IndustrySA Nov 13

NOV

2013 ISSUE 15

Ultra-Heavy Capabilities Genrec, a division of Murray and Roberts, has played a huge part in the development of the Medupi and Kusile power stations. Business Development Manager, Michael Mamotte tells IndustrySA that the company’s ‘ultra-heavy capabilities’ set it apart from the rest.

Jeannie D

Forestry SA

Displaying entrepreneurial spirit

No substitute for wood

De Keur

Colcab

Sowing the seeds of success

Optimising display excellence

#BeInspired

Every month we discover awe-inspiring stories of successful entrepreneurship, world-leading innovation and universal inspiration.

In the future we will bring you further stories of business excellence and highlight the hard work that is going on in South Africa to grow the nations industries into global leaders.

Your success is our inspiration

EDITOR’S PAGE

EDITORIAL EDITOR Joe Forshaw SUB EDITOR Lauren Grey WRITERS Colin Renton Tim Hands Roland Douglas Christian Jordan Colin Chinery RESEARCH DIRECTOR Chris Bolderstone PROJECT MANAGERS James Clark Leslie Kemp Janis Billington ADVERTISING SALES SALES DIRECTOR Andy Williams SALES MANAGER Daniel Marshall SALES EXECUTIVE Holly Graham SALES EXECUTIVE Mark Leonard STUDIO STUDIO DIRECTOR Martyn Oakley OFFICE MANAGER Tricia Plane ACCOUNTS Mike Molloy, Jane Reeder ECP LTD MANAGING DIRECTOR David Hodgson OPERATIONS DIRECTOR Chris Bolderstone FINANCE DIRECTOR Scott Warman Ferndale Business Centre, 1 Exeter Street, Norwich, NR2 4QB If you would like more information about ways in which IndustrySA can promote your business please call +44 1603 618000 or email info@industrysa.com

East Coast Promotions Ltd does not accept responsibility for omissions or errors. The points of view expressed in articles by attributing writers and/or in advertisements included in this magazine do not necessarily represent those of the publisher.

Any resemblance to real persons, living or dead is purely coincidental. Whilst every effort is made to ensure the accuracy of the information contained within this magazine, no legal responsibility will be accepted by the publishers for loss arising from use of information published. All rights reserved.

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Welcome to issue fifteen...

How do you manage your workforce? What is the best way to motivate people? Is it possible to please everyone? These questions are fundamental to the leadership of any business and the relationships that are made between management and workforce are always under close scrutiny.

This month, we take a look at the ties between management and the workforce and one of the things that we discover is that employees who are catered for, employees who have job security and employees who feel comfortable at work tend to be committed and loyal. Take De Keur for example, a Western Cape fruit and vegetable producer.

This company places a huge emphasis on developing its human capital. It offers housing opportunities to all staff, transport for work related activities, assistance with health care and child care, and training and education opportunities. Because of this commitment to its employees and its community, De Keur tends to gain a good work ethic and loyalty from its people (read the full story on page 20).

Sometimes employees are not nurtured and encouraged to grow, sometimes they are seen as an everlasting cost to business but as a manager you have to ask yourself; where would the revenue come from if you had no employees?

Maintaining the correct balance with regard to the cost of the workforce is a constant challenge but if you get it right your business will definitely reap the rewards; after all, happy people equals happy product and happy product equals happy customers.

Tell us about how you manage your workforce, or tell us how you are managed. What could your people or your manager do better? We love to hear from you via Twitter (@industry_sa) or www.industrysa.com.

Joe Forshaw

editor@industrysa.com

Š East Coast Promotions Ltd 2013

NOV 13 PAGE 3

CONTENTS

42

3 EDITOR’S PAGE Pleasing everyone

6 NEWS All that’s happening in South Africa 10 EnTREPRENEUR Fighting for the consumer

12 Innovation Another world first from SA 14 Gadget Box The next generation?

18 Jeannie D Jeannie in a Bottle

PAGE 4 NOV 13

CONTENTS

20 Genrec

68 Colcab

Structurally sound

Optimising display excellence

26 Exxaro The power of people

74 Safal Steel A real steel future

34 NECSA Nuclear to become the norm

78 LCA Developing rural communications

42 De Keur

84 Bytes

Fruits of hard labour

A print finish

50 Edison Power Providing the spark

90 Civils 2000 Restructuring for the future

56 Bureau Veritas Continuing with coal

94 Kat River Citrus Export excellence

60 Forestry South Africa

98 Industry Recommended

No substitute for wood

This month’s showcased organisations

COMPANY REPORTS

70

NOV 13 PAGE 5

NEWS All that’s happening in South Africa

Spanish firm set for second SA solar plant A consortium led by Spanish company Abengoa has been selected by the Department of Energy to build a second solar power plant in the Northern Cape. The 100MW plant will be located near Pofadder and will form part of the government’s plan to add 17,800MW from renewable sources to South Africa’s energy mix by 2030.

Abengoa is currently building a 50MW solar tower plant near Upington, also in the Northern Cape, and a 100MW parabolic trough solar plant, named KaXu Solar One, near Pofadder.

The company said that the new plant, Xina Solar One, would be located alongside KaXu Solar One and construction is expected to start in 2014. The two plants together will form the largest solar complex in Africa.

Abengoa will control 40% of the consortium that owns Xina Solar One, with the rest controlled by the state-owned Industrial Development Corporation (IDC), the Public Investment Corporation (PIC) and the KaXu Community Trust.

The company is confident that the plant will be of huge benefit to the economy and say that it will have the potential to produce sufficient clean energy to

power approximately 90,000 households while reducing South Africa’s carbon dioxide emissions by up to 315,000 tons annually.

Abengoa CEO Manuel Sanchez Ortega said the project showed “the maturity of solar-thermal technology, which can be efficiently stored and used when it is needed.

“We are extremely satisfied with the trust that has been placed in us by the South African government and the partners that accompany us in this project,” Ortega added.

During construction of the plant, a large number of jobs will be created, directly and indirectly and the company says that once operational, the day-to-day running of the plant will help to stimulate economic growth in the region.

Parabolic trough technology employs parabolicshaped mirrors that are set on a structure so they can track the movement of the sun and concentrate solar radiation onto a receiving tube. Inside the tube, a heatabsorbing fluid flows and reaches high temperatures.

This fluid transfers the thermal energy to a heat exchanger, and then is used to heat water into steam, which ultimately drives a turbine to generate electricity.

© Abengoa

PAGE 6 NOV

NEWS

SA tourism gets a boost South Africa’s tourism industry received a welcome boost last month after Statistics SA reported a 12% year-on-year increase in visitors to the country in the month of July. A reported 1.2 million foreign visitors arrived in South Africa in July according to figures from the Department of Home Affairs.

The figures showed that the majority were in South Africa for holidays, compared to only 6.5% in transit, 1.8% for business and 1.6% for study purposes.

All of South Africa’s ports of entry saw a total of 3,285,691 travellers pass through (arriving and departing) in July 2013, this was an increase of 200,000 compared to the same period in 2012.

Of the tourists who visited the country this year, just

over 200,000 were from overseas. The top ten home countries of visitors were (in descending order): United States, the UK, Germany, Holland, China, Australia, France, India, Brazil and Italy.

There were also around half a million visitors from SADC countries with travellers from Zimbabwe, Lesotho, Swaziland, Mozambique and Botswana accounting for the majority.

Leading the list from the rest-of-Africa in terms of visitors were Nigeria, Kenya, Ghana, Uganda and Gabon.

Of all of the ways into the country, air travel was the most popular accounting for around 90% of entries with road in second place accounting for around 10%.

Irish firm in R9bn SA wind deal The move towards cleaner energy production in South Africa took another leap this month as Irish firm, Mainstream Renewable Power, was awarded preferred bidder status for three large-scale wind energy projects in the Northern Cape.

The Mainstream consortium will invest R9billion in three new wind farms with the combined generation capacity of 360MW: the 140MW Khobab wind farm and the 140MW Loeriesfontein 2 wind farm, both located in the Namakwa district of the Northern Cape, and the 80MW Noupoort wind farm located in province’s Umsobomvu local municipality.

A Mainstream consortium was also awarded 238MW of wind and solar projects in the first round of the IPP programme in 2011 - a 138MW wind farm in Jeffreys Bay and two 50MW solar photovoltaic parks in the Northern Cape - all three projects are on track to be fully operational by mid-2014.

“Mainstream is now the leading developer of renewable energy in South Africa,” company chief executive Eddie O’Connor said in a statement.

“We have three wind and solar projects due to be operational in the coming months, and now a further three large-scale wind farms due to start construction next year.

“I congratulate the South African government for putting in place a process which is truly world-class and for the superb manner in which it has been executed.”

Mainstream will be building the wind farms in

partnership with South African renewable energy developer Genesis Eco-Energy, local investment companies Thebe Investment Corporation, Futuregrowth Asset Management and Old Mutual’s IDEAS Managed Fund, and local community members.

Eddie O’connor © Mainstream Renewable Power

NOV 13 PAGE 7

NEWS All that’s happening in South Africa

De Beers invests further in SA De Beers, the world’s second biggest diamond producer, began construction of its new underground mine beneath its open pit Venetia Mine in Limpopo province last month.

The Anglo-American owned miner said the R20billion investment would extend the life of the mine beyond 2040 while replacing the open pit as South Africa’s largest diamond mine.

The new mine is expected to start underground production in 2021, the company said, and to treat in the region of 130million tonnes of ore containing an estimated 96million carats of diamonds over its life span. The mine will also create 8000 direct jobs and another 5000 in the supply chain when complete.

President Zuma was at the sod-turning ceremony in Musina last month and he said that the investment was “the biggest single investment in the diamond industry in decades, signals that indeed our mining sector is poised for growth, and that it has a bright future”.

Zuma also said that the government is investing much time and effort in strengthening the mining sector so that it

could successfully contribute to the NDP, creating jobs and stimulating economic growth.

Mineral Resources Minister Susan Shabangu, also speaking at the ceremony, said the start of construction on the new mine showed that South Africa “remains an investment destination of choice,” adding that the government would continue, through legislation, to ensure that such investment “sustainably benefits mining communities and labour-sending areas”.

Chief executive of Anglo American and chairman of De Beers, Mark Cutifani, said Anglo American’s roots were firmly in South Africa.

“Over the last 14 years alone, Anglo American has invested nearly R200billion in South Africa, emphasising our commitment and making a real difference for South Africa and all South Africans.

“The positive social impact of skills development, the acquisition of economically valuable experience, and the potential to uplift rural and sometimes poorer communities, is what exists here at the heart of Venetia.”

© De Beers Inspections at De Beers Venetia mine.

PAGE 8 NOV 13

NEWS

Iveco to manufacture in SA

© Iveco

Italian based company Iveco has signed a deal with local company Larimar Group to manufacture trucks and buses in South Africa.

The companies announce the 60-40 joint venture last month and said that the JV company, Iveco South Africa Works, will build a R530million manufacturing facility near Rosslyn outside Pretoria with an annual production capacity of 7000 trucks and 1000 buses and a workforce of around 1000 employees.

The new plant will commence manufacturing operations in the early part of 2014 and will specialise in light, medium and heavy-duty commercial vehicles as well as front-engine and low-floor city buses.

“This joint venture is targeted to serve both the local market, which is one of the most prominent in the region, as well as all the other neighbouring countries federated within the Southern African Customs Union,” Iveco CEO Alfredo Altavilla said in a statement.

The Larimar Group was “honoured to enter into a partnership with Iveco and contribute to Iveco’s growth in Africa,” said MD Franco Pisapia. “We are proud to contribute to this joint venture our manufacturing experience in South Africa and specifically our knowledge of the bus market and of bus bodywork manufacturing.”

NOV 13 PAGE 9

Innovation

SA scientists develop world’s first digital laser Editorial – Lauren Grey

South Africa is widely regarded for its contribution and innovative thinking in the field of science and technology, which was demonstrated this year when researchers at the country’s Council for Scientific and Industrial Research developed the world’s first digital laser.

Here at IndustrySA, innovation, business success and advances in technology are at the heart of what we do, and every month we aim to bring you the latest in ground-breaking technology direct from South Africa.

This month we take a look at the revolutionary findings released by South Africa’s Council for Scientific and Industrial Research (CSIR), which have shown that, contrary to popular belief, laser beams can be digitally controlled from within a laser device.

The Council’s findings were published in prestigious journal Nature Communications, a multidisciplinary journal dedicated to publishing high-quality research in all areas of the biological, physical and chemical sciences.

Announcing the breakthrough at a media briefing in Pretoria, Science and Technology Minister Derek Hanekom, said it demonstrated the country’s potential in scientific innovation, “That the world’s first digital laser should come from our country is testimony to the calibre of scientists that South Africa has.”

It was CSIR researcher, Sandile Ngcobo’s work that led to the breakthrough, and he believes that the digital laser will prove to be a ‘disruptive’ technology. “This is technology which may

PAGE 10 NOV 13

change the status quo and which could create new markets and value networks within the next few years or decade,” Ngcobo said in a statement.

HOW IT WORKS Laser devices usually consist of mirrors, energy (light) and a casing containing a medium such as crystal or glass. The medium is used to change the frequency of the light to create a laser beam with the perfect characteristics for different applications, such as DVD players, barcode scanners, surgical technology in hospitals or devices to cut and weld industrial materials in factories; the list is endless.

In conventional lasers, the shape of the light that comes out is either not controlled at all, or a single shape is selected by expensive optics. Alternatively, the laser light can be shaped after exiting the laser using a spatial light modulator – a liquid crystal display (LCD) that can be digitally addressed with grey-scale images representing the desired change to the light.

However, the CSIR team demonstrated for the first time that the laser light can be shaped and manipulated inside the laser, as Professor Andrew Forbes, leader of the mathematical optics research group explained.

Innovation

“Our digital laser uses the LCD as one of its mirrors that is fitted at one end of the laser cavity. Just as with LCD televisions, the LCD inside the laser can be sent pictures to display. When the pictures change on the LCD inside, the properties of the laser beams that exit the device change accordingly,” he said in a statement.

“We showed that by sending an appropriate picture to the LCD, any desired laser beam could be created inside the laser device. This is a significant advancement from the traditional approach to laser beam control, which requires costly optics and realignment of the laser device for every beam change.

Since this is all done with pictures, the digital laser represents a paradigm shift for laser resonators,” Forbes explained.

In a ground-breaking experiment at the CSIR’s laboratories in Pretoria, the team programmed the LCD to play a video of a selection of images representing a variety of desired laser modes. The result was that the laser output changed in real-time from one mode shape to another.

“The dynamic control of laser modes could open up many future applications, from communications to medicine.

Our device represents a new way of thinking about laser technology and we see it as a new platform on which future technologies may be built,” says Forbes.

.

Professor Andrew Forbes

NOV 13 PAGE 11

Entrepreneur

10% capital, 90% guts Editorial – Joe Forshaw Raymond Ackerman, the man behind Pick n Pay, actually started out working for a rival but after he was fired by Checkers in 1966 this entrepreneur went on to become one of the most powerful retailer businessmen on the continent.

In February 2013, Raymond Ackerman, the mind behind Pick n Pay, celebrated his 82nd birthday and in the last 82 years Ackerman has amassed considerable wealth and business success, success that he puts down to a positive philosophy and support from his family.

“I’ve never seen a successful person who is negative,” Ackerman told picknpay.co.za. “My philosophy is: ‘feet on the ground and head in the sky’. You’ve got to take risks to get anywhere.”

He also said that family is important to him. “Having a unified family and a happy home life is one of my proudest achievements.”

So where did it all start for this retail giant? Ackerman grew up in Cape Town and attended Diocesan College. His parents split when he was seven and Ackerman was raised by his father who he describes as a ‘disciplinarian’.

While studying commerce at Cape Town University, Ackerman encountered WH Hutt, a lecturer who helped develop his understanding of the consumer. Ackerman tells picknpay.co.za of a particular memory of Hutt where the academic spoke inspirationally about caring for the consumer.

“This man had a huge influence on me. He said; ‘you’ll never make money unless you have a mission. Like a doctor serves his patient, you’ve got to serve your consumer’. Being young, idealistic and enthusiastic, I took it all in.”

Following a successful spell in the academic world, Ackerman joined the Ackermans Group, a division of the Greatermans retail group that had been started by his father.

After substantial success with the Ackermans Group, turning stores around for the better, he was offered a position at

PAGE 12 nov 13

Greatermans head office in Johannesburg. With food retailers becoming more popular in the early 50’s, Greatermans started Checkers and Ackerman eventually took charge, turning the business into a great success through a focus on the consumer.

As the Checkers business grew, Ackerman became known for his impressive business acumen and in 1965 he was named as the Outstanding Young South African alongside Gary Player.

The following year Ackerman was in control of 85 Checkers stores but was fired by Greatermans to the bemusement of many industry onlookers.

This was a low point is his life but spurred on by the support from his wife and family, Ackerman used his severance pay to purchase four Pick n Pay stores in Cape Town for R620,000 from businessman Jack Goldin. The four stores had around 250 employees and a turnover in the first year of R5 million. In just two years this figure had jumped to R20 million and Pick n Pay was becoming the supermarket power in the Cape.

In the late 60’s Checkers and OK Bazaars came to Cape Town looking to compete with Pick n Pay on price and take market share so Ackerman headed to Port Elizabeth and opened a new fully refurbished store, forcing his competitors to

Raymond Ackerman

compete on two new fronts which they could ultimately not handle.

In 1969, Pick n Pay was listed in the Sunday Times ‘Top 100 Companies’ and other financial publications lavished praise on the company after its growth and success. The company had become a favourite with customers because of Ackerman’s commitment to offering basic items at low prices.

In 1973, Ackerman took Pick n Pay into the arena of Hypermarkets – an all-encompassing outlet for all your shopping needs. The first hypermarket was opened in Boksburg in 1975 taking R350,000 in the first two days.

Furthering the company’s diversification, Ackerman announced in 1984 that Pick n Pay had acquired a 50% stake in homeware chain, Boardmans and in 1986 Pick n Pay acquired the remaining 50%.

It was becoming clear that Ackerman’s approach to the consumer was the right one and in 1986 the company announced turnover of R2 billion, despite the tough economic

climate and challenging political conditions.

Ackerman continued to drive the company forward and today Pick n Pay stands as one of Africa’s leading retail businesses. Now with 992 stores and over 30,000 employees across 10 nations, Pick n Pay plays an integral role in many people’s everyday lives.

Ackerman himself was said to be worth $545 million by Forbes magazine in 2010 and all of his four children currently play a role in the business. In 2004, he was voted 79th in a list of the ‘Top 100 Greatest South African’s’. In 1990 he even made an attempt to bring the 2004 Olympic Games to Cape Town.

He says of starting his business: “It took 10% capital, 90% guts,” and he has shown nothing but guts during his time in charge. In 2010, he stepped down officially as chairman but still offers advice to current chairman and son, Gareth, who said that his father planned to visit every Pick n Pay store in South Africa.

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nov 13 PAGE 13

Gadget Box

The next generation By: Christian Jordan At IndustrySA, we love a gadget. Anything that can excite and make everyday tasks easier, quicker, more efficient and more flashy. In the past we have looked at technology that offers advances in what we are used to but every now and then we come across a generation of new gadgets that completely change our perceptions of what is possible. The Gameboy, the iPhone, the iPod, the Kindle and the digital camera are all examples of gadgets that have changed industries but it seems we are on the verge of another wave of devices that are again going to radicalise the way the live and do business.

Google Glass

Google Glass is not yet a consumer product; it is still in development but has gained a lot of publicity thanks to its apparently remarkable capabilities. Part of a new wave of technology called ‘wearable computing’, Google Glass brings constant internet connectivity and once fully developed could change everything about how we interact.

It looks just like a normal pair of glasses but instead of lenses, you have a tiny prism mirror which bounces information into the right eye forming part of your natural field of vision. There are no in-ear headphones and sound is realised by vibrating the skull, stimulating the inner ear so that only you can hear the noise. There is a touch pad on the side arm so to move through menus you simply reach up and slide a finger across the pad.

PAGE 14 nov 13

You can send photos and videos, send and receive texts and emails, get directions, video call and use a host of apps but critics of the proposed design have said the most innovative things is in fact not the Glass itself but the technology behind it, being developed by Google and the industry in general.

This involves creating a ‘virtual assistant’ that is proactive and not reactive (like Apple’s Siri). This development uses Google Now, a cloud service that can decipher huge amounts of data and combine this data to assist you in all areas of your day. In theory, the Glass could help you book movie tickets and then remind you about the movies start time, then provide you with directions to the cinema, taking traffic conditions into consideration, whilst continually monitoring your emails and texts and displaying your sports team’s results.

The next generation

Rumour has it that facial recognition (currently banned by Google) will eventually be installed so that Glass can tell you the names of people you bump into and recall your history with them. Google Glass is still at least a year away but it’s fair to say that this is some real terminator-like stuff.

The Pebble The Pebble is one of the first of what is sure to be the new craze when it comes to constant internet connectivity. It is a wrist watch that can connect to a smartphone or tablet operating Android or iOS. The watch will be able to receive text messages, emails, notifications and also warn you when you have an incoming call.

The term ‘smartwatch’ has been coined to describe this new generation of watches and the Pebble is now one of the most commercially successful. It had difficulties in its early years, with developers struggling to gain funding, but today over 85,000 units have been sold. Perhaps one of its strengths is the price. At $150, it is not going to break the bank and updates will be regularly available. As well as being able to keep you connected without having to take out your phone, this watch will have apps for jogging, cycling, playing, timing, music plus many more and a changeable face and strap for staying up to date with fashion. As well as being water proof, the Pebble has a five to seven day battery life and a USB charging point and oh yes; it can tell the time.

nov 13 PAGE 15

Gadget Box The world’s technology giants have all thrown their hat into the ring when it comes to smart watches with Samsung pushing its Galaxy Gear range and Sony championing its Smartwatch 2. So far there has been no official word from Apple about their smartwatch but industry spectators report that the ‘iWatch’ is imminent as wearable connectivity becomes the focus following the success of the Pebble.

3D Printers Probably the tech-development that has gained the most attention over the past 12 months, 3D printers are completely changing the manufacturing industry. With a 3D printer you can literally download designs for any object you wish to create, send them to your printer and sit back and watch your models take shape.

Every day 3D printing is becoming faster, more accurate and cheaper, and models like the MakerBot Replicator 2 are actually quite attractive.

In South Africa, the last year has been big for 3D printing with Aerosud, Airbus and the CSIR reportedly building the world’s largest and fastest machine and Richard Van As making strides in the production of mechanical prosthetics using 3D printing.

The printer being developed by Aerosud, Airbus and

the CSIR will use powdered titanium to make aircraft components and the hope is that, if the printer is a success, the industry of manufacturing of high-value parts will be greatly accelerated.

What are the benefits of manufacturing in this way?

Well obviously there’s the cost. Using one 3D printer is cheaper than using a team of highly skilled engineers.

Then there’s the waste. Using traditional methods and machining materials into the correct shape and size uses a huge amount of energy, a lot of which is wasted, but with a large scale 3D printer this energy could be reduced significantly.

Richard Van As and his charitable company Robohand have been using 3D printers to great effect, manufacturing replacement hands and fingers for children who have been born without them or lost them in accidents. Van As, who severely damaged his own hand in a table saw accident, designed and tested the “Robohand” at his home near Johannesburg and in the beginning it would take him around a week to design and prepare a prototype.

When he started using a borrowed 3D printer, design and manufacture time was reduced to around 20 minutes.

Eventually, Van As was donated a Makerbot and his work changed, becoming faster and more efficient. Van As made

The next generation

his plans available online so that anyone with access to a 3D printer can download the designs and make their own Robohand for minimal cost and with minimal effort.

It is likely that these gadgets will be the next trend to come into mainstream use and it looks like it will happen sooner rather than later.

PaperTab Although tablets may seem like they are a new idea, they have in fact been around for quite some time. Early tablets date back to the mid 90’s when they were more of a hybrid between laptop and desktop with a detachable keyboard but today’s tablet industry leaders, such as Apple and the iPad, have been circulating since 2010.

However, the way that tablets are designed looks set to change as concepts for the new PaperTab have been released and the ideas will change the way we view portable media forever.

Plastic Logic, leader in the field of plastic electronics, has partnered with Intel and Queen’s University to develop a tablet device that is flexible. Like a piece of laminated paper, the PaperTab can be bent and twisted but still boasts a fully interactive 10.7 inch touchscreen.

Plastic Logic has developed a brilliant plastic transistor technology that enables electronics to be manufactured on flexible or plastic sheets. Unfortunately, the battery and the Intel Core i5 processor remain sturdy and cannot be bent like the screen so, for now, they will be housed in a separate box.

Whilst the idea of a foldable iPad that you can fit into your purse may still be years off, the technology is clearly developing extremely quickly and it makes you wonder; in 50 years what will computing actually look like? Will it still have a physical shell? It seems like the possibilities are endless.

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nov 13 PAGE 17

Celebrity

Jeannie in a Bottle Editorial – Joe Forshaw

This month, we were extremely lucky and got to chat with star presenter of SABC 3’s Top Travel, Jeannie D. You will have seen her adventuring all over the world to places like Italy, France, Spain, England and Denmark in the third season of Top Travel but what excites us about Jeannie is her entrepreneurial spirit.

Some people have it, some people don’t - Jeannie D has definitely got it.

She took a few minutes out of her chaotic schedule to tell us more about her new fragrance, Jeannie in a Bottle, released earlier this month.

How would you best describe the smell of Jeannie in a Bottle? Is there anything you could compare the scent to?

We are currently working on the next fragrance which will be completely different to Jeannie in a Bottle.

There is nothing that compares to it because I really wanted it to be something different; something that captured who I am.

The scent and packaging encompasses all that I am – bottled.

Floral, elegant, beautiful and sexy yet strong and assertive. I was often told that ‘if we can bottle your bubbly personality, we capture Jeannie.’ And I like to believe that that is what we have done successfully. I’m very proud of the result.

Given your very entrepreneurial spirit, can we expect any other product ranges to accompany the fragrance and clothing line?

What is the idea behind the fragrance?

Why did you decide to release a fragrance? Who is the target market?

What are the plans for the future of Top Travel? Can we expect a fourth series?

I spend my life in airports and the one item that I always buy is perfume so I thought why not make my own. Having your own perfume, and having a fan base, allows people to have a piece of your brand in their hands. I often use Marilyn Monroe as the best example – why did she wear nothing but Chanel No. 5 to bed? Because she felt sexy. And when your skin smells good, it gives your body and self a luxurious feeling. Women aspire to feel confident, and when you smell good, you ooze confidence and sex appeal. My target audience is girls and women of all ages which is why the price is affordable.

When you walk past someone in the street and smell them wearing Jeannie in a Bottle, how will you feel?

Go up to them and give them a BIG kiss. It is such a distinctly recognisable scent, and if I had to smell it on someone I would instinctively know it – like a mother knows her own.

When the brand is established, will you look to bring out variations of the fragrance?

PAGE 18 NOV 13

We are also working on a sun care range, given the South African weather being mostly sunny and harsh at times. It has been developed and will be launched along with a few other beauty products. Watch this space…

I’m happy to say that we start filming the fourth series next year, 2014.

Is working with Janez still as fun as it was in the beginning?

Absolutely. We have a very good and close relationship. I get to spend time with my ‘brother’. He makes me laugh and is a very good friend of mine. I’m lucky to be able to work this closely with someone and I think the chemistry is what makes the show so successful – it just gets better and better.

Did you have a favourite location from series 3 of Top Travel? If you had to move out of South Africa, where would you choose as your home?

We recently went to Madikwe in Botswana. It was one of the most heart warming experiences of my career. We got to tag a rhino. We got to make a difference with an on-going crisis that is happening in OUR country. I felt privileged that I was able to touch this great animal; knowing that I am helping it in some way and sending a message to the world saying ‘they are ours; they are living creatures; they are slowly becoming extinct and that I won’t be able to show my children them in the flesh

Jeannie D in years to come unless I do something about it.’ And in this small way, I hope I made a difference. No one has the right to harm them.

I wouldn’t want to live anywhere else in the world; Cape Town is so beautiful and it is home.

What advice would you give to a newcomer in the entertainment industry?

What is the key to your success?

Believe in who you are and don’t compromise on your dreams; work as hard as possible as it is achievable when you believe in yourself; and focus on success by approaching all that you do and say with a good work ethic.

It is hard work; and if you surround yourself by people that you trust and believe in and who want to see you succeed, only good will come out of it. And never forget who you are.

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NOV 13 PAGE 19

CompANY PROFILE

Structurally sound Editorial: Lauren Grey Production: Chris Bolderstone

Award-winning steel fabricator, Genrec Engineering has been operating within South Africa for 60 years; evolving from what was once a small family business into a large international corporation.

IndustrySA speaks with Business Development Manager, Michael Mammotte to find out more about the company’s recent industry award and why it will never forget its heritage.

Established in 1953 on the outskirts of Johannesburg, General Erection started out as a family business providing breakdown and repair services to the surrounding gold mines. The company flourished over the coming years and by 1974 had grown large enough to list on the Johannesburg Stock Exchange, under the name of Genrec.

The company’s reputable brand attracted investment from Murray and Roberts, a South African construction firm who eventually bought 100% equity and delisted Genrec from the JSE, splitting its activities into separate profit centres.

Recognising its true potential, Murray and Roberts diversified the business transforming Genrec into one of

PAGE 20 NOV 13

Africa’s biggest engineering firms, and one of the only companies on the continent with an ultra-heavy fabrication facility.

Business Development Manager, Michael Mammotte says that the company’s ultra-heavy capabilities are un-matched in South Africa, making it a true industry leader,“Genrec is certainly a market leader; although there are other companies of a similar size in South Africa and on the continent, we are the only company that has ultra-heavy fabrication facilities.

“We have large machine shops, a vertical boring mill and a horizontal boring mill, whereas other companies don’t have these facilities.”

Genrec has moved on from the original business venture started out in 1953, and now covers the full spectrum of

genrec

engineering, structural detailing, procurement, fabrication and construction services.

FLAGSHIP PROJECTS Although Genrec is still situated at its original site in Wadeville, just outside of Johannesburg, the company’s facilities have grown tremendously to accompany its increasing customer demand, which now stretches across both the continent and the globe.

Genrec’s facility has more than 55 000m2 of undercover workshops and open areas equipped with the latest systems, CNC equipment and welding processes, as well as high volume blasting and painting resources spanning 19 500m2.

“We upgrading our facilities about four years ago in

preparation of two of our biggest and most prestigious projects,” explains Mammotte “those projects were the Medupi Power Station and Kusile Power Stations for which we were awarded tender for all of the steel structures.

“However, our services do not stop there; we were also involved in project management, site support, erection planning and the fabrication of boiler units and conveyors.

We have finished our five year contract at Medupi, but are still working at Kusile.”

Another of Genrec’s flagship projects, which further emphasises the company’s diverse portfolio, is the Burj Al Arab Hotel in Dubai, as Mammotte explains, “Genrec was approached initially, and we took Murray and Roberts with us to help with the erection of the structure. We provided

NOV 13 PAGE 21

CompANY PROFILE 11,000 tonnes of steel for that project, and it was Genrec who opened up Murray and Robert’s construction portfolio in the Middle East.”

STEEL AWARDS 2013 As it has already been noted, Genrec’s involvement with the Medupi Power Station was of great significance to the company and its portfolio, and even more so when it won the 2013 Steel Awards for its use of structural steel.

The main frame and boiler grid structures at Medupi Power Station was the mining and industrial category winner, as well as overall winner for the Steel Awards 2013, and Mammotte says that the company holds the achievement in high regard.

“It was one of those projects which very few companies can do, and we are very proud of that. We are an ultra-heavy company in terms of structural steel; there are a lot of steel construction companies in South Africa but they are all lightto-medium, very few are heavy or ultra-heavy.”

The Award, which is the second to be received by the Medupi Power Station, demonstrates South Africa’s capability

PAGE 22 OCT 13

to construct sophisticated, heavy structures with the likes of Genrec at the forefront of the industry.

Louis Breckenridge, judge and representative of the Constructional Engineering Association praised Genrec for its craftsmanship and dedication, “The main frame and boiler grid structures for Medupi Power Station are truly masterpieces of heavy engineering that South Africa can be justly proud of and truly deserving of our overall winner’s award for 2013.

“It is difficult to grasp how impressive they are until you get close to these gigantic objects, all the more impressive because of all the contentious publicity surrounding Medupi.

“These structures demonstrate clearly the capability of South African fabricators to supply and erect very sophisticated, heavy structures as well as any country in the world. The quality of the workmanship is exceptional, particularly the welding and fit up.

“The paperwork and quality control was a great challenge, every component can be tracked to the material it was made from, which materials have certified test records. Each grade 10.9 galvanized high strength bolt has its own pedigree.

genrec

Quality Coatings has all the necessary expertise, equipment, testing equipment and is fully conversant with both quality assurance and quality control requirements associated with the corrosion protection industry. We can carry out any wet or dry grit blasting and industrial coatings to any of the leading paint manufacturer’s specifications.

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web: www.qualitycoatings.co.za email: info@qualitycoatings.co.za

NOV 13 PAGE 23

CompANY PROFILE “Genrec had to satisfy four inspection authorities. They are also very proud of the safety record achieved while fabricating this steelwork.”

TRAINING & SKILLS DEVELOPMENT To continue achieving the phenomenal success that it has experienced over the years, Genrec believes in the importance of ongoing training, and has established a training centre in order to generate a skilled workforce.

“Our people are the underlying force, driving the delivery of our client’s vision with embedded values to deliver beyond our customers’ expectations. By investing in our people, we invest in our company, building a competent, competitive, knowledgeable and experienced team,” the company expresses.

The training centre is not only dedicated to maintaining the ongoing performance of its staff, but it also focusses on training apprentices and young people with little or no skills within the industry, as Mammotte explains.

“When there was a slump in the industry, we lost a lot of skilled people in the industry so in order for us to maintain a skilled workforce, we have our own training centre where we have apprentices and youngsters learning the trade.

“The training centre teaches the students the basic skills of the industry, but there are always opportunities to develop and move up through the ranks over time, but that’s down to the individual person and how dedicated they are.”

The training centre produces a constant flow of people that are integrated into the business when they are needed, which Mammotte says is vital for the company going forward, “The training centre is a key aspect of the company and our industry as a whole. Without the appropriate training, the industry would be dead.”

Genrec’s training centre has a variety of different programmes, such as a Murray & Roberts Leadership

PAGE 24 OCT 13

genrec Development Programme, Graduate Development Programme and Skills Training, amongst others.

FUTURE PLANS From humble beginnings, Genrec has grown into a multiaward winning company with a portfolio spanning from South Africa to the Middle East and many places in between.

The company has also diversified its services to provide for a host of different industries such as power generation, mining and petrochemicals.

Although Genrec has embraced the opportunity to take its services worldwide and further increase its global footprint, going forward Mommette says that the businesses sole focus is Africa.

“At the moment we are only concentrating on Africa, but we do have enquires for work outside of the continent.

We welcome all enquiries and we will tackle anything with regards to steel, but at the moment we are keen to focus on our business operations on the continent.”

Aside from its international business ventures, Genrec also imports some of its steel from different locations across the globe, further strengthening its international ties. However, Mommette says that the company will always support its

South African heritage and source materials locally when it can.

“We have begun sourcing steel internationally, we used to only use South African steel but due to the fire that broke out at Arcelor Mittal, which slowed supply, we have had to start looking elsewhere.

“We support South Africa and South African steel as best we can, but what we can’t source here, we will get over seas.”

Genrec’s South African heritage is testament to the company’s success, and whilst it strives to continually achieve success across the globe, it will remain focussed on the continent and leading the industry by example.

.

“Genrec is certainly a market leader; although there are other companies of a similar size in South Africa and on the continent, we are the only company that has ultra-heavy fabrication facilities”

NOV 13 PAGE 25

CompANY PROFILE

Top investors in people power Editorial: Christian Jordan Production: Chris Bolderstone

Times are exciting at Exxaro Resources. The company was recently named as one of South Africa’s best employers by the Top Employers Institute and we thought we would find out why. We spoke to Mzila Mthenjan, executive head of strategy and corporate affairs, and he explained more about just a few of the on-going initiatives that the company has put in place to develop its people so that they can reach their full potential.

In September, the Top Employers Institute released its annual lists of South Africa and Africa’s best employers. The lists are compiled following months of painstaking research that covers five main areas of HR strategy; primary benefits, secondary benefits and working conditions, training and development, career development and culture management.

The Top Employers Institute, formerly the CRF Institute, has been promoting excellence in the field of HR since 1991. The company’s website states: “Recognition as a Top Employer enables companies to stand out as employers of choice. This is beneficial for all stakeholders, and in particular their current and prospective employees. Being certified provides companies with the opportunity to celebrate their achievements and to reinforce the role of the HR environment in the business.”

Top Employers CEO, David Plink, says: “Over the years,

PAGE 26 nov 13

we have assessed and certified companies the world over using our proprietary methodology. We strongly value our objectivity, independence and selectivity. As a result, current and prospective employees can trust upon the certified organisations to have excellent conditions in place for their people to develop. Always.”

Exxaro is one of South Africa’s leading mining groups with interests in coal, mineral sands, base metals and ferroalloys, and iron. The company is listed on the JSE and at the end of 2011 had assets of R37 billion and a market capitalisation of R60 billion. The company is now the second largest coal producer in South Africa with a capacity of 47 million tonnes per year and was formed in 2006 following an empowerment transaction that involved the unbundling of Kumba Resources’ iron ore assets and the relisting of Kumba as Exxaro.

At Exxaro, the Top Employers Institute found ‘exceptional

Exxaro

employee conditions’ and highlighted the way that the company ‘nurtures and develops talent throughout all levels of the organisation’.

Executive head of strategy and corporate affairs at Exxaro, Mzila Mthenjan, tells IndustrySA that the certification was very pleasing for the company.

“It is a big deal for Exxaro, in the context of an environment where skills are short and this poses a risk to business sustainability. What these assessments really look at is the processes and systems in place to enable effective recruitment.

“From a systems and process perspective, we are happy that we have been assessed to have one of the best available systems and it is working,” he says.

LEADERSHIP DEVELOPMENT There are many policies that Exxaro work to to ensure

that skills and qualities are realised in every employee. The company understands that leadership is vital in building a high-performance culture and is committed to developing leaders according to the credo that leaders must be ‘credible to be truly incredible’. Mthenjan suggests that anyone in the organisation can become a leader and further themselves through education offered by the company.

“There is a typical career path for engineers as well as other professionals in all of the other functional areas and depending on the level that employees come into the organisation, there is really nothing stopping them from reaching the top,” he says.

“You will find in the worst cases, employees who have never been to school or left school early and worked in a mine as a means of managing their financial situation; when they come to Exxaro or some of the other Gauteng based continues on page 31...

nov 13 PAGE 27

Manitou announces 2 super-sized telehandlers Johannesburg - 2014 promises to be a big year for the global Manitou brand, after announcing two new telehandler models in final development stages at its Castelfranco facility in Italy. And BIG is the right choice of word, as speculation grows about the new models’ lifting capacity, with one of the preliminary machines said to feature what would be the market segment’s largest lifting weight capacity at an impressive 40 tons.

In an announcement, Manitou Southern Africa’s MD, Lindsay Shankland, explained: “Manitou is currently in the process of building two new telescopic handlers due for introduction to the local market in the first semester of next year. At this stage, it’s important to say that the larger of the two models has been designed to safely and repeatedly handle up to 33% more than the highest-capacity production telehandler currently on the market.”

When asked about the machines’ proposed market, Shankland added that the company has placed a new emphasis on size to cater for the growing heavy-industrial market and, in South Africa specifically, for the handling of conveyor belt reels in the mining sector.

Manitou also shed some light on a few new technologies we can expect to see in the next generation of heavy lifters:

Automatic attachment recognition This system makes the machine easier to use when using multiple attachments as the machine automatically adapts its mode to the selected attachment without selection from the operator.

“For over 50 years, Manitou has been at the forefront of the technological trends within the material handling market, and we take pride knowing that, before a model is put into production, each aspect of the machine is tested and verified to provide the level of reliability the market expects from a Manitou. We are confident that our customers will respond positively to the new level of functionality and safety the RCL and LMI system will provide,” says Shankland.

Even more versatility With the possibility of custom attachment design, the new telehandler models are being designed for standard operation with forks, jibs, winches, platforms, tyre handlers and belt reel handlers etc. “Our R&D team has designed an automatic attachment recognition system to help the telehandlers calibrate their weight limits and envelope tolerances, which PAGE 28 OCT 13 means improved safety in every application,” added Shankland.

Even greater comfort Manitou has created some of the telehandler market’s most sophisticated cab technology – in line with the company’s viewpoint that comfort reduces fatigue, which means greater productivity. “We can expect a radical new cab design with the introduction of the two new models that will give operators more space, as well as enhanced ergonomics that’s based on user experience gathered from Manitou’s global customer base,” said Shankland.

A peak at the power train Manitou traditionally partners its high-end telehandler models with engines from Mercedes-Benz for best-in-class efficiency and performance. Shankland explained that the new models will continue with the tradition by featuring the automaker’s 7.2-litre, 6 cylinder diesel engines, with outputs on the larger telehandler model designed for 1 400 Nm of torque and 240 kW (350 HP) at 2 200 rpm.

“This will make our flagship telehandler perfect for extreme-duty operation, without the risk of finding yourself underpowered during critical manoeuvres, even when on or near the maximum load capacity,” he explained.

The engines will be matched to a fully automatic hydrostatic transmission, for driving at up to 25 km/h.

Manitou’s current flagship telehandler is the MHT10225, which is able to lift 22.5 tons of dead weight, and can extend its boom by up to 10 metres.

For more information on Manitou’s existing range, visit www.manitou.co.za For more information on Manitou’s existing range, visit www.manitou.co.za Enquiries: Lindsay Shankland, MD

Manitou Southern Africa

Tel: 011 975 7770

Fax: 011 975 4646

E-mail: l.shankland@manitou.com

Exxaro

OCT 13 PAGE 29

CompANY PROFILE

PAGE 30 nov 13

Exxaro ...continued from page 27 mining operations, they then get exposure to other ways in which they can further their education and with support from the organisation they are able to improve their level of education. There are examples in South Africa where individuals will gain tertiary qualifications and then move through the company into senior management roles so this is absolutely possible.

“Obviously, the other side of it is where you have, say, a graduate engineer or graduate financial accountant and from wherever they start in the organisation, they can move upwards on their career path and gain a senior management position at head office which is pretty much what everyone aspires to.”

• Develop and sustain core competencies and maximise human resources to meet the group’s strategic objectives and improve operational performance.

• Create a learning culture by assisting and facilitating

the process in which employees and their dependants take responsibility for improving their own educational and competency levels, to the mutual benefit of the individual and the organisation.

• Ensure integration and uniformity in all learning and development processes by leveraging technologies.

• Support and reinforce our values through various learning and development initiatives.

SKILLS DEVELOPMENT Like most major companies in South Africa, Exxaro has a need to train its people, after all, mining can be dangerous and complicated, and no expense is spared when it comes to offering the best possible development opportunities. The company has a HR policy with six focal objectives:

• Ensure learning and development initiatives are careerfocused and aligned with business objectives.

• Establish life-long learning as the major thrust of learning and development.

OCT 13 PAGE 31

CompANY PROFILE

African continent is the biggest growing area for producers in South Africa at the moment”

Through these objectives, the company is able to address the problem that faces all industries in the country, the proverbial skills shortage.

However, solving one problem invariably throws up another and in this case, the next problem is cost. Specialist training is expensive so Exxaro, in a time of challenging economic conditions, is now looking to bring more and more of its training in house.

“From a cost management perspective, that is one of the key drivers of trying to bring as much training as possible in house rather than use external companies especially for employees from the coal face because we are talking about large numbers and when you outsource that training you are incurring a huge cost,” says Mthenjan. “I think the idea is that while we remain labour intensive, the need for onthe-job training will remain important. Compared to other mines we are reasonably mechanised but not yet automated.”

“One of the key drivers for us, in an environment where there has been margin squeezes because of commodity prices coming down and input prices going up, is how we train better and more effectively by doing it ourselves,” he says.

Taking training largely in house will mean a more specific and focussed scheme and a control over costs but most importantly, the people will benefit and benefitting the people in a time when the mining industry has come under PAGE 32 nov 13

scrutiny for its relations will only provide a boost. Add this to the fact that Exxaro offers ‘exceptional employee conditions’ and you can see how the company has managed to separate itself from the pack where strikes and violence have tarred the industry’s image.

“We are assisted by the structure in terms of being largely mechanised,” says Mthenjan. “Underground coal mining would be undertaken through bord and pillar mining methods as well as longwall mining, both of which are extensively mechanised and so it’s not your typical metalliferous mining which involves narrow and hot working areas. It is much more open, as would be the case with any bord and pillar mining operation. There are fewer people as well and the company has spent money transforming the accommodation from hostels to family units and single quarter units.”

OWNERSHIP Talent management is obviously a key part of Exxaro’s HR plan and talent retention falls under this banner. For all of the effort and expense that is put into developing people, it makes no sense at all to watch them leave for a competitor. This is the same for many companies and causes a headache for HR departments every month. The retention programme in place at Exxaro is bolstered by its ESOPs

(Employee Share Ownership Plans) scheme which was reviewed and renewed in 2012.

While ESOPs obviously have huge benefits, many of which have been realised by employees in other companies that offer similar schemes, Mthenjan suggests that the correct approach has to be taken and potential benefits are tailored to help employees on all levels as well as ensuring the company receives a benefit.

“The ownership discussion is a double edged sword,” he says. “On the one hand, you could say it’s a regulatory requirement in terms of the transformation legislation and the BEE legislation and just about all of the mining companies have implemented that.

“For those that have been successful in the stock market, it has been well received but has increased responsibility and accountability financially speaking. For example, it can increase the tax burden and put people in different tax brackets when they realise the benefits of their shares and that is something which employees often haven’t been trained on effectively and that has posed a question about the future.

“As good a scheme as it is, is it applicable to all levels of employees and do they provide the benefits that we expect? When you give a share ownership scheme or option scheme to an executive, it does serve the purpose

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that it’s meant for and you are providing it to an employee who is at a different level cognitively and financially where they can wait for the benefits to flow through in three or five years’ time. Employees at the coal face are at a different financial standing and their needs in terms of financial support are different and they will have a much more short term focus on cash requirements so the schemes in that regard will not always fulfil the role that the company would expect.”

This has resulted in questions as to whether companies continue to implement ESOPs. “We are required to by law so we will, but what we will look at is how employees continue to share in the upside of the company and share the upside on a shorter basis as that is where the need is,” says Mthenjan.

Even with questions surrounding ESOPs and the best ways to manage them, one thing remains constant and certain – Exxaro is one of the country’s best employers.

This is now officially, independently certified and the company’s nearly 8000 employees can work every day knowing that the commitment and loyalty that they show, will inevitably be reflected by Exxaro – refreshing in an environment where people are so often just seen as a number.

.

OCT 13 PAGE 33

CompANY PROFILE

Is nuclear now a necessity?

Editorial: Christian Jordan Production: Leslie Kemp

What do you think when you hear the words ‘nuclear’, ‘radiation’ or ‘contamination’? Many people are worried or even scared and perhaps rightly so, but Dr Kelvin Kemm, one of South Africa’s foremost nuclear experts and advisor to Necsa management says that nuclear power is safe and should be considered the future of power generation in Africa.

The discussion surrounding the country’s power requirements is a continuously evolving one and one that allows for much debate but with various decisions being taken all the time that hope to shape the future of power in South Africa, is now the time to look at a long term solution to the electricity shortages; should we be looking at power sources that are going to be feasible in coming century’s and not just coming decades?

Well, simply put, yes is the answer. Coal and oil fired power stations are effective and have served not just South Africa but the world for many years but they have their drawbacks, one of which is the fact that they will not be able to run forever so what are the other options? Renewables (wind, solar, hydro)? So far they have proven themselves to be a fair contributor to the energy mix but they are by no means a source to be relied on. Steam and gas? Again, have proven

PAGE 34 nov 13

to be viable options as contributors but are in the relatively early stages of development and are unlikely to constitute the sole supply of a country’s electricity. And then there are the many experimental power sources that are still in testing and development phases, perhaps one day these will catch on and go commercial but for now they remain just experiments.

So what options does that leave? The one that is tried and tested, one that has proven itself capable of providing enough power to generate huge amounts of electricity and one that, when handled correctly, is extremely safe and that one is nuclear.

As we discussed last month, South Africa is a world leader in the nuclear industry, producing nuclear medicine for export to over 60 countries from one of the world’s leading research reactors (SAFARI-1) and boasting one of the world’s safest nuclear power stations, the world’s most southerly nuclear power station, Koeberg.

SOUTH AFRICAN NUCLEAR ENERGY

The South African Nuclear Energy Corporation (Necsa) is one of the driving forces behind the nuclear industry and is tasked with undertaking and promoting research and development in the field of nuclear energy and radiation sciences. It is also responsible for processing source material, including uranium enrichment, and co-operating with other institutions, locally and abroad, on nuclear and related matters.

Last month we spoke to Necsa CEO, Phumzile Tshelane, and he told us that the organisation is preparing to roll out more nuclear power stations across the country as the government look to increase the contribution of nuclear power to the grid. This month, we speak to one of Tshelane’s advisors and CEO of Nuclear Africa, Dr Kelvin Kemm, and he tells us that although the development of the nuclear power industry is imminent, people are still nervous about nuclear.

“Radiation, contamination and words like this are just not understood by the public and worse than this, because there is a mystery surrounding the terminology, people get very easily scared.

“Obviously, the announcement of nuclear to the world in 1945 was two nuclear bombs dropping on Japan so the start was very scary and people are automatically spooked by words like radiation.

“There is no danger from radiation if handled correctly.

It’s like the military handling ammunition. If any army truck is going down the road handling artillery shells, in principle it’s very dangerous if you don’t have professionals who know what they’re doing. With people who know what they’re doing it’s pretty safe.

“It’s the same with nuclear. There’s no reason for people to get panicky about nuclear as long as it’s professionally continues on page 38...

nov 13 PAGE 35

“Actively enhancing life”

NTP Radioisotopes has placed South Africa on the map as one of the world’s foremost nations when it comes to the production of nuclear medicine. So, you may ask is medication containing nuclear radiation anything to be afraid of.

The words ‘nuclear’ and ‘radiation’ often precede the onset of fear in many. These words are often associated with explosions and disasters, but this public perception is an association which the industry in South Africa is keen to shake.

NTP, a subsidiary of the South African Nuclear Corporation (NECSA), produces quality radiation-based products and offers services that need not be feared. In fact the company is providing hope and possibility to many people worldwide.

Iodine-131 (I-131) and Molybdenum-99 (Mo-99) are just two of the products fashioned by NTP and they are key elements in specialised nuclear medicine used to treat and diagnose diseases including hyperthyroidism and cancer.

“Mo-99 is used in over 100,000 nuclear medical procedures globally every day,” says Don Robertson, NTP’s Managing Director.

“Nuclear medicine differs from traditional medicine because it cannot be produced in bulk and stored on the shelves for a period of time. Nuclear medicine uses very minute quantities of radioactive material and the procedures are non-invasive. It is painless, safe and used for early and accurate diagnosis. Also, nuclear medicine has fewer to no side effects compared to traditional medicine when used correctly,” he says.

While nuclear medicine is safe and efficient, it is time consuming to produce and decays quickly. “Radioisotopes decay with time. They have a half-life,” says Robertson. “For example Mo-99 has a half-life of 66 hours and technetium99m has a half-life of six hours. Therefore, 20% of Mo-99 activity is lost per 24 hours.

“Due to the half-life of these, access to airports is critical

for export of radioisotopes for medical use.”

Considering that Mo-99 is one of the most valuable commodities in the world, efficiency in delivery is vital. To date, NTP has a fantastic record of getting medicine from its facilities at the NECSA nuclear facility near Pretoria, to the other side of the world before it loses its effective activity.

Demand for nuclear medicine is on the rise because of its ability to help diagnose cancer, heart disease and other illnesses at an early stage. “Mo-99 and I-131 are active pharmaceutical ingredients (APIs) so the buyers of these radioisotopes are radiopharmaceutical companies. They then produce radiopharmaceutical products ready for patient use and distribution to the hospitals and clinics,” says Robertson.

So what for the future? There is huge potential and benefits to be derived from nuclear medicine but investment is required to keep South Africa at the forefront of the industry. There is growth in the use of radioisotopes for therapeutic purposes such as Lutetium-177 (Lu-177). NTP is gearing toward local production of Lu-177 Dotatate which is used for treatment of neuroendocrine tumors.

Since its inception in the 90s, NTP has proven itself to be one of the world’s most reliable producers of radioisotopes and as South Africa’s nuclear industry continues to grow, the success and accomplishment of the company looks set to continue.

“Mo-99 is used in over 100,000 nuclear medical procedures globally every day”

NTP Radioisotopes,

Exxaro

a Nuclear Medicine Powerhouse!

NTP supplies, amongst others, the following medical products: • •

•

Tucked away on the slopes west of Pretoria, in South Africa at the Necsa nuclear facility is NTP Radioisotopes SOC Ltd, a company which has evolved into an important global player in the radioactive business. Conducting its sophisticated operations amongst an array of state-of-the-art technology and highly competent scientists, engineers, technologists and radiopharmacists, NTP is one of the world’s leading suppliers of essential medical radioisotopes with strategic partners and associates ranking among leading international radiopharmaceutical producers and their suppliers.

A subsidiary of the South African Nuclear Energy Corporation (Necsa), NTP produces and supplies radiochemicals and radiopharmaceuticals, in particular Iodine-131 (I-131) and Molybdenum-99 (Mo-99). The latter being the most important isotope used in the practice of diagnostic nuclear medicine. The company services the needs of the healthcare, life sciences and industrial markets – a market footprint covering over 60 countries worldwide. Patients throughout the world, therefore, benefit from nuclear medicine scans and other procedures performed using products supplied by NTP.

• • • •

•

I-131 for diagnosis and treatment of hyperthyroidism and thyroid cancer Lu-177 n.c.a. labelled to DOTATATE for Gastroenteropancreatic Neuroendocrine Tumors (GEP-NET) Therapy F-18 FDG for whole body PET-CT (Positron Emission Tomography – Computed Tomography) cancer imaging, staging, treatment planning and efficacy monitoring NaF-18 for high quality PET-CT imaging of bone metastases F-18 Choline for PET-CT imaging and accurate staging of prostate cancer I-131 MIBG for diagnosis and treatment of pheochromocytoma Organ seeking “cold kits” for SPECT (Single Photon Emission Computed Tomography) imaging of the functionality of most organs of the body Generator for the Tc-99m isotope used in SPECT diagnostic imaging procedures

NTP Radioisotopes has over the years created various business subsidiaries or increased shareholding to create a Group of companies that have expanded and supported the holding company’s portfolio, revenue stream and exceptional customer service. As an international it has facilities that are ISO 9001:2008 compliant and approved by the world’s major medical regulatory bodies.

Early detection of most diseases assisted by using nuclear medicine greatly enhances the possibility of early and accurate diagnosis. This allows for prompt and proper treatment and, therefore, a better chance of a saved life!

NTP Radioisotopes is in the business of actively enhancing life!

marketing@ntp.co.za www.ntp.co.za

OCT 13 PAGE 37

CompANY PROFILE ...continued from page 35 handled within the rules and regulations and international atomic agency standards and so on,” he says.

At Necsa, professional people is exactly what you get thanks to the expert training facility that has been developed to ensure the workforce, and the industry and economy more widely, is operating to the highest standards.

A NUCLEAR FUTURE As we discussed last month, the DoE (Department of Energy) is leading a project which will evaluate all factors involved in developing a further 9600MW of nuclear power station and Dr Kemm says that taking steps towards a larger nuclear contribution is now the right way to go.

“I believe in 100 years’ time, when people look back, just like we look back to when we moved from horse drawn carts to trams, they’ll say; why on earth did people have doubts in the early 2000’s that nuclear wouldn’t be the predominant energy form of the world?

“With uranium and thorium, South Africa having the richest thorium mine in the world, there’s nothing you can do accept from burn them in nuclear reactors. Whereas with coal, oil and shale gas, in my mind you should take the valuable molecules and turn them into useful, saleable products using nuclear power rather than being wasteful and burning them. Chemically they are very valuable molecules

PAGE 38 nov 13

whereas the only thing you can do with uranium is split it in a reactor.

“It’s not a good idea to burn all your valuable fossil fuel molecules,” he says.

In August, Department of Energy director-general Nelisiwe Magubane indicated that nuclear power is very high on her agenda saying: “Given our climate change commitments and the fact that some of the coal-fired power stations will retire around 2022 and require replacement, nuclear power is becoming more of a necessity than an option.”

She also suggested that communication is required to reassure people of the safety of the industry. “Resistance to nuclear energy has been part and parcel of this industry.

We know that the lack of information and knowledge is a preliminary source of fear in any setting, and the nuclear sector is not exempt from this.

“Preliminary results indicate that if we intend to reduce our carbon footprint and also have vibrant economic growth, nuclear energy will be part of the solution,” she said.

Dr Kemm reiterates this point, stating that many theories are thrown out by the media and often this can lead to unscientific responses so education is vital if the nuclear power is to be widely accepted as a safe, healthy power source.

“We do need to inform the public” he says. “You get

SOUTH AFRICAN NUCLEAR ENERGY

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concepts such as LNT (Linear No-Threshold) which is said to be a scientific theory but that is not true. It says that there is no lower dose of radiation that is safe but this has been shown to be not the case. Very low doses are very handleable and in fact, there is even a concept called radiation hormesis which suggests low doses are beneficial and act like vitamins.

“We need the public to understand that LNT is wrong. To suggest that any exposure to any amount of radiation is very dangerous is just not true and it’s very irresponsible. What it does is force the price up as you now put specifications on the nuclear plant which are over the top. If you believe that one atom of radioactive material is dangerous, you then put filters in, cleaning processes in and all these things because of an emotive reaction caused by a story in a magazine and not a well thought out scientific decision.

“We need to approach the whole concept of radiation, contamination and health and so on, very scientifically and professionally rather than emotively through the media in the wrong sort of way.”

NUCLEAR FOR PE? Tshelane told us last month that potential sites for a new

nuclear power station were being evaluated with Cape Town and Port Elizabeth currently looking like the favourites. Dr Kemm agrees that PE would be a favourable location due to the fact that the region has almost no power generation facilities of its own.

“Three sites were identified some years ago, one in Port Elizabeth and two in Cape Town. Although no government decision has been made yet, it appears that the PE site is the favourite.

“My feeling is that it would be sensible as it’s perfectly located to serve that whole Eastern Cape region which has no power production of its own so in principle it’s at the mercy of the long power lines from the coal fields.

Strategically it makes sense as we produce nearly all of the country’s electricity up in the north east and as the country is growing it makes sense to produce more electricity in the south and there isn’t any coal down there so there answer is nuclear. It’s the one large base load that you can rely on, with an 80% load factor,” he says.

Necsa is part of an international community of nuclear nations and while the company garners support and advice from all over the world, it is important to remember that the

NOV 13 PAGE 39

CompANY PROFILE

power situation in Africa is different to all of the other areas globe. This is why much consideration has to go into the location of the new plant and also why consideration has to be taken as to the setup of the new plant.

“We have to have African solutions for Africa,” says Dr Kemm. “We must not attempt to copy the first world exactly.

People will look at other countries and say ‘they do it this way, why don’t we do it like that too?’ and the circumstances in terms of size and climate are so different that bad mistakes can be made by assuming that they have the right answer.

They have the right answer for them and not for us.”

The challenge for now will be developing a team and further upskilling the industry so that as the 9600MW rollout continues, the South African nuclear industry, led

by Necsa and its partners, remains one of the world’s most effective and most efficient.

.

“It’s not a good idea to burn all your valuable fossil fuel molecules” PAGE 40 nov 13

SOUTH AFRICAN NUCLEAR ENERGY A NEW ERA IN ICP MASS SPECTROMETRY: SPECTRO MS SIMULTANEOUSLY RECORDS THE CONTENTS OF MORE THAN 75 ELEMENTS WITH APPROX. 210 ISOTOPES • New ICP-MS records the elements from lithium to uranium with every analysis • Novel Direct Charge Detector and new ion optic guarantee extraordinary precision and high sample throughput • Records contents of different isotopes opening new application areas With the SPECTRO MS at Pittcon 2010 (Orlando/Florida, February 28 until March 5, 2010) SPECTRO presents the first fully simultaneous measuring mass spectrometer with inductively coupled plasma in the world. The SPECTRO MS records the entire elemental spectrum between lithium and uranium for every analysis. Users achieve a greatly increased sample throughput rate and much better precision and accuracy compared to using a sequential mass spectrometer.

“The SPECTRO MS will change mass spectrometry forever. The option of being able to measure simultaneously will create a revolution on the market similar to the one created by the optical emission spectrometers several years ago,” reports Manfred Bergsch, SPECTRO’s Managing Director. “The SPECTRO MS delivers not only much more precise and reproducible results than a conventional mass spectrometer, but also measures a great deal faster; opening new perspectives and applications for laboratories.”

Simultaneous recording of the entire spectrum is enabled by a series of newly designed high-end components: • A novel ion optic that is extremely efficient in transporting ions from the plasma into the mass spectrometer itself – while reliably removing neutral particles and photons from the beam.

• A double focusing sector field mass spectrometer with a Mattauch-Herzog design. An electrostatic analyzer and a permanent magnet are utilized to direct the ions onto a focal plane – without additional scanning of the ion beam.

• An extremely powerful Direct Charge Detector with 4,800 channels is placed in the focal plane of the mass spectrometer recording simultaneously the entire mass spectrum from lithium to uranium with an average of 20 channels per isotope. Each of these channels is additionally divided into two separate detectors with different signal amplification. This enables the SPECTRO MS to achieve a dynamic working range that allows even extreme isotope ratios to be precisely determined.

• With the innovative sleep-mode, the robust and user-friendly vacuum system features very low energy consumption.

The housing, software and excitation technology for the SPECTRO MS are closely related to those of the ICP-OES flagship, the SPECTRO ARCOS. A robust, free-running 27.12 MHz generator is used as the plasma generator in the new instrument; guaranteeing extremely stable power coupling in the plasma.

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A hypothetical question of course! But even if we could ask them, the SPECTRO MS makes the question redundant. This novel ICP mass spectrometer analyzes the entire relevant mass spectrum completely simultaneously; faster and more precisely to boot.

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- Double focusing sector field mass spectrometer with newly developed ion optic and pioneering detector technology - Simultaneous measurement of more than 75 elements with 210 isotopes for improved precision together with highest sample throughput - Fast fingerprinting, internal standardization in real time - Compatible with EPA, FDA, CLP and 21 CFR Part 11 as well as additional standards and guidelines

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Find out more about the SPECTRO MS at Tel +27.11.979 42 41 or http://www.spectro.com/ms SPECTRO MS: A New Era in ICP Mass Spectrometry OCT 13 PAGE 41

CompANY PROFILE

Sowing the seeds of success Editorial: Roland Douglas Production: James Clark

De Keur is one of South Africa’s leading fruit and vegetable producers.

With five farms and a number of dedicated packaging facilities, the company produces superior quality foods and supplies them to some of the biggest markets and retailers across the country. Charl du Toit (jnr) tells IndustrySA more about what makes the company, started by his grandfather, an industry leader.

In the fruit growing industry, there are a few essential elements required in order to grow high-quality fresh produce. These elements include ideal weather conditions, perfect terroir and appropriate farming methods and techniques. In the past, we have spoken to numerous fruit and vegetable farming businesses from around the country that have all been very successful and it is clear that South Africa, with its Mediterranean, subtropical climate, is now one of the world’s most important fruit growing regions.

In the past few months, fruit exports have received a welcome boost and relationships have been built with BRICS (Brazil, Russia, India, China, and South Africa) nations and also EU countries so that South African companies can access these markets more readily.

Fruit and vegetable production for both the local and export market are important for the country’s GDP and

PAGE 42 nov 13

it is estimated that over R25 billion worth of crops was produced in 2009. The fruit industry is also an important employer creating a significant number of jobs for the country.

One company which has been at the centre of the fruit and vegetable industry for nearly 80 years is the De Keur Group, an agricultural business based in the Western Cape, just outside the town of Ceres, two hours north west of Cape Town.

Now entering its third generation of Du Toit family ownership, the De Keur Group is looking to continue growing and there are plans in place to add new technology and a new marketing arm to this already sizeable organisation.

Charl du Toit (jnr), a De Keur Director, tells IndustrySA that the business started out from humble beginnings, back in 1934.

De Keur

“My grandfather bought the first farm, called De Keur, in 1934 at a public auction” he says. “My father, Charl, joined him in the late 60’s, while my uncle, Gys joined the business in the early 70’s and they bought a second farm, Leeuwrivier, in 1973. Then in 1982, they bought a third farm called Rocklands and in 2008 we bought two more farms, De Hoop and Môreson.

“De Keur, Leeuwrivier and Rocklands are situated in the Koue Bokkeveld and De Hoop and Môreson are in Wolseley. The two areas are not too far apart but they do have quite distinct climates.

“In 2001, the company also acquired a fruit handling facility in Ceres where all of our fruits are packed.

“During the last year, my father and uncle have been handing the business down to the next generation with them moving into an advisory capacity.”

atMARKET The De Keur Group is known for its quality fruit and vegetables; specifically apples, pears and onions.

In the Koue Bokkeveld, the terroir and climate is perfectly suited to these crops. Long, hot, sunny summer days allow the fruit to develop optimally, and during the cold, harsh, snowy winters the trees rest and the fertile soil on the slopes prepares for the coming season.

“In the Koue Bokkeveld, 90% of our produce is apples, pears and onions, with the remainder being made up of lettuce and nectarines. In Wolseley, we produce butternuts and a range of stone fruits such as peaches and plums. The climate in Wolseley is warmer than the Koue Bokkeveld and therefore suits these types of fruit better,” says du Toit.

Because of the quality of the De Keur product, the brand is extremely popular in both the local and

nov 13 PAGE 43

CompANY PROFILE

“The African continent is the biggest growing area for producers in South Africa at the moment”

PAGE 44 NOV 13

De Keur international markets.

“The exceptional quality of our produce provides for a great export market, but we do also have a strong local presence,” explains du Toit. “Our onion crop is almost 100% locally sold, with only a small percentage being exported into Africa. We are one of the main onion suppliers to the very successful Shoprite/Checkers Group in South Africa between January and September. ” Previously, De Keur has used an export partner to move its products into international markets but recently the company decided to bring export and all marketing related activities in-house with the formation of a new company, atMarket, as du Toit explains.

“Within the De Keur Group, there is currently, De Keur Estates, which includes all of the production facilities, and De Keur Packing, where all produce are packed. We’ve recently started a new company called atMarket, which will handle all of the marketing and export related activities for the Group.

When atMarket is established in the industry, du Toit suggests that the product offering to their clients will increase, since this company will have the ability to act as

an export agent for other producers.

As the atMarket business grows and exports becomes an even a bigger part of its business, there will be more of a challenge in meeting international standards but du Toit is not concerned, saying: ”Maintaining standards and adhering to country-specific requirements is vital

“Our quality comes from tried and tested farming methods” when operating in international markets. Fortunately, De Keur’s produce and facilities are of the highest quality and since we have been operating within the international arena for the last decade through other export agents, this should pose no challenge. We are already adhering to the standards set in the markets that we operate in, including GLOBAL G.A.P and BRC Global Standards.” While EU, USA and BRICS markets remain the traditional outlet for South African exporters, it seems that the African continent and its many developing markets are

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CompANY PROFILE now offering lucrative opportunities too.

“Continental Africa is the biggest growth market for producers in South Africa at the moment, and will be definitely for the next ten years or so,” says Du Toit.

Tina Joemat-Pettersson, Minister for Agriculture, Forestry and Fisheries said in July: “Trade on the continent has grown significantly, with Zimbabwe being one of the top importers of our citrus,” emphasising the fact that South Africa’s neighbours are now more important than ever to its commercial farmers.

A FAMILY AFFAIR The De Keur business has been under Du Toit family ownership since the outset and while on many occasions working with family can be troublesome, De Keur has seen nothing but sustained development and for most part, healthy family relationships. Charl du Toit (jnr) is not the only grandchild of founder Charl (Tippie) du Toit to work within the business. There are a number of family members who make up the company’s leadership team.

“I’ve been working for the company since 2002 and have been joined by various family members in my generation over the last 11 years. The current

PAGE 46 nov 13

management team consists of seven family members and there are also other members of the extended family involved within other parts of the business.”

As for future generations, it is a family ambition to sustain the legacy Tippie du Toit began in 1934 for the future.

The advantage of keeping the leadership in the family is that the values which have been instilled in the family, and therefore the business, over the years will remain.

It is said that Tippie du Toit was a man who believed in good farming practices, respect for all living things, honesty, fairness and dignity to all men and these beliefs have been embraced by the current and past generations.

This is seen in the relationships that the De Keur Group builds with its employees, the communities in which it operates, as well as the trusted relationships with various suppliers and customers.

“There is a huge drive within our business to forge good relationships with employees and the community at large,” explains du Toit.

“Sometimes South Africa gets a bad name for how it treats its workers but the Koue Bokkeveld is well known as an area which cares for its people. At the De Keur Group, we are always looking at how we can improve

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OCT 13 PAGE 47

CompANY PROFILE

relations with employees.

“We provide a good level of housing, including basic services such as running water and electricity. We have a nurse on our payroll, so that workers can receive the necessary medical treatment and/or advice at the workplace. In addition, we also provide subsidised crèche, as well as after school care facilities to all the children that live on the various farms. We believe that education is a fundamental human right and therefore we strive at empowering our workforce by providing the necessary basic education, as well as advanced training in their specific field of work,” du Toit says.

An example of the fantastic community work done by De Keur came about in August 2012 when the company opened a development centre for the youth. This facility aims to develop the children’s learning abilities through the provision of recreational and academic activities.

Marlene Coetzee developed and implemented this initiative and provides thorough guidance with the help of well trained staff. The centre’s management were greeted by eager students who couldn’t wait for the doors to open amidst the winter chill. The centre has around 30 learners who attend classes on two week days.

PAGE 48 NOV 13

They are provided with guidance in learning programs, and also have the chance to develop their creativity through internal art projects. Sports programs are also implemented to ensure that all basic abilities of the younger generation are stimulated. De Keur management acknowledge that constructive development of the youth plays a vital role in the community as well as developing individually.

STATE-OF-THE-ART To complement its workforce (over 1500 people in peak times), De Keur is constantly looking at new technology, processes and procedures that will improve efficiency across all areas and contribute to the already successful farming methods used on De Keur’s farms.

“We are always looking at new technology and new farming methods; we frequently trial some of our ideas at one or two of the farms and then roll them out on a wider scale if they are successful,” says du Toit.

“Currently, we are looking at picking platforms, higher density orchards, mechanical harvesting of onions and the direct planting of onions for example. At the moment, we sow the onion seeds in a warmer area and after about

De Keur 13 weeks, the onion plants are transported to the Koue Bokkeveld and planted by hand. It is these manual processes that we are constantly looking to improve.

The packing of fruit and vegetables is an important process within the supply chain and De Keur’s facilities are state-of-the-art. Fruit is packed at the fruit handling facility outside Ceres which has an annual capacity of 80,000 bins and a controlled atmosphere storage capacity of 13,600 bins. Butternuts are packed at the Môreson farm and onions and lettuce are packed at Rocklands where there is another cold storage centre.

