Manufacturing June/July 2022 Edition

MANUFACTURING JUNE/JULY 2022

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Health, environment and quality compliance SUPPORTING SUPPLIERS TO SCALE UP PRODUCTION IN THE FOOD AND BEVERAGES SECTOR

A NEED FOR MORE LOCAL DEVELOPMENT IN SAFETY GEAR

BACK TO RECOVERY Enabling growth, competitiveness and greater efficiencies is key to a re-energised sector INSIDE: THE IMPACT OF DIGITAL TECHNOLOGY I REVITALISING THE STEEL SECTOR I GROWTH IN THE AUTOMOTIVE SECTOR I AND MORE

YOUR WORKPLACE SAFETY PARTNER BBF Safety Group is an integrated workplace safety solutions provider that helps customers create safe working environments. We are a proudly South African company with a focus on sourcing and manufacturing locally as far as possible.

From market-leading safety footwear brands to specialised Personal Protective Equipment (PPE) and even Health and Safety training and advisory services; BBF is a trusted partner to thousands of businesses across a diverse range of industries, helping to keep millions of people safe at work every day. www.bbfsafety.com

F ROM T HE EDI T OR

MANUFACTURING JUNE 2022

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Health, environment and quality compliance SUPPORTING SUPPLIERS TO SCALE UP PRODUCTION IN THE FOOD AND BEVERAGES SECTOR

A NEED FOR MORE LOCAL DEVELOPMENT IN SAFETY GEAR

BACK TO RECOVERY Enabling growth, competitiveness and greater efficiencies is key to a re-energised sector INSIDE: THE IMPACT OF DIGITAL TECHNOLOGY I REVITALISING THE STEEL SECTOR I GROWTH IN THE AUTOMOTIVE SECTOR I AND MORE

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PIcasso Headline, a proud division of Arena Holdings (Pty) Ltd Hill on Empire, 16 Empire Road (cnr Hillside Road), Parktown, Johannesburg, 2193 PO Box 12500, Mill Street, Cape Town, 8010 www.businessmediamags.co.za EDITORIAL Editor: Anthony Sharpe Content Manager: Raina Julies rainaj@picasso.co.za Contributors: Willie Coetzee, Trevor Crighton, Caryn Gootkin, Mikel Mabasa, Denise Mhlanga, Rodney Weidemann Copy Editor: Brenda Bryden Content Co-ordinator: Vanessa Payne Digital Editor: Stacey Visser vissers@businessmediamags.co.za DESIGN Head of Design: Jayne Macé-Ferguson Senior Designer: Mfundo Archie Ndzo Junior Designer: Bulelwa Sotashe Cover credit: BBF Safety Group, istock.com/Smileus

THE LONG AND BUMPY ROAD TO RECOVERY

D

espite the challenges being faced by the manufacturing sector, Absa’s Purchasing Managers’ Index reached a record month-on-month level in March (before the floods), indicating that manufacturing sentiment was buoyant, as we see on page 6. That same month, new car sales reached their highest level since the onset of the pandemic, and the outlook seems tentatively positive for one of the country’s largest manufacturing sectors.

Looking beyond recovery towards growth, on the other hand, local manufacturers urgently need to invest wisely in fourth industrial revolution technologies if they want to remain innovative and competitive on the global market. Innovation is a key pillar of PepsiCo’s Kgodiso Development Fund, which we profile on page 30, and is also needed

in the steel sector, prompting the Industrial Development Corporation to create a R1.5-billion downstream development fund to enable growth, competitiveness and greater efficiencies. Considering the key role that getting those metals out of the ground plays in our economy, we also look at the role of chemical manufacturers in the mining sector.

Finally, with the increased focus on health and safety brought about by COVID-19, we examine where South Africa stands in terms of safety, health, environment and quality compliance. After all, you can’t navigate the long and bumpy road to recovery without safe, healthy people at the wheel.

Anthony Sharpe Editor

Contents 10

SALES Project Manager: Tarin-Lee Watts WattsT@picasso.co.za | +27 87 379 7119 Sales Consultant: Gavin Payne

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PRODUCTION Production Editor: Shamiela Brenner Advertising Co-ordinator: Johan Labuschagne Subscriptions and Distribution: Fatima Dramat fatimad@picasso.co.za Printer: CTP Printers, Cape Town MANAGEMENT Management Accountant: Deidre Musha Business Manager: Lodewyk van der Walt General Manager, Magazines: Jocelyne Bayer

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Reviving the metals sector through the South African Steel and Metal Fabrication Plan 1.0.

6

TRENDS

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TECHNOLOGY Local manufacturers urgently need to implement 4IR technologies to remain competitive.

COPYRIGHT: N o portion of th is mag az ine may

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CHEMICALS Chemicals and blasting materials producers play an invaluable role in the mining sector.

SAFETY Where do local manufacturers stand in terms of safety, health, environment and quality compliance?

Charting a course to industrial capacity recovery.

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b e reproduc ed in any f orm w ith out w ritten c onsent of th e pub l ish er. Th e pub l ish er is not responsib l e f or unsol ic ited material . Manufacturing is pub l ish ed b y P ic asso H eadl ine. Th e opinions ex pressed are not nec essaril y th ose of P ic asso H eadl ine. A l l adv ertisements/ adv ertorial s h av e b een paid f or and th eref ore do not c arry any endorsement b y th e pub l ish er.

METALS

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AUTOMOTIVE NAAMSA offers a snapshot of the local automotive sector.

30

FOOD AND BEVERAGE PepsiCo’s Kgodiso Development Fund aims to grow employment, local procurement and supplier diversity.

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A DV ER T ORI A L M A NUFAC T URING INDA BA

MANUFACTURING T INDABA 2022 The annual Manufacturing Indaba Conference and Exhibition will be hosted from 21–22 June 2022, writes MANUFACTURING INDABA 4

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his year’s Manufacturing Indaba will be a physical in-person conference and exhibition with the theme “Reigniting economic growth through manufacturing”.

Given the impact of the pandemic, all nations require and rightly aspire to efficient industrial bases to meet changing needs in a globalised world. South Africa has developed an established and diversified manufacturing base that has shown its resilience and potential to compete in the global economy.

M A NUFAC T URING INDA BA A DV ER T ORI A L

Delegates gather in the exhibition hall on day one of the 2019 Manufacturing Indaba.

The Manufacturing Indaba is A leading manufacturing event in sub-Saharan Africa. The 2022 edition will focus on the future of manufacturing in Africa post the pandemic.

The 2019 conference underway in Johannesburg.

Collaboration and investments by both the public and private sectors in manufacturing are essential for regional and continental growth.

The annual Manufacturing Indaba aims to bring together manufacturing business owners, industry leaders, government officials, capital providers and professional experts to explore opportunities and grow their manufacturing operations.

The Manufacturing Indaba is a leading manufacturing event in sub-Saharan Africa.

The 2022 edition will focus on the future of manufacturing in Africa post the pandemic.

Key issues to be discussed include:

• Securing consensus to build an inclusive and sustainable domestic economy.

• AfCFTA – The Game Changer: unlocking opportunities for regional value chain integration under AfCFTA. • Operation Vulindlela: driving structural reforms to support growth and employment.

• Financing the economic recovery: Critical constraints and opportunities for public and private sector financing of the industrial economy.

• Leadership Innovation: how to reinvent your business model in a post-pandemic economy – manufacturing CEO’s experiences from the field.

• Mining and industrialisation: the mining and manufacturing interface – developing a shared perspective for industrialisation across the value chain.

• Leveraging the energy mix for manufacturing: exploring the prospects and opportunities of South Africa’s future energy mix, • Skills and manufacturing sector: the skills deficit and mismatch in the domestic manufacturing sector.

• Digital innovation for manufacturing: digital technology application and innovation in South Africa’s industrial sectors – how critical

is digitalisation for building globally competitive manufacturing companies and sectors?

• Localisation: The business/government model for collaboration and high impact in the manufacturing sector.

• Growing IDZ and SEZs: the role of Industrial Development ZONES (IDZ)) and Special Economic Zones (SEZs) in South Africa’s post-pandemic economic recovery.

Manufacturing Indaba 2022: “Reigniting economic growth through manufacturing”.

®

➔ Scan this QR code to go directly to the Manufacturing Indaba website.

For more information: +2711 463 9184 Info@manufacturingindaba.co.za www.manufacturingindaba.co.za

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CHARTING A PATH BACK TO GROWTH South Africa’s manufacturing sector activity declined late last year, but looks a bit brighter in 2022. CARYN GOOTKIN examines factors influencing its performance

I

n 2020, the global economy suffered one of the biggest shocks it has seen in recent history.

In its wake, the manufacturing sector was dealt a major blow in terms of both production and job losses.

“The sector has grappled with major demand- and supply-side shocks over the past few years, the biggest being the COVID-19 pandemic and accompanying lockdown restrictions,” says Lisette IJssel de Schepper, senior economist at the Bureau for Economic Research, part of the Faculty of Economic and Management Sciences at Stellenbosch University. “The looting and unrest in July 2021 also had a major negative impact, while early indications are that the April 2022 flooding in KwaZulu-Natal hurt the sector too.”

Those subsectors, which are predominantly inward-oriented, have been unable to recover quickly because domestic demand conditions have not recovered as strongly as globally, says Absa economist Miyelani Maluleke. “But over the course of the last year across the entire manufacturing sector, there has been an intensification of supply chain problems. April was not good for the sector, which reflects the two big domestic shocks we had: the floods in KwaZulu-Natal, which caused a lot of (predominantly auto) manufacturers to shut down temporarily and disrupted input goods entering the country at the Port of Durban, and intensified load shedding.”

Despite recent challenges, Absa’s Purchasing Managers’ Index (PMI), which measures South African manufacturing sentiment, reached its highest-ever month-on-month level in March, indicating optimism about the sector’s prospects.

However, the April results were not as positive.

“The PMI fell sharply from 60 index points in March to 50.7 in April, its lowest level since July 2021, when unprecedented looting and rioting shook local production and demand,” says Maluleke. “The devastating flooding in parts of KwaZulu-Natal forced temporary halts in production that, coupled with a sharp Lisette IJssel de Schepper drop in export sales – possibly due to the temporary Durban

“LOAD SHEDDING IS ANOTHER FACTOR HOLDING BACK THE SECTOR, ESPECIALLY THE MORE ELECTRICITY-INTENSIVE PRODUCERS, AS THEY OFTEN NEED TO CUT BACK ON THEIR USAGE (AND THUS PRODUCTION) BEFORE LOAD SHEDDING IS IMPLEMENTED.” – LISETTE IJSSEL DE SCHEPPER 6

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harbour closure – and other logistical constraints related to the floods, negatively affected the index.”

IJssel de Schepper says even businesses not affected by the flooding had to grapple with stage Miyelani Maluleke four load shedding during April. “Load shedding is another factor holding back the sector, especially the more electricity-intensive producers, as they often need to cut back on their usage (and thus production) before load shedding is implemented.”

Last year saw increased load shedding, and this year has seen a similar number of days, but on average at higher stages than 2021. “I think a lot of businesses were simply not ready for that, particularly because it usually comes with very short notice periods, which affects planning,” says Maluleke.

Despite the drop in PMI figures for April, the headline index number is still above 50, which technically means the sector is expanding.

“However, the real story of the PMI for the last couple of years has not been so much in the headline number, but rather in the subindices, particularly as there is some distortion coming from the supplier’s performance subindex,” says Maluleke. “Ordinarily, when that index is high, it means everyone is busy. However, recently it has

T REND S

SOUTH AFRICA VERSUS OTHER DEVELOPING NATIONS “When COVID-19 hit, we implemented some of the most stringent lockdown regulations, so our contraction was much sharper than those of emerging Europe and Asia, which seem to be over the worst,” says Absa economist Miyelani Maluleke. “Despite this, the pace of our recovery was at one stage not too far from other economies, but the additional supply-side shocks concentrated in South Africa have certainly made things a little bit more challenging for domestic manufacturers.”

not been an indication of high levels of activity but rather of the fact that supply chains are not functioning normally. And in April, the business activities index, which is a key indicator, came in at 39.6, which is sharply contractionary.”

IMAGES: ISTOCK.COM/ GORODENKOFF, ISTOCK.COM/ DRAZEN ZIGIC, SUPPLIED

LOOKING FORWARD The headline numbers also hide the huge variation between the different subsectors.

“The rebound in production has actually been pretty strong,” says Maluleke. “By early last year, aggregate manufacturing output was not very far from where it was pre-COVID. The subsectors that have picked up the most are outward-oriented in that they tend to export most of their output. One such sector, vehicle manufacturing, has enjoyed strong growth: in February this year, the output was 20 per cent higher than pre-pandemic, according to Stats SA data. Food manufacturing and textiles are also doing well.”

IJssel de Schepper says: “The broader tourism and hospitality sector is only slowly lifting its head, and manufacturers supplying products to this sector (from food and beverages to toiletries and textiles) could see demand for their goods pick up once more.”

Currently, underperforming subsectors include wood, paper, furniture, petroleum chemical products, rubber and plastics, with production in the latter category still about 17 per cent below pre-COVID levels, says Maluleke. “The global environment has deteriorated quite a bit on the back of the Russia-Ukraine crisis and

It is becoming cheaper and, sometimes more importantly, quicker for local retailers to source locally rather than to import.

“OVER THE COURSE OF THE LAST YEAR ACROSS THE ENTIRE MANUFACTURING SECTOR, THERE HAS BEEN AN INTENSIFICATION OF SUPPLY CHAIN PROBLEMS.” – MIYELANI MALULEKE lockdowns in China, but the world economy is still expected to grow at around 3.6 per cent, so those underperforming subsectors with an outward orientation, including petrochemicals and motor vehicles, still have more scope for a stronger recovery. Inward-oriented subsectors will continue to face challenges in terms of domestic demand because consumers face not only rising fuel and food inflation, but also higher interest rates.”

STATE AID? It’s been a while since we saw a strong manufacturing-specific policy intervention from government. “Some of the problems facing the sector are also facing the entire economy,” says Maluleke. “We welcome the efforts to try and liberalise the energy market and give firms a bit more scope to self-generate. Also, the reforms being introduced to ease some of the pressures on our ports and rail network to make things more competitive will help.”

FAST FACT

The clothing and textile subsector, which accounts for less than six per cent of total manufacturing employment, according to Stats SA’s quarterly employment statistics for the fourth quarter of 2021, and carries a weight of just 4.4 per cent to total manufacturing production (Stats SA production data), has benefitted from import substitution. It is becoming cheaper and, sometimes more importantly, quicker for local retailers to source locally rather than to import.

Source: Lisette IJssel de Schepper, Bureau for Economic Research

“Issues with rail transport and port inefficiencies not only hurt producers targeting export markets who struggle to get their product to source markets, but also negatively affect manufacturers requiring imported raw materials and intermediate goods,” says IJssel de Schepper. “This and the high cost of doing business overall make us less competitive in international markets.

Government often speaks about lowering the cost of doing business in South Africa, but too little action has been taken.”

MAINTAINING THE COLD CHAIN Load shedding affects food manufacturers in several different ways, decreasing their productivity, profitability and sales. “The first massive cost relates to keeping products frozen with generators and UPSes,” says Saul Chasen, sales director of Falafel King. “If your freezers break down due to power fluctuations, the company loses all frozen stock.

Staff productivity plummets because employees can’t work during load shedding, which sometimes hits us more than once a day.”

Maintaining the cold chain is vital to ensuring products comply with health and safety regulations. “When load shedding affects the display freezers at retail clients, our stock gets placed in their back freezers while they get their store freezers fixed, so we also lose sales as our products aren’t available to customers,” says Chasen.

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The NCPC-SA is a national industrial support programme that drives the transition of local industry towards

a green economy

Services and focus areas include industry and sector knowledge-sharing, company technical support; green skills development; and advocacy and awareness-raising.

Since 2002, the NCPC-SA has: Advised and assessed over 1700 Saved almost 7

000 GWh of energy in industrial plants

Helped mitigate over 7 Trained over 6

companies

million tonnes of GHG emissions

500 professionals

2002 – 2022 The National Cleaner Production Centre South Africa (NCPC-SA) was established at the Joburg World Summit on Sustainable Development in September 2002. Its success since then has made it

THA 20-2022

a true legacy project of the summit.

www.ncpc.co.za ncpc@csir.co.za

the dtic Department: Trade, Industry and Competition REPUBLIC OF SOUTH AFRICA

Funded by the dtic, hosted by the CSIR

NCP C-S A A DV ER T ORI A L

Fifth Biennial Industrial Efficiency Conference delegates at the opening plenary.

CELEBRATING 20 YEARS OF INDUSTRIAL EFFICIENCY The National Cleaner Production Centre South Africa celebrated two decades of industrial efficiency highlights during the recent fifth Biennial Industrial Efficiency Conference, reports JULLIE WELLS

T

he National Cleaner Production Centre South Africa (NCPC-SA) hosted its fifth Biennial Industrial Efficiency Conference at the CSIR International Convention Centre in Pretoria in May. This year, the NCPC-SA celebrates 20 years of industrial efficiency highlights, and the culmination of its internationally acclaimed Industrial Energy Efficiency (IEE) Project.

During the opening plenary, NCPC-SA director Ndivhuho Raphulu shared that the IEE Project’s impact amounted to approximately 6 500GWh of energy saved, which translates into R5.3-billion in savings for industry and the mitigation of 6.4 million tonnes of greenhouse gas emissions. These savings were achieved through implementing energy management principles, often without significant investment.

The programme resulted in 6 330 professionals, 314 experts and 199 local trainers trained, 7 occupational qualifications registered with the National Qualification Framework, and 13 original training courses developed.

Rana Ghoneim, chief of the United Nations Industrial Development Organization’s (UNIDO) Energy Systems and Infrastructure division in Vienna, said: “Tackling energy efficiency

Ndivhuho Raphulu

is a complex challenge because it involves changing practices, whether these are behavioural or technical changes; change is not necessarily something that everyone embraces willingly. The IEE Project in South Africa has been a shining example of how to promote energy efficiency in the industrial sector.”

She mentioned that a critical factor that contributes to the NCPC-SA’s success is its committed partners, including the Department of Trade, Industry and Competition (the dtic), and the companies participating in the initiative.

The NCPC-SA’s services are subsidised with funding from the dtic to assist companies on their journey to efficiency and greener production. Company commitment is required

to bring about long-term change, and many of the successes were due to champions within industrial companies who worked alongside the NCPC-SA team.

Bringing an industry perspective, Phillipa Rodseth, executive director of the Manufacturing Circle, agreed with Ghoneim on the importance of an ecosystem working together, instead of in silos, to achieve resource-efficient and cleaner production goals.

She said that companies are increasingly convinced of the financial imperative to become more energy-efficient. Rodseth emphasised that every company, regardless of size, could benefit from energy efficiency without necessarily making a large financial investment.

“We urge industry to proactively engage to improve efficiencies, enhance sustainability and drive competitiveness,” Rodseth added.

Gerhard Fourie, chief director: Green Industries at the dtic, explained that the department’s role is to fund the NCPC-SA and provide the strategic direction, which is aligned with the country’s industrial policy and environmental objectives.

One of the focus areas of the NCPC-SA, he said, has always been to contribute towards increasing companies’ bottom lines and productivity by improving their resource and energy efficiency.

“I want to congratulate the NCPC-SA on its successes during these two decades and thank it for making our job somewhat easier to get funding to support the initiative going forward. The success of the NCPC-SA has encouraged donor funding from other governments, for example, the British, the Swiss, the German, and, more recently, the government of Flanders,” Fourie said.

The donor community, Fourie added, is also interested because while Africa has a very large carbon footprint, it also has a lot of opportunities to change that due to the continent’s good solar resources, space, and infrastructure.

“When this initiative started in the early 2000s, many of us thought it was a bit of a ‘pie in the sky’ dream,” he quipped. “But today, the green economy is really where the bulk of economic growth opportunities lie. It is good to see how the NCPC-SA drove the initiative and how it has grown.”

➔ Scan this QR code to go directly to the CSIR website.

For more information: + 27 12 841 2911 ncpc@csir.co.za www.ncpc.co.za

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A WHOLE NEW WORLD FOR MANUFACTURERS Local manufacturing is lagging behind others in its adoption of digital technologies. This needs to change rapidly if South Africa is not to fall behind the rest of the world, writes RODNEY WEIDEMANN

T

he fourth industrial revolution (4IR) has been met with enthusiasm by some and significant levels of caution by others. For the manufacturing sector, there appears to be recognition of the potential value and business improvements advanced manufacturing technologies can present. However, many are still considering issues around cost, impact on the workforce and the matter of striking a balance between the inevitable hype and their levels of preparedness.

There can be little doubt that technologies like robotics, cloud computing, 3D printing, the industrial internet of things (IIoT), Riaan Graham and virtual and augmented reality will have a significant impact on the manufacturing arena in the near future. At the same time, however, organisations remain concerned about the impact these new offerings may have on the workforce.

According to Riaan Graham, enterprise director for CommScope sub-Saharan Africa,

when it comes to 4IR technologies, South Africa is not too far behind the developed world. Our main challenges, he suggests, are related to labour and job creation, rather than not being able to use the technology itself. “There is no doubt that 4IR enhances and improves manufacturing, it is far more sustainable and environmentally friendly, and it can deliver solutions and products far more rapidly.

“For example, today, a car manufacturer no longer has to build physical models; they can instead utilise artificial intelligence (AI) and the cloud to simulate and build every component without any costs associated with the actual production line. They could also potentially use 3D printing to make specific parts for testing purposes, reducing costs further.”

Amritesh Anand, practice lead for unified communication at In2IT Technologies, notes that many manufacturing companies are deploying blockchain solutions. These have immense capability to help create more efficient operations and gain deeper insight

“THERE IS NO DOUBT THAT 4IR ENHANCES AND IMPROVES MANUFACTURING, IT IS FAR MORE SUSTAINABLE AND ENVIRONMENTALLY FRIENDLY, AND IT CAN DELIVER SOLUTIONS AND PRODUCTS FAR MORE RAPIDLY.” – RIAAN GRAHAM 10

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into supply chains and asset tracking, quality assurance, and regulatory compliances.

“Blockchain has the capability to reinvent how manufacturing companies design, plan, produce and scale their goods. This growth is because of the requirement for centralised monitoring, maintenance of manufacturing infrastructure, and worldwide adoption of cloud services.”

ADOPTION AND CHALLENGES Anand says that manufacturing companies’ adoption of 4IR is relatively slow compared to other sectors because they focus less on deploying robust information technology solutions, which is a base requirement for deploying a 4IR solution. “Typically with manufacturing companies, IT is far down the list of priorities when compared to their core focus, but the rise of 4IR means they need to create an IT baseline to begin implementing these new solutions.

Amritesh Anand

T ECHNOL OGY

IMAGES: ISTOCK.COM/ METAMORWORKS, ISTOCK.COM/ DANAI JETAWATTANA, SUPPLIED

“MANUFACTURERS THAT COMPETE OR ARE EXPANDING GLOBALLY MUST UNDERSTAND THAT DIGITAL TECHNOLOGIES HAVE TO BE PART OF THEIR STRATEGY, OR AT LEAST MUST HAVE BEGUN THE DIGITAL JOURNEY.” – CANNINAH MAPENA “One of the key challenges is a skills shortage, not only in South Africa, but also globally. There is a significant skill barrier to and need for re-skilling in 4IR technologies.

At present, digital skill shortages risk undermining the roll out of 4IR in South Africa. It is important to understand that 4IR technologies like robotics, AI and IIoT are individual offerings but are interdependent, thus you need to know about all these domains,” says Anand.

Possibly the biggest challenge around 4IR, suggests Graham, is the job losses predicted to follow the increasing associated automation. He notes that while we will be able to transition some roles via 4IR upskilling, the challenge in Africa is the low uptake of science, technology, engineering and maths subjects in schools. This means many workers may not have the right grounding to be upskilled in 4IR technologies.

“Apart from the labour challenge, another issue is the cost involved. Not only is it expensive, but coupled with our ongoing power challenges, it has also led many an organisation to ponder whether they will be able to obtain real value from their investments.

“If we truly hope to fully embrace 4IR, we will have to find ways of stabilising our power supply, improve legislation to encourage investors and attract those skills we lack. If we don’t fix these issues, we will soon find ourselves left behind.”

MASSIVE COMPETITIVE ADVANTAGES Canninah Mapena, MD of Rockwell Automation Africa, indicates that it is vital that we resolve the issues around 4IR adoptions, as its benefits for the manufacturing space are enormous. “Such technologies reduce risk in business and allow proof of concepts

to be undertaken without the need for hardware. They further encourage innovation and significantly improve productivity. These technologies help to better gather and analyse data and transform it into actionable, real-time insightful information.”

Mapena adds that this supports the connection of global operations to enterprise and extended business systems, allowing for better collaboration, faster problem-solving and improved innovation. “Equipment and devices become intelligent assets capable of reporting a wealth of production information, including diagnostics and energy use. Having this knowledge enables faster and better business decisions that can help increase productivity, improve quality, and meet demand more precisely and cost-effectively.”

The industrial automation sector faces stricter and stricter legal regulations relating to the protection of human health and the environment, she continues. Moreover, it is necessary to realise that Industry 4.0 is not one standard, but rather represents an entire group of standards, which are mostly still evolving. “Manufacturers that compete or are expanding globally must understand that digital technologies have to be part of their strategy, or at least must have begun the digital journey.

“Local manufacturers can and should consider how these technologies will improve their processes and make them more cost-effective. A lot of the adoption of these technologies will ultimately depend on the digital maturity index of the manufacturers.”

Graham says that 4IR is coming whether we are ready for it or not, so we need to be adapting our factories for it. “I feel the hourglass is running out. If we don’t properly adapt within the next couple of decades, we will fall so far behind as to

become uncompetitive. We need to work on relevant legislation, focus on adapting the workforce and reskilling where necessary and – if it hasn’t yet begun – it is imperative to start the digital transformation journey.”

Anand concludes with a stark warning: “Africa has history of lagging behind the industrial revolutions, but this time, we cannot afford to be left behind because this technology holds incredible potential for national, organisational and individual growth.”

KEY 4IR STATISTICS Here are some of the most important 4IR statistics, according to consulting firm PwC: • prioritising 4IR, the digital ecosystem and emerging technologies. When in their operations, 31 per cent state that it is “extremely critical”, while 40 per cent report that it is “moderately critical”.

•

operating systems.

• of industrial products companies

• to accelerate in the coming years:

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re you struggling • • • • • • • • 14

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GREY AREAS Grey areas are those parts of an organisation that are not well supported in terms of solutions, for example, where the ERP and finance system have not managed to solve the business’ requirements.

We have built a framework of business solutions that fill these grey areas, making them more detailed. Our solutions often include traceability and transaction support, reporting, dashboarding and providing an actual system. This gives the business the necessary information to make better business decisions and provides employees with the tools to do their jobs.

For an organisation to get a better understanding of their grey areas, we offer an analysis project that can determine the type and nature of the grey areas. Grey Area solutions’ ability to integrate into existing finance and ERP Traceability Traceability has become an essential mechanism systems, whether with a tightly integrated or loosely-coupled approach, is essential. for organisations to ensure a safer and better quality product. If an organisation doesn’t Ardent Mobility YouTube and Twitch Channel have a business system that supports proper We have launched a YouTube channel as an serialisation, the ability to trace a product educational and information-sharing platform, through its lifecycle becomes difficult. providing content for business, industry and We have created a solution set that not only work-oriented personnel. The videos and manages the lifecycle of the product, but also the information, including a unique identifiable livestreams cover a variety of topics and allow the audience to request and provide feedback on the number, associated with the product. Called world of business and industry. The Twitch channel a transport container, it serialises items will extend the live side of this venture. and can handle any type of product and any

CONTACT US: ardentmobility@ardentclouds.net |

www.ardentclouds.net

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A DV ER T ORI A L OMNI A

Omnia makes ongoing investments into R&D in emerging technologies.

OMNIA IS RELENTLESS IN ITS PURSUIT TO BE AT THE FOREFRONT OF INNOVATION Omnia’s almost 70-year history is based on delivering value to customers through knowledge, advisory services and investments into R&D and innovation

O

mnia understands that, in agriculture and mining, certain established practices may stand the test of time, but sustainable commercial value is ensured when these practices are revitalised with innovative enabling of products, services, and technologies.

Omnia’s solutions-based approach is multifaceted to identify market challenges and realise opportunities for customers – an approach that is supportive of food security, job protection and driving efficient use of resources in an environmentally friendly manner.

This purpose is lived through relevant technical, practical and intellectual expertise, customer-centric product and service innovation and ongoing investments into research and development (R&D) in emerging technologies.

OMNIA NUTRIOLOGY DRIVES AGRICULTURE INNOVATION AND SECTOR RESILIENCE Since Omnia’s inception almost 70 years ago, the group has consistently pioneered innovative products, services and technologies that have resulted in impactful customer and societal value. For example, Omnia Nutriology ® business was first to market with its liquid fertilizer range, which has paved the way for precision agriculture as it is known today.

Omnia’s liquid products, containing accurate ratios of various macronutrients and

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micronutrients, are customised to address specific crop and grower requirements. The product range enables farmers to allocate input nutrients more efficiently, optimising yields and ultimately financial returns. Equally notable has been its revolutionary direct application ammonia, launched more than four decades ago.

Omnia Nutriology ® has established itself as a leading provider of holistic farming advisory services and products, including data-driven soil and crop analysis, climatic trends and water efficiency, tailored nutrient management, and quality products to maximise yields. Omnia’s innovative partnering approach ultimately delivers on its purpose of supporting food security in the markets where it operates.

BME, A GAME-CHANGER This culture of innovation is lived in every Omnia division, differentiating the business across its 25 markets. In the mining sector, BME is recognised as a leading manufacturer and supplier of explosives, related accessories and blasting services for mining, quarrying and construction.

Customers repeatedly choose BME for many reasons, including: • Robust, world-class dual-salt emulsion formulations designed to provide optimal blasting outcomes.

• Recycled oil technology involving the careful treatment of used customer oil for reuse in its blasting emulsions, thereby disposing of

25 million litres of used oil annually and delivering considerable environmental benefits.

• Double-salt cold emulsion products customised in response to specific site conditions and for specific blast outcomes.

• Electronic detonators, especially the new generation AXXIS™ Titanium – an advanced electronic blast detonation system. This quality product enables improved safety, better performance through an increased blast duration per detonator, more units per blasting box, precise firing accuracy and greater time, data and reporting efficiencies.

INNOVATION FOR SUSTAINABILITY IS FRONT AND CENTRE Omnia remains firm in its purpose to lead the change from chemicals to green chemicals, biotech and biomolecular solutions through innovative technologies. As a responsible, forward-looking business, it lends its resources and expertise to support sustainable business solutions across its value chain. This translates to the strategic application of intellectual and financial capital to consistently evolve its value proposition in a way that demonstrates care for resources and the environment.

Designed to exact world-class and green standards, Omnia’s nitric acid complex – featuring EnviNOx emissions mitigation technology – is a compelling proof point of this enduring focus. The technology eliminates 98 per cent of greenhouse gas emissions and has generated more than five million carbon credits.

Omnia Group’s CEO, Seelan Gobalsamy, says: “Omnia’s culture of responsible innovation, approach to R&D and solutions-driven legacy continue to strengthen our position. We remain relentless in our pursuit to ensure sustainable contributions by consistently leveraging these differentiators. I am proud of the role each of our 4 200 employees plays in driving success for our customers and partners and, equally, enhancing the value delivered to societies and the environment.”

OMNI A A DV ER T ORI A L

SUSTAINABLE MANUFACTURING BASED ON HEALTHY FOUNDATIONS

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ith good soil health a key challenge for every farmer worldwide, Omnia is at the forefront of providing pioneering solutions with wide applicability. Omnia Australia is a leader in the manufacture of K-humate products – a rich, humic-based soil conditioner and biostimulant that positively impacts soil and plant health.

Humic acids are naturally derived from the breakdown of plant and microbial matter, which form the foundation of all fertile soils. Humic acids enhance nutrient efficacy and significantly reduce leeching, waste and nitrogen emissions.

K-humate thus has the potential to further improve farmer yields, the quality of produce, profits and business competitiveness by: • Increasing fertilizer efficiency.

• Improving water holding capacity.

• Bolstering the penetration and retention of calcium in the soil.

• Enhancing good soil structure and fertility.

“We continue to expand access to our K-humate products, exporting humic acid coatings to countries with poor soil environments – exacerbated by dry conditions, scarce irrigation sources and old soil – in East Africa the SADC and South America.

Our offerings continue to play a major role in bolstering macadamia production in Mozambique, and in the Kenyan avocado, wheat and soybean markets,” says James Freemantle, managing director at Omnia Specialities Australia.

Omnia International is expanding access to K-humate products for poor soil environments.

OMNIA’S ESG AGENDA

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mnia’s sustainability agenda is deeply integrated in its business strategy.

The business has adopted a holistic approach to safety, environmental, social and governance (ESG), and precision technology. By developing local suppliers through Omnia’s supplier selection processes, setting prerequisites for recycled materials, and through stringent quality standards, the business has reduced its carbon footprint while aligning with its sustainability and environmental agenda.

“We are building resilience with a substantial investment in a renewable energy plant at our Sasolburg factory, which will reduce our reliance on the electricity grid,” says Francois Visagie, Omnia’s head of manufacturing.

“Equally, the effectiveness of our supply chain practices has directly contributed to the reduction of our carbon footprint. In the past year, Omnia switched from single-use plastic liners to recycled plastic. We also diversified our transport utilisation to include rail transport into the SADC region.”

BME, Omnia’s mining division, promotes recycled inputs by applying used oil in its blasting emulsions, thereby sustaining livelihoods through local enterprise development and contributing directly to the ESG agenda.

The business recycles 25 million litres of used customer oil annually, significantly reducing the potential for environmental harm as one litre of used oil can contaminate one million litres of water.

Visagie adds: “We emphasise social development through strategic sourcing and

supplier development initiatives. By remaining close to our supplier base and their supply chains, we can meet our environmental and social commitments. We maintain strict compliance and governance to ensure procurement best practices. These practices derisk the business, increase local sourcing, reduce our environmental footprint – as well as that of our customers – and promote supplier enterprise development.”

Through continuous improvement and alignment with governance and compliance teams, Omnia continues to proactively enhance its ways of working.

ABOUT OMNIA Omnia, established nearly 70 years ago, is based in South Africa and listed on the Johannesburg Stock Exchange.

Operating across 25 countries, Omnia is expanding its presence across SADC, North America, Canada, Brazil and Australasia.

Internationally recognised for innovative research and development, Omnia differentiates itself based on its leading supply chain and manufacturing capabilities, as well as its specialised customer solutions that are accessible to clients in the agriculture, mining, water, consumer care, food and pharmaceutical, coatings and manufacturing sectors.

CFI Best Sustainable Diversified Chemicals Group in Africa

BME’s AXXIS™ Titanium is an advanced electronic blast detonation system..

➔ Scan this QR code to go directly to the Omnia website.

For more information: nutriology@omnia.co.za www.omnia.co.za

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CHEMICA L S

FAST FACT

The closure of South Africa’s largest refinery in March this year will impact the country’s ability to produce mining chemicals. SAPREF processed 24 000 tonnes of crude per day, accounting for 35 per cent of South Africa’s refining capacity.

Source: SAPREF

The mining industry depends on a vast range of chemicals for extracting, processing, refining and even blasting. ANTHONY SHARPE investigates the local industry

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ining employs a host of different chemicals in various categories of processes. Principally, extractive metallurgy relates to the separation of targeted minerals from ore bodies using processes that can be categorised into two distinct groups, hydrometallurgy and pyrometallurgy, says Protea Chemicals MD Michael Smith.

“Hydrometallurgy relates to mineral extraction processes from aqueous solutions, while pyrometallurgy involves high-temperature processes that drive chemical reactions to separate minerals from ores. In addition, the final concentration or finishing of minerals or metals may also involve the use of chemicals depending on the process employed and desired quality of the end product.”

Leon Lubbe of Kimleigh Chemicals, which operates in the hydrometallurgical space, explains that the process is also known as float metallurgy.

“Essentially, the ore is mined, then crushed and put through a series of physical processes, before ending up in a float plant. There it is mixed with water and a suite of chemicals, which could include frothers, activators and depressants.”

Lubbe says the specific chemicals used vary depending on the ore being worked with and the particular process being followed. “For example, cyanide is used in gold mining to liberate the gold from the ore. Platinum uses products such as copper sulphate, which we produce, to beneficiate the ore, increasing its concentration of platinum. During that process, you need to create foam, which is generated by frothers.”

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MARKET BALANCE In terms of the balance of import and export, Lubbe says this varies depending on the process and chemicals. “Some chemicals aren’t manufactured here in South Africa because the capex you have to spend on a chemical plant will quickly exceed the local market uptake. You thus need to find an alternative export market, and then you’re competing with the likes of China and India, which will always try to supply at a lower price.”

As the majority of chemicals used in mining originate partially or entirely from crude oil, the closure of refineries in South Africa is a potentially severely limiting factor in the development of a globally competitive chemical industry, says Smith. “Conversely, it could be argued that these closures provide the catalyst for chemical companies to develop greener, more environmentally friendly chemistries to replace traditional crude oil derivatives.

As global markets place increasing value on environment, social and governance factors, such initiatives will become critical to the sustainability and success of chemical producers in South Africa.”

“South Africa produces two main categories of chemicals, with application in the mining sector influencing sourcing strategies.”

– Michael Smith

VOLUME RANGE South Africa produces two main categories of chemicals, with application in the mining sector influencing sourcing strategies, says Smith. “The first relates to high-volume, low-value commodity chemicals with applications across an extensive range of processes and industries. The second relates to lower-volume, speciality chemicals designed for more specific applications.”

Smith says many products in the first category are successfully and competitively produced, thanks to a combination of world-class manufacturing processes, potential byproducts of other manufacturing processes, and the complexities and risks associated with importing such products into the country.

The speciality chemical category is characterised by the ore-specific requirements that exist on a mine-by-mine basis. “While each ore type is broadly similar, the nature of ores is such that the variations in each necessitate the use of specialist technical support to identify the chemistries and processes most appropriate for extracting the targeted mineral,” explains Smith.

“Such variations can result in potentially completely different processing technologies, chemicals, plants and equipment being required for ores that are initially presumed to be ostensibly similar, with associated varying levels of complexity and cost. As the suite of chemicals is specifically developed for each mine, the volumes of each speciality chemical required are generally low, negatively impacting the viability of local production.”

Smith adds that although there are several manufacturers in the Southern African Development Community, the majority of speciality chemicals and reagents are sourced from international producers globally. “Examples of such imports include extractants, diluents, refining chemicals and smoothing agents.”

IMAGE: ISTOCK.COM/ SUNSHINE SEEDS

MINING CHEMICALS

ME TA L S

STEELING OURSELVES FOR

CHALLENGES AHEAD

Industry hopes that a new master plan will help revitalise the steel sector, writes

IMAGES: SUPPLIED

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teel forms the foundation of any modern economy and is essential to all economic sectors. Without a healthy local steel industry, South Africa will not be able to develop and integrate effectively with the rest of the continent.

In sub-Saharan Africa, South Africa is the only country with a notable steel production capacity, says Lucio Trentini, CEO of the Steel and Engineering Federation of Southern Africa (SEIFSA). Trentini believes that infrastructure challenges present South Lucio Trentini Africa with an opportunity to leverage capacity. “The steel sector urgently needs policies to instil confidence in the sector’s viability to boost confidence and attract both local and international direct investment.”

On 11 June 2021, the Department of Trade, Industry and Competition (dtic) and the labour and the steel industry signed the South African Steel and Metal Fabrication Master Plan 1.0 (SMP), a move that has been welcomed by the industry. The SMP provides a blueprint for the industry to re-energise and address challenges, including, among others, those on the supply side like steel prices, import replacement and the promotion of buy-local campaigns.

“Without greater focus, it will remain captive to high levels of ambition with limited real-world effectiveness,” says Trentini, adding that SEIFSA, the government and industry leaders will unpack progress on the plan implementation in May. Nadia Rawjee, director at Uzenzele, Nadia Rawjee a firm that assists

businesses in accessing capital, believes it will take years for the SMP to materialise.

“The government will need to provide quicker and longer-term support if the industry is to survive for long enough to thrive through the interventions in the SMP.” Through the Industrial Development Corporation, government has established a R1.5-billion downstream development fund allowing businesses in the steel industry to upgrade or invest in new technology, products and processes to enable growth, competitiveness and efficiencies.

Companies specialising in manufacturing steel products have implemented processes aligning themselves to access funding, says Musa Manganye, director of Risiva Office Filling.

“Government policies around the procurement of steel products have been tightened. This is a big win for local manufacturers, Neil Reddy who can now target more government entities as potential customers.”

Neil Reddy, business strategy director at Alfeco Holdings, says it is critical that South Africa implements and aggressively drives its mega-infrastructure plans. “This would support and give impetus to economic growth and further encourage us to invest into the local production base with benefits for all.”

CHALLENGES Lucovico Sanges, MD of Duferco Steel Processing (DSP), says that in 2021, imports of carbon-finished flat-coated/uncoated

FAST FACTS •

•

material increased in 2021 due to a lack of local competitive alternatives following DSP’s exit from the domestic supply market because of the uncompetitive import duties imposed.

Sanges says the security of supply via exemption of duties will allow DSP to regain its uncoated market share from imports, leading to job creation at DSP, while the SMP will have gained another domestic supplier to serve the downstream market on a stable regular basis. “We need more support from the dtic to re-enter the local market, and we believe that Durfeco is the only alternative manufacturer of carbon flat steel finished coated/uncoated products, thus making the company a key player in the domestic manufacturer of Lucovico Sanges these products.”

“GOVERNMENT POLICIES AROUND THE PROCUREMENT OF STEEL PRODUCTS HAVE BEEN TIGHTENED. THIS IS A BIG WIN FOR LOCAL MANUFACTURERS, WHO CAN NOW TARGET MORE GOVERNMENT ENTITIES AS POTENTIAL CUSTOMERS.” – NADIA RAWJEE MANUFAC TURING

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A DV ER T ORI A L BBF S A F E T Y

THE NEED FOR LOCAL DEVELOPMENT IN TOUGH TIMES

B

BF Safety Group (BBF) is an integrated workplace safety solutions provider that helps customers create safe working environments. With more than 120 years in occupational footwear, the company didn’t allow the recent pandemic to stop it from forging ahead with its plans to introduce and expand its range of head-to-toe Personal Protective Equipment (PPE).

The start of one of our country’s greatest economic and health challenges occurred in March 2020 when the global pandemic hit our shores and the country went into lockdown. BBF, as an essential supplier of various PPE, was in a fortunate position to

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BBF Safety Group recognised the need for a strong local manufacturing sector to support the South African economy, which was the driving force behind ongoing innovation through the lockdown period. continue running certain operations, albeit at reduced levels.

As business started to get back to some form of productivity, BBF took a conscious decision to drive forward with its range developments and, within the two years since that first lockdown was announced, the company has managed to consistently launch new products and enter new categories.

PUTTING OUR BEST FOOT FORWARD In the safety footwear portfolio, Bova brought the Trax 2.0 range to the market. This range is an update on the original range launched a decade ago in development with an expert podiatrist to ensure optimal comfort and fit in a tough safety footwear offering. The updated range introduced a new sole unit that maintains the best aspects of the previous Trax range, but provides

BBF S A F E T Y A DV ER T ORI A L

improved flexibility and durability at critical flex points, a reduction in the average weight to save the wearer exerting additional energy, increased slip resistance, and improved natural foot action for better circulation. Bova also took the opportunity to bring in more contemporary styling along with the superior comfort and ergonomic features.

Lemaitre Safety Footwear launched five brandnew styles with a further five redesigned for more modern appeal. These launches introduced technical features such as sealed seams, climatecontrol comfort footbeds and penetrationresistant insoles to provide S3-rated safety on a number of the new styles. New options in a polyurethane (PU)/rubber sole also introduced a tougher, more durable sole unit into the Lemaitre range with higher heat resistance than the traditional dual density PU/PU sole units.

FILTERING FACE PIECES The FFP2- and N95-rated face masks received a lot of press during the pandemic, with several unscrupulous deals dominating headlines.

At that stage, the locally manufactured Nikki FFP2 face masks had been servicing the South African industry for more than a decade, and BBF was able to increase production and supply without exorbitant price hikes, despite a genuine shortage of raw materials. BBF also expanded the Nikki range to include a duckbill and a flat-fold variant. Along with these all being FFP2-rated (the officially recognised standard in South Africa), BBF is licensed by the South African Health Product Regulatory Authority as a manufacturer of these masks for use in a clinical environment.

with significant investment in further localisation up the supply chain.

LOCAL INNOVATION KEY TO THE ECONOMY

WORKING AT HEIGHTS Bova safety wear successfully launched its locally designed and manufactured harnesses, lanyards and accessories into the Working at Heights category in 2019. Throughout the lockdown period, the innovation team worked on new ranges to simplify the selection of harnesses and related equipment based on functionality; staying true to the Bova ethos of engineering fit-for-purpose PPE solutions.

In September 2020, Bova released its new harnesses: the Excavo, designed with all the functionalities for underground mining requirements; the Agilis, a multipurpose and rescue harness suitable for various environments; and the Gordian, a rope access and advanced rescue harness.

Complemented by lanyards and other

equipment, these ranges introduced a number of well-considered design configurations to ensure multifunctional benefits within their designated environments.

Despite the uncertain times, BBF recognised that for both their own sustainability and the recovery of the South African economy, local manufacturers need to innovate and grow. With the State of Disaster recently ended, now more than ever, the country needs a strong local manufacturing sector and industries actively looking to support them.

Find out more about BBF workplace safety solutions by visiting www.bbfsafety.com.

THERMAL PROTECTION With ongoing developments into specialised thermal protection ranges, the Bova brand was able to launch its new range of PPE for protection against the hazards of an arc flash in early 2021. Bova Arc brought to the market a range that provides essential inherent flame-resistant protection in a lightweight, comfortable and breathable workwear solution.

This fully certified range is locally manufactured

THROUGHOUT THE LOCKDOWN PERIOD, THE INNOVATION TEAM worked ON NEW RANGES TO SIMPLIFY THE SELECTION OF HARNESSES AND RELATED EQUIPMENT BASED ON FUNCTIONALITY.

➔ Scan this QR code to go directly to the BBF Safety website.

For more information: +27 31 710 0400 info@bbfsafety.com www.bbfsafety.com

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SAFETY

SAFE AND HEALTHY WORKPLACES The COVID-19 pandemic has brought with it a greater focus on safety, health, environment and quality compliance, writes WILLIE COETZEE of BBF SHEQ Services

F

acing a truly unprecedented situation, with the global coronavirus pandemic affecting our families, businesses, communities and way of life, there were always going to be immediate and long-term changes to the way we do things. The immediate changes we picked up were directly COVID related, with businesses requiring compliance training and guidance, as well as installing physical barriers in various areas to mitigate the risk.

This definitely also raised awareness and interest in other areas of safety, health, environment and quality (SHEQ) compliance, and conversations with SHEQ practitioners became more active. The massive shift to digital engagements was also a major development, with training moving online as far as possible.

FOLLOWING THE LIFTING OF THE DISASTER MANAGEMENT ACT, SOME WORKPLACE REGULATIONS HAVE EASED, BUT THEY ARE MORE STRINGENT THAN BEFORE COVID-19, WHILE SOME OF THOSE PHYSICAL BARRIERS AND PRACTICES AROUND SEPARATING SHIFTS ARE STILL IN PLACE. 22

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FAST FACT

According to the World Health Organization, almost 2 million people a year die from work-related causes, with noncommunicable diseases accounting for 81 per cent of these fatalities.

Moving forward in this new, more aware regime, a practical way to manage SHEQ compliance is from the bottom upwards. This means that each worker must take ownership to adapt to the new health and safety culture.

The pandemic had a direct influence on workers’ attitudes at BBF Safety Group.

Management showed a sincere interest in helping all employees to cope with COVID-19, and modelled the behaviour they wished to see in the workplace during these unprecedented times.

THE IMPACT OF COVID-19 REGULATIONS The COVID-19 regulations certainly tested the corporate values of the manufacturing

IMAGES: ISTOCK.COM/ BLUE PLANET STUDIO, ISTOCK.COM/ BLUE PLANET STUDIO

SAFETY

industry, which was forced to demonstrate it was truly committed to ensuring that safety is a priority in the workplace. Risk assessments had to be reviewed, an important step in protecting employees and the organisation as well as complying with the law.

Following the lifting of the Disaster Management Act, some workplace regulations have eased, but they are more stringent than before COVID-19, while some of those physical barriers and practices around separating shifts are still in place. Mask wearing, hand sanitising, and more responsible behaviour around coughing/sneezing/illness have largely been ingrained as opposed to regulated.

In terms of long-term impact, the understanding and interpretation of what was already in the Occupational Health and Safety Act and regulations has shifted since the outbreak. COVID-19 regulations now have to be implemented together with the act and regulations, specifically Section 8: General Duties of Employers to their Employees and Sec 14: General Duties of Employees at work.

These duties are now interpreted to extend to the adherence to and implementation of COVID-19 regulations.

WHERE IS SOUTH AFRICA IN TERMS OF BEST PRACTICE? We were initially lauded for our speed in reacting to the outbreak and enforcing regulations. It’s difficult to comment on South Africa in comparison with the rest of the world because our circumstances are unique. We are also dealing with high unemployment and a lack of healthcare services per capita compared to many other countries.

COMPANIES ARE LOOKING TO RECOVER FROM THE ECONOMIC FALLOUT OF THE PANDEMIC, SO THEY RECOGNISE THE NEED TO MAINTAIN PRACTICES THAT HELP PREVENT FURTHER OUTBREAKS AND ABSENTEEISM. South African companies have definitely adopted regulations and still take them quite seriously. This is because the risk of needing to stop work, either because of a failure to comply or because of an outbreak in a manufacturing area, is just too high. Companies are looking to recover from the economic fallout of the pandemic, so they recognise the need to maintain practices that help prevent further outbreaks and absenteeism.

Many businesses have also insisted on workers being vaccinated, and have been active in pushing this agenda with on-site vaccinations and constant communication.

Companies that understand the fundamental requirements and correct application of the Occupational Health and Safety Act regulations should have a health and safety management programme in place, which is designed to have preventative processes to minimise the occurrence of incidents in the workplace.

ENFORCEMENT AND CONSEQUENCES Government has shown good intentions because the wellbeing of our country can have a major influence on the value of human capital. Employees in the manufacturing sector have been exposed to elements that are difficult and sometimes impossible to eliminate.

The Department of Employment and Labour does regular inspections at companies to see if they adhere to the requirements as stated in

TRAINING PROVIDES INFORMATION AND EQUIPS PEOPLE WITH CRUCIAL KNOWLEDGE TO PERFORM THEIR WORK SAFELY, AND TO CREATE A HEALTHY AND SAFE WORK ENVIRONMENT. IT ALSO CREATES A CULTURE THAT IMPROVES THE QUALITY OF WORK LIFE.

the COVID-19 regulations, but they cannot reach everyone. Companies and individuals have also taken it upon themselves to ensure they have regulations in place. As mentioned previously, the consequences of noncompliance can range from fines to work stoppages for a period, but the consequences of an outbreak among factory staff are even higher, with ongoing stoppages and absenteeism.

TRAINING FOR SAFER WORK Employers have an ethical obligation to provide health and safety training for all employees. Learning also motivates them to position themselves in the company as employees who want to excel in the department or division in which they work.

Training provides information and equips people with crucial knowledge to perform their work safely, and to create a healthy and safe work environment. It also creates a culture that improves the quality of work life.

The first step towards establishing a safety-first culture is to gain commitment from top management, with middle management then responsible for enforcing policies.

Courses such as Occupational Health and Safety Act Legal Compliance; First Aid Levels 1, 2 and 3; Hazard Identification and Risk Assessment; and Health and Safety Representatives, to mention a few, will assist in managing any company’s health and safety programme. Having employees qualified in such areas heightens the awareness of health and safety practices, and ensures a company can proactively deal with and mitigate against a number of potential scenarios.

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MOTORING AHEAD Despite challenging conditions, the outlook for the local automotive sector remains positive, writes MIKEL MABASA, CEO of the National Association of Automobile Manufacturers of South Africa

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FOREIGN DIRECT INVESTMENT CRITICAL TO GROWTH The automotive sector remains one of the most visible sectors receiving foreign investments, with the seven OEMs (original equipment manufacturers) investing R8.8-billion in 2021, the second-highest annual figure on record, while the component sector also invested a record R5.7-billion last year. The automotive industry takes a long-term view of matters, and although adverse events such as last year’s riots are not good for the image of the industry as reliable suppliers of quality products to world markets, the disruptions in the country have not had a significant negative impact on major investment decisions to date.

EMPLOYMENT GROWTH Average monthly employment in the vehicle manufacturing sector of the industry increased from 29 926 in 2020 to 30 697 in 2021. In the component sector, it increased from 76 800 in 2020 to

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Mikel Mabasa

of African economies. The AfCFTA will provide new export opportunities for “Made in Africa” products and enable member countries to trade with each other without tariffs or other hindrances. If successfully implemented, it will create a single African market for more than 1.3 billion people with a total gross domestic product of R48-trillion, making it the largest free trade zone in the world since the inception of the World Trade Organization in 1994.

An automotive pact, situated within the framework of the AfCFTA, which aims to expand the African new vehicle market from one million to potentially five million units while connecting African regions for the common good, is being pursued at present.

The goal is to establish a sub-Saharan African automotive development plan or automotive pact built around South Africa, Nigeria, Kenya, Ghana, Egypt and potentially one or two other large economies.

CONTINUING GOVERNMENT SUPPORT NEEDED

BUILDING RESILIENCE AGAINST THE MANY CAUSES OF BUSINESS INTERRUPTION IS INCREASINGLY BECOMING A COMPETITIVE ADVANTAGE FOR COMPANIES. 78 874 in 2021. The automotive supply chain has a huge multiplier effect upstream and downstream as the retail motor industry side, representing dealerships and repair shops, among others, employs around 360 000 people.

IMPACT OF THE AFRICAN CONTINENTAL FREE TRADE AREA The African continent remains a priority focus for the South African automotive industry, representing its second-largest export region in 2021. The African Continental Free Trade Area (AfCFTA) is an important step zin rationalising African regional trade, deepening economic integration, and creating economies of scale and regional value chains to accelerate the industrialisation

The e-mobility landscape is currently taking centre stage in the global automotive environment. The demand for new energy vehicles (NEVs) is being driven largely by government incentives and the imperative to combat climate change in regions like the EU (the domestic automotive industry’s top export region), which aims to become a zero-carbon economy, as well as technological changes and increased consumer demand for greener products.

These developments mean that vehicle manufacturers have little choice but to launch NEV product offensives. To maintain and further grow its automotive manufacturing ambitions, the local industry will have to adapt to the current rapid technological shift, thus the transition to NEVs will be a focal point in 2022. What is needed to effect this transition is a supportive regulatory framework in the form of incentives to address the price differential between NEVs and internal combustion engine vehicles, additional incentives to manufacture NEVs and associated components, and the roll-out of public charging stations across the country.

IMAGE: SUPPLIED

n 2021, COVID-19 continued to impede personal mobility needs, while supply chain disruptions slowed down the post-pandemic recovery of the global new vehicle market. The intensifying global semiconductor shortage continued to limit vehicle production worldwide, resulting in global production loss of around seven million units. The production of certain model lines has also been affected in South Africa, along with insufficient stock or delays of some models.

This year, the domestic automotive industry is expected to continue a stop-start recovery in view of prevailing COVID-19-related supply chain disruptions, insufficient stock, and escalating energy and transportation cost increases. Building resilience against the many causes of business interruption is increasingly becoming a competitive advantage for companies. Automotive manufacturers are investing in tools and working with data to understand risks better, build inventories, buffers and redundancies in supply chains, and create better business continuity and contingency plans.

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A DV ER T ORI A L OL D MU T UA L

IMPROVING YOUR EMPLOYEES’ INCOME IN RETIREMENT South Africans are not saving enough for retirement, but there are ways employers could help to boost their employees pension. MARK VAN DIJK explains how

O

ne of the most hard-hitting moments of the 2022 Old Mutual SuperFund Summit was a short video clip of Old Mutual Corporate’s Social Experiment.

Eight typical South African families were each asked to fill a trolley with their monthly grocery shop. They didn’t know that the price of the groceries had been inflated to reflect what they would cost when they retired. When each family arrived at the till their budget had

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been revised to their projected income at retirement. They had to decide what to keep and what to return to the shelves.

Seeing this play out on film brought home just how unprepared most South Africans are for their retirement and how unaware they are of how that will affect their standard of living.

“The statistics that get mentioned – that only six per cent of us can retire comfortably – can be quite abstract,” says Malusi Ndlovu,

director: Large Enterprise Market at Old Mutual Corporate. “When you bring it down to the level of a real family of a working professional, 10 or 20 years from retirement, looking at a basket of groceries that they cannot afford … that’s when the message really lands.”

THE ROLE PLAYERS DETERMINING A RETIREMENT FUND’S PERFORMANCE Several parties are involved in everyone’s retirement journey. “There’s the individual or employee who is contributing to their retirement fund, the employer who has some decision rights around how much

OL D MU T UA L A DV ER T ORI A L

is contributed, and the provider of the retirement fund, for instance, Old Mutual Corporate,” Ndlovu explains.

“Our job as a provider of the retirement fund is to ensure people can replace their incomes when they are ready to retire or no longer able to work. It’s not enough for us to design solutions that can achieve that in theory. We must play an active role in helping people to understand and use the products that will allow them to get the right retirement outcomes.”

Employers play an equally vital role when it comes to maximising their employees’ retirement income. Here Ndlovu points to the six levers pivotal to achieving successful retirement outcomes: 1. Contributions 2. The gap between the pensionable salary and cost to company 3. The investment strategy 4. Preservation 5. What an individual does with their savings at retirement 6. Their retirement age.

In addition to the three role players, the managing committee or trustees also have a part to play in maximising the investment outcomes of a retirement fund.

This checklist for retirement fund trustees is a handy reminder of what they can do to further boost members’ income in retirement.

”EMPLOYERS MUST MAKE THE EFFORT TO MAKE MORE CONTRIBUTION CATEGORIES AVAILABLE. MEMBERS CAN GET A TAX DEDUCