects and new builds can also be added to KAEFER’s ever-increasing industry repertoire list.

PAGE 74 may 14

In order to support new industry techniques and ongoing developments, KAEFER collaborate with a number of institutions including, Eiif (European Industrial Insulation Foundation) and FESI (European Federation of Associations of Insulation Contractors). Collaborations such as these allow KAEFER to support and operate within the whole of the insulation market. In turn, this helps to place KAEFER high above its numerous competitors in the field as Wardrope explains: “The main competitors in our market are SGB-Cape, RJ Southey and TMS who are all similar in size to ourselves. They are all part of larger diverse industrial groups so have the necessary backing to be able to undertake major projects.” Despite this, Wardrope states that Kaefer is undoubtedly amongst the industry leaders: “One advantage we have is being part of a worldwide group which specialises in the insulation business.”

KAEFER

STAFF TRAINING With more than 20,000 employees worldwide, Wardrope explains the importance of successful staff training saying: “KAEFER has worked hard on this aspect of its business with the introduction of the Sizani Technical Skills Training Centre and the implementation of high safety standards on sites around the country.” The Sizani Training Centre has now been accredited by the Construction Education and Training Authority (CETA) for its implementation of health and safety training and supervisor training opportunities as Wardrope explains: “Training courses are offered on site in South Africa and neighbouring countries and are designed to assist companies meeting the demands of the ever increasing new safety legislations.” Staff training doesn’t stop there with the KAEFER Academy Programme providing training modules for artisans all the way to top management

levels, setting an international standard for its employees. In addition to the company’s successful staff training implementation, KAEFER held a PACT Day on March 11th with colleagues in more than 25 countries celebrating the occasion with quality contests, t-shirt printing and distributing, and BBQs to promote and instil quality at the core of the KAEFER business. At the Rabigh site in Saudi Arabia alone there were over 1000 employees participating and celebrating throughout the day.

KEY PROJECTS Wardrope explains that KAEFER Energy Group, another subsidiary of KAEFER, is currently involved in the new Medupi Power Station. “KAEFER Energy Projects is contracted to supply scaffold services for the boiler mechanical works at the new Eskom Medupi Power Station. KAEFER is currently working

may 14 PAGE 75

company profile on all six units with manpower strength in excess of 500 employees,” he says. With over 18,000 scaffold structures handed over to Eskom, Wardrope explains that KAEFER Energy Group is working with heights in excess of 110m. KAEFER is also involved in a number of scaffolding and insulation projects with Eskom alongside Medupi, including at the Majuba and Matimba sites, with maintenance and outages projects operating since 2010. KAEFER also have involvement with the commercial projects, Sasol Wax Expansion Project and the SAPREF CUI which are both ongoing installations. In 2013, KAEFER provided corrosion protection for the Richards Bay Coal Terminal Project.

INDUSTRY AREAS Operating within three main business areas, marine, construction and industry, KAEFER provide tailor-made solutions for insulation and energy efficiency. The company’s resourceful skills are offered on large scale projects for maintenance, extensions, refurbishments and innovative energy efficient solutions including sourcing new raw materials, helping to preserve the resources of both the customer and the environment as Wardrope explains: “The majority of work is done on the petro-chemical plants (e.g.

SAPREF, ENGEN, SASOL, etc.) and power generation (Eskom stations, e.g. Tutuka, Medupi, Matimba and Majuba).

KAEFER has ongoing maintenance contracts with the majority of the above companies.” He adds: “We also do project work in the following sectors: mining, paper and pulp, chemical, nuclear and breweries.”

With over 90 years of experience in shipbuilding and 30 years spent offshore, KAEFER has built strong relationships

PAGE 76 may 14

with ship owners, shipyards and companies within the oil and gas industry. KAEFER offer imaginative solutions for yaughts, cruise liners and naval vessels and provide safe working environments for drilling platforms.

Within the construction industry, KAEFER operate in many different areas to complete the whole construction process, from the interior finish of both old and new buildings through to the restoration and removal of harmful substances, like asbestos. As a company, KAEFER ensure each process is reliably implemented with accurate costs and project scheduling.

Insulation is a vital process in energy efficiency and in maintaining resources. To help optimise conditions for customers, KAEFER has developed innovative pipeline and turbine insulation with noise solutions, providing optimal working conditions. As with larger scale projects like the Medupi Power Station, KAEFER provide scaffolding solutions for hard to reach areas with qualified staff and abseiling techniques. KAEFER is in the process of introducing innovative Passive Fire Protection systems which include smoke and gases and non-flammable smokeimpermeable materials. These have been developed to allow walls and ceilings to resist flames for longer, omitting the possibility of poisonous gases dispersing.

With so many ongoing projects for KAEFER, is the country’s emphasis on ‘greener’ business having much of an impact on the company? Wardrope explains that sustainability is having a positive impact, saying: “Sustainability at KAEFER has a long history. Working in the field of insulation, energy efficiency has been our daily business since the founding of the company back in 1918.

However, we not only focus on how much energy clients

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can save through our professional insulation. We assume our wide ranging responsibilities in all of the four sustainability dimensions: economic, social, environmental and cultural because we believe these aspects are inseparable.

“We believe that the integration of our sustainable mind set into our daily business activities is essential for long-term growth and it is the basis for acting sustainably. Furthermore, sustainability is part of the corporate culture at KAEFER and to further spread the idea of sustainability and our sustainable mind set, it is essential to involve all employees worldwide.”

LOOKING TO THE FUTURE With a real emphasis on strong management, offering quality service and introducing an excellent safety culture; KAEFER’s continued success can be attributed to many of these points and more. Looking to the future, Wardrope explains that expansion is definitely on the cards: “We have worked on insulation, scaffolding and painting projects in other African countries such as Mozambique, Zambia, Zimbabwe, Botswana, Lesotho and Swaziland.

We are currently looking at prospects in several other African countries together with other companies in our Group” he says.

Within the next few years Wardrope explains that KAEFER is looking to further develop its Fireproofing

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division: “At the moment we are developing our Fireproofing division to expand our range of services.