“Our packing facility is first class,” says du Toit. “Our quality comes from tried and tested farming methods and also high attention to detail in the packing phase. This meticulousness all adds to the quality of the end product.”

As the transfer of control from one generation to another is almost completed at the De Keur Group, it is clear that the new guard have strong ambitions and ideas about how to take the company into the future grounded in the legacy left by their grandfather and fathers. The investment into technology is obviously a sensible place to start and the establishment of atMarket will allow for

an increase in marketing activity and access to key export markets.

So it seems that the De Keur Group has the perfect mix of essentials and is likely to prosper until it is time for the next generation to fully take charge.

.

“We are always looking at new technology and new farming methods; we frequently trial some of our ideas at one or two of the farms and then roll them out on a wider scale if they are successful”

OCT 13 PAGE 49

CompANY PROFILE

Power for generations Editorial: Lauren Grey Production: Chris Bolderstone Celebrating his 60th birthday earlier this year, businessman Vivian Reddy announced plans to retire at the age of 65, handing his successful electrical company, Edison Power to his son. IndustrySA finds out more about the legacy he is leaving behind.

South Africa’s continuing economic growth as it focuses on further industrialisation, together with its mission to make electricity readily available in deep rural areas has resulted in a steep increase in the demand for power.

With energy demand expected to reach twice its current levels by 2030 and years of underinvestment in the country’s power infrastructure, Eskom, the stateowned company in charge of the majority of energy generation and distribution is failing to meet demand.

Government has therefore set out plans to increase the amount of energy generated in the country and find new ways to diversify its power-generating capacity, from what was once heavily dependent on coal. In order to do this, government has called upon independent power producers to contribute towards the country’s energy

PAGE 50 NOV 13

mix, particularly those involved in sustainable energy solutions.

An important part in the process of creating more power comes from electrical contracting companies, specialising in electrical installations and providing power producers with a means to generate more electricity.

South Africa’s oldest -and most reputable- electrical contractor is Edison Power, a company dedicated to the provision of cost effective and efficient services, whilst improving the quality of life for all South Africans.

POWER FOR GENERATIONS Edison Power specialises in electrical installations in all aspects of the electrical industry, including commercial, industrial, HV and LV reticulation, township reticulation, fibre optic installation, live line installation, smart metering, wind and solar EPC and substation and

EDISON POWER

transformer installations.

The electrical contractor has been leading the industry for 34 years, with a proven track record and in excess of R5Bn worth of installations without any claims or negative comment for its failure to meet the criteria of performance.

The internationally recognised group has a number of different divisions operating across South Africa, including Edison Power Gauteng and Edison Power Kwazulu Natal; it also has a full service IT division, Edison Power Technology which delivers consulting, infrastructure and software development solutions and also a smart metering division, Edison Power Smart Metering which has an alliance with Itron, the world’s leading provider of energy and water management solutions for utilities.

The company currently employs over 1500 people,

and has a management team with a combined total in excess of 350 years experience within the electrical industry. Together with its highly skilled workforce and mission to retain its leading position within the industry, the company has received many awards including being voted the best electrical company in South Africa, four years in a row.

Founder and Chairman of Edison Power, Vivian Reddy told the Daily Maverick that his company is the ‘best in the industry’, “My electrical company gets business because we are the best in the industry. For the last five years, we have been voted the best electrical company in South Africa. We are 100% black-owned, we have all the right credentials and we have the financial resources to do any job.”

In support of Reddy’s remark that his company can ‘do any job’, is the company’s portfolio of projects which

NOV 13 PAGE 51

CompANY PROFILE range from shopping centres and casinos to airports and theme parks, with many, many more in between.

VIVIAN REDDY Founder and Chairman of Edison Power, Vivian Reddy is somewhat of a celebrity in South Africa, whose story of rags to riches is a shining example of what can be achieved through sheer determination and resilience.

Born in Durban and from very humble beginnings, Reddy single-handedly created his business empire with diverse interests in energy, casinos, healthcare, financial services and property development.

Aside from the awards achieved by his company, Reddy has received many of his own, from Most Admired Businessperson in KZN, 2007 to Award for Sustainable Contribution to Engineering and Business, 2009.

Reddy has openly acknowledged that his success was due to “having a vision and a dream”, and that his inspiration came from astronaut, Neil Armstrong, who he met in Japan at the age of 16 when he represented South Africa as a scout at an international gathering.

“Armstrong talked about his determination in life and about how perseverance prevails when all else fails. His passing words to me, which has become my mantra, were

PAGE 52 OCT 13

‘If you can dream it, you can achieve it’,” Reddy told Ryland Fisher, of the Daily Maverick.

“My electrical company gets business because we are the best in the industry. For the last five years, we have been voted the best electrical company in South Africa. We are 100% black-owned, we have all the right credentials and we have the financial resources to do any job” However, the road to success and making others understand his ideas wasn’t easy, as Reddy says he was dismissed from his first job because of his “progressive views in the workplace”, “I could not get a job at any electrical company in South Africa and was forced to go out there on my own.

“My first job was an absolute disaster. When I went to collect my cheque for about R26000, there was a note

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on the company door saying ‘Company in liquidation.

Contact our attorneys’. I started in debt and that is when I started to believe ‘if you can dream it, you can achieve it’” he told Fisher.

“At that time I said I wanted to form the biggest electrical company in Africa…I believe that it today can be better than yesterday and tomorrow can be better than today, no matter in all aspects of your life, you can find improvement.”

RENEWABLE ENERGY Reddy says that one of the company’s main advantages and reasons for its continuing success is innovation, “The other big thing we do is innovation. We evolve with industry. When we see new technology in the power industry, the gaming industry of the construction industry, we grasp those things.

“What happens today is that too many people run their businesses with blinkers. They just look at what they have done. They don’t really look into the forward scenario.

They don’t look at the issues impacting on the business, a lot of them don’t do risk analysis,” he told Fisher.

One of the company’s most recent innovations is within the renewable energy sector, for which its division,

Edison Green Renewable Energy was specifically formed.

Edison Green is a renewable company involved with Suzlon, the 5th largest wind energy company in the world. The company is currently also in talks with another IPP who uses PV (Photovoltaic) Technology for power generation; creating solar farms which are emission free and carbon neutral.

Edison Power believes that the way we use energy must change, as is the way we generate energy, and through Edison Green the group is committed to playing a major part of this worldwide social responsibility act and plans to be a major player in the EPC sector related to renewable energy and in the ownership of wind and solar projects.

VAN STADENS WIND FARM Edison Power’s most recent involvement in renewable energy projects came after they were named the electrical contractor for the MetroWind Van Stadens Wind Farm, a project that will see the company provide electrical services to the EPC contractor responsible for the construction of the farm, Basil Read Matomo.

Van Stadens Wind Farm is situated 30km west of Port Elizabeth, conveniently known as South Africa’s

NOV 13 PAGE 53

CompANY PROFILE

‘windy city’, on the Klein Rietfontein farm, at the South-Western extremity of the Nelson Mandela Bay Municipality.

The R550 million project, financed through 80% debt and 20% equity will see 26.19 megawatts of energy being produced by IPP, Metrowind. Edison Power is responsible for installation of transformers, switch gear, substations, control instrumentation and SCADA systems, which will reticulate wind energy back onto the national grid.

The government’s drive towards renewable energy solutions is a push towards trying to solve South Africa’s worsening energy shortage, and the advantage of renewable, especially wind and solar, is the speed at which they can be constructed.

Although renewables cannot single-handedly solve energy concerns in the country, or indeed throughout the world, they do contribute towards a mixture of energy sources to help keep a balance in the network.

EDISON POWER 2017 Celebrating his 60th birthday earlier this year, Reddy announced that he would be retiring at the age of 65,

PAGE 54 NOV 13

leaving the business in the capable hands of his son, Santhan.

“He is doing a great job” he told Fisher. “He is young, very innovative and full of energy. He is only 30 years old and he reminds me of the time when I was that age. I am confident that, under his leadership, the company will grow from strength to strength.”

However, before Reddy retires he says that he wants to make Edison Power Group the biggest electrical company in Africa which he hopes to achieve by 2017, and has only one wish of his son “to make sure that the company remains 100% black-owned and blackmanaged.”

.

“What happens today is that too many people run their businesses with blinkers. They just look at what they have done. They don’t really look into the forward scenario”

EDISON POWER

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Proud to be associated with Edison Power

OCT 13 PAGE 55

CompANY PROFILE

Africa grows with the appliance of compliance Editorial: Colin Chinery Production: Chris Bolderstone Driven by legislation and increasingly demanding international standards, compliance is a top agenda issue both for business and public. And from mining to power generation, Bureau Veritas Southern Africa is delivering the solutions to the region’s growing industrial base, as Vice President Bruce Xiste tells IndustrySA.

Energy shortfall is the great crack in South Africa’s economic armour. And with supply continuing to trail a demand expected to double in 15 years, every option for solution is now on the table; coal, oil, nuclear and alternatives. All of which positions Bureau Veritas at the frontier of opportunity.

Certification is the most credible way to demonstrate excellence and drive continuous improvement. And as a world leader, Bureau Veritas – founded in 1828 - offers a large range of customised certification and audit facilities in the fields of quality, health and safety, environment and social responsibility.

Certified to ISO 9001 for all of its activities throughout the world, Bureau Veritas actively participates within professional authorities and helping to develop international standards and regulations. And with a network of 850 offices and laboratories and over 63,000 employees in more than 140 countries, 280,000 customers are being served in industries across the world.

Coal, energy, mining, marine, power and healthcare, agriculture are among the sectors overseen by its Southern Africa division headquartered in Johannesburg, with Rio

PAGE 56 NOV 13

Tinto, Richards Bay Coal Terminal, Anglo American, Glencore and Eskom among its big brand clients. Bruce Xiste, Vice President Bureau Veritas Southern Africa, is confident about the region’s economic prospects.

“We have mainly invested in South Africa, Namibia, Mozambique, and Zambia, with Botswana and Zimbabwe coordinated out of South Africa. The potential of this continent is huge.

“There are around one billion inhabitants in Africa, the region is growing fast and we are seeing continuing investment in areas like infrastructure and mining - despite all the problems and recent crisis.

“When you look at the potential for industry, a lot of countries today need more upgraded physical assets, more infrastructures, more power and more energy. Africa is certainly a big growth area for Bureau Veritas.”

NO EXIT FOR COAL Coal - which accounts for more than 70% of primary energy consumption in South Africa – is currently the Southern Africa division’s biggest operational sector, along with energy.

But faced with strict carbon emission restrictions, South Africa has turned to nuclear power as an alternative.

Bureau Veritas

The government wants to build six new reactors over the next 20 years to meet growing demand. And nuclear power is more of a necessity than an option, says the Department of Energy director-general Nelisiwe Magubane.

But Xiste discounts suggestions that King Coal is set to lose its crown. “Despite what’s happening now, I don’t see coal as a market without growth potential. Coal is still the major source of energy for power generation, a sector that accounts for 40% of the coal industry worldwide.

“So you can’t say coal is dead. It is still the major industry and South Africa is very very well placed in coal. If you start to build power stations all over Africa - and especially in the southern part - I will bet that 50% will be coal-fired.”

Meantime as part of the Presidential Infrastructure Coordinating Commission, South Africa is set to get an additional coal-fired power station - most likely situated in the Waterberg area of Limpopo. And what is certain is that Bureau Veritas is uniquely placed to serve Southern Africa’s coal industry.

On-site mine laboratories are in operation across the 14 member state SADC region, all equipped and manned to client requirements.

The Bureau Veritas advanced coal technology exploration

laboratory at Sunderland Ridge, Centurion, Gauteng is one of the largest and most comprehensive state of the art coal exploration laboratories in the world, and the recently acquired coal lab laboratory in Middleburg is the largest in Africa, a 3,500 metres facility dedicated to the coal industry in South Africa and other countries including Botswana, Mozambique and Madagascar.

NUCLEAR ROUTE But when South Africa takes to the nuclear route Xiste says Bureau Veritas is ready and waiting at the forefront.

“Because we have a long standing relationship with the French nuclear industry we are especially well placed for nuclear development in South Africa. We are working with all the main nuclear actors across the world, whether from the US, Korea, Japan, France, so if nuclear development happens in South Africa, clearly we have the services to provide.

“And already people we have recruited and trained in France are now back in South Africa. Obviously there has been some delay in this project kicking off, but this will happen one day and we will definitely be ready.”

The Middleburgh coal lab is among several strategic investments that have expanded the company’s asset base in

NOV 13 PAGE 57

CompANY PROFILE Southern Africa. The latest is the Sievert Group, a leading provider of non-destructive testing and related industrial inspection services in India and the Middle East.

Non-destructive testing is an attractive market, estimated at USD$3.5 billion, with a growth rate of around 9% a year. Demand is driven by growing needs, both in mature economies facing challenges related to ageing infrastructure, and in new economies investing in the construction of industrial facilities.

“We decided to implement its services in Southern Africa which we started one month after the acquisition and it’s been very successful so far,” says Xiste.

“Non-destructive testing is common in the oil and gas sectors along with the power and petrochemical industries. It means you can test a piece of metal without destroying it - for example in pipeline testing to see if a weld has been done properly, which is clearly very cost effective.

“The Sievert acquisition will increase Bureau Veritas’ technical capabilities in advanced non-destructive testing, reinforcing our market position and expertise and adding further added value services to our industrial clients.”

Meantime, while alert to further potential acquisitions, Bureau Veritas is targeting expansion across a number of key sectors.

“We need to get ourselves ready for the big oil and gas boom that we shall see in southern Africa. It’s a sector in which Bureau Veritas is extremely well known worldwide by the majors, but at present we are small in Southern Africa and we want to become much bigger.

“Another is the automotive industry. South Africa is a big platform for cars and auto manufacturing but we are not strong here. Yet we have got some very interesting services applied worldwide that could be very relevant in South and Southern Africa. So we have decided to invest here as well.

PAGE 58 OCT 13

“The other sector is agricultural-related services. At present we are not very well represented in Southern Africa, but if you look at Tanzania, Kenya or Mozambique for example, these are big agricultural regions where growth can certainly be taken.”

GLOBAL AND LOCAL Based on these and other regional growth opportunities, Xiste expects Bureau Veritas’ current capacity of 1200 people in South Africa alone to soar in the coming years. “By the end of 2015, we need to have around 2000 people in Southern Africa.

This implies that we will be recruiting new people, expanding in our markets, enlarging our service offering, broadening our customer base and so on.

“Our Best Employer rating is very good. Not only do we provide training for our own people but also our clients employees as well. The training is focussed mainly on industrial services, inspections, quality control, and quality assurance. We started in 2012 and this year we have got better and will be increasing our training products in 2014 and beyond.”

With a marketing background in power, mining, nuclear and offshore, Xiste has been in South Africa two years, and before that with Bureau Veritas in France and Scotland. “I am enjoying my life here. South Africa is an attractive country and the people are nice. There are very real opportunities in South and Southern Africa.”

Driven by legislation and increasingly demanding international standards, compliance is a top agenda issue both for business and public. “The market is looking for more compliance and as a highly local and customer-focussed organisation with all the resource benefits of a major global Group, Bureau Veritas Southern Africa is ideally placed to deliver and grow.”

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Bureau Veritas

DESIGN

| REVIEW | FEA

Pressurised Equipment

Steel Structures

Storage Tanks

2D Draughting

Intermodal Containers

3D Solid Modeling

Offshore Equipment

Prototype Conceptual Development

Piping

Project Management

OCT 13 PAGE 59

CompANY PROFILE

There is no substitute for wood Editorial: Roland Douglas Production: Chris Bolderstone

Michael Peter, Executive Director at Forestry SA, tells IndustrySA more about the work that is constantly going on to develop and advance the forestry industry in times when there are a number of questions about its future direction.

In December 2012, we spoke to Roy Southey of the Wood Foundation and he told us that promoting the use of timber (and wood in general) in the construction industry was one of the top priorities for the Foundation and for the forestry industry as a whole. This month, that point was reiterated

by Michael Peter, Executive Director at Forestry South Africa (Forestry SA), and he says that while wood is a brilliant material for construction, too often people are looking to steel as a substitute.

“The Institute for Timber Construction (ITC) have become quite alarmed by the substitution of timber for steel,” says Peter. “I don’t think from a cost perspective or an environmental sustainability perspective steel should be a competitor to timber but it’s quite a convenient material to work with.

“The ITC have been lobbying us to support a campaign

PAGE 60 nov 13

to promote the use of timber, not just from a structural perspective but in civil engineering and architectural environments as well. There is a concerted effort under way to raise awareness about timber as Europe is years ahead of South Africa. We’ve traditionally only used timber for roof trusses and things like that but there are so many more uses in the built environment.

“With light gauge steel, if you can get a sure supply, the prices tend to remain fairly stable. However, from a sustainability perspective, it’s a non-starter. From an energy intensive perspective, it’s a non-starter and if South Africa goes ahead with the proposed carbon tax in 2015, that could price steel out of the market as a substitute for wood,” he says.

The Wood Foundation offers four key reasons as to why wood is the perfect building material: Firstly, it is carbon neutral. Trees absorb CO2 as they grow. Secondly, using

Forestry South Africa

wood instead of other building materials saves on average 0.9 tonnes of carbon dioxide per cubic metre. Thirdly, wood has the lowest embodied energy of any mainstream building material and lastly, wood has the best thermal insulation properties of any mainstream construction material on the market.

There are of course many other reasons why wood is a great building resource but these four are very important and very current. So what is being done to promote increased forestation in South Africa? Well, Peter says that there are a number of initiatives under way but one of the main challenges is that of regulation.

“We estimate that there is at least another 200,000 hectares that could be turned into timber plantations in areas that don’t compete with agriculture,” he says.

“There is huge scope for replanting areas that were exited, like the Mpumalanga escarpment areas, and areas in the

Western Cape. There is also scope for replanting many of the government plantations that have gone backwards under state administration; there really is massive scope for increasing forestry, I would estimate that comfortably another 350,000 hectares could be planted but the real challenge is not physical, it’s regulatory.

“There are areas that have been identified for new forestation, that have water available, where the private sector is willing to fund but where investment is not taking place and this is purely because of the bureaucratic, regulatory environment.”

The forestry industry falls under the care of the Department of Agriculture, Forestry and Fisheries (DAFF) and Minister Tina Joemat-Pettersson and they have made it clear that their objectives include the encouragement of economic growth, job creation, rural development and the sustainable use of natural resources.

nov 13 PAGE 61

CompANY PROFILE Peter says that a relationship between government and Forestry SA on a political level could potentially provide huge benefits to both parties.

“If you look at other industries in the country” he explains, “they generally enjoy a lot of state support in terms of reducing the regulatory burdens. This industry has never attracted any of that; even support for research and development, common around the world, is not coming for forestry in South Africa from the government. We have raised the issue with them many times and they have acknowledged it and raised policies around it but they never seem to be able to get any funding to support research and development.

“We would treasure a closer relationship with government on a political level,” he says.

HELPING SMALL GROWERS A closer relationship with government would not only help the association to navigate the regulatory environment, it would also help Forestry SA take strides towards achieving one of its primary objectives - to bring the emerging small scale timber grower sector into the mainstream of forestry activity.

“This has been part of the objective of not only the industry but the government too, especially post 94,” says Peter.

The 20,000 emergent small scale growers are immensely important to the country’s industry as between themselves and the larger growers, they own or control no less than 93% of the total plantation area in the country which makes up around 1% of the country’s total landmass.

“Quite a few small growers have increased their timber holdings; they’ve increased the size of their plantings partially from cash generated through forestry and also through going to large scale growers for support,” says Peter.

There are 11 corporate forestry companies and around 1300 commercial timber farmers active in the South African forestry industry, all of whom hold membership with Forestry SA. These larger members offer support to smaller timber growers and create mutually beneficial arrangements which help the industry as a whole to prosper.

“All the small growers in the country have been supported by established members of the industry. They’ve provided soft or interest free loans, they’ve provided selectively bred strains of seedlings and they’ve provided technical expertise which has helped smaller growers to grow organically. Other small growers have diversified their business and gone into farming vegetables and cattle and so on and all of this has come off the back of the revenue from forestry,” explains Peter.

“Many small growers are now contractors to other

PAGE 62 NOV 13

medium and large timber growers and they are using the skills that they have learnt from being in the industry as a small grower themselves. Some are even supplying into larger companies which is beneficial for both.

“In this sense, there has been growth. A lot of growers are no longer known as small growers; they’ve got a foot up in the industry and have gone on to work in all areas of agriculture and add value to the forestry industry,” he says.

While progress has been made, there are many more opportunities to assist with the development and growth of small scale businesses in the industry. Peter explains that a new initiative has been put in place to allow small businesses to partner with bigger, more established companies and potentially improve the BBBEE relationships that currently exist.

“We’ve launched the business development forum, which we are trying to get government to support. This is aimed at creating additional partnerships between larger and smaller growers because the industry is committed, along with government, to empowering previously disadvantaged people in the country,” he says.

“A concern has been that we may be missing an opportunity where large companies are finding black partners who sometimes aren’t even in forestry and we have small growers who are already in the business who would perhaps be more appropriate black economic empowerment partners to be involved not just in equity deals but in the other empowerment opportunities of larger organisations.

“The question is, can we capture new markets and develop new products for which the timber can be used” So we’ve launched this forum to create the platform so larger players can talk to smaller ones and see how the established sector can improve its BBBEE in the industry by targeting specifically smaller timber growers.”

While this project is still in its infancy, support from the government could help to move it along and it would provide great support for smaller growers who are actively seeking assistance.

ORGANISED LABOUR Because of Forestry SA’s significant membership numbers, three separate groups were formed under the supervision of an overall executive committee. These groups are; the Large Growers Group (corporate timber growers), the Medium Growers Group (commercial timber farmers) and the Small Growers Group (emergent timber growers). Over time it became apparent that the vast majority of the issues

Forestry South Africa

which FSA deals with, are of importance to all three groups, so about four years ago it was decided to amalgamate the structures. As a result each of these groups is represented on the general and executive committees of FSA. Because of FSA’s broad constituency which consists of all races and scales, it is recognised by the government and the private sector as the representative body for the industry. However, even with this recognition from the government, Peter suggests it can still be difficult to get State support for the sector on issues because of the lack of an ‘organised labour movement’.

“We have small groups of employees scattered throughout the country and they are expensive and unprofitable for trade unions to represent, so they are generally ignored.

“On the one hand, the industry hasn’t had to deal with the negative impacts of industrial actions that have been seen in other sectors but on the other hand, it’s a lost opportunity in that you can’t exert influence over the government as you don’t have organised labour to speak for your sector within that government,” he says.

“In mining, motor manufacturing, and clothing and textiles industries, where the workforce is highly concentrated in specific areas, it’s easy to mobilise people.

As a result those sectors enjoyed high levels of government support. In forestry it’s a whole lot more expensive and less profitable for trade unions.

“While I would really value a more active and mobilised trade union movement in the South African forestry sector for the purposes of lobbying government as the labour movement is part of the tripartite governance structure in South Africa, it’s highly unlikely to materialise just because of the logistics and costs involved with organising people who are fragmented and scattered. Of greater concern however is the damaging impact of the labour movement that one has seen in other sectors such as mining and motor manufacturing. This makes one wonder whether the benefits of greater government appreciation and support for the sector, would be outweighed by the negative impacts of industrial action, seen in other sectors.”

THE FUTURE Considering only around 1% of South Africa’s land is covered by plantations and the fact that they are such a valuable resource, one of the main questions surrounding the industry is, how can we increase the forested areas in the country?

DAFF says: “Forests and woodlands are crucial to the protection and conservation of the soil, and play a vital part in water cycling. They also help moderate water flows and reduce sedimentation in streams and reservoirs. The nation’s forests and woodlands contribute significantly to South Africa’s remarkable range of fauna and flora, much of it

NOV 13 PAGE 63

CompANY PROFILE

unique.” Add to this the fact that forest woods are important construction, fuel and food resources and you begin to realise the importance of increasing forested areas.

“Everyone in the industry is looking at what products generate the best kind of return,” says Peter.

“There is quite a strong movement towards growing more eucalyptus for chemical cellulose because that’s a product where demand has remained strong. Similarly the Presidential Infrastructure projects in the pipeline, will see increased demand for sawntimber, timber board and mining timber in the future.”

“Forestry SA represents timber growers but we are also involved with other associations such as Sawmilling SA and the Pulp and Paper Manufacturers Association. About three years ago, the industry got together and we decided we needed to do something to promote forestry and forest products, not just timber. To do this, we established the Wood Foundation and although it has been very difficult because of a depressed market, the Wood Foundation has done some very good work at exhibitions and in other areas promoting timber and wood in general for construction.”

Increasing and protecting forested areas is also on the agenda of the private sector and companies like Mondi (international packaging and paper group) are very involved in the design of landscapes and other conservation projects.

“They are an extremely responsible company and provide support to our organisation and to the industry more broadly,” says Peter.

“It’s immensely beneficial. I can’t even begin to quantify the value we get from not just Mondi but from all of our

PAGE 64 NOV 13

members. We are a very small association given the size of the industry and our members give us a lot of their time.

For example, our current Chairperson is the Director of Mondi Forests and the Chairperson of our Medium Grower Group who has held that position for many years, is the Forestry Director of Bracken Timbers, which is a medium sized forestry and sawmilling company. Furthermore all of our growers, large medium and small effectively serve on our various committees dealing with land, transport, environment etc. So while we get a lot of financial and inkind support from industry to keep the association going, without this additional support from our members, the association would be a great deal more costly to run,” he says.

As is often the case, we also find that those members and companies who serve in FSA’s various structures, are best positioned to ensure and appreciate the value which they get from the association and its key partners such as the Forestry and Agricultural Bio-technology Institute and the Institute for Commercial Forestry Research.

Obviously, backing like this fills the industry with confidence and it is likely that their support will be integral to increasing the amount of land covered by forests.

CLIMATE CHANGE Climate change is such a difficult topic for any industry as facts are difficult to come by but in forestry it often spreads worry and concern because the general theory is that if temperatures rise, some parts of the world are going to get too hot for forests to survive.

In April, a report in the Proceedings of the National

Forestry South Africa Veritas Academy of Sciences of the United States (PNAS) was published stating that by 2050 half of the Cape Winelands could be lost to climate change. Peter says that an independent study by Forestry SA back in 2007 came to the conclusion that the Western Cape would indeed get drier but he also states that it is important to find out exactly what the future holds and not base decisions on rough theories.

“Forestry SA commissioned its own study in 2007 as to the likely impacts of climate change and all the evidence seems to suggest that the Western Cape, home to the Winelands and some of our timber plantations, are the most at risk. All of the models predict an increase in drying in those areas and this would present a significant risk to the forestry industry in that region.

“It’s very difficult to be sure however, because the timescales are hard to predict and there’s also predictions in the same models that the eastern parts of the country could also get wetter and hotter with less frost, which could mean new areas will be suitable to timber growing, so we are trying to understand properly, exactly what climate change does hold for the industry but it’s not an exact science.

“Do you start growing heat tolerant species or drought tolerant species or a species able to handle increased rainfall? It’s extremely hard to predict. Certainly the consensus is that the Western Cape is going to get drier but if this only starts to manifest in 90 years time, as a recent model suggests, one can grow another four rotations of sawtimber in that period. Also the change will be gradual and this should give us ample time to developed appropriate cultivars for the area,” he says.

“The bigger and more present challenge posed by climate change, is likely to be in the area of forest protection, where the spread and management of pests, diseases and fire may become harder and more costly to manage.”

CHALLENGES & OPPORTUNITIES Away from the challenges the industry faces with assisting its smaller growers, increasing its plantation areas, dealing with climate change and fighting for government support, there is also the question of sustainability. The industry cuts a large number of trees every year and some people have questioned the industry’s sustainability, especially with volumes of timber apparently decreasing every year. Peter explains that sustainability is not a problem and in fact, timber stocks have increased.

“The decline in volumes is not a decline in productivity; it’s related to depressed market demand,” he says. “From a sustainability perspective, there is no challenge whatsoever,

we have increased the stock of timber in South Africa by about 3.5 million tons simply by cutting less than what we could have because of the depressed market demand.

“The question is, can we capture new markets and develop new products for which the timber can be used.

We don’t want a situation where we have tons of stock but nobody to sell it to.”

Sustainability is also a topic for discussion in terms of how long the industry can realistically go on creating jobs before automation and technology take those jobs away.

Again, Peter is firm in his stance that mechanisation in the industry forms an opportunity and not a threat, saying: “Most of our timber plantations are in steep, mountainous areas where there is high rain fall so mechanisation is not possible everywhere. We will always need significant levels of manual labour in the industry because of the typography, the nature of some of the operations and where timber is grown in South Africa. Having said that, where we can mechanise, it offers opportunities for higher skilled work and higher paid jobs so I don’t think mechanisation should just be seen as a threat to jobs but rather as a chance to create higher value opportunities and increase profitability. Without increased profitability, investment will move to places which are more costeffective.”

For the smaller timber growers in the country, although mechanisation presents potential profitability, the initial outlay is just too high to consider.

“There are more than 20,000 independent timber growers in South Africa who are not wealthy enough to buy major machines, unless they come together but then there would be inefficiencies of moving the machines around the farms. It just doesn’t seem to be an economically viable option for many growers,” says Peter.

“The real threat is rising input costs,” he says. “For the smaller growers, who are not vertically integrated, rising input costs cannot be offset in the sale of forest products and there is a risk that they might get out of forestry.”

Obviously, that would be a disaster and something to avoid at all costs but with the business development forum, the Wood Foundation and the opportunities on the horizon regarding the potential areas for new plantations and replanting, there are opportunities for the industry and if DAFF supports and embraces the plans then, hopefully, progress will be made.

Peter is also highly optimistic about the new markets opening up in the rest of Africa. He says “While South Africa’s geographic position used to be a disadvantage in accessing global markets, we are very well placed to take advantage of the growth in demand for forest products from African countries.”

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NOV 13 PAGE 65

CompANY PROFILE

Contributing to

a sustainable future mondi is an international packaging and paper Group, with production operations across 30 countries. The Group’s key operations are located in central Europe, Russia and South Africa, and as at the end of 2012, mondi employed 25,700 people. mondi Group is fully integrated across the packaging and paper value chain, from the growing of wood and the production of pulp and paper (packaging paper and uncoated fine paper), to the conversion of packaging paper into corrugated packaging, industrial bags, extrusion coatings and release liner. mondi is also a supplier of innovative consumer packaging solutions, advanced films and hygiene products components.

PAGE 66 OCT 13

Forestry South Africa Veritas

Mondi is actively involved in a number of critical projects that seek to protect biodiversity, help indigenous vegetation to flourish and protect endangered flora and fauna from extinction.

DESIGNING FUTURE LANDSCAPES BASED ON ECOLOGICAL NETWORKS Mondi is a leader in promoting research and development into Ecological Networks (ENs). ENs are interconnected land corridors or nodes of natural vegetation within forestry or commercial farming operations that can help to maintain biodiversity. They are incorporated into an overarching design and management strategies that link source areas to nature reserves, while maintaining biodiversity in the production landscape.

INTENSIVE ALIEN INVASIVE PLANT CONTROL Invasive alien plant species pose a serious threat to biodiversity and water resources in unplanted areas. Mondi continues to develop its intensive management programme, which has significantly improved the way invasive alien plant species are controlled. Mondi’s Invasive Alien Plant Programme has cleared a total of 60,000 hectares of indigenous forest, woodland, wetland and grassland from invasive alien plants over the last three years. This has a positive impact on water quality and yield and is an important part of conservation measures.

HIGH CONSERVATION VALUE AREAS Photo: Jacqui Shuttleworth

Mondi was the first forestry company to have proclaimed nature reserves within its landholdings, namely Gelijkwater Mistbelt Nature Reserve and Mount Gilboa Nature Reserve. Mondi continues to identify areas of high conservation value and to pursue their active stewardship, and Mondi has set aside 76,398 hectares in South Africa for conservation (25% of our landholding).

PROTECTING THREATENED AND ENDANGERED SPECIES Mondi’s landholdings are home to a number of threatened and endangered species, and Mondi continues to take steps towards their protection.

This includes being proud supporters of EWT’s African Crane Conservation Programme and Oribi Conservation Programme.

FIND OUT mORE about Mondi’s conservation efforts by visiting www.mondigroup.com/sustainability

OCT 13 PAGE 67

CompANY PROFILE

Optimising display excellence Editorial: Lauren Grey Production: Chris Bolderstone South African manufacturer of refrigerated display cases, Colcab recently acquired the assets and intellectual property of coil manufacturer, Yucon in order to grow its market share.

IndustrySA speaks to Operations Director, Rainer Faustmann and Regional Sales Manager, Ian Nichols to find out more.

Supermarket display cabinets are essential pieces of equipment used by all major food retailers, but the function of a cabinet extends way beyond storage, to playing a pivotal role in enticing and selling a product to a customer.

Without intelligent storage solutions for its refrigerated and frozen goods, food retailers would not achieve the maximum shelf-life of a product, resulting in a continuous turnover of stock with much smaller product batches.

Fortunately, South African manufacturer of refrigerated, heated and ambient display cases, Colcab understands the importance of intelligent storage solutions and has been working in partnership with many of the country’s leading retailers to optimise efficiency and influence consumer spending.

“We are very much an extension of our customer’s business,” explains Colcab Production Director, Rainer Faustmann, “It’s not as simple as manufacturing a case, putting it in a container and sending it to the client, the

PAGE 68 NOV 13

journey continues through the client’s supply line.

“We also have to make sure that our cabinets provide the right environment for our customer’s product. We are that connected to our customer base that we see ourselves in partnership with them in terms of their specifications and requirements.”

As South Africa’s largest and most innovative manufacturer of refrigerated supermarket display cases, Colcab is committed to optimizing display excellence through the continuous improvement of its products.

“From a quality, reliability and performance point of view, we are definitely leaders in our industry,” says Faustmann, “we have a product which is very well adapted to the African market; we have a very high quality standard, and within our production environment we have a very high level of flexibility in order to satisfy customer demand and expectation.”

Based in Cape Town, in a factory comprising 17,000 square metres, Colcab satisfies between 60-70% of local market demand, working predominantly within the retail

COLCAB

industry. The company also exports into Africa and parts of Europe.

“We started as a very small business specialising in refrigeration and case manufacturing, but together with our expertise and faithful customer base we grew into a large organisation comprising of around 300 employees and we began servicing new markets across the continent,” says Faustmann.

PRODUCT DEVELOPMENT Colcab’s refrigerated cases are manufactured to store a number of different food products such as bakery, deli, butchery and salads, and come in a variety of styles and sizes, and although they are robust and made to last between 10-20 years, Regional Sales Manager Ian Nichols says that many retail chains opt to change the look of their refrigerators on a more regular basis.

“Our display cases are built to last because many of our customers will ask for something robust that will withstand 15-20 years of use, however if they do not renew or refurbish

their supermarket environment on a five year minimum cycle, then they are not keeping up with their competition.”

Five year cycles are common throughout the retail market in order for chains to keep their stores looking fresh, modern and up-dated; market trends and consumer demand are just two influences that may determine how often a retail chain changes its refrigerators, as Nichols explains: “The consumer expects to have a good shopping experience within their neighbourhood store, so in order to ensure this, retail chains are almost forced into five year cycles of refurbishment. Another influence for refurbishment is market trends; retailers follow both local and Eurpoean trends to ensure they have the most up-to-date equipment installed in their supermarkets.”

Colcab is both aware and understanding of its clients needs to keep their supermarkets consumer friendly and looking fresh; it is therefore the company’s mission to ensure its clients have access to the latest trends and technology, as Faustmann explains: “What we really need to focus on as a company when it

NOV 13 PAGE 69

CompANY PROFILE comes to the refrigerated cases is fashion and performance; retailers will go for whatever is fashionable in order to capture the market, but on the other hand we need to ensure that the cases are efficient and operate within world standards.”

In order to ensure its cabinets operate efficiently and utilize the best technology, Colcab tests the cabinets extensively in order to ensure that the design criteria are achieved. The cabinets are tested in a fully equipped test laboratory, which is available for testing airflow, performance and electrical usage for both low and medium temperature.

“Our cases are tested in line with BS EN specifications,” says Faustmann, “they are tested in world class laboratories, and manufactured under ISO 9001 standards. Fashion is obviously a huge influence on the cabinet’s design, but performance and energy efficiency is a critical factor.”

Keeping up with global trends is imperative to Colcab, and to ensure the company is ahead of the competition Faustmann says they try to bring new product ranges into the market as often as possible.

“We introduce new product ranges as often as necessary, but retailers also bring that change themselves. For example, a retailer may go overseas and return with an idea of a style they like, and ask if we can design a similar look.

“In some cases you can revamp the look of the fridge, for example we will build the same basic structure of the fridge, but we will clad it in different ways to give it a different look; the internals of the fridge will remain the same but externally it will look different.

“If the customer wants to change the height or width, then we would have to build a different fridge altogether, but just

PAGE 70 OCT 13

“On behalf of Food Lovers Market Kuils River, we would like to take this opportunity to thank the Ref Tec Refrigeration and Colcab teams for their professional services rendered and for going the extra mile for us.

“Your teams exceeded our expectations with regards to meeting the deadlines and still maintaining an excellent standard of work.

“Thank you for making the impossible possible.”

Regards Herman Fouche’ (Owner) Food Lovers Market – De Kuilen Kuils River, Cape Town.

COLCAB

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to change the external look, that can be done by utilising different cladding.”

FUTURE DEVELOPMENT Since its inception within the South African market, Colcab have expanded rapidly and now export to customers in Namibia, Australia, Mozambique, Zimbabwe, Kenya, Malawi, Zambia, Malaysia, Indonesia, Singapore, Philippines and Sri Lanka.

The company’s growth over the years has been fairly organic, and Faustmann admits that as its clients expand and grow into new markets, it opens up new doors for the business.

“When it comes to the African market, we are able to expand alongside our customers; as they open new stores across the continent, they take our services with them and we are able to enter the market that way.

“Then of course networking; we have many strong relationships and networks within the industry, and through that we are able to export into different countries,” it is these close knit relationships which further emphasise the company’s excellent reputation, and contribute to its expansion.

As part of the company’s expansion strategy, Colcab

PAGE 72 nov 13

recently acquired the assets and intellectual property of coil manufacturer, Yucon in order to strategically grow its market share.

“Yucon design and manufacture heat exchangers for our market and related markets, such as refrigeration, air conditioning, marine and agriculture. We acquired the assets and intellectual property in order to expand our own product range and customer base,” says Faustmann.

“We already manufacture heat exchangers for our own use because our cases need a heat exchanger within them, and the acquisition was part of expanding and strategically growing that side of the business.”

The acquisition has increased Colcab’s capability and capacity in the heat exchange market, and going forward, the company’s strategy is to further penetrate the market in order to gain more market share.

.

“From a quality, reliability and performance point of view, we are definitely leaders in our industry”

COLCAB

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Award-winning manufacturing Editorial: Lauren Grey Production: Chris Bolderstone Safal Group’s vision of establishing a steel manufacturing plant in South Africa was officially recognised in 2012, as its R1Bn site was formally opened by Minister of Trade and Industry, Dr Rob Davies, and less than two years after inception, the newly formed company, Safal Steel scooped the prestigious Manufacturing Award at the KwaZulu-Natal (KZN) Top Business Awards.

Safal Group is Africa’s largest producer of steel roofing and the sole producer of Aluminium Zinc coated steel on the continent. The company started by trading corrugated roof sheeting in the 1940s, and opened its first manufacturing facility in Mombasa, Kenya in 1962; today, the Safal Group manufactures in 11 African countries, and sells its products across 3 continents.

“Our vision of being a major player in the field started to take shape when our aluminium-zinc metal coating plant –the first in Africa- came into production in Mombasa in 2001,” explains Safal Group Executive Director, Sarit Shah.

“We will continue this journey by expanding into as many countries in Africa as possible, whilst also providing the best service and quality to our customers and the end users of our products. This will help us remain a major player in 50 years and more that lie ahead.”

As part of the group’s growth strategy, in 2008 it began construction of a state of the art metal coating facility in Cato Ridge, South Africa. The facility is responsible for the manufacturing of aluminium zinc coated steel coils for the local and global markets, and started full commercial production in 2011, trading as Safal Steel.

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SAFAL STEEL SA With financial support from the Industrial Development Corporation, Safal Steel was successfully established in South Africa because of the country’s exciting economic prospects, whilst Durban was selected as the best place to set up operations because of its harbour, which has the busiest port in the country, with all shipping lines visiting it.

The manufacturing plant is 30,000 square metres under roof and set on a 14.4 hectares site. It incorporates a pickling and oiling line, a cold rolling mill, an aluminium zinc coating line and a colour coating line.

Minister of Trade and Industry, Dr Rob Davies formally opened the R1Bn site in March 2012, stressing its vital role within the country’s steel industry and noting its contribution to job creation, “We understand the whole facility has a capacity of 150,000 tons a year on both un-painted and painted coated coil, sold on to the roofing and general engineering sectors and that there are plans to double the volumes to 300,000 tons in the near future.

“The aspiration to enter other markets, such as the automotive and white goods markets, is well supported as it will enhance the deepening of value-addition and the creation of decent jobs in these sectors as envisaged in the Industrial

SAFAL STEEL

Policy Action Plan.”

A number of support lines and services were installed at Safal Steel’s manufacturing facility, including an acid regeneration plant, rewind and trim line, a Nitrogen generation plant, a Hydrogen generation plant, the regenerative thermal oxidiser, an effluent treatment plant as well as a sewerage treatment plant. These additional support lines assist Safal Steel Ltd in the challenge of maintaining environmental friendliness.

PROCESSES Steel is used in almost all industries, from engineering and construction to automotive and consumer goods, but it has one inherent weakness, in that when it is used unprotected and exposed to the environment, it corrodes very easily.

To extend the service life of steel, it is generally coated with a corrosion inhibiting coating; the two most commonly used coatings to protect steel are aluminiumzinc and galvanised steel.

Safal Steel produces metal coated coils using the patented aluminium-zinc coated technology, produced under license to Bethlehem International Engineering Corporation (BIEC).

BIEC is the worldwide licensor and acknowledged leader in technologies associated with 55% aluminiumzinc coated steel. A company wishing to align itself with BIEC has the option of either branding its product as Galvalume or registering a different brand, such as Safal Steel’s ZincAL and ColorPLUS. The process used to coat steel in either ZincAl or ColorPLUS involves the purchase of Hot Roll Coils (HRC) from a variety of the Safal Group’s current global suppliers. The HRC coils are firstly cleaned through a fully automated Pickling and Oiling Line to remove any mill scale.

The cleaned coils are then Cold Rolled to a variety of gauges ranging from 0.2mm to 1.2mm. Thereafter the coils are once again cleaned and coated with an alloy of aluminium-zinc in the metal coating process (55% aluminium, 43.5% zinc 1.5% Silicon) and sold to Safal Steel customer base as ZincAL®.

The final process involves the painting of the coils -if required- it is then sold to market as ColorPLUS®.

The paint line has been manufactured to ‘whites goods’ standard and paints mainly using the modified polyester system.

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CompANY PROFILE ZINCAL

COLOURPLUS

The patented ZincAL coating protects steel in two ways; firstly the aluminium component of the coating provides a tough physical barrier between the extreme atmospheric conditions and the inner core of steel. Secondly, the zinc in the coating provides sacrificial protection and also protects the steel at the cut edges.

The thermal mass of ZincAl is significantly lower than traditional galvanised steel and clay roof tiles due to the addition of aluminium. This increases the reflection of the sun’s rays creating a cooler building in summer and warmer building in winter.

In order to ensure it delivers a long lasting, quality product, Safal Steel subjects ZincAL to a number of tests including; ISO quality system testing, quality inspection during production, SABS conformance and artificial weather testing.

Artificial testing is performed by way of salt spraying, in which products are exposed for predetermined time periods to salt fumes at fixed temperatures; the time periods are determined by the various coating categories.

Live test stations have also been installed at various locations for monitoring the visual performance of ZincAL, under every day weathering conditions, in order to ensure optimal performance.

ColourPLUS has been developed as a premium product to endure South Africa’s harshest climates, ensuring your building will have a considerable increase in service life, superior thermal protection, added aesthetic value, cost-effectiveness and eco-friendly credentials.

Many years of research and development between Safal Steel and its paint partners has resulted in a paint process that satisfies all the demands placed on steel roofing in the 21st century.

Innovative pigments used in the paint have been carefully selected to avoid rapid color change and retain a fresh appearance for many years. The technology used for this coating system also limits chalking.

Particle resistance is an important factor with the growing increase in windborne contaminants and dust. Advances in prepainted coating technology means that our modified polyesters resist dirt, ensuring a building stays cleaner for longer.

With its balance between cost and quality, UV resistance and corrosion resistance, hardness and flexibility, ColorPLUS is redefining the pre-painted coated steel sector.

Much like ZincAL, ColorPLUS is subjected to many of the same tests to ensure a long lasting and quality product, with the addition of QUV/QUB testing, for which the polymer

Coil coatings are Beckers’ core business and we lead the EMEA market in sales of specific industrial paints.

Our innovative solutions for our customers make use of advanced technology in applying paints to flat metal coils in a continuous process. The resulting pre-coated material is a product of consistent quality with excellent formability, corrosion and weathering resistance, while enabling a myriad of colours, patterns and aesthetic appearances.

Beyond The Surface

PAGE 76 OCT 13

105 Houtkop Road, Duncanville PO Box 1305 ZA-Vereeniging 1930 Phone: +27 16428 4011 Fax: +27 16428 2711 E-mail: info-za@beckers-group.com

www.beckers-group.com

SAFAL STEEL

characteristics of the ColorPLUS material is exposed for predetermined time periods to UVA and UVB rays at fixed temperatures.

TOP BUSINESS AWARD Testament to Safal Steel’s success, the company was recognised at the 6th KwaZulu-Natal (KZN) Top Business Awards held in Durban on 28 June 2012.

Of the 13 awards given out on the night, Safal Steel was named winner of the manufacturing category and scooped the prestigious Manufacturer Award.

First National Bank and the province hosted the awards event attended by an esteemed list of organisations, dignitaries and leaders from many government departments and municipalities representing the province.

The awards recognise businesses and organisations that are making a contribution to the sustained economic growth of KwaZulu-Natal in each economic sector of the province, and since its establishment in 2010, Safal Steel has done just that.

However, the company’s success over the past three years can be measured –not only by its business award- but also by its ability to attract custom through word-of-mouth, and the company is set to continue its growth throughout South Africa over the coming years.

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Communication breakdown?

Not with Lesotho Communications Authority Editorial: Tim Hands Production: Chris Bolderstone

The development of communications across the spectrum in Lesotho is a primary concern of the Lesotho Communications Authority (LCA), a statutory body established in June 2000 with a mandate to ensure that communications are effectively handled for the whole of its population.

Monehela Posholi, Chief Executive of the Authority, details some of its key responsibilities and the projects which are constantly pushing forward telecommunications across the country.

The LCA has a varied and extensive mandate surrounding the work it undertakes in regulating the communications sector in Lesotho.

Formerly known as Lesotho Telecommunications Authority (LTA), the statutory body as it is today was established in June of 2000 and regulates some of the most vital aspects of the communication sector in the country.

Whether granting licences to operators, approving tariffs, managing the radio frequency spectrum or protecting the customers it serves, this mandate encompasses the majority of the key elements of the Communication Act, all of which are managed and overseen by LCA on behalf of the country’s population, now numbering more than two million.

Perhaps the most important aspect of this mandate

PAGE 78 nov 13

is LCA’s responsibility to promote fair competition, something that its tireless work to improve connectivity in rural areas is helping to engender.

“We have the two licensed network operators in the country,” explains Chief Executive, Monehela Posholi, “and we have to look at whether this two-heavy, duopoly situation that we have is adequate. We’re really pleased therefore that these two operators have been introducing new products into the market and the costs have been constantly coming down, and noting the healthy competition this brings about.”

The aspects of LCA’s mandate contain several key, recurrent elements and represent an authority committed to the most effective provision of telecommunications possible. High on its list of priorities is the promotion and development of its offering of efficient local, national, regional and

Lesotho Communications Authority (LCA)

© LCA

international telecommunication services in Lesotho, while ensuring that all reasonable steps are taken to promote network development, universal service and access to telecommunication service. These commitments highlight its efforts to ensure a universal exposure to the very latest in the ever-developing world of telecommunications, always promoting the range and quality of these services in the interests of its consumers.

As well as taking such detailed care of the consumers who benefit daily from its provisions, LCA also finds itself in charge of the regulation of much of the dealings within the sector itself. As such, the efficient management and human resource development within the telecommunication sector is promoted by LCA, while the Authority is also constantly striving to ensure sustainable and fair competition between telecommunication service providers. Its influence even

stretches to representing government, in consultation with the Minister of Communications, in international matters relating to telecommunications.

The rolling out of broadband via a fixed line, or fibre, is currently an extremely hot topic for LCA, although the challenges associated with this have, according to Posholi, prompted a shift in focus to the possibility of developing the country’s use of mobile internet. “With the proliferation of smartphones and all the related mobile devices – iPads, among others – these mobile networks would be better placed to drive the broadband development in Africa,” he states.

This does in itself bring with it certain issues, seen in parallel situations throughout the world – namely, as Posholi puts it, “raising spectrum frequencies for the roll-out of mobile services,” although the proliferation Posholi describes and the wealth of mobile devices

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PAGE 80 OCT 13

Lesotho Communications Authority (LCA) whose usage is ever-growing means that this is an extremely worthwhile exercise for the Authority to undertake.

A primary concern in the spectrum of LCA’s future prospects is the development of communication in rural areas of Lesotho. “Putting it into perspective,” describes Posholi, “Lesotho is a small country, but it has a very difficult terrain to negotiate. For this reason, rolling out network infrastructure in this country is a significant challenge.”

To combat this, the Authority was forced to find expert and innovative ways to enable this development despite the difficulties presented by its surroundings.

“Almost all of the country is mountainous, so noting that we had this challenge in developing infrastructure we established the Universal Access Fund in 2009.

“We have two operators in the country, who contribute 1% of their net operating income each year, along with LCA’s contribution of 25% of any surplus in the year. Through this fund, and its capital of around R10 million, we have been able to target those areas which are very remote, rural, and not that viable in

terms of network operators, who are looking for more densely populated areas which will in turn generate a lot of traffic and, ultimately, be the most profitable.”

This operation has proved extremely successful in terms of developing such network infrastructure within these areas: “Up to now we have developed around 17 projects, all in very remote areas of the country,” explains Posholi.

These steps, in line with LCA’s drive to provide the entire population with the very highest level of communications service, are outlined by Posholi.

“Firstly, we earmark a particular area as one where we wish to provide telecommunications services. When we have shown the area that should be covered by these services, we issue an invitation to operators to offer a bid, which tells us how much subsidy they would require from the fund, were they to be awarded the project.

Using this reverse option model then allows us to award the project to the operator who has requested the least subsidy from the Universal Access Fund.”

Having been put in charge of any of these projects, the infrastructure and the provision of services within

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OCT 13 PAGE 81

CompANY PROFILE

that area is the exclusive property of the chosen operator for a period of a year, when this incentive can then be shared with another of the country’s operators. It has been a greatly successful endeavour – LCA has been able to install services to some extent, whether 2G or 3G, in all of Lesotho’s ten districts. In addition to the efforts made possible by the Universal Access Fund, Posholi is keen to point out the role that the operators themselves play in the development of networks across the country, allowing LCA to target areas that do not form part of the operators’ “drive” to develop.

The future of communications in Lesotho looks likely to involve a third player, further increasing the healthy competition between the country’s two key current operators, Vodacom Lesotho and Econet Wireless Lesotho. “We would like of course for competition

PAGE 82 NOV 13

to come in and offer bids, and give to Lesotho and its consumers the best products. We’re looking for someone who is able to come in and take the game to the next level, and who is able to compete financially and technically. It is only when we have that particular player that we will add the third operator to the bidding process, to compete with the current two for the network expansion,” details Posholi.

With this future development at the forefront LCA’s current thinking, the strong relationships the country holds with South Africa will inevitably play a large part in ensuring the successful implementation of the many projects it aims to introduce.

“I don’t see that collaboration and corroboration going away any time soon,” confirms Posholi, “because Lesotho is where it is and is going to remain there,

Lesotho Communications Authority (LCA) regardless of the challengers its location presents.”

For this reason, the Authority is required to collaborate with South Africa in multiple ways, as the Chief Executive goes on to explain. “For us, when it comes to accessing the under-sea cables we have to go through South Africa to access them, so even now, one of the biggest challenges we still face in terms of reducing our communication costs is to improve accessibility to this under-sea cabling, and this has to go through South Africa.”

Another key issue for the Authority is the situation of Lesotho’s main, densely populated towns, which are found along the border with South Africa, and means a risk of GSM signal “spill over” which provides access to networks which are not licensed in Lesotho.

“We have some cooperation from operators in South Africa to come together and see if we can bring this spillage to tolerate levels, in order that we do not encroach into each other’s territory. This working side by side is hugely beneficial and will continue for many years, I don’t see it ever going away,” states Posholi.

.

“Lesotho is a small country, but it has a very difficult terrain to negotiate.

For this reason, rolling out network infrastructure in this country is a significant challenge”

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A wealth of solutions…

Editorial: Tim Hands Production: Chris Bolderstone

Since its original beginnings in 1964, Bytes Document Solutions, a branch of the much larger Bytes Technology Group operating throughout South Africa and abroad, has worked tirelessly to offer the very best in document services. Adaptable to all needs and budgets, its provisions are backed by an unfaltering commitment to environmental concerns, ensuring a sustainable future across its areas of operations.

Established in 1964 under its original name of Rank Xerox, the company that has since come to be known across Sub-Sarahan Africa as Bytes Document Solutions has spent the 50 years since its creation building up a customer base well in excess of 10,000, providing innovative and diverse product and service offerings supported by 80 service centres across the continent.

The company finds itself responsible at present for the employment of over 1350 staff, all of whom work to allow Bytes to achieve its central philosophy; “helping our customers do great work.” A leading document management and technology solutions provider, it is equipped now to deliver expert services across its three main divisions, Xerox, LaserCom and NOR Paper, all while embodying its work ethos to live the values of

PAGE 84 NOV 13

innovation underpinned by high quality output and service excellence.

The Xerox branch of Bytes Document Solutions’ operations sees the company offering the essential back-office support that allows clients to focus on any business at hand, across 26 sub-Saharan countries. It is the authorised distributor of Xerox office products and document management solutions throughout these countries, and provides the complete range of services for every individual budget and need. Its range of Xerox office products includes advanced and flexible technologies adaptable to any company, with its provisions of multi-function printers, copiers, supplies and consumables.

What helps to set Bytes yet further apart is that the entirety of its products is specially formulated and tested to provide the highest image quality, longer printer

Bytes Document Solutions

life, lower maintenance costs and a higher print output.

While Bytes can offer the set-ups to allow businesses and individuals to perform these tasks themselves, its product solutions mean large enterprises are provided with customised high-volume, high-speed solutions, which aim to increase production speed while reducing costs. These peerless solutions are provided by industry experts who understand the challenges faced in such competitive industries, and know how to apply document outsourcing services to achieve measurable results. It is the breadth of experience that Bytes has with companies across many sectors, including the energy sector, financial sector, government, higher education, high-tech and communications, retail and the manufacturing industry, that helps it stand out from the crowd – to be able to offer solutions in such a broad range of business is something rarely found on such a large scale.

As the leader in document management solutions, Bytes Document Solutions has offered managed print services to a broad range of clients for over 15 years. Its Lean Six Sigma methodology combines with a unique approach to deliver the best in document management solutions to customers across its area of operations.

These customers benefit from measurable improvements, as a result of reducing waste and increasing effectiveness in vital business processes. The benefits of Bytes Document Solutions’ managed print services are varied and numerous, with a greater visibility of document management and printing costs allowing a much higher level of budget and resource management throughout the process.

Such a well-executed, managed print service has been proven to reduce costs by up to 30%, while Bytes’ by now characteristic technical support and strategic

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advice ensure optimal output devices, as well as ongoing support to ensure that adaptation to these new streamlined work processes is as smooth and issue-free as possible.

Bytes’ software solutions are a further important strand of its Xerox services, helping businesses deal with the ever-growing wealth of information and documentation they encounter every day. In this way, Bytes specialises in three key services, all rapidly and effortlessly deployed and offering solutions across multiple platforms. Perhaps most notable of these is its Web 2 Print solution, specifically developed for the South African market that provides a comprehensive set of tools to create, submit and manage print jobs online. Crucially, it also allows commercial printers and in-house print facilities to harness the benefits of the web within their own print environment.

With the power to generate more than 40 million customer messages a month on behalf of corporate South Africa, Lasercom assists companies to communicate more effectively with their customers, both in terms of

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reducing cost and, as is by now characteristic for Bytes, with maximum long-term measurable result.

It is equipped to handle all sorts of communication, both through its extensive fulfilment services and its value added services which include document finishing, plastic card personalisation and document composition and design. The former services, its fulfilment options, encompass an even wider set of capabilities, whether through its combination of optical mark recognition technology (OMR) and fully automated mailing machines that allows it to deliver the very best in all aspects of mailing, or the variable data printing geared towards business-critical, highly personalised documents.

Lasercom has become a leader in personalised business communication solutions, while NOR Paper is branded as a one-stop shop for all printing and allied trades, stationers and small businesses, and boasts a similarly extensive range of services and products as its two sister operators. As one of South Africa’s largest paper merchants, its extensive and competitively priced range of paper products form an integral part of the high quality,

Bytes personalised service whose paper, packaging solutions and specialised media are tailored to the needs of each individual company it serves.

This year saw the celebration of a particularly momentous landmark for Bytes Document Solutions, with the 75th anniversary of the first ever xerographic image, created by Chester Carlson in a rented secondstorey room in Queens, New York.

Little could Carlson have imagined that this process would still, even in today’s world of ceaseless innovation, be at the heart of the majority of processes occurring in offices and businesses around the world, and without which work would be rendered nigh-on impossible. Its range of uses is broader than one could ever imagine – starting life as an invention whose intention was, according to its founder, to “make office workers a little more productive and office work a little simpler and less tedious,” its influence can be seen in transportation, education, and even healthcare, where the benefits of its use are experienced on a daily basis. A ceaselessly developing product, the company’s team of engineers, scientists and researchers are continuing to come up with

solutions to make work a simpler task, ensuring that the future will see a way of life even more convenient and easy to manage than what has already been achieved from the humble foundations of this process.

Bytes Document Solutions occupies just one place within the much larger Bytes Technology Group, a leading group of ICT companies which possesses a multitude of products, technical skills and specialised services that support enterprise-wide IT infrastructure and telecommunications in a wide range of industries.

Although just one element of this influential group in South Africa and further afield, it is a vital player among the nine companies under Bytes Technology Group’s charge, and as such Bytes Document Solutions recognises its role in ensuring environmental sustainability in all that it does.

It has a refreshing viewpoint on this, and one that is becoming increasingly important as the sheer amount of work it undertakes grows year upon year. Rather than adopting what would in fact be an understandable point of view given the weight of responsibility on such a large company’s shoulders, and seeing this sustainability

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CompANY PROFILE as a burden and additional cost to its business, it in fact embraces the commitment to practising responsible corporate citizenship in this area.

Again pioneering in its approach to business, Bytes Document Solutions was the first company in the industry to launch re-manufacturing initiatives, and builds on this work by continuing to lead the way in creating waste-free products.

A reduction in energy use is one key way in which the group strives to protect the climate, backing this up with its commitment to eliminating the use of toxic materials and heavy metals from its product supply chain. Perhaps most important, given the nature of its most frequently undertaken work, is Bytes’ dedication to preserving biodiversity and the world’s forests. Paper is sourced initially from companies who meet stringent requirements that cover all aspects of papermaking, from forest management to production of finished goods. Customers are then, through such innovative techniques as reliable duplex printing, allowed to make the fullest use of the products, while software products such as DocuShare, SMARTsend, and FreeFlow Digital Workflow Collection help Xerox customers reduce paper consumption via its comprehensive digital management.

Xerox is also in the second year of a three-year, $1 million grant to The Nature Conservancy, a partnership which is focused on forest management in Brazil, Canada,

PAGE 88 OCT 13

Indonesia, and the U.S. This scheme promotes best practices that enable environmental scientists, forest managers, and paper suppliers to work toward forest management, and ensure a viable, sustainable future for the vital work it undertakes.

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“Lasercom has become a leader in personalised business communication solutions, while NOR Paper is branded as a one-stop shop for all printing and allied trades, stationers and small businesses, and boasts a similarly extensive range of services and products as its two sister operators”

Bytes

OCT 13 PAGE 89

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The star of the construction industry Editorial: Roland Douglas Production: Janis Billington Civils 2000 is a Western Cape based construction firm, specialising in a range of activities from road construction to specialised builds such as dams and pipelines. Since its inception in 1992, the company has grown exponentially and Director, Adam Essa, tells IndustrySA that that growth is showing no signs of stopping.

2013 has been an unusual year for the construction industry in South Africa. There have been numerous ups and downs, many challenges, and many opportunities. In the renewable energy sector, there have been significant investments which won’t have escaped the attention of the major construction firms who are all vying for a piece of this lucrative market. There was also success in the road construction sector last month as President Zuma opened the completed R81 road linking the city of Polokwane and the rural town of Giyani in Limpopo, and noted good progress on the R71 between Polokwane and Tzaneen.

However, problems in the industry were highlighted

by Public Enterprises Minister, Malusi Gigaba, who said at last month’s KPMG Global Construction Dialogue in Johannesburg that the construction industry has major delivery issues.

PAGE 90 NOV 13

“The delays and disruptions, poor site management, time and cost variations, skills and competence issues ... and lack of worker participation are among the challenges faced in the course of executing construction projects, and there is no doubt that substantial improvements in quality and efficiency are needed and are possible,” he said.

But despite this, one company is going through a period of sustained growth, so much so that a new structure is being put in place to take the company forward.

Civils 2000 is a Western Cape based civil engineering construction company with its head office in Cape Town.

Civils 2000 is qualified to construct; roads, bridges, wastewater treatment works, reservoirs, civil engineering site services, pipelines, bridges and do bulk earthworks.

Civils 2000 Director, Adam Essa, tells IndustrySA that one market where the company has seen substantial

Civils2000

growth is that of general building and this is an area which the company will be pursuing for future opportunities.

“We recently got accredited for general building so we are busy with a few general building projects. This is part of our growth strategy, especially with the new shareholders coming in; we are looking to develop this division further.

“We’ve got two projects in which we are building structures in the alternative energy sector. We are also building some warehouses and offices and for some private clients we are offering a turn-key service where we do the civil work and the physical structures. We are finding that there is quite a bit of demand for a turn-key service where both the civil work and structural work is appointed to us,” he says.

The company has come a long way since its inception and now that it is a significant employer and a recognised

brand, Essa says that the structure is becoming more corporate.

“The company has bought in some new shareholders and we are restructuring because of the growth that we are experiencing.

“We’ve got two projects in which we are building structures in the alternative energy sector” “I’m assisting a lot in change management and developing the structural division.

“We should be complete by the end of the financial year, February next year, so we are planning to have everything set up by then.”

The business was founded in 1992 by Colin Shapiro

NOV 13 PAGE 91

CompANY PROFILE and Rob Starke and both are still involved.

“They’ve grown the business as a family business to the point where more structure was needed. We’ve got around 500 members of staff so there has been a need to start structuring the business and taking it from a family type operation to something more corporate.

“Most of the people at Civils2000 have been here since its inception. They’ve gone from labourers to operators to site managers. They are now quite senior in terms of what their responsibilities are. We do focus a lot on upskilling and training from the bottom up,” explains Essa.

Over the years the company has been involved in some major projects including; Royal Ascot at Milnerton, Island Club and Waterstone at Century City, the Besaansklip steel pipeline at Saldanha, the Pinnacle Point treatment works at Mossel Bay, major road works in De Rust and, more recently, the Napier Bus Terminal to name but a few.

Civils 2000 is highly experienced with government and municipal projects as Essa explains.

“There is quite a bit of infrastructural work from government in the local municipalities and provincial

government areas. There are a lot of projects going on, especially infrastructural developments; road works, waterworks, bridges, upgrades of facilities; that is where the growth is coming through at the moment, not necessarily the private sector.

“The civil work that we are doing, although not directly for the government, will eventually be used by the government.”

Such expertise in all sectors across the industry has attracted the attention of clients from across the border and it seems likely that Civils 2000 will be starting on an African expansion push soon.

“We have started to look at countries outside of South Africa. At this point we are investigating work in Ghana and some in Namibia but we are in the initial stages of those investigations,” says Essa.

A lot of this growth is of course down to the quality and high standards offered by Civils 2000.

The company has a reputation for delivering projects on schedule and within a given budget and this is obviously pleasing for the client. Another key to the growth is attention to detail and close control over costs and where many firms have struggled thanks to increasing input costs; Civils 2000 has kept its ear to

the ground and priced its jobs according to market trends with raw materials.

“The price of steel and cement always has an impact, it grows all the time. Prices that we offer as fixed cannot be fixed for too long because of those price fluctuations. We actually allow for those fluctuations in our pricings with clients, we link our prices to the steel price. We have to do this because prices are so volatile.

“Cement, steel and bitumen – these are the three items that because of the fluctuations in price we would cover ourselves when pricing for a client,” says Essa.

Essa has only been with the company for a short time but it is figures like him, with vast experience and expertise, who will undoubtedly be a big part of the future growth at Civils 2000.

“I’ve been in this sector for around 25 years.

I’ve been specialising in a broad range of areas in the construction sector and I’ve been exposed as a property developer to all the facets. I’m multidisciplined in terms of the construction industry, civils and tough structure and I’ve had a lot of exposure to design and development and managing

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www.moreasphalt.co.za the entire process from a raw piece of ground up to a finished product, both commercial and residential,” he says.

So, when the restructuring of the company is completed in February and with highly knowledgeable leaders taking the business from strength to strength, it seems that Civils 2000 is emerging as a shining star in the difficult environment that is the South African construction industry.

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“We have started to look at countries outside of South Africa.

At this point we are investigating work in Ghana and some in Namibia but we are in the initial stages of those investigations” NOV 13 PAGE 93

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Citrus Black Spot, a cause for concern?

Editorial: Lauren Grey Production: James Clark

Home to one of the oldest and most advanced pack houses in Africa, Kat River Citrus has been exporting citrus fruit to Europe for almost 100 years. However, recent detections of Citrus Black Spot found in some South African fruit is threatening the country’s export opportunities and causing ‘expensive and harsh restrictions’ for its agricultural industry.

Kat River Citrus is situated in the area of Fort Beaufort in the Eastern Cape, on a site that has been farmed for citrus fruit since the early 1900’s; the cooperative was formally established in 1921, after the original farmers saw it in their best interests to pick and pack fruit as one entity.

“To this day we still only have a small group of farmers,” explains Chairman, Jock Danckwerts, “so it makes sense to continue to operate as a cooperative. By doing so the cost of expansion is shared amongst all, and if a member leaves he can’t sell his shares to someone else, so we keep the capital within the company. It works very well.”

Each of the farms supply fruit to the pack house as part of their obligation to the cooperative, despite being a cooperative however, the business operates as a private

PAGE 94 NOV 13

entity in which its members have 100% ownership.

The cooperative employs between two and three permanent staff members per ten hectares of cultivated land and there are 1000 hectares of land altogether with upward of 3000 pickers during harvest season; a further 35 members of staff are employed to work at the pack house, with an additional 1000 temporary staff in season.

“The pack house is situated at the site of one of Africa’s very first pack houses, obviously the building has been re-built and we use much more modern technology than before, but historically we are one of the oldest packaging operations in South Africa,” says Danckwerts.

Despite being one of the country’s oldest packaging operations, Kat River Citrus ensures that it stays up-todate with technological advancements in the industry, and boasts one of South Africa’s most sophisticated packaging lines, which has now been running for two seasons.

Kat River Citrus

EXPORT MARKETS One of the cooperative’s recent transformations has been its diversification into the export of soft citrus fruit and lemons, moving away from its traditional production of oranges.

“Historically we began by growing oranges, which grow very well in this area; we also started planting lemons in the 70’s, and by 1980 we started to diversify into soft citrus, but this has really taken off over the past ten years or so,” says Danckwerts.

“We have moved away from oranges to soft citrus and lemons, to the extent that in five years time between 60-70% of our production will be entirely soft citrus fruits.”

Kat River export mainly to the UK and Europe, with the UK being its most important market for soft citrus fruits, but the cooperative has also been forced to diversify substantially into other parts of the world, “Eastern Europe and Russia have become very important to us, as has the Middle East,

although they only take hard citrus. However, the biggest change in the last year has been an increase in volumes into the Pacific Rim countries, including Hong Kong, Malaysia, Singapore and Indonesia,” explains Danckwerts.

CITRUS BLACK SPOT Since its establishment, Kat River Citrus has expanded into new markets and diversified its product offerings at a fairly organic pace, choosing when and how to develop as a business.

However, the cooperative’s recent venture into markets such as Russia and the Pacific Rim is a result of a more sinister and threatening situation caused by a cosmetic defect found in some South African fruit, known a Citrus Black Spot (CBS).

CBS is caused by fungal pathogens which infect citrus plants and leave darks spots on the fruit. Although CBS is a

NOV 13 PAGE 95

CompANY PROFILE purely cosmetic defect and the fruit is safe for consumption, the EU announced that should it detect more than five cases of CBS originating from South African citrus fruits, exportation into the EU would be stopped before the end of the season.

However, Danckwerts believes that the EU has implemented this rule as a way of creating an ‘artificial trade barrier’ to stop exports of citrus fruit coming from South Africa and other countries, in order to strengthen production of fruit within the EU itself.

“The European markets are under threat, and because half of South Africa’s fruit goes to Europe, they are creating artificial trade barriers. The current flavour of the month is Citrus Black Spot.

“All the research on CBS has shown that firstly the organism cannot grow and survive in the Mediterranean climate, and secondly the organism cannot be transferred via the fruit. For example, CBS is prevalent in North America, but they have opened up the free flow of citrus fruit; they used to be terrified of spreading it from Florida to California, but they have acknowledged that CBS cannot spread via the fruit.”

The CBS virus, albeit harmless to humans, could have devastating effects on South Africa’s citrus industry, and has already halted exportation into the EU for the remainder of this year’s season.

Danckwerts says that until a resolution is found, Kat River Citrus will continue to meet the requirements set out by

“The European markets are under threat, and because half of South Africa’s fruit goes to Europe, they are creating artificial trade barriers.

The current flavour of the month is Citrus Black Spot.”

PAGE 96 NOV 13

Kat River Citrus the EU and work alongside the Department of Agriculture, Forestry and Fisheries to ensure it is doing all that it can to ensure the virus does not reach its production line.

“It’s a huge threat, and we have to walk the walk in terms of the EU’s restrictions. We work closely with the Department of Agriculture and they are doing all that they can.

“They have put in huge restrictions on citrus production and implemented a particularly expensive and harsh spray programme to control CBS. They also check every farm for the infection that is exporting into Europe, so they are very involved.”

FUTURE PLANS Despite any future threats to South Africa’s citrus industry, Danckwerts says that the cooperative is focussed on moving forward and further developing the business.

“Our first goal is to produce more and more soft citrus fruit, the other goal is to resolve the issue in Europe, so we can expand and develop that market further, and our final goal is to diversify into Eastern Europe and the Far East.”

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OCT 13 PAGE 97

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Your Industry, Their Future, Our South Africa nov 13 PAGE 99

© Michael Poliza

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