Business Day Manufacturing 2020

MANUFACTURING 2020

www.businessmediamags.co.za

INSIDE:

SAFETY GEAR INDUSTRIAL GAS STEEL & GLASS

Local manufacturers work together to deepen the value chain

AUTOMOTIVE Localising the industry

BEVERAGES From raw materials to bottling

F O OT W E A R SINGLE DENSITY POLYURETHANE SOLE

DUAL DENSITY POLYURETHANE SOLE

Court / 53001

TOE CAP SOLE

Steel toe cap Single Density PU

Sizes: 2-9 Colour: Black Shape: Narrow SANS / ISO 20345

SRC SLIP RESISTANCE RATING

TOE CAP SOLE MIDSOLE

Dual Density PU/PU Available in SMS (54701)

SOLE

Steel toe cap Single Density PU

Sizes: 2-9 Colour: Black and grey with black suede overlay Shape: Narrow SANS / ISO 20345

Steel toe cap

SOLE MIDSOLE

Dual Density PU/PU Available in SMS (54702)

Steel toe cap | Available in NSTC (51502)

Sizes: 2-9 Colour: Black Shape: Standard

Angelina / 55003

SOLE

Single Density PU

TOE CAP SOLE

Steel toe cap Dual Density PU/PU

SANS / ISO 20345 NRCS/9002/287766/0110

TOE CAP SOLE

Steel toe cap Single Density PU

SANS / ISO 20345 NRCS/9002/287766/0135

Steel toe cap | Available in NSTC (51503) Single Density PU

TOE CAP

Steel toe cap

SOLE

Single Density PU

Sizes: 3-8 Colour: Black Shape: Standard

TOE CAP SOLE

Steel toe cap Dual Density PU/PU

TRIPLE STITCHING

YKK ZIP

COLOUR

Sizes: 3-8 Colour: Black and grey trim Shape: Standard EN / ISO 20345

Tyra / 55012

TOE CAP SOLE

Steel toe cap | Available in NSTC (55512) Dual Density PU/PU

OJ12943 / OT12947

TRIPLE STITCHING

COLOUR

OJ13222 / OT13221

DA GAMA TEXTILES

Madonna / 51004

Jennifer / 55005

Sizes: 3-8 Colour: Black with purple stitching Shape: Standard

Sizes: 3-8 Colour: Black with pink trim Shape: Standard

TOE CAP SOLE MIDSOLE

Steel toe cap Dual Density PU/PU Available in APT (55605)

D59 100% COTTON REFLECTIVE CONTI SUIT

J54 100% COTTON MATERNITY CONTI SUIT

SIZE: Coat: 32-56 Pants: 28-56 WEIGHT: 220GSM

SIZE: Coat: 32-56 Pants: 28-56 WEIGHT: 220GSM

Sizes: 3-8 Colour: Black Shape: Standard SANS / ISO 20345

Opal / 53003

VIZLITETM

EN

SANS / ISO 20345 NRCS/9002/287766/0132

SANS / ISO 20345 NRCS/9002/287766/0145

YKK ZIP

COTTON

Sizes: 3-8 Colour: Black with blue trim Shape: Standard

Yvonne / 55013

Paris / 51003

TOE CAP SOLE

100%

Also Available in TRI-REFLECTIVE

EN / ISO 20345

Sydney / 51005 Sizes: 3-8 Colour: Black and brown Shape: Standard

SIZE: Coat: 32-56 Pants: 28-56 WEIGHT: 300GSM

Cate / 54002

EN TOE CAP

SIZE: Coat: 32-56 Pants: 28-56 WEIGHT: 235GSM

SANS / ISO 20345

Venice / 51002

Sizes: 3-8 Colour: Black Shape: Standard

D59 100% COTTON REFLECTIVE CONTI SUIT

SANS / ISO 20345

SRC SLIP RESISTANCE RATING

TOE CAP

65/35 POLY COTTON STANDARD CONTI SUIT

Nicole / 54001 Sizes: 2-9 Colour: Black Shape: Standard

Steel toe cap

Coral / 53002

TOE CAP

WO R K W E A R

FLAME RETARDANT

100%

YKK ZIP

COTTON

100%

YKK ZIP

COTTON

VIZLITETM

VIZLITETM

TRIPLE STITCHING

TRIPLE STITCHING

SANS / ISO 20345 NRCS/9002/287766/0153

Reese / 55006

FALL ARREST CORE RANGE

J54 100% COTTON REFLECTIVE CONTI SUIT SIZE: Coat: 32-56 Pants: 28-56 WEIGHT: 220GSM

STANDARD HARNESS RANGE WITH PERMANENTLY ATTACHED SHOCK ABSORBING LANYARDS AND ADJUSTABLE LEG AND ELASTICATED CHEST STRAP Sizing One size fits all

100%

Standards SANS 50354 | SANS 50355 | SANS 50361 | SANS 50362

Webbing: 45mm UV-resistant polyester, minimum breaking load of 2,6 tonnes

Chest Strap: 45mm UV-resistant elastic webbing

Buckles: Interlocking, corrosionresistant steel buckles

YKK ZIP

COTTON

VIZLITETM

TRIPLE STITCHING

CODE: HARN01221 COLOUR

OJ12944 / OT12948

DA GAMA TEXTILES

CODE: HARN01211

CODE: HARN01111

CORE+ RANGE BELTED HARNESS RANGE WITH PERMANENTLY ATTACHED SHOCK ABSORBING LANYARDS AND ADJUSTABLE SHOULDER, LEG, WAIST AND ELASTICATED CHEST STRAP

J54 100% COTTON BOILER SUIT Sizing One size fits all

SIZE: 28-56 FABRIC: J54 100% COTTON WEIGHT: 220GSM

Standards SANS 50354 | SANS 50355 | SANS 50361 | SANS 50362

Webbing: 45mm UV-resistant polyester, minimum breaking load of 2,6 tonnes

Chest Strap: 45mm UV-resistant elastic webbing

Buckles: Interlocking, corrosionresistant steel buckles

INJURYPREVENTING ELASTICATED CHEST STRAP

100%

YKK ZIP

COTTON

VIZLITETM

TRIPLE STITCHING

FOR WOMEN, THE RISK OF INJURY DOES NOT STOP WHEN THE FALL DOES. If placed below the bust area, polyester webbing can rise aggressively up and over the bust at the end of a fall, resulting in secondary related injuries to the wearer.

That’s why all our Sisi harnesses are fitted with an ADJUSTABLE ELASTICATED CHEST STRAP that stretches in the event of a fall, substantially reducing the pressure on the bust area. Furthermore, the chest strap can be moved up and

F ROM T HE EDI T OR

published by

Picasso Headline, a proud division of Arena Holdings (Pty) Ltd Hill on Empire, 16 Empire Road (cnr Hillside Road), Parktown, Johannesburg, 2193 Postal Address: PO Box 12500, Mill Street, Cape Town, 8010 www.businessmediamags.co.za Editor: Anthony Sharpe Content Manager: Raina Julies rainaj@picasso.co.za Contributors: Beth Amato, Trevor Crighton, James Francis, Caryn Gootkin, Gareth Griffiths, Dale Hes, Glenneis Kriel, Monique Verduyn Copy Editor: Brenda Bryden Content Co-ordinator: Vanessa Payne Digital Editor: Stacey Visser vissers@businessmediamags.co.za DESIGN Head of Design: Jayne Macé-Ferguson Design Team: Mfundo Archie Ndzo, Lesley-Ann van Schalkwyk Advert Designer: Bulelwa Sotashe Cover Image: Courtesy of Siemens Food and Beverages

Focus on the good

D

ata gathered by the World Bank shows that from 2000 to 2019 the percentage contribution of manufacturing (value-added) to GDP in South Africa fell from 17 to 11.7 per cent.

That was before COVID-19 came along and wiped 51 per cent off our GDP in just the second quarter of this year. It sounds pretty bad, and it is.

Then again, the South Africa Manufacturing Purchasing Managers Index, which tracks changes in the production of mining, manufacturing, construction and utilities, rose sharply in August to an eight-year high of 57.3 per cent as easing lockdown restrictions allowed for the reopening of industry and exports. That sounds pretty good.

In this inaugural issue of Manufacturing, we’re focusing on the good. We have a robust automotive manufacturing sector and government is acting positively to grow localisation

through the revised Automotive Production and Development Programme – see our focus on localisation on page 10. Did you know that last year we recovered 68.5 per cent of recoverable paper and packaging and recycled 90 per cent of that locally? Check it out on page 12. We have Africa’s most advanced chemicals sector (page 15) and our agrochemicals market is expected to grow 10–15 per cent over the next decade (page 16). Water shortages and load shedding are pushing local beverage companies to adopt greener production methods (page 25). And the steel and glass industries are … well, there’s actually no good news there, but you can read about them on page 20.