This service is already offered by the KAEFER Group in several countries around the world, so we have an advantage of relying on the Group to provide us with expert advice and resources.”

In addition to this development, Wardrope explains that KAEFER’s priority is to continue within the petrochemical and power generation fields and to explore new markets such as concentrated solar power plants.

With such success behind KAEFER and many more developments and expansions on the horizon, the company is sure to gain real ground in pursuit of its vision to ‘eliminate energy waste’, something which will be welcomed by all stakeholders.

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“Sustainability at KAEFER has a long history. Working in the field of insulation, energy efficiency has been our daily business since the founding of the company back in 1918” MAY 14 PAGE 77

company profile

A motor retailing master-class Editorial: Tim Hands Production: Ajuanne Payne

The McCarthy Volkswagen heritage is one which proudly spans almost eight decades, over which time McCarthy Retail Limited has grown to become one of the largest and most well respected motor retailers in the world. McCarthy Limited is a member of the Bidvest Group, whose Automotive arm has a trading history in South Africa going back more than 100 years, itself an industry leader and innovator through its setting of the national standard in technical training, rapid adoption of online motor retailing and the development of sophisticated systems to drive customer service.

Across the 11 dealerships the group holds nationally, with bases in Gauteng, Mpumalanga, KZN and the Cape, perhaps the most common thread to the McCarthy buying experience is the importance placed on the quality vehicles on offer, alongside a dedication to the most professional of services. This extends across the comprehensive parts and accessories provisions that each of these dealerships is able to offer, as well as full and expert services to keep even the busiest of customers on the road in all weather.

Among its most successful ventures, however, is its Mastercars programme, offering buyers carefully vetted used vehicles that conform to a rigorous set of standards. Taking the three crucial facets of buying a used car, McCarthy provides confidence,

PAGE 78 MAY 14

peace of mind and satisfaction to those who buy one of these Volkswagens, all of which are either demo or used vehicles within the manufacturer’s warranty. Testament to how attractive a proposition this is, a diverse and extensive range of Mastercars is available at its certified dealerships, assured by a full service history backed by one of these authorised dealers. Boasting the most comprehensive warranties in the industry, an 80 point mechanical check and certified mileage of these ownership guaranteed cars, it is little surprise that McCarthy has seen a huge demand in the uptake of these vehicles.

On the flip side of its business, McCarthy Volkswagen is also committed to remaining at the very forefront of the range of vehicles it is able to

McCarthy Volkswagen

MAY 14 PAGE 79

company profile

“The main draw is that we can add value to a customer’s operation”

offer to its customers nationally, not least in the new Golf R. The fastest production hatchback that Volkswagen has ever built, the vehicle is crammed full of performance and engineering, boasting a reworked version of the 2.0-litre turbo in the GTI, with power increased by 79bhp to 296bhp. This allows the Golf R to promise 0-60mph in under five seconds; while McCarthy’s extensive staff base is permanently on hand to each and every valued owner to offer the very latest tips and expertise, in order to keep these premium vehicles in prime condition, all year round.

Of course, just as its expertise allows McCarthy to confidently advise on the very latest and most technically complex vehicles, this knowledge is applied just as effectively to the most steadfast and familiar members of the Volkswagen range. The Caddy perhaps best embodies the reliable, tough and economical characteristics so desperately sought in fleets that also provide a car-like convenience and design: models are available in short or long wheelbase, a van or seven-seater passenger carrier, efficient diesel or ultraefficient BlueMotion, manual or seven speed DSG automatic. Also, crucially, this is a van in which

PAGE 80 MAy 14

its owners can place full trust, and one which has recently been named the most reliable in its class by the independent Fleet News 50 report, in part due to an Electronic Stability Programme that combines a traction control system and antilock braking system with Electronic Brake Force Distribution and Electronic Differential Lock, all of which combine to prevent swerving or skidding and, of course, offer an infinitely more pleasant and comfortable drive.

No matter the new owner’s choice of car, McCarthy recognises a factor so often overlooked in the process of making this type of purchase, and that is the need for each owner to be made to feel unique. To achieve this, McCarthy refers to the vehicle’s ‘ego’ and ensures that each step of the process is as personalised as possible. Beginning with the situation of each dealership, all of which are in the most convenient locations, all after sales staff are qualified and trained to VWSA standards, and only operate VWSA approved equipment at each location. Normal routine services also include a crucial check of vehicle electronics, with the VAS5051B, the introduction of which has seen a significant reduction in the time required

McCarthy Volkswagen for finding any faults that may be present in the vehicles. Additionally, a 12 month guarantee on labour is on offer at all dealerships, with the guarantee that this is a Volkswagen that will remain a Volkswagen, through the use of genuine parts each equipped with their own 12 month guarantee.

Its affiliation to the Bidvest Group seems a perfect pairing, with this colossal company, operating over five continents with a staff base of 137,000, retaining the determination and commitment evident in a small business heart.

There is a strong focus here on empowering people, building relationships and improving lives, testified yet further in its rating as one of the top 50 Empowering companies in the 2008 EmpowerDEX survey. There is, predictably given McCarthy’s hard-earned reputation, a policy of quality service and parts support, provided to both private and fleet buyers, while on-site access to financial services throughout its nationwide network of more than 100 dealers underpins the ability to secure one-stop positioning. This all combines to aid McCarthy to remain at the forefront of its particular field, offering the very best in sales and support across the nation. With the Volkswagen Polo Vivo having garnered the ‘People’s Choice’ at the 2013 Standard Bank People’s Wheels Award, alongside a comprehensive range of highly soughtafter Mastercars and the very latest in new vehicle offerings, McCarthy looks perfectly placed to offer its unparalleled expertise and passion to more and more customers seeking their own dream car.

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MAY 14 PAGE 81

company profile

A shining beacon in Africa’s copper industry Editorial: Roland Douglas Production: Ajuanne Payne Despite challenges in South Africa’s copper industry, the country’s leading copper producing organisation, Palabora Mining Company, is sitting in a strong position. With changes in organisational structure providing a fresh approach to business and on-going operational excellence, this is one company that is a genuine industry leader.