You can’t have it all. As a country and a sector, we have a whole heap of challenges to overcome.

Let’s focus on our ability to overcome them.

Anthony Sharpe

Errata: In our printed version of Manufacturing, on page 12, we incorrectly stated that the South African paper industry planted 840 million trees in 2019; rather, there are presently 840 million trees standing over 693 000 hectares of land for use in pulp and paper manufacture. Eighty (not eight) per cent of the country’s commercial timber plantations are Forest Stewardship Council certified.

CONTENTS

SALES Project Manager: Tarin-Lee Watts wattst@picasso.co.za PRODUCTION Production Editor: Shamiela Brenner Advertising Co-ordinator: Monique Sauls Subscriptions and Distribution: Shumiera Fredericks subscriptions@picasso.co.za management Management Accountant: Deidre Musha Business Manager: Lodewyk van der Walt General Manager, Magazines: Jocelyne Bayer

Copyright: Picasso Headline.

No portion of this magazine may be reproduced in any form without written consent of the publisher. The publisher is not responsible for unsolicited material.Manufacturing is published

by Picasso Headline. The opinions expressed are not necessarily those of Picasso Headline.

All advertisements/advertorials have been paid for and therefore do not carry any endorsement by the publisher.

2

MANUFAC TURING

20 10 Localisation How deepening domestic value chains can unlock real economic potential

10

12 Paper and packaging Planting trees and recycling make for a sustainable paper industry

20 Steel and glass A bleak outlook for two sectors hit hard by the COVID-19 pandemic

15 Commodity chemicals South Africa’s third-largest manufacturing sector has room to grow

23 Safety gear Manufacturers pivot to produce PPEs fast while safety boots go walking

16 Agriculture and mining The agrochemicals and mining sectors face key challenges in the years to come

25 Beverages Buying local and addressing sustainability

19 Industrial gas A look at the gases that power our industries and how to store them safely

26 Baby and sanitary products South Africa’s R6-billion nappy industry comes of age, plus the future of feminine hygiene products

SP ONS ORED F E AT URE

OFFERING GREATER EFFICIENCY OF PRODUCTION LINES

The locally developed Enterprise OEE solution helps manufacturers to improve production and profitability

HOW THE ENTERPRISE OEE SOLUTION HELPS MANUFACTURERS

IMAGES: SUPPLIED

O

verall Equipment Effectiveness (OEE) remains one of the best methods for evaluating a production machine or line.

By measuring the performance, quality and availability of any discrete production environment and knowing the business constraints, allows the production management team to focus attention on those areas that have the biggest effect on performance. Adding additional analysis, like reasons, allows even further focus to be applied to ensure that these assets are performing at their best.

After recognising the need for a better shopfloor performance management tool, Silverton Engineering, a body parts stamping enterprise that supplies the likes of Nissan and Ford, chose to implement the locally developed Enterprise OEE software from Adroit Technologies.

Driven largely by the cost of the solution, Silverton Engineering, along with Altron, cospecified the solution to get a product that suited their particular manufacturing requirements.

Pieter Reichert, lead engineer in the Altron team, along with Silverton Engineering manufacturing and production management, set about building a specification that allowed

Adroit Technologies to broaden its existing OEE offering into an Enterprise-ready tool.

Martin van Nieuwkoop, Group Plant Manager of Silverton expands on the Company requirements, “The solution needed to integrate into our ERP from scheduling, works order and maintenance perspective. In addition, we needed visibility on each machine that clearly showed the current status so that the production supervising teams could very easily see exactly what was happening and therefore be able to solve the problem areas as they showed themselves”.

Altron and Adroit then co-designed the solution, which is a complete software and hardware offering. The Mitsubishi FX5 along with a stack light is installed at each production press. This is where the stroke limits along with the production counts and other machine status are read. Each machine has an industrial PC which the operator of the machine uses to load the production schedule, the production stop and start times, and any reasons for stoppage. The stack light creates visibility based on the status of the machine.

With the Adroit Enterprise OEE solution, manufacturers can identify problems, constraints and bottlenecks within production systems. This leads to greater efficiency and profitability.

• The Adroit Enterprise OEE enables manufacturers to visualise shop-floor performance in real-time.

• With the Adroit Enterprise OEE companies are able to anticipate events that represent efficiency and savings – allowing focus on preventative maintenance and machine failure root cause analysis, among others.

• Live data provided by the Adroit Enterprise OEE solution can provide insights and knowledge to help reduce unplanned downtime and increase throughput speed and quality while identifying unplanned stoppages.

• The Adroit Enterprise OEE has built-in management and real-time performance reporting. Early detection of problems means less downtime and production losses.

• The Adroit Enterprise OEE is supplied with comprehensive web-based OEE management reports including, but not limited to: • downtime survey reports • production reports • log in/log out report • production dashboards • production summary per hour • total machine/zone/plant/ production count.

To compete in the modern era, manufacturing companies need to “understand” the complex production environment and the locally developed Adroit Enterprise OEE solution is the perfectly priced solution for local manufacturers.

For more information: www.adroit.co.za info@adroit.co.za +27 (0)11 658-8100

MANUFAC TURING

3

FABRICATED STEEL MANUFACTURING COMPANY (PTY) LTD BEE Certified

ESTABLISHED 1933

Prefabricated Building Solutions

FAST SPACE MOBILES

A custom designed building system that is delivered ready to use, fully wired and plumbed for immediate occupation.

IDEAL FOR: Homes • Site offices • Clinics • Classrooms • Boardrooms Available for rental or purchase.

INTERLOCkING PANEL SYSTEM

MODULAR BUILDING SYSTEM

A precision-made building system with a bolted steel structure, double skinned fibre cement walls and a proven life span of over 50 years. The bolted structure allows this system to be relocated.

IDEAL FOR: Permanent and long term projects • Camps (dormitories, ablutions, kitchens and dining rooms) • Schools and clinics Agrément Certificate 90/205

POLYCORE & FR POLYCORE BUILDING SYSTEM

A single skinned interlocking building system that requires no nuts or bolts, and can be erected with unskilled labour. It is easily dismantled and relocated.

IDEAL FOR: • Emergency / temporary housing • Offices • Storerooms and site canteens • Accommodation

CUSTOM DESIGN UNITS

Polycore: A cost effective accommodation solution that uses a chromadek and polystyrene sandwich panel and a choice of 3 different roofing options. This system is supplied flat pack and erected on site.

IDEAL FOR: Dormitories • Ablutions • Offices FR Polycore: The system makes use of a vacuum bonded chromadek sandwich panel with a 30 minute fire rating and is certified by the Agrément Board of South Africa. Other than the fire rated wall panel, the system is identical to the Polycore Building System.

IDEAL FOR: Accomodation • Offices • Schools Agrément Certificate 2014/474

Specialised units and buildings to suit our customers needs.

These range from E-Houses which contain heavy electronic switchgear, transformers and generators to custom finished buildings for uses ranging from Hotels to Banks.

IDEAL FOR: Permanent and long term projects incorporating specific design elements

FOR SALES AND RENTALS, CONTACT uS: Johannesburg (Head Office): 011 821 5600 Cape Town (Atlantis): 021 577 1156 Eastern Cape (Mthatha): 072 646 9581

www.fsm.co.za

faBricated SteeL ManufacturinG coMPanY (PtY) Ltd BEE Certified

ESTABLISHED 1933

Prefabricated Building Solutions

national DepartMent of HealtH – Doctors consulting rooMs

Bci Bank MoZaMBiQue

Polycore and Mobile custom designed units • Supply of Mobile Banks to various sites in Mozambique • Supply of Polycore Banks to various sites in Mozambique

MeduPi Power Station

Modular Building system • DBSA project in Eastern Cape, Northern Cape, Gauteng and North West Provinces • NDOH project in Eastern Cape and Limpopo Provinces

dePartMent of education GautenG Polycore, Modular and Mobile Building Systems • Supply of 220 four bedroom and 130 five bedroom mobile units for the new Medupi Power Station situated at Lephalale in the Limpopo province

• Supply and installation of a Polycore and Modular labour village for 5000 people including offices, dining halls, laundry, kitchen and recreational facilities

Jwaneng Mine Botswana

Modular and Polycore Building System • Supply camp for 1500 staff members for the mine expansion project • Refurbishment of some existing buildings supplied by FSM • Conversion to double storey ensuite accommodation

Mobile and Modular Building systems • Since 2004, FSM has supplied the Department with buildings ranging from free standing mobile classrooms to full turnkey modular and mobile schools.

FOR SALES AND RENTALS, CONTACT uS: Johannesburg (Head Office): 011 821 5600 Cape Town (Atlantis): 021 577 1156 Eastern Cape (Mthatha): 072 646 9581

www.fsm.co.za

SP ONS ORED F E AT URE

EXPANSION PLANS BENEFIT ALL Environmental improvement and employment opportunities are among the benefits to be had from the Sappi expansion programme

COMMUNITY, ENVIRONMENT, COMPANY AND PROVINCIAL BENEFITS Not only will CO2 emissions be halved and SO2 emissions be reduced by 35 per cent, but water use efficiency will also improve by 17 per cent, while waste to landfill will be reduced by a massive 48 per cent. Each of these improvements will contribute significantly to the company’s support of the UN’s 17 Sustainable Development Goals (SDGs). All of these improvements will be realised as well as an increase in the mill’s capacity by 110 000 tons per annum. In addition, the expansion will create permanent employment opportunities and save the company at least R300-million annually through improved and more efficient processes.

These are all excellent benefits for the company, but there are other winners too, like the KwaZulu-Natal province, which will gain an additional R1-billion per annum. The construction phase of the programme, which will conclude towards the end of 2021, will create employment opportunities for about 2 000 people, with 1 670 employees from the local communities surrounding the mill already

6

Manufac turing

having benefitted through the Vulindlela onboarding facility.

Environmentally, Sappi recognises the science of climate change and acknowledges the role it needs to play in reducing its emissions. Once the project is completed, the company will be better placed to meet its future emission reduction targets, which are aligned with the global Science Based Targets initiative (SBTi) objective to limit the increase in the global average temperature to well below 2°C or 1.5°C. Sappi is committed to building a thriving world by unlocking the power of renewable resources for the benefit of people, communities and the planet. By using a renewable resource like woodfibre to manufacture a versatile and necessary product such as dissolving pulp (DP) – made at the Saiccor mill – the company believes that it is achieving its purpose.

GROWING MARKET FOR DP Sappi’s DP is marketed under the Verve brand and can be used in applications as varied as fashion and pharmaceuticals to food applications, providing the consumer with a truly renewable and sustainable product. Verve

is used mostly to make viscose fibres for use in textiles. Viscose is a versatile and beautiful fabric that is highly moisture-absorbent and cooler on the skin, it is luxurious and soft to the touch and also drapes very well. These are some of the many reasons why fashion houses are moving away from cheaper but inferior fabrics like polyester, which are uncomfortable to wear especially in the warmer climates. Besides textiles, higher cellulose content Verve is used in myriad other applications – from industrial products such as the cord used in tyres, rayon staple for high-quality fabrics, nonwoven applications in the healthcare, industrial and disposable product market, to acetate, microcrystalline and other speciality products.

SEVERAL UPGRADES TO INCREASE PRODUCTION The Vulindlela project will increase the mill’s production of DP from 780 000 tons per annum to 890 000 tonnes per annum. The expansion and upgrades will include a new evaporator, recovery boiler, and screening and washing plant, as well as upgrades to the bleach plant and pulp machines, improved recovery circuits and additional magnesium digesters. The upgrades to pulp machine 4, consisting of the screening plant, extended nip press, baling line and winder upgrade, have been successfully completed and are operational.

For more information: www.sappi.com Zelda.Schwalbach@sappi.com images: sUPPLieD

S

appi’s Vulindlela expansion project at its flagship Saiccor mill in KwaZulu-Natal is a critical element of the company’s quest to achieve its ambitious 2025 Sustainability Targets, where it has globally committed to a 17 per cent reduction in specific greenhouse gas emissions.

First announced in 2018 as a R2.2-billion continuation of its ongoing expansion to increase capacity and global competitiveness, the project will also significantly reduce the environmental footprint of the company by investing some R5-billion in maintenance and upgrade projects.

M A NUFAC T URING INDA BA

a dv er t ori a l

MANUFACTURING INDABA 2020

GOES VIRTUAL The seventh edition of the annual Manufacturing Indaba will be hosted virtually to minimise the risk of exposure to COVID-19

T images: sUPPLieD

he 2020 edition of the Manufacturing Indaba will be hosted as a virtual conference on 9–10 December 2020.

This is due to the current COVID-19 pandemic and the risks it presents.

The event will provide attendance free of charge to conference delegates. The virtual event will ensure the safety of participating manufacturing companies and allow companies and clients to interact safely with each other and to keep their business goals rolling this year.

“All the provincial Manufacturing Indaba events and the East Africa edition have been postponed to the second half of 2021. Our top priority is to provide a safe environment for everyone involved: our customers, attendees, partners and colleagues,” says Liz Hart, managing director.

However, there remains a growing demand for manufacturing industry news and discussion, especially in the era of the pandemic and the impact on manufacturing.

Some of the key issues that will be discussed at the 2020 virtual conference include: • How to future-proof your manufacturing business. What does the future of African manufacturing look like in a current and postCOVID-19 world?

• The Africa Continental Free Trade Agreement and what this means for African manufacturers.

How does this influence trade agreements, customs tariffs, tax, and such like, to create an African marketplace?

• Lessons learned on the journey to manufacturing excellence and how to have a sustainable and profitable manufacturing business in the COVID-19 era?

• The growing importance of localisation. How can we build our own local markets to sustain ourselves and grow our local economies in Africa following the impact of COVID-19 and creating an alternate source of supply from the Eastern markets?

Remote attendees will have live access to the conference and presentations from their mobile phones, computers or laptops. This creates an even greater opportunity for increased participation from across the continent.

“We are excited to reach more manufacturers and to share quality knowledge and content with them,” says Hart. “The virtual platform provides an opportunity for small to large companies from across Africa to join this event. We look forward to presenting our indaba in this new virtual format and to learn and grow manufacturing together.”

For more information: www.manufacturingindaba.co.za

“There remains a growing demand for manufacturing industry news and discussion, especially in the era of the pandemic and the impact on manufacturing.” – LIZ HART, MANAGING DIRECTOR, MANUFACTURING INDABA Manufac turing

7

In this together

Local producers need to support each other to remain competitive in the face of cheap imports. By ANTHONY SHARPE

Safety footwear factory.

L

ast year the manufacturing sector lost 9.1 per cent of turnover and 10.6 per cent of total income, According to South African Insights. There are a several reasons for this, including decreased demand, a reliably unreliable supply of power from Eskom, and an over-reliance on imported products.

Imports have hurt a range of manufacturing industries. Silvio Ceriani, CEO of BBF Safety Group, knows all about this: it’s what led to the formation of the company he heads.

“The advent of cheap imports really put the local footwear-manufacturing industry under strain: companies were shutting down and margins were closing. As individual footwear manufacturers, we just couldn’t compete.”

In 2014, realising the only way they could survive was by combining forces, the four main local safety footwear manufacturers – Bagshaw, Beier, Frams and Wayne – joined to form

BBF Safety Group, enabling them to pool resources and compete across categories and price points.

Ceriani says that the weakening rand has driven up the cost of some imports, bringing them in line with local pricing, but there remains a never-ending line of low-cost importers.

“Where this really hurts the local market is that smaller manufacturers struggle to maintain a consistent competitive edge.

We have to accept nominal margins on some ranges just to move volume through the factory, but at least we have that flexibility because of our size.”

local companies, the onus is also on us to procure locally as far as possible and develop local suppliers,” says Ceriani. “It’s easy to get imported clothing, finish the garment in South Africa and claim local manufacturing, but that’s not really being part of the solution.”

He believes that government’s intentions are right when it comes to support for local manufacturers, but there are frustrations with the turnaround from regulatory bodies, and implementation and enforcement among companies and state-owned enterprises is lacking. “We believe stricter implementation of procurement policies will help grow SMMEs. For example, KEEPING IT LOCAL South African when we submit for certain Deepening the local value production fell 16.3 per cent procurement, we submit chain requires more than in June compared with local content letters for just assembling products 2019. This was the our footwear that explain in South African factories. smallest downturn since how we work towards It means sourcing all the lockdown hit the 80–90 per cent local raw requisite components locally economy in March. materials and manufacturing. too, as far as possible. “If Source: Trading Economics.

That level of scrutiny is what will we as a local manufacturer drive real growth of SMMEs.” are asking the market to support

FAST FACT

10

MANUFAC TURING

IMAGES: SUPPLIED

Levelling the playing field

process and find changes need to be made, these can be fed directly back to the design level instantaneously.”

The advantage of this in the local context is that manufacturers can produce a product designed anywhere in the world and prove The local manufacturing sector is building that they’re doing it to the required standard. “In the aerospace its digital capacity. By ANTHONY SHARPE CSIR advanced industry, for example, this is critical,” material testing lab. says Sanne. “They have clear specifications that must be adhered CREATING JOBS to. If you’re a manufacturer supplying to an multipliers are in high-value manufacturing and If the fourth industrial revolution has original equipment manufacturer (OEM) you advanced materials.” taught us anything, it’s that every company have to show your quality control processes. in every industry globally needs to keep The same applies to medical devices and pace with technology to remain relevant DIGITALISATION chemical processes.” and competitive.

A number of key advances in manufacturing Sanne says the CSIR is driving best While South Africa is a producer of are linked to digitalisation of factory processes. practice and that this starts with skills more basic commodities, it’s important Sanne says this involves digital capturing development. “We’re building a smart for the country to focus on high-value of line processes, starting at the learning factory. We have a number of manufacturing and advanced materials, requirement level. advanced manufacturing machines. says Martin Sanne, executive at the Council “All process around functional descriptions, We’re supporting companies in additive for Scientific and Industrial Research (CSIR).

CAD designs and so forth are linked to these manufacturing, and our National Centre (CSIR). “Manufacturing is a job multiplier: for original requirements, so once a product has for Nano-Structured Materials has, over every manufacturing job you create, been designed it can be verified against the the past 10 years, built up full capability to you can create between two and 15 original specs. make virtually any materials, including new additional jobs, so it’s a huge boost to “We call this closed-loop manufacturing. plastics and nanoclays.” the economy,” says Sanne. “And the big As you’re going through the manufacturing

L OCA L IS AT ION

NEXT-GENERATION BAKKIE Isuzu Motors of Japan has awarded a R1.2-billion programme to South Africa to build a next-generation bakkie in South Africa, while an additional total local content value of R2.8-billion will be generated through the life cycle of the programme. The Isuzu project team members in Japan, Thailand and South Africa are fully engaged in ensuring that the relevant project milestones are achieved. Source: Billy Tom, Isuzu Motors South Africa

G

Driving the FUTURE economy South Africa’s largest manufacturing sector is rethinking localisation to deepen the value chain. By ANTHONY SHARPE

T

he automotive industry accounts for a third of South Africa’s manufacturing output and contributes roughly seven per cent of GDP. Those are not small figures, so the industry is a vital one that government wishes to cultivate. In 2016, the Department of Trade and Industry commissioned the South African Automotive Masterplan 2035 (SAAM), which has some ambitious goals: contributing 1 per cent of global vehicle production by 2035; increasing local content from 39 to 60 per cent; doubling employment in the value chain to 240 000; achieving minimum level 4 BEE by 2021; and basing support on value addition rather than just production sales value.

Key to this is the Automotive Production and Development Programme (APDP), which comprises an interrelated set of incentives and rebates designed to promote local manufacturing.

“The APDP has, for a number of years, enabled vehicle manufacturers in South Africa to be sustainable by offsetting the inherent disadvantages of operating in this market,” says Billy Tom, CEO and MD of Isuzu Motors South Africa. He believes the industry can help South Africa in its transition to a higher-value economic model. “Government Renai and the industry need to Moothilal

Billy Tom

work together to enable a shift from raw material or commodity export business models to ones focused on the beneficiation of raw materials, as well as the local manufacture of components and commodities such as batteries and controllers. These can then be consumed by local OEMs and also be exported to other markets.”

Quality over quantity Renai Moothilal, executive director of the National Association of Automotive Component and Allied Manufacturers (NAACAM), says the existing APDP has helped build automotive manufacturing capacity, but prioritises production volume over local value addition and sourcing. That’s why it’s being extended from the beginning of next year with some notable revisions.

“The biggest difference is the implementation of the Volume Assembly Localisation Allowance,” says Moothilal. “This is an assembly incentive for OEMs linked directly to levels of localisation on their respective platforms. The current-generation APDP ending in 2020’ has a similar assembly incentive, but without any localisation element.

Allied to this is a re-weighted Production Incentive with higher levels of reward for manufacturing value-add.”

It’s hoped the APDP will deepen the automotive value chain by encouraging OEMs to find new localisation opportunities due to reduced import incentives.

As there is a limit to what they can localise themselves, they will pressure their tier 1 suppliers to produce locally, with an anticipated knock-on effect to tiers 2 and 3.

Localisation is not a nice-to-have, says Moothilal, but an economic and competitive necessity. “It’s common knowledge that the true economic benefits in any country’s automotive sector are found in deep value chains with high localisation levels. Job opportunities, technology and skills development, and transformation enhancing new business opportunities will be found as long as we keep striving for that 60 per cent localisation objective. Studies show that countries having localisation levels around the 60 per cent mark are regularly touted as global competitiveness benchmarks.”

MANUFAC TURING

11

PA PER A ND PACK AGING

PRESERVING THE FOREST The paper and pulp industry is committed to sustainability of forests and never takes out more than it replaces. By Trevor Crighton

THE PRODUCT THAT KEEPS ON Jane Molony

T

he South African forestry industry has a staggering 840 million trees planted over 693 000 hectares for pulp and paper production. In South Africa, paper is produced from sustained forestry, where trees are grown in rotation with only six per cent of the total area harvested each year. Felled areas are replanted, and there are thousands of hectares of trees of different ages growing all the time. Farmed trees are also not irrigated, drawing their water from rainfall and groundwater sources.

locked up for longer.” The sector prides itself on environmental stewardship, with a focus on carbon sequestration, water-efficiency, the use of renewable biomass-based energy and steam recovery. Molony says that the trees grown by the industry are grown especially for fibre (pulp and paper) and timber (sawmilling).

“Eighty per cent of our country’s plantations are Forest Stewardship Council certified.

We are proud of the fact that 25 per cent of the land allocated to plantations is set aside for biodiversity, and that some of the bestmanaged wetlands are owned by forest and forest product companies.”

All paper made in South Africa comes from either virgin fibre of sustainably managed plantations or recycled paper fibre, or a combination of the two. Some mills use bagasse, the waste from sugarcane processing. “We can meet our domestic needs for A4 copier paper, newsprint, toilet tissue and most packaging grades,” says Molony. “There are certain grades ENVIRONMENTAL STEWARDSHIP that are not made locally “We often say that trees don’t grow any more such as coated from the ground; they grow from stocks for magazines, the air, absorbing carbon The pulp and paper sector brochures and dioxide, storing the carbon contributed R24.13-billion high-end printing. and releasing the oxygen,” (0.53 per cent) to local GDP in With the decline in says Jane Molony, executive 2019 and R6.63-billion to the South demand, the mills director of the Paper African balance of trade, while the or paper machines Manufacturers Association forestry-to-paper contribution to producing these of South Africa (PAMSA). agricultural GDP is 25.22 per cent. grades closed “This carbon remains locked The forest-products industry in down and, where up in the fibre, through the South Africa also supports possible, changed life cycle of a paper product. almost 150 000 jobs. to produce packaging This is why recycling is so Source: Paper Manufacturers grades of paper.” important: it keeps the carbon Association of South Africa

“We are definitely seeing a reduction in the use and thus recycling of office paper under lockdown.” – Jane Molony, EXECUTIVE DIRECTOR, PAMSA

Fast fact

DID YOU KNOW?

PAMSA is working on the beneficiation of waste – paper sludge. It can be used in compost, in bricks and as a cap for landfill sites. It is also possible to make ethanol from paper sludge and it can be used in anaerobic digesters to produce energy.

Source: PAMSA

12

MANUFAC TURING

GIVING

M

ore than 12 million tonnes of waste paper and packaging have been recovered in SA over the past decade, diverting it from landfills.

In 2019, South Africa collected 68.5 per cent of recoverable paper and packaging, down from 71.7 per cent in 2018.

“This is largely due to the nature of a waste economy,” explains Paper Manufacturers Association of South Africa executive director Jane Molony. “Products are not produced especially for recycling; they are a byproduct of a healthy consumer demand and economy. The industry was able to use 90 per cent of its recovered waste paper locally by recycling it, with the balance exported, even though the local industry can generally use all the waste paper. The exchange rate encourages the export of waste paper.”

Molony says that much research is being undertaken to improve the recovery and recyclability of multilayer papers like beverage cartons and paper cups, which would improve access to more fibre.

“This fibre is also ‘virgin’ and thus could provide a recycling mill with consistent raw material. A cardboard box, for instance, may contain fibres that are on their first recycle and final recycle.”

DID YOU KNOW?

Over 1.2 million tonnes of paper was recovered for recycling in South Africa in 2019 – just under half the 2.43 million tonnes consumed in the country (just over 1.7 million tons of paper products was actually recovered, but some was unsuitable for recovery or used as corrugated box packaging).

Source: Paper Manufacturers Association of South Africa

From trees to products, and back again, the pulp and paper industry takes sustainability further.

Wood and paper products are made from a renewable resource — sustainably farmed trees. Paper stores carbon, keeps people employed from the forest to the recycling mill and serves many everyday needs.

Choose paper. www.thepaperstory.co.za @paperrocksza

Sanitizer

80% Alcohol (v/v) Kills germs and viruses on contact Apply a palm full of alcohol based sanitizer and cover all surfaces of the hands. Rub hands until dry. Also used for Hard Surfaces.

We’re in your world

Sanitizer

Available in 100ml, 500ml, 1L, 5L, 25L and 1000L IBC’s

80% Alcohol (v/v)

WHO-recommended formulation

We’re in your world

We’re in your world

Sanitizer

80% Alcohol (v/v)

Sanitizer

80% Alcohol (v/v) WHO-recommended formulation

We’re in your world

Sanitizer

80% Alcohol (v/v)

We’re in your world

We’re in your world

Sanitizer

80% Alcohol (v/v)

WHO-recommended formulation

WHO-recommended formulation

WHO-recommended formulation

Contact Details:

Sanitizer

80% Alcohol (v/v)

WHO-recommended formulation

WHO-recommended formulation Sales.orders@pelchem.co.za 072 856 8574 Manufactured by 071 352 2429 www.pelchem.com 012 305 4306 We’re in your world

www.pelchem.com

COMMODI T Y CHEMICA L S

Stable volatility

C

South Africa is no slouch when it comes to chemicals manufacturing, writes James Francis

ontributing 14 per cent of GDP, manufacturing is South Africa’s fourth-largest sector. Chemical manufacturing is the third-biggest segment in that pool and quite diversified: commodity chemicals account for 64 per cent of the market, a quarter going to a wide variety of chemicals-use cases and 11 per cent to agriculture, according to InvestSA. As a pillar of the economy, the sector has thankfully been able to absorb some of the knocks of the COVID-19 pandemic, says Pelchem managing director, Ivan Radebe.

“There has been reduced demand from the export markets as the global manufacturing

sectors halted operations. To mitigate against financial loss and to respond to government’s call to ensure the country has adequate resources to fight against the COVID-19 pandemic, Pelchem began production and sale of WHOrecommended sanitisers at our Pelindaba operations.”

GROWTH POTENTIAL In some respects, South Africa is a potent global player with more potential in the wings, exporting to Asian, European and African

The state OF plastic bags

S

outh Africans use more than two billion plastic bags every year. According to Plastics SA, around 46.3 per cent of local plastics enter a recycling process, though the rate of single-use shopping bags might be below 4 per cent. Yet even if half of all plastics are recycled, that’s not overwhelming enough to be effective, and more recent concerns about microplastics polluting the world have raised the stakes to replace plastic bags with long-term alternatives.

Three choices are available: reusable; biodegradable and compostable plastic. The latter two often conflated, although compostable plastics don’t produce microplastics, says Bonnie Biodegradables CEO Frank McDouall. The term “biodegradable” is also often misused for greenwashing. “Reusable and recycled plastic bags are great,” says Annabé Pretorius, plastics consultant at Plastix 911, “but they often can’t be recycled a second time.”

images: sUPPLieD

CHOICES AND CHALLENGES The motivation to adopt better plastics is often a moral one. In terms of costs, virgin plastic bags are cheaper by a factor of two or more. Yet if broken down to a per-unit price (say the Saran wrap on meat) it’s a marginal cost. Nonetheless, virgin plastic is cheaper and the tipping point lies with consumer behaviour. Hopefully threats such as microplastics – of which we may consume 5g (or a credit card’s worth) a week, according to the WWF – will motivate change away from conventional petroleum-based plastics to plant-based or nonsynthesised ones.

All choices pose challenges: virgin plastic derives from oil, recycled plastic can’t be recycled perpetually (and there is growing consensus that recycling is ineffective at reducing plastics pollution), mislabelled biodegradable plastics are increasing microplastic volumes, and the cultivation of materials for compostable plastics is still maturing and evolving. It is possible to live in harmony with plastic bags, but this will require new behaviours from consumers and proactive investments from companies.

markets. Other than our coal reserves boosting plastic manufacturing, the country is also home to the world’s largest fluorspar deposits.

But it hasn’t been smooth sailing. According to the Chemical & Allied Industries’ Association (CAIA), the sector’s growth is lower than global levels for a variety of reasons, including cheap imports and not enough downstream beneficiation, meaning the value chain should be deepened in the country.

Pre-COVID-19, the chemicals sector nonetheless expected to double its size over the next few years. That growth might now be delayed, yet the fact that it is Africa’s most advanced chemicals sector and at least four times larger than that of either Nigeria or Egypt adds to the sector’s resiliency.

“There are opportunities to grow into Africa in the short- and long-term,” Radebe adds.

Such opportunities will be necessary, as the industry has been disproportionately affected because of its role in mining and other manufacturing supply Ivan Radebe chains impacted by the pandemic.

fast fact

The local chemical manufacturing market is valued at around r361.4-billion. it contributes 3.4 per cent to GDP and is the third-largest manufacturing sector, exporting around r67-billion of goods annually. Source: CAIA, InvestSA

SIZE AND VALUE OF THE GLOBAL MARKET The global plastic industry produces around 300 million tonnes of plastic annually and is worth R20-trillion, growing three per cent year on year.

Around one trillion single-use plastic bags are used annually, though the largest polluters of microplastics (smaller than 5mm and often invisible to the naked eye) are car tyres and clothing fibres.

Source: UN Environment, The Business Research Company, European Parliament

MANUFAC TURING

15

AGRICULT URE A ND MINING

What does the FUTURE HOLD?

W

GLENNEIS KRIEL looks at the challenges and trends dominating the agrochemicals market

hile the future of agrochemicals looks bright, according to Deloitte’s The Future of Agrochemicals report, considering the rising demand for food spurred by global population growth, companies will have to become more innovative to remain competitive.

Challenges reshaping the industry include longer product development cycles and escalating costs, increasing stringency of regulatory requirements, environmental concerns and the rise of digital technologies, according to the Deloitte report Dr Nicole Hart, chairperson of the Fertiliser Association of Southern Africa and commercial general manager of Omnia Fertiliser, says that the high costs of product development and registration for chemical crop protection make it increasingly difficult for new and smaller players to compete against global

giants such as BASF, Bayer, DuPont, Monsanto and Syngenta.

She adds that the quest for environmentallyfriendly solutions such as biopesticides, adjuvants, biofertilisers and biostimulants nevertheless presents new opportunities.

Entry costs that are lower than for chemical solutions and more stringent regulations that became effective in 2017, combined with increased awareness, make it more difficult for fly-by-nights.

LOCAL PLAYERS Despite the market segment being dominated by international players, local players are commanding a substantial market share, especially on the humate and kelp side. Oro Agri, which sells orangebased biocontrol plant products, is one South African company that

“The high costs of product development and registration for chemical crop protection make it increasingly difficult for new and smaller players to compete against global giants.”

– Dr Nicole Hart, Chairperson, Fertiliser Association of Southern Africa

is breaking ground internationally, currently having more 2 000 dealers selling its products in more than 85 countries.

Hart also sees opportunities for more South African-based developed biological control products such as parasitic and predatory insects, essential oils, viruses and bacteria that may help to keep problem, insects and diseases in check.

DID YOU KNOW?

The local agrochemical market sector is expected to grow at 10–15 per cent per year over the next 5–10 years.

Source: Fertiliser Association of South Africa

Increased competition and the development of precision technology is another factor changing business dynamics for crop protection and fertiliser companies, says Hard.

Where companies in the past only focused on products development and sales, more and more are incorporating digital solutions into their services offerings. The use of remote sensing via satellite or drones, for example, is making it easier to identify and address crop stressors, which can be caused by anything from nutrient and water deficiencies to insect attacks and diseases.

Dr Nicole Hart

JOB LOSSES

INCREASED DEMAND Renewable energy machinery and electric vehicles are increasing the demand for lithium, cobalt, chrome, copper and nickel.

The mining industry has shed about a 10th of its workforce in the past decade, equating to more than 50 000 jobs.

Source: University of Technology in Sydney Institute for Sustainable Futures

Source: McKinsey & Company: Putting the Shine Back Into South African Mining report

The cost of mining in South Africa has increased considerably over the past decade, due to diminishing general ore grades, and accessibility to ores becoming more challenging as underground and surface mines get deeper. The fall in the global demand for various mineral commodities in combination with price and currency volatility has exacerbated the situation.

Ralf Hennecke, general manager of technology and marketing at BME, identifies technology and innovation as key drivers of the industry’s future sustainability, with new technologies, automation, and digitalisation promising improved efficiencies, reduced costs, and enhanced safety.

These technologies will become increasingly important as labour becomes more expensive and low-risk mines become

16

MANUFAC TURING

exhausted, forcing companies to venture into areas where extraction and processing were previously considered too dangerous or costly. “South Africa cannot afford to fall behind in terms of global best practices, intelligent mining and an industry 4.0 world,” says Hennecke.

STIFF COMPETITION South Africa is not only competing against other global players to deliver ore and commodities competitively to global destinations that are becoming increasingly protective and unstable, but is also competing for foreign direct investment. “South Africa still has much value to offer, significant infrastructure and world-class skills,

but we need to build investor confidence by addressing deterrents varying from policy instability and volatile labour relations to political uncertainty, water shortages and load shedding,” says Hennecke.

He adds that the drive for renewable energies to combat climate change will present new opportunities for South Africa as the country contains many strategic commodities and vast resources required for renewable technologies. Simultaneously, pressure is bound to increase for mining companies to reduce their environmental footprint, which would be difficult considering almost 80 per cent of our energy is generated Ralf Hennecke from coal.

IMAGES: SUPPLIED

Challenging times for local mining

SUPPLYING INDUSTRIAL GASES TO SOUTHERN AFRICAN BUSINESSES www.airproducts.co.za

Service that delivers the

Difference

INDUS T RI A L GA S

IN THE air Air reliability Products.

Industrial gas is used in most manufacturing industries and of locally produced supply is important, reports GARETH GRIFFITHS

A

n important regional supplier, Air Products is part of an established international company specialising in the provision of a range of industrial and speciality gas products to multiple users.

“Air Products manufactures and supplies many gases such as argon, carbon dioxide, hydrogen, nitrogen, oxygen, welding mixtures and high-purity speciality gases”, says Arthi Govender, marketing and communications executive for Air Products.

Major industrial gas products are used industrywide, making its local production a critical component of manufacturing

From a gas manufacture and supply perspective, some of Air Products’ innovations to mining and heavy industry have proved beneficial. For example, the 120km gas pipeline that was installed to supply hydrogen gas to Impala Platinum and PG Building Glass.

Later, installations in the petrochemical industry included a new air separation unit to supply oxygen at Sasol Infrachem. Recently, the company responded to an increased need in the supply of carbon dioxide (CO2) by investing R100-million in a significant CO2 expansion and refurbishment project at its Newcastle facility in KwaZulu-Natal and an upgrade to the CO 2 supply at the National

“Our national footprint and well-established supply chain and distributor network further allow the efficient distribution of products to customers nationally.” – Arthi Govender, marketing and communications executive, Air Products

Handle with care

G

reg Rusznyak, marketing manager at WIKA South Africa, confirms that a fair amount of the instrumentation for industrial gas handling is manufactured locally.

“Only electronic pressure measuring instruments are imported since these require high-level clean rooms for manufacture,” he says.

Rusznyak says that sulphur hexafluoride (SF6 ) is a good example of a highly

specialised gas that needs careful monitoring. “South Africa has a robust industrial gas market in general, but for SF6 specifically, the market is small compared to the global market.

But it is no less important, because for high-voltage switchgear there is no real replacement for SF6 as an arc-quenching gas,” he explains.

IMAGES: SUPPLIED

A SELF-HEALING GAS Sulphur hexafluoride (SF6) is an odourless industrial gas, much heavier than air. It is used as an insulator in heavy-duty switchgear and other electrical equipment. It’s a “self-healing” gas.

Arcs of electricity (like lighting) occur inside switchgear, decomposing the SF6 gas, which then rapidly reforms itself. But there is more to this gas than industry.

Doctors use SF6 in sophisticated eye surgery, where it acts as a “tamponade” to prevent haemorrhaging in retinal detachment repair operations.

Source: WIKA South Africa

Petroleum Refiners of South Africa facility in Sasolburg.

In step with global environmental trends, a dissolved acetylene plant in Midvaal was launched as a world-class environmentally Arthi sensitive and safe facility Govender in 2018.

“Air Products is also a market leader in terms of on-site, bulk, pipeline, cylinder and speciality gas products. We are a frontrunner in terms of customer service, product quality and our gas range for industrial applications,” explains Govender.

The company manufactures the majority of its products locally. “Our national footprint and well-established supply chain and distributor network further allow the efficient distribution of products to customers nationally,” she says.

WIDELY USED PRODUCT Industrial gas products are used in industry sectors such as agriculture, electronics and packaging, analytical laboratories, construction, oil, food and beverage, glass and minerals, healthcare/ pharmaceuticals, leisure and recreation, metals/mining, biotechnology, plastics, transportation, and water.

Source: Air Products

“SF6 needs special handling. It is a greenhouse gas with about 23 000 times more impact than carbon dioxide. It’s listed in the Kyoto Protocol and usage is governed by EU regulation 517/2014 in Europe and other regional equivalents. Great care is taken in the operation of SF6 -insulated switchgear Greg Rusznyak and the procurement, transport, commissioning, and recovery of the gas.”

WIKA also offers the training and certification of technicians who will work with this gas and others.

“This is the reason for the importance of SF6 gas density monitoring in switchgear in the first place. But other equipment for filling, recovery, leak detection, and gas quality measurement is also vital,” he concludes.

MANUFAC TURING

19

S T EEL A ND GL A S S

Steel industry battles the oddS If promised infrastructure projects don’t materialise, steel’s once-shiny future will become dull, reports DALE HES industry finds itself. In 2020, steel demand is expected to be around 3.5 million tonnes in South Africa, more than 20 per cent down from last year’s levels.”

DEPENDENT ON INFRASTRUCTURE The industry is now pinning its hopes on government’s promises to invest heavily in infrastructure Charles projects to stimulate the economy Dednam in the wake of COVID-19.

Government has announced 50 major infrastructure projects that will go out for tender soon, but Dednam says that the steel industry is sceptical about their implementation.

“Steel consumption is very much linked to activity around infrastructure projects, many of which simply do not get off the ground. There are many infrastructure-related projects in municipalities that would bring much-needed steel demand and boost jobs if only the ability to execute these projects without corruption could be enhanced.”

“In 2020, steel demand is expected to be around 3.5 million tonnes in South Africa, more than 20 per cent down from last year’s levels.”

– CHARLES DEDNAM, GENERAL SECRETARY, SAISI

Shattered glass

G

lass manufacturers will have to contend with an estimated decline in revenue of 15 per cent over the next 12 months, according to Consol Glass CEO Mike Arnold, who says the industry could take as long as three years to recover after the severe impact of alcohol bans during South Africa’s lockdown. With the alcoholic-beverages industry accounting for about 85 per cent of sales in the glass packaging industry, losses from the two bans totalled about R1.7-billion for glass manufacturers.

Consol Glass, which has been forced to indefinitely suspend the construction of a manufacturing plant in

20

MANUFAC TURING

FAST FACT

Current confidence in the steel sector stands at just 19 per cent, rising to 33 per cent in the medium term (12 months) and 52 per cent in the long term (five years).

Source: SAISI’s 3rd Steel Sector Business Confidence Index

IS THE WORLD RUNNING OUT OF SAND? Believe it or not, sand is starting to become a threatened resource.

Sand is our most used natural resource: we go through about 50 billion tonnes of it every year to make concrete, glass, paper, plastics, paint, and even toothpaste and breast implants. Importantly, only marine sand (from places like riverbeds and beaches) can be used for these purposes because wind erosion makes grains from the desert unsuitable.

Source: United Nations Environment Programme

Nigel, is seeing a more positive trading environment in lockdown level 2, but is unsure of the long-term outlook for the industry.

“The industry is experiencing some normalisation and, of course, the supply chain has been depleted and needs refilling. The result is that we are seeing a peak in demand as we approach the end-ofyear holiday period,” says Arnold. “However, the longer-term impact of the pandemic will need to be gauged before we have a clear picture of the overall financial impact. Many are predicting that COVID-19 will reshape social norms, behaviours and attitudes to some extent, and it is difficult to anticipate right now how this will affect future alcohol consumption.”

Consol estimates that glass demand could decline by 10-15 per cent from pre-COVID-19 market estimates and could Mark take as long as two to three years to reach Arnold past demand.

IMAGES: SUPPLIED

T

he outlook for South Africa’s battered steel industry remains bleak with demand expected to drop by 20 per cent in 2020 while China continues to dominate global production.

During the COVID-19 pandemic, it was anticipated that demand for steel would drop drastically, resulting in a massive oversupply of steel and a severe drop in steel prices.

China’s steel industry has experienced a strong bounce-back after the initial COVID-19 shock and is on track to produce more than 1 billion tonnes in 2020 – a 3.5 per cent increase from 2019. Charles Dednam, general secretary of the South African Institute for Iron and Steel (SAISI), says that this does not bode well for the South African steel industry.

“This, along with South Africa’s current unique economic situation, aggravates the disastrous situation in which the South African steel

ONE WORKER

SUPPORTING THE URBAN IS PART OF A NEW RANGE FROM LEMAITRE LAUNCHING SOON. Contact us for more details and a free consultation on the best fit for your working environment.

FROM ONE WORKER TO ANOTHER

For more than 30 years, Lemaitre has supported South African workers with locally manufactured safety footwear, and responsible sourcing that supports local industries.

The Urban safety boot is built to withstand some of South Africa’s toughest environments. The Inyati PU Rubber Sole offers high heat, cut and abrasion resistance; while the upper is made of full-grain genuine leather with reflective inserts for increased visibility, waterproof seams and an anti-penetration midsole to prevent sharp objects penetrating the boot. The Urban offers superior resistance to oils and certain chemicals with SRC rated slip resistance for environments that may have wet or oily surfaces.

The URBAN features a Footology Climate Control insole offering thermal regulation properties and excellent moisture wicking properties.

Follow us on Facebook & Youtube at Lemaitre Safety Footwear to find out more about how we support local industries.

SOURCED AND MANUFACTURED IN SOUTH AFRICA

www.lemaitre.co.za

BBF Bova Artisan Range Press Ad FA_paths.indd 1

2020/09/15 16:15

S A F E T Y GE A R

PPE demand causes indusTry

SHAKE-up

CARYN GOOTKIN discovers how a rise in demand for personal protective equipment questioned South Africa’s capacity to produce these essential items

S

outh Africa has wide manufacturing capabilities, however, these vary substantially between products based on complexity and access to technology, equipment and skills. “Some items like face masks for public use are relatively easy to produce, while others such as gloves require more specialised equipment and materials,” says Shakeel Meer, divisional executive for manufacturing at the Industrial Development Corporation. “When the COVID-19 pandemic hit, some companies facing temporary shutdown switched to producing essential and personal protective equipment (PPE) products,” says Meer. “Automotive manufacturers started producing face shields and other companies redirected products to new uses, for example, potable-alcohol producers supplying alcohol for sanitisers.”

Switching an entire factory to producing new products is a complex process. “Local businesses quickly had to identify and source the required materials, design the products, retrain their staff and build expertise,” says Meer. “They also had to meet quality and safety standards.”

Because different standards apply to different products, prospective manufacturers need to do careful research. “Items classified as medical devices require licensing by the South African Health Products Regulatory Authority,” says Meer. “Bodies like the National Regulator for Compulsory Specifications also set standards for PPE and there may be guidelines set by government departments or specific buyers.”

KEEPING PRICES DOWN At first, insufficient local capacity to supply PPE was exacerbated by global shortages that made imports difficult. Some companies took advantage and charged a premium. “Keeping prices down requires sufficient supply to meet demand together with competition in the market,” says Meer. “Economies of scale may be important: some products can only be produced competitively if they are manufactured in sufficient volumes. We learned that countries and manufacturers tend to give preference to supplying their local needs first. Local manufacturing capacity can, therefore, be important not only in keeping prices down, but also ensuring that critical PPE is available at all.”

Shakeel Meer

IMAGES: SUPPLIED

COVID-19 GLOBAL PPE MARKET In March, World Health Organization modelling predicted that 89 million medical masks, 76 million gloves and 1.6 million pairs of goggles would be required worldwide to fight the pandemic. However, UNICEF now estimates that by the end of 2020, it alone will have supplied 2.2 billion medical masks, 1.1 billion gloves, 13 million goggles and 8.8 million face shields.

These boots were made for walking BOVA “BOVA, the leading safety footwear brand, provides 550 direct and hundreds of indirect jobs,” says senior brand manager Vanessa Ronald. “Most components Vanessa Ronald are sourced locally, but sometimes local capabilities or technologies are not available or commercially viable, like safety toecaps.”

To compete with imports, BOVA creates boots that protect wearers against specific hazards. “We focus on the right protection at the right price – safety is our top priority,” says Ronald. “In 2019, we launched our dual compound rubber range, making us the only company in Africa that can produce this highly technical boot.

“The opening of the market to imports at the beginning of the ‘90s decimated our local market, leaving thousands unemployed,” says Ronald. “We have a responsibility not to lose even more jobs; government has worked hard to assure a future for the local manufacturing industry.”

WAYNE BBF Safety, producers of Wayne gumboots, also promotes supporting local. “Around 65 per cent of all raw materials for our gumboots, are sourced Deane Nothard locally,” says marketing manager Deane Nothard. “Recycling is important to us: we recycle around 200 tonnes of PVC monthly, sourced from small businesses that collect recyclable material and from big mining companies that supply old products, including gumboots.”

The gumboot market is dominated by local manufacturers. “Gumboots are bulky and heavy, making transport and duty costs too high for imports to compete, especially with the consistent quality of local manufacture,” says Nothard. “To compete, we constantly innovate and invest in facilities, products and people.”

The typical safety standard for footwear is ISO 20345. More technical footwear must also comply with additional standards. “Due to our strong export presence, we also adhere to CE (Europe), Australian and New Zealand standards and accreditations,” says Nothard.

MANUFAC TURING

23

BE V ER AGES

FROM RAW MATERIALS TO BOTTLING

BUYING LOCAL A spotlight on ... Twizza.

By BETH AMATO

T

he founder of local soft-drink manufacturing company Twizza, Ken Clark, took a leap of faith in 2003 when he decided to establish a soft-drink manufacturing line in a dairy factory in Queenstown, Eastern Cape.

He saw the gap to produce locally flavoured soft drinks. Now, 17 years later, through sheer grit and innovation, Twizza has 3 manufacturing sites and 13 distribution centres around South Africa.

While competition from well-known international soft-drink brands is high, Twizza CEO Lisle Clark says that the company is expanding into Africa.

“We’ve adapted our soft drinks to local palates and taste preferences. We’ve mixed the everpopular ginger flavour with the timeless cola flavour and named it Ginger Cola.”

When the COVID-19 pandemic hit South Africa, Clark said Twizza adapted quickly to the situation, allowing customers to buy the company’s drinks online through Takealot.com and have them delivered. “We are constantly looking at ways to improve our service and to adapt to changing circumstances,” says Clark, adding that the partnership with Takealot.com is an important one. “We’re both proudly South Africa companies, and in these trying times buying local is a step towards sustainability.”

We’ve adapted our soft drinks to local palates and taste preferences.”

– LISLE CLARK, CEO, TWIZZA

Lisle Clark

IMAGES: SUPPLIED

SNAPSHOT OF THE GLOBAL MARKET There are two major categories and eight subcategories in the beverages industry.

According to Beverage Industry Magazine, the global carbonated soft-drink market has been declining annually to 2019, thanks to consumers opting for healthier choices. But falling alcohol consumption in some markets means that the carbonated soft-drink market can reposition itself, especially if options include diet, and caffeine- and artificial sweetener-free.

DID YOU KNOW?

Twizza has invested in improving its manufacturing capabilities to ensure that the PET in packaging is sustainable and reusable. Twizza also provides these manufacturing services to several local players.

There are several steps in bottling or packaging a soft drink, with greater efficiencies being introduced all the time. Raw materials such as flavourings, chemicals and sweeteners are mixed to different ratios according to a brand’s recipe. This “syrup” is then mixed with distilled water, carbonated and readied for packaging. Carbonation occurs by cooling the soft drink mix in large, ammonia-based refrigeration systems, which gives carbonated drinks their effervescence. Ninety-four per cent of the soft drink is made up of carbonated water. The bottling and filling process is highly automated (sophisticated filling lines can fill and bottle 1 200 containers per minute).

Source: Encyclopaedia of Occupational Health and Safety

ADDRESSING SUSTAINABILITY Product life cycle management is one of the key ways to reduce waste in the beverage manufacturing industry. From design to disposal, a beverage can or bottle typically goes through five life cycle stages, requiring significant resources and inputs to deliver a final product.

Sourcing raw materials, manufacturing and packaging, transportation, usage by the consumer and throwing away the waste are key points in a product’s journey and can be “made greener” to produce less waste.

“The design stage of the product is the best time to address sustainability,” says Lee-Hendor Ruiters, regional manager of the National Cleaner Production Centre.

Ruiters is a fan of “eco-designing”, which uses less raw materials and energy and extends the life of the product. “If a product can easily be reused, repurposed or composted, then it is designed with the environment in mind,” he says.

Most South African beverage manufacturing companies will have to embrace eco-design practices. Ruiters explains that the pending Extended Producer Responsibility legislation will ensure producers take responsibility for the impact of their products on the environment.

A LONG WAY TO GO “We still have a long way to go in terms of recycling beverage cans and bottles in South Africa,” says Ruiters. About 95 million tonnes of waste still makes its way to 826 landfill sites and less than 40 per cent of that waste is recycled. “Encouragingly, though, there are more than 4 000 glasscollection points in South Africa, which is home to 32 dedicated ‘Collect-A-Can’ companies. These companies collect 72 per cent of all beverage cans and recovered more than 75 per cent of all metal packaging in 2019.”

Indeed, water shortages and load shedding are pushing companies to implement energy- and water-saving processes. “Together with local legislation and a global economic system that is becoming more circular-thinking towards sustainability, this means that South African beverage manufacturers need to adopt green policies urgently,” says Ruiters.

MANUFAC TURING

25

BA BY a nd S A NI TA RY PRODUC T S

IT pays to keep

babies comfy

The demand for disposable nappies has birthed a growing and competitive industry, reports Monique Verduyn

D

isposable nappies have changed a lot since their beginnings in the late 1940s. Their main purpose, however, remains the same: to minimise leaks and keep babies dry and comfortable.

The demand for convenience has fuelled the growth of the nappy industry in South Africa. According to Euromonitor, it’s valued at R6-billion despite concerns about disposable nappies being the third-largest consumer item in landfills.

National Pride, a proudly South African company, which supplies the largest number of private labels to retailers and wholesalers, has been a key player in making nappies more affordable across different consumer segments. Each year, National Pride sells between 50 and 60 million Mark Russell nappies across their Cuddlers brand, Private Label, and Baby Panda, which is the company’s export brand that leads the market in other southern African countries.

“Pull-up nappies for toddlers, convenient underwear-like pants, have been a hugely successful innovation in the last three years,” says National Pride CEO Mark Russell. “We also recently introduced Cuddlers dual stretch with an elasticated waist and sides for a better fit.”

Most babies use between Based in Parow, The Nappy Warehouse supplies agents 2 500 and 3 000 disposable nationwide and focuses on quality at an affordable price. nappies in just their first year of “The nappy market is extremely competitive,” says Raees life. It’s estimated that singleParker, head of marketing and communication at The Nappy use nappies take 500 years to Warehouse. “Consumers are facing tough times and pricing decompose in a landfill. is a critical element. The market for eco-friendly nappies Source: Greenmatters.com remains small because they are expensive to produce.”

DID YOU KNOW?

THE ECO-FRIENDLY OPTION Bamboo-based nappies are soft and absorbent, but are the most costly. New plant-based polymers and nanotechnology can further improve absorbency and decrease the environmental footprint associated with disposable nappies.

“Disposable nappies are becoming more breathable and absorbent, and new technology results in less waste,” Parker says, “but ones made from a natural material that decomposes faster than traditional disposables are too pricey to attract cash-strapped consumers.”

Local companies are monitoring overseas trends and looking at compostable options. However, global trends show that parents everywhere are more interested in comfort and affordability than green technology.

“Even though National Pride has the capability and capacity to manufacture these products, biodegradable nappies will not decompose effectively in landfills and require specialised composting,” Russell adds. “Unfortunately, South Africa currently does not have the infrastructure available to make this a viable option.”

Next-gen feminine hygiene products Other major innovations include wings that keep pads in place, fragranced pads, quilted linings for greater absorbency, and panty liners that provide protection during a spontaneous discharge or unanticipated periods.

Greener, healthier and safer To make more menstrual care products plastic-free, the industry is also introducing green alternatives. According to sustainable feminine hygiene products company DAME, tampon applicators are a safe way to ensure that tampons are inserted properly. More recently, reusable tampon applicators have been introduced, which are BPA- and leak-free and long-lasting. Menstrual cups, which have been around since the 1930s, are cost-effective as they can last for up to 10 years.

More recently, reusable tampon applicators have been introduced, which are BPA- AND LEAK-FREE and long-lasting.

26

MANUFAC TURING

DID YOU KNOW?

Menstrual care products are poised to reach over R408.5-billion by the year 2025, bringing healthy gains and adding significant momentum to global growth, according to the 2020 Global Feminine Hygiene Products Industry report.

The Looncup is currently in development in New York. Branded as the world’s first smart menstrual cup, it promises to predict women's health and disease through quantifying menstrual blood. It measures menstruation volume, colour, cycle and body temperature automatically. It also notifies you when it needs to be emptied.

The unfortunate reality is that millions of young girls and women around the globe can’t afford sanitary products, but there is some hope that more empowering solutions are becoming available to give women greater freedom and choice.

images: SUPPLIED

B

efore the disposable menstrual pad was invented, rags, cotton, wool, and even grass were used by women in their underwear to manage the flow of blood. Thankfully, the feminine-hygiene industry has advanced by leaps and bounds over the last 30 years.

Today, sanitary napkins are made of cellulose, plastic, and cotton. More absorbent materials and better designs have led to more comfortable and practical products.

According to the Sanitary Napkin Market – Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2018–2026 report by Transparency Market Research, new superabsorbent polymers and non-woven materials absorb fluid faster compared to traditional sanitary napkins. These materials also minimise the thickness of the sanitary napkin.

National Pride (Pty) Ltd. is a proud LEVEL 4 BBBEE South African personal care business. We manufacture and distribute disposable baby diapers and pants, feminine hygiene pads, baby wipes, adult incontinence products, hand sanitiser and SANS-certified face masks.

Our Brand stable includes Cuddlers® (the first and only South African nappy brand available in all major retailers), Baby Panda® (market leader in Zambia, Zimbabwe, Malawi and DRC), Active Care® (incontinence products), Simply Dry® (sanitary pads). We are also the largest supplier of private label brands to leading retailers and wholesalers in South Africa.

In 2020, the National Pride Management Team, together with WeighPoint Capital, acquired the business through a Management Buy Out (MBO).

This was accomplished with funding from the IDC under their Black Industrialist Scheme.

National Pride is proud to employ over 300 South Africans, most of whom are from the Soweto community surrounding our new-generation industrial plant.

As we are able to offer world-class manufacturing capabilities, with a Quality Management System that is ISO 2001:2015 Certified, National Pride continues to grow, innovate, and offer our clients competitivelypriced products that offer peace of mind, protection, and reliability.

Our Vision is to “Earn Trust Everyday”, and we constantly strive to provide families of all ages and stages with quality, innovative products that convert common challenges into competitive advantages.

National Pride (Pty) Ltd Cnr Axle & East Roads Devland, Johannesburg 011 938 4660 sales@npride.co.za | www.npride.co.za

WE’RE GOING VIRTUAL! ®

FREE TO ATTEND 9 - 10 December 2020

Manfacturing Indaba will now take place in the form of a virtual conference on 9 – 10 December 2020 and attendance will be free of charge.

Our virtual event will allow companies and clients to interact safely with each other and keep their business goals rolling this year.

All the Provincial Manufacturing Indaba events and the East Africa edition have been postponed to the second half of 2021. Our top priority is to provide a safe environment for everyone involved: our customers, attendees, partners and colleagues.

REGISTER ONLINE NOW www.manufacturingindaba.co.za It’s free to attend

2020 THEME:

REVITALISING &

GROWING

MANUFACTURING

Making things in a changing world

WHY YOU SHOULD ATTEND THE VIRTUAL CONFERENCE 1. FREE TO ATTEND Simply register through the website: www.manufacturingindaba.co.za 2. Manufacturing Indaba’s virtual conference does not limit anyone from taking part in these important discussions. You connect through your laptop at the time of the session that you wish to attend, and you are all set. You can continue to work in between sessions as you are only one click away.

3. Save time and enjoy the flexibility of a fully integrated virtual event platform. Online Conference attendees can access entry from anywhere in the world, at any time as long as they have a computer / tablet / mobile phone, speakers, mic (optional) and a good internet connection.

TOPICS OF DISCUSSION Some of the key issues that will be discussed at the 2020 Virtual Conference include:

4. Wider global reach. Being that online conferences are virtual there will be participants from all across the world attending.

How to Future Proof your manufacturing business - What

5. There are no travel costs, hotels, taxi fares, etc. plus, you’ll save time attending an online conference with no travel time to get there.

The Africa Continental Free Trade Agreement and what

6. It’s more convenient. No flight delays, passport control or security checks.

does the future of African Manufacturing look like in a current and post COVID-19 world? does this mean for African Manufacturers - How does this influence trade agreements, customs tariffs, tax, etc. to create an African Marketplace

Lessons Learned on the Journey to Manufacturing Excellence and how to have a sustainable and profitable manufacturing business in the era of COVID-19?

The growing importance of Localisation - How can we build our own local markets to sustain ourselves and grow our local economies in Africa, as a result of COVID-19 and creating an alternate source of supply from the Eastern markets.

7. Cleaner for the environment. No more travel pollution, wasted paper and notepads for taking notes!

CONTACT US: Event Organiser: Siyenza, Tel: +27 11 463-9184 Email: info@manufacturingindaba.co.za

Unlocking the power of renewable resources.

Sappi exists to build a thriving world by unlocking the power of renewable resources to benefit people, communities, and the planet. By using a renewable resource like woodfibre to manufacture a versatile and necessary product such as Verve (dissolving pulp), we confirm our commitment to sustainability based on being a trusted, transparent and innovative partner in building a bio-based circular economy.

For more information please visit sappi.com