Copper is one of the most important chemical elements found on this planet.

Apart from being essential to all living organisms, the mineral has hundreds of important uses and has been used by people for thousands of years. But do we often forget about the importance of copper? After all, it isn’t as glamorous as gold or platinum and isn’t as abundant as aluminium or iron so where does copper sit on the list of important minerals being mined? Well, in southern Africa, copper is right up there, mixing it at the top of the list with the shiny names.

Copper, especially in Zambia, South Africa, DRC and Botswana, is hugely important. It provides jobs, creates wealth and contributes to export values and economic development. This is why there are some big names involved in copper mining and why these big names continue to pour there resources into producing more and more of this valuable mineral.

The flagship names in copper mining in Zambia include Equinox Minerals, African Eagle Resources, Luanshya Copper Mine Company and Zambia Consolidated Copper Mines to name but a few and the country ranks as the eighth largest producer of copper in the world (2013) but the industry has been fraught with problems. The distribution of wealth and

PAGE 82 MAY 14

the management of the industry have all been criticised in the past but since privatisation, copper prices (along with the prices of other minerals) have risen dramatically and subsequently the country has seen foreign investments estimated at around US$4 billion.

But in South Africa, the industry is different, the country is ranked 21st on the list of the world’s top copper producers and there is one name that dominates the industry. That name is Palabora Mining Company (PMC) and since its establishment in 1956, the business has been the country’s only producer of refined copper, with an output of approximately 60,000-80,000 tonnes per year.

SHINING HISTORY Palabora Mining Company has, for many years, drawn on the skills and expertise of its local community; the small mining town of Phalaborwa is situated in the Letaba District of the Limpopo Province.

The reason for the company’s, and the community’s establishment in the region, was the discovery of a unique rock formation; the Palabora Igneous Complex.

This ‘complex’ contains a vast mixed bag of metals and minerals and it is thought that the area was once home to a large volcano (2000 million years ago) which

Palabora Mining Company

erupted on numerous occasions helping to create the mineral rich zone that is mined today. Nowhere else is copper known to occur in carbonitites as is the case here, and a host of other minerals such as phosphates, vermiculite, phlogopite, magnetite, nickel, gold, silver, platinum and palladium also occur.

Although PMC controls the region today, it is reported that throughout history there have been different groups of metal workers that have dominated the region including the Makušane-Malatji, MasêkêMalatji, the Shai (in the Mašišimale Hills) and the Majaji-Malatji.

Today, PMC’s operations are state-of-the-art and the envy of many international peers. The company operates a large block cave copper mine and smelter complex with a staff of 2200. The refinery produces continuous cast rod for the domestic market and cathodes for export. Useful by-product metals and minerals include zirconium chemicals, magnetite and nickel sulphate as well as small quantities of gold, silver and platinum. The company has developed a US$410 million underground mine with a production capacity of 30,000 tonnes of ore per day.

Palabora also owns a nearby vermiculite deposit, a versatile industrial mineral with hundreds of uses,

which is mined and processed for sale worldwide. The company supplies most of South Africa’s copper needs and exports the balance.

Palabora’s block-cave mine is a benchmark for integrated design. No other block-cave mine has been put into as competent an ore-body. The block height of the cave reaches a record 450 meters in the centre, increasing up to 700 meters on the periphery, rendering it a world-class mine.

The company is understandably proud of its operations and describes them as best-in-class: “Our fleet of Load-Haul-Dump (LHDs) vehicles tip 3000 buckets of ore per day into four jaw crushers on the northern side of the footprint. Ore is reduced to less than 220mm and fed onto a high-capacity conveyor system up to the shaft complex from where it is hoisted to the surface.

“A mature and highly skilled underground workforce - using best-in-class technologies and equipment - delivers safe and cost-efficient tonnages to the concentrator.

“Palabora uses current leading practices in production, scheduling, reconciliation, rehabilitation and maintenance of the block-cave mine. This includes leading practices in roadway construction, oversize and hang-up treatment

MAY 14 PAGE 83

company profile and the maintenance of loader efficiencies and dust suppression systems,” the company says.

GROWTH Growth has been a key topic for the management at PMC and on-going discussions about the strategy will continue following the recent changes in the company’s ownership structure.

Former Managing Director, Anthony Lennox told Limpopo Business magazine last year that the company had put in place a strategic plan to drive business growth through until 2030. He said: “We have a great asset, committed people, supportive host communities and above all, a solid business case and strategy.”

However, the growth strategy is currently being reviewed following the recent announcement of changes at the top.

PMC announced on April 3rd that Smart Union Resources South Africa, formerly Rio Tinto South Africa, had invoked provisions of Section 124(1)(a) of the Companies Act to compulsorily acquire all the remaining ordinary shares in the company.

Late last year, a consortium led by Smart Union Resources, including South African and Chinese entities - the Industrial Development Corporation, Hebei Iron and Steel, Tewoo, General Nice and the China-Africa Development Fund - acquired 96.9% of PMC shares.

PAGE 84 MAy 14

At that stage, PMC shareholders who did not accept the consortium’s offer were advised that if they did not want Smart Union to compulsorily acquire their remaining offer shares, they were entitled to make an application to the High Court of South Africa seeking an order to prevent this.

The last day for the remaining shareholders to make an application to court was April 1st, 2014.

It had been confirmed that, as of April 3rd, no applications had been made to the court and, accordingly, Smart Union was entitled and bound to acquire the remaining offer shares under the same terms and conditions as those of the original offer.

COPPER INDUSTRY In April, Copper Development Association Africa (CDAA) centre director Evert Swanepoel said that South Africa will need assistance from other African copper mines – particularly those in the Copperbelt region – for additional supply as the country’s stock gradually depletes.

“Currently, South Africa’s primary reserves are decreasing because the local primary copper mines are nearing their end-of-life,” he told Engineering News.

Of course this is cause for concern for PMC who could potentially lose out financially if a deal is struck with Copperbelt producers. Then there is the proposed

Palabora Mining Company

“Mining insurance is a speciality field and mining insurance portfolios should be placed with specialist mining insurance underwriters...”

The GIB group was founded in 1982 and has grown to be one of South Africa’s leading composite insurance broking houses.

In 1990, GIB formed a specialist Construction & Engineering Insurance Division. The division was successful in acquiring Major Construction and Engineering Clients and structuring their Risk Management and Insurance Portfolios.

In 1993 this Specialist Division was expanded to include Mining Insurance and to provide a full prospectus of tailored Risk Solutions for the Mining Industry.

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duty on copper exports which could turn international customers away from South Africa, but Swanepoel is confident that these actions would only benefit the country’s industry.

“The common consensus is that China will remain the key driver for the commodity until 2020, sustaining copper demand until then.

“I believe that African mines and South Africa’s copper industry can both benefit from a partnership.”

Speaking about exports, Swanepoel said: “Legal and illegal copper scrap dealers are exporting copper at rates that vary from about R70,000 per tonne to R80,000 per tonne, which is creating greater demand for copper scrap in the local industry.

“It is important to retain copper and copper scrap locally, as it can be re-melted and used again in the industry.

“By offering the local copper industry the chance to buy the copper first, employment can be maintained, foundry processes can continue and the local industry will grow.”

Whatever the outcome of discussions on exports, PMC will remain in a strong position thanks to its significant customer base in its local market place.

And whatever happens with partnerships with other

PARTNER

African countries, PMC will be confident as it is still the country’s only producer of refined copper and, as such, remains an industry leader, one in which other companies aspire to imitate.

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“Palabora uses current leading practices in production, scheduling, reconciliation, rehabilitation and maintenance of the block-cave mine” MAY 14 PAGE 85

E

company profile

Lancet spearheads new TB offensive Editorial: Colin Chinery Production: Chris Bolderstone

Africa’s Health Ministers’ meeting in Luanda last month, called for governments to take urgent action to improve the health of their people. With TB a top priority, Johannesburg-based Lancet Laboratories is responding with a ground-breaking screening service.

Nine million global new cases of active TB emerge each year – a disease both preventable and curable – and 30% are in Africa.

And while in South Africa deaths have been declining since 2007, TB remains the country’s number one killer, claiming 54,100 lives in 2011 - one in 10 deaths.

But now a breakthrough by Lancet Laboratories, a leader in vital diagnostic and monitoring pathology services, is set to greatly reduce deaths with the introduction of its ground-breaking screening service.

From the South Africa through Sub-Saharan Africa , the Johannesburg-based enterprise operates in the private healthcare environment. Employing around 1000 medical technologists and 1000 nurses, its specialist pathology services are used throughout the corporate, insurance and mining sectors.

Serving 400,000 patients and processing up to 2.1 million tests each month, Lancet’s extensive range of pathology services range across sophisticated molecular and cytogenetic investigations to advanced chemical analyses; sophisticated frontline support in the fight against HIV, tuberculosis and other key health issues affecting the continent.

“Yes we are excited about our TB testing programme,” says Lancet Marketing Director, Peter de Wet. “When you look at history it could take six to eight weeks to first isolate the organism, grow it, and then do a sensitivity test.

PAGE 86 may 14

FIRST IN SOUTH AFRICA “Now, using our new technique, we can give a doctor confirmation of the organism within 48 hours and determine whether it is resistant to Rifampicin.

“What we at Lancet are doing here is endorsed by the World Health Organisation. We were the first in South Africa to start using this technology, followed six to 12 months later – and all credit to them - by one of the State laboratories.”

The disease – then called consumption - was rampant in 18th and 19th century Europe; Keats, Robert Louis Stevenson, Emily Bronte and Frederick Chopin among notable victims.

But this is now an affliction overwhelmingly of the developing world, children in particular suffering as a result of underdeveloped immune systems.

And the consequences are immense. Not only in human terms but also economic. Tuberculosis, said South Africa’s Deputy President Kgalema Motlanthe recently, is “not just a health matter, but also an economic, social and development issue, especially for Southern Africa”.

Mineworkers are especially prone to TB. And according to a World Bank study, while it would cost R330m a year to test and treat mineworkers in South Africa, Lesotho, Swaziland and Mozambique, it would result in savings of about R13bn a year in increased productivity and a reduced spread of the disease.

“The study shows the returns on investment are very high and it makes good business sense to do so,” said

Lancet Laboratories

Asad Alam, World Bank country director for South Africa, Lesotho, Namibia, Botswana and Swaziland.

Peter de Wet agrees. “The associated economic benefit of implementing our screening programme is huge since it means within two days that potential risk is now removed from society.

“Tuberculosis of course is a transmittable disease and if a person is in the community, travelling on public transport or shopping in malls, there’s the risk that they will infect not only their family members and friends but everyone all around them.

“So the sooner you initiate therapy the sooner you are helping the patient and reducing the risk to society - six weeks exposure as against two days.”

Lancet is a traditional medical partnership, with 90 Pathologists. Each has their area of expertise, leading the service not only to ensure the quality and validity of investigations but also to offer consultative services to physicians, managed healthcare institutions, the occupational health environment and the insurance and industry sectors.

Veterinary pathology service is another offering, a comprehensive range of diagnostic laboratory services, rapid turn-around-times and expert interpretation of results and advice.

Established 60 years ago in the heart of Johannesburg’s central business district, Lancet has expanded throughout South Africa and into Botswana, Ghana, Kenya, Mozambique, Nigeria, Swaziland, Tanzania, Uganda, Zambia and Zimbabwe.

SANAS accredited and adhering to international criteria set out according to ISO Standard 15189, Lancet Laboratories is now the optimal partner for anyone seeking pathology and diagnostic services in Africa, committed to providing diagnostic excellence.

CONTINENTAL FOOTPRINT Lancet Laboratories aims to be the dominant force in the emerging new markets in Africa, a strategy driven by being a high quality, low cost provider of a wide range of laboratory tests, and promoting networks between itself, doctors, hospital groups and funders.

And given the vastness of Africa, Lancet is re-enforcing this increasing continental footprint with digital programming allowing faster sharing of information between laboratory and hospitals and health practitioners.

Peter de Wet explains.

“Take the case of a pathologist in Ghana for example. If he has a particular interest in tropical diseases, we could very well refer to him about a patient living in Durban. This telemedicine concept starts to become a reality “This is beneficial for both the client, because of the speedy delivery of results, and for the environment through reduced use of paper and fuel.

“If we look at delivering a result to a doctor via hard copy, it means a courier getting on a scooter or into a car and driving maybe two or three hours. Results on line however can be accessed very rapidly.”

Entry into a new country is always a learning curve, says Mr de Wet. “Each time you may encounter infrastructure

may 14 PAGE 87

Gadget Box

PAGE 88 APR 14

Lancet Laboratories challenges you hadn’t anticipated. And that learning curve can be very interesting, leading you to transfer your experience from one country into another.

“From our perspective, partisanship with a local laboratory is always preferable. It means there’s an established name, established good will, and an understanding of the local medical culture. We can’t come from South Africa and say in effect ‘this is how your medical culture is going to be.’

“Sometimes there are technical differences - equipment for example. But in general it’s a matter of highly qualified personnel adapting to the Lancet processes. And we have a very large focus on constantly upskilling and not only from a technical perspective. Every person in the Lancet organisation goes through training relevant to their position.”

RAPIDLY EVOLVING Peter de Wet terms himself “a hybrid,” a medical technologist in clinical pathology and haematology who

moved into the pharmaceutical industry on the commercial side, joining Lancet four years ago.

“It’s a great position. Despite our size Lancet is like a family business. There’s camaraderie and also the excitement of furthering our expansion plans, moving into the rest of the continent and the implementation on National Health Insurance when it is implemented in South Africa.

“Pathology is a rapidly evolving sphere; techniques we are using now only dreamt about ten years ago. And then there’s the day to day relationship with our customers. And that’s something I enjoy - out there interacting with people.”

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“The associated economic benefit of implementing our screening programme is huge since it means within two days that potential risk is now removed from society”

making a difference... proud supplier of rapid diagnostic screening tests, IFA, RIA, ELISA, point-of-care and fully automated systems innovative excellence

innovative excellence APR 14 PAGE89

company profile

Keeping things running smoothly Editorial: Tim Hands Production: Emily Woodhall

From expertise in automotive and industrial applications, right through to such specialist sectors as pharmaceuticals and wire rope, FUCHS has grown to become the world’s largest independent lubricant manufacturer, providing a complete service to its diverse and expanding set of customers. Its range spans, among others, engine oils, motorcycle lubricants, agricultural oils and greases, and mining specialty lubricants, while the company’s focus on research and development ensures customers are furnished with the very latest in lubricant innovation.

Due in large part to its 400-strong team of chemists, engineers and specialists in more than 40 laboratories across the world, FUCHS products developed within the last five years generate 70% of its current sales.

“To know that there is a huge amount, both of research and development and of technical support, is a real comfort to have from a sales perspective,” states Automotive Market Manager, John Anderson, and it is this commitment to development and innovation that has brought about a significant streamlining of the company’s production operations, as Anderson details: “Firstly, we are overseeing an upgrade to the existing plant facility, where we are talking about three new mixing vessels, each of 30 tonnes. This effectively doubles our production facility there, with our biggest vessel at present only 20

PAGE 90 MAY 14

tonnes.” The importance of this particular upgrade hinges on more than merely an improved capacity, however.

“With this in place, we are better able to dedicate vessels to different products. In the existing facility, say if we wanted to blend the gear oil we would take the best part of three quarters of a day, then have to flush out everything, and by the time we finish there is no time to start on the engine oil.”

While FUCHS is highly skilled at managing the demands of having to constantly switch blends in this way, undoubtedly any innovation which can help curb the time between processes must be welcomed.

“A tremendous amount of our time is spent cleaning up after one blend and making ready for the next one.

It’s like running a kitchen with an insufficient number of pots,” analogises Anderson, which leads to a great

FUCHS Lubricants

amount of ‘washing up’ in between the preparing of these complex products.

“This upgrade means that we will be able to dedicate a vessel to synthetic engine oil, another to normal engine oil, a further vessel to gear oil – and will give us a lot more flexibility in terms of being able to pump out those important products day in day out, with the less important blends taking a back-seat and not slowing down our work. It’s an increase both in the sheer volume we are able to blend, which is way beyond what we need now but will cater for future expansion, and in our flexibility,” he says.

These developments have come about for two principal reasons, according to Anderson. “We’ve got some excellent new customers – John Deere and Volkswagen have been with us for some time now and provide a

significant chunk of our custom, but more recently also we’ve gained business with Liebherr, a large mining and crane company, as well as MTU who provide stationary generators. Business of this sort of calibre has brought huge chunks of volume, which means our flexibility and turnaround of orders has to be quicker than ever.”

It is FUCHS’s flexibility which has won the company many admirers, in particular with Volkswagen; “For the past year they have rated us as having a 100% success rate with orders placed, and as such we have come out as the best supplier that they have in South Africa, in all categories. We’re being measured here against windscreen and brake pad manufacturers, and we’ve still managed to come up tops. To have a 100% success rate at the customer face is something that we jealously guard, and so the flexibility that we’re introducing is to make

MAY 14 PAGE 91

company profile sure that this remains the case.”

To move forward and improve from an already so strong position is the challenge that FUCHS now faces, and is tackling eagerly. It is not a move that comes easily, however, and one which requires the full weight of its experience and expertise to implement. “It’s more than 30 years now that we’ve been in our current plant, and

“This upgrade doubles our production facility”

PAGE 92 APR 14

there was a significant cost involved in raising its roof in order to fit in the new vessels. Clearly, this is a significant external piece of building work that had to take place – the roof had to be removed, the vessels put in, and then the roof replaced in a higher position.” Taking place right in the middle of the wettest summer that South Africa has seen for many years, this is further testament not only to FUCHS’s commitment to its development, but also will provide a significant reduction in waste at the plant, to tie in with its ongoing commitment to environmental awareness and sustainable manufacturing.

A further key aspect of the FUCHS story is its ongoing support and sponsorship of many different classes of motorcycle racing through its Silkolene brand, a high

Structural Applications Unichem House, 27 Island Circle Riverhorse Valley Business Estate Durban 4017 South Africa Telephone & Fax TEL: +27(0)31 534-6000 FAX: +27(0)31 534-6020 Postal Address P.O. Box 4205 Riverhorse Valley East 4017 Email: sales@unichem.co.za Web: www.unichem.co.za

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performance lubricants range designed on the track to ensure the highest in performance and protection. “We have found, in our motorcycle products, that there is a huge differentiation between us and our competitors.

Particularly with performance motorcycle; the user will feel the difference in a change of product – much more so

“For the past year Volkswagen has rated us as the best supplier that they have in South Africa, in all categories”

companies for their dealings, where the actual driver may not even feel the difference.” Growth in motorcycle marketing products has been vast, and this strong range has supported the universal growth of the FUCHS brand, as Anderson concludes: “We tend to find that the lead riders will come to us seeking that ‘fancy product’ that they have seen used in last year’s bike being so successful, knowing that they need the very best in order to compete. We support that, give them some stickers to wear on their bike and clothing, and the whole thing makes a convenient circle whereby everyone benefits from the partnership.”

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than with any other vehicle.”

With this being an expensive hobby, the market for the product will be extremely specific, owners of construction or transport companies, or of factories which are producing machines. “If we can reach these people and show a differential in how we’re treating the machine he uses for leisure, this may well lead then to a decision to use a FUCHS product for the transport used by these

MAY 14 PAGE 93

company profile

The full package of logistics solutions Editorial: Tim Hands Production: Emily Woodhall Billed as an indispensable link in the supply chain, KWE SA is a leader in the field of integrated logistics services, spanning industries including aerospace, automotive and mining. It has striven continually to meet its customers’ needs to reduce distribution cost, through its comprehensive service offering which is, even now, continuing to develop in its quest to further rationalise these supply chains and streamline operations.

Kintetsu World Express South Africa, more commonly known as KWE SA, was brought into being in 1997 through the acquisition of a locally-owned freight forwarding company. “KWE didn’t have any presence in South Africa at the time,” explains National Sales Manager, Louis Coetzee, “and the KWE model in some instances is to look at joint ventures or take over existing freight companies within various countries across the world. It then changes everything to the KWE way, and the business is grown from there.”

Since this time the South African arm of the KWE brand has continued to be recognised for its excellence in the field of integrated logistics services, playing a key role in the global logistics management of aerospace, automotive and high technology vertical

PAGE 94 may 14

markets. “We aim to provide a complete logistics solution to our clients, and in South Africa the solution we put together will be packaged to meet the exact requirements of our clients. KWE SA recently became the first freight forwarder in South Africa to be accredited with an RA 3 certification in accordance with new, EU security measures, an important industry-leading step illustrating its commitment to the highest possible standards in managing its customers’ freight.

The completeness of its services is a key part of the company being held in such high regard. The solutions KWE SA put together would encompass clearing and forwarding, in and outsourced warehousing and distribution, supply chain management, systems integration and project logistics. Also important in KWE SA’s ability to function so seamlessly across

Kintetsu World Express South Africa

all regions is the way in which all of this is packaged together. “We have various supply chain planning systems that we use with our clients – we basically manage their supply chain for them. We’ll take their sales history from the last two or three years and then produce forecasts for them. Utilising this information then enables us to assist them with managing supplier contracts, and replenishing their warehouses on their behalf.

Rationalising their supply chain is one key way in which clients are looking to reduce costs. KWE SA announced at the beginning of April that it has selected the Manhattan SCALE product suite, to further optimise this regional supply chain operation and, as a direct result, support business growth.

Manhattan SCALE is a warehouse management system that KWE SA is implementing in their facilities

across the country, and the system will also enable offsite client warehouse management. The system will assist clients to have full visibility of their inventory at all times and be able to see where in the logistics cycle each commodity is.

The fully integrated approach is key to KWE’s success. The bulk of everything handled is done so through KWE’s own global offices, rather than via a network of agents. This affords greater control over the total supply chain. Clients can see where anything is at any given time, whereas if someone is using five or six different suppliers, with different modes and methods of transport, it’s very difficult to keep a finger on the pulse.”

This personalised package of services covers supplier areas for a vast range of industries – KWE SA has dealings with businesses concerned with automotive,

may 14 PAGE 95

company profile

aerospace, mining, machinery, high technology, agriculture and medical, among others. Aerospace in South Africa is the largest industry vertical serviced by KWE SA because of the work that is done with the national carrier. Mining and machinery would then be the next biggest industry vertical KWE SA handle, followed by automotive, engineering and the agriculture industry.”

It is the aerospace industry which provides perhaps the best illustration of KWE SA’s provision of their comprehensive logistics services: “For the national carrier, we manage both above and below the wing operations on their behalf.”

Our below the wing or technical operation includes managing a 24/7/365 10 000 m2 off site warehouse containing roughly 200 000 SKU’s at the country’s major international airport. KWE handles all the inbound logistics of parts, components and other materials from 1750 suppliers around the world all within stringent customs and excise requirements to meet specific service tiers. We

PAGE 96 may 14

also move and control different aircraft engine types and fully assembled landing gears to and from this facility. We assist with aircraft A, C and D maintenance checks, retrofits, cargo conversions as well as other offsite projects. Our operations are audited annually by the CAA, FAA, BV and EASA to name a few, and always pass with flying colours.

KWE also handles and manages the total supply chain of a major aircraft tyre manufacturer which supplies the carrier. This operation would include tracking tyres by serial numbers to ascertain their position on various aircraft at time of landing, usage and return for retreading as well as total spares management.

Above the wing, we manage a fully integrated seamless cradle to grave supply chain for all inflight passenger comfort and catering services.

KWE’s advanced integrated materials management systems provide us with global visibility allowing us to accurately track and forecast demand, and subsequently replenish the airline’s global supply

Kintetsu World Express South Africa chain as and when demand dictates.” The inflight operation is conducted on a global level integrating and utlising KWE’s vast global footprint. KWE SA is now entering its 10th year as a trusted partner of the national carrier, and is expecting to expand our service offerings further taking bold steps and industry firsts in further pioneering new and innovative concepts for the airline. Our above and below wing supply chain concept was pioneered

by KWE SA, and is fully customisable to suit any industry’s supply chain needs.

Historically, KWE globally has been an air freight business, and that’s where their volumes rank amongst the highest in the world. The everlooming global financial pressures have seen the company’s focus adapt in recent times as there has been a global shift on the part of all companies to move cargo away from air freight and onto ocean and road freight. As a result ocean freight volumes are growing more and more, with air freight volumes growing far less rapidly than two or three years ago. Companies are now managing their supply chains a lot more effectively which will naturally lead to a great reduction in the emergency-type air freight shipments, and a great many more planned ocean freight shipments. These presssures have however not affected KWE SA phenomenal growth path, and in recent years KWE SA have been the number one country within the EMEA region with regards to growth in operating income.

KWE SA is able to provide a flexible, state-ofthe-art platform capable of supporting the group’s activities across its range of industry sectors, and in turn drive revenue and margin growth by enabling an improved level of service and a greater operational efficiency. This development is central to improving the quality of the integrated logistics services KWE SA is able to offer to its customers, and will allow the continuation of the company’s rapid growth.

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company profile

Innovative industrial protection Editorial: Harriet Pattison Production: Chris Bolderstone From humble beginnings through exponential growth in the last 50 years, Foskor continues on its very successful run producing phosphoric acid and phosphates, maintaining the impressive accolade of ‘Best Employer’ and now, giving a helping hand to smaller companies across South Africa

The country’s leading phosphate producer, Foskor has been featured in IndustrySA a number of times, namely due to its exponential and impressive growth since 1951.

Growing from a single phosphate mining operation to introducing beneficiation of phosphate rock into phosphate acid and fertilizers, selling products both locally and globally as far as India, Mexico and Holland.

With over 2000 employees, the majority work at the Phalaborwa site where a large proportion of phosphate rock is sourced. Up to 80% of this production is then transported to the large plant in Richard’s Bay where the remainder of employees are based and where product is then exported from.

PAGE 98 MAY 14

STILL SITTING AT THE TOP Awarded ‘Best Employer’ two years running by the CRF Institute has firmly cemented Foskor as leaders not only in phosphate production but staff satisfaction too. The driving force behind this accolade is the company’s HR department, ensuring staff development is at the front line of Foskor going forward. CEO of Foskor, Alfred Pitse explains: “We have succession plans. The first priority for us is to groom our own people and develop them, it is only when we cannot get people internally that we would look elsewhere for employees. The development of our people and their growth in the company is critical for Foskor.” Succession plans are implemented for employees to grow in the company and despite suffering the effects of the economic slowdown in 2008, Foskor remain determined to retain this award

Foskor

for many years to come by prioritising its employees and maintaining its involvement in the community.

Education remains a strong incentive and focus for the company as it continues to be involved with community projects, namely the Foskor community centre and primary school in Namakgale. Foskor wish to embrace the development and achievements of maths and science in young people. Assisting with various administration activities and providing equipment to local schools and libraries not only places Foskor on a pedestal within the community but also helps to encourage the future generation to work hard and succeed. With such industry recognition, Foskor is able to provide ongoing support for the University of Zululand’s Science Centre to access world-class scientific technology and apparatus.

SUPPLIER DEVELOPMENT INITIATIVE In March this year, Foskor launched the Supplier Development Initiative in collaboration with the South African Supplier Diversity Council (SASDC) to implement, fund and support the development of all black suppliers by giving them a helping hand into the supply chain. The four month training program which runs until July this year, is executed by 20/20 Insight, a company that specialise in both supplier and enterprise development. By working with reputable companies like Foskor, 20/20 Insight help to develop SME businesses in line with its empowerment objectives, driving benefits for both companies. Sifiso Mncube, Divisional Procurement Manager at Foskor, explains in a statement: “In the last four years Foskor took a view that as a company we cannot go forward unless we share the

MAY 14 PAGE 99

company profile

PAGE 100 APR 14

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economy and we are able to bring black suppliers into the core function of what we do.”

The ‘Optimization and Growth Strategy’ training for each of the 10 suppliers involves fortnightly business modules including company diagnostics, accounting, human resource management and planning. The desired outcome of this training is to optimise business and initiate business plans for each individual company with a 10 year business strategy in place to help monitor and maintain business sustainability. What really sets this development initiative apart however is all participating suppliers are 100% black owned companies with two of these owned solely by women. Foskor are going above and beyond the line of duty to give each of these companies an opportunity by investing both knowledge, time and money into ensuring a positive and ongoing development.

LOOKING TO THE FUTURE A major player in both mining and chemical processing industries and dominating the local market, Foskor now look forward to an increasingly

bright future with plans to move further into South Africa and neighbouring countries to ensure all local demand for phosphate production is satisfied.

Staying true to the company’s plan to retain Africa’s independence, Foskor sold a 15% stake of its company to the Manyoro Consortium, a group of six black businesses led by Makana Energy Consortium. This deal will help up to one million beneficiaries, including women and beneficiaries with disabilities, strengthening not only the community spirit of Foskor but its vital position as the country’s leader in phosphate production.

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“In the last four years Foskor took a view that as a company we cannot go forward unless we share the economy and we are able to bring black suppliers into the core function of what we do” MAY 14 PAGE 101

company profile

An industry with export issues?

Editorial: Roland Douglas Production: Hal Hutchison

In the past six months there have been numerous challenges in the South African scrap metal industry but one of the leading companies in that industry, SA Metal Group, has the experience, knowledge and passion to overcome almost any hurdle that is put in front of it.

SA Metal Group is one of the largest and oldest scrap metal companies in South Africa. With a national footprint and state-of-theart technology in all of its yards, the company is always looking for opportunities to expand its operations and make the most of a challenging business environment.

The company has a long and inspirational story and demonstrates exactly what can be achieved with innovative thinking and a determined approach to business.

With some of the biggest and most advanced machinery on the continent, the company is a powerhouse name in the scrap industry but in this year, its 95th year in business, the company and the rest of the industry is facing huge challenges arising from new legislation, set out by the government last year.

PAGE 102 MAY 14

Back in September 2013, SA Metal Managing Director, Graham Barnett gave IndustrySA an insight into the company’s history.

“SA Metal Group (previously SA Metal and Machinery Company)was started in Cape Town in 1919 by my grandfather, Wolfe Barnett, an emigrant from the UK. His father had pushed a wheelbarrow around London in the 1890s collecting scrap. The family immigrated to South Africa in about 1900,” he says.

“At first, the main business was buying up used machinery and breaking it up for spares. Scrap was a by-product and was exported to the UK packed in 44-gal drums on the decks of steamships. As spare parts became more readily available in ‘the colonies’ the machine business dried up and scrap metal became the main focus.

In 1946, my father joined the company and eventually

SA Metal Group

took over the helm. My brother and I joined in the early 1980s and my son entered the business in 2012, as the fourth generation of the family.

“My brother looks after all the operational aspects of the business and I look after all of the administration and trading but we very much run the business together. My son is in charge of the Gauteng operations but very much being guided by his father and uncle. We obviously don’t do it all ourselves, we have a large team of around 1200 people that reports to us.”

“Our main business is scrap metal trading and processing and what that means is that we are buying scrap metal from wherever it arises; from a small dealer, to a large dealer, to a factory, to a parastatal, to a demolition firm, from all these sources we gather in scrap.”

CHALLENGING TIMES One of the key distribution methods for SA Metal is imports as Barnett explained: “We collect scrap metal in a lot of places and a lot of people will deliver scrap metal to one of our many yards.

“We supply integrated steelworks, who have a relatively small demand for scrap (iron ore being their main source of iron units), as well as mini-mills who use scrap almost exclusively. A small amount also goes to domestic foundries. The balance, after domestic demand has been satisfied, is exported.

“It all goes to the East; India, China, Taiwan, Malaysia, Indonesia, they all require incessant quantities of scrap metal, the prices go up and down but there is always a market.”

But a piece of government legislation, introduced in

MAY 14 PAGE 103

company profile September 2013, has had a dramatic effect on the export of scrap in South Africa, not just for SA Metal, but for the entire industry.

Restrictions on the export of waste and scrap metal, which require dealers first to offer scrap to local consumers at a 20% discount before being granted an export permit, have caused unhappiness among dealers and consumers.

Since the restrictions came into play, scrap yards around the country have seen their stock begin to pile because local buyers are not willing to pay high prices as they know dealers will have to go through the process of gaining an export license before they can sell their product elsewhere.

PAGE 104 MAY 14

But who is benefitting from this legislation? Well, at the moment it seems like no one. Scrap yards can’t sell, importers of South African product are looking elsewhere, and local buyers are often overlooked because they are not willing to pay.

Bob Stone, chairperson of the Non-ferrous Metals Industry Association and vice-chair of the Aluminium Federation of South Africa attributed the industry slowdown to the scrap metal merchants, telling the Mail and Guardian: “The problem is the scrap metal merchants blatantly refuse to sell at the preferential price or anywhere near the preferential price. You are forced to pay whatever [they] want to sell it for.”

But John Davies, chief executive of the South African

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SA Metal and RBS Katz Breskal have enjoyed a long-standing business relationship spanning more than 15 years. SA Metal, relies on RBS Katz Breskal to ensure that the appropriate coverage is in place and sound risk management is implemented to avoid interruption to their business processes. This means a meticulous approach to managing their Risk and a quick turnaround time on claims that they may have. Having a strategic insurance business partner like RBS Katz Breskal is key to SA Metal’s on-going success.

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company profile Institute of Foundrymen told the M&G that everyone is finding the new legislation difficult. “At the moment everybody is unhappy with the current system. It’s not working — bottom line,” he said.

The paper also reported that SA Metal has launched a court challenge against the legislation, understandably so considering both their local and export distribution channels have been affected by these restrictions which were designed to clamp down on ferrous and nonferrous scrap metal leaving the country.

The gazetted guidelines stipulate “scrap metal will be allowed to be exported only if the scrap metal concerned was offered to domestic consumers at a price that is 20% below international spot prices for the published types and grades of scrap metal”.

“There are always opportunities to be found but they are fewer and further between in a slow economy.”

So how does the organisation remain positive and continue to run effectively with these outside pressures causing problems in the industry?

Initially, the company looks to its mission statement and sticks to the values set out. “In all our dealings we strive for the highest standards of service, integrity, costeffectiveness and concern for the environment in order to build lifelong relationships with our suppliers and our customers,” the statement details.

OVERCOMING DIFFICULTIES

“At the moment everybody is unhappy with the current system. It’s not working — bottom line”

The difficulties arising from this new legislation come at a difficult time for SA Metal who have already found things difficult because of the tough economic climate that has gripped the global economy since 2008.

“The scrap industry is very dependent on economic activity” Barnett told us, “and this has been declining in South Africa since the onset of the Great Recession. 2013 was a challenging year with slow economic activity. The government has been promising massive infrastructure spending and we are hoping that this will soon be translated into activity.

Barnett also said that a passion for the industry is another thing which drives the success of SA Metal and as the government restrictions look set to threaten the success of that industry it seems certain that the company will do all it can find a solution which suits everyone. “Our success comes from honesty and integrity in all our dealings and hard work and a passion for our business,” Barnett told us and it is likely that this success will continue, even during these tough times – showing the attributes of a true industry leader.

PAGE 106 MAY 14

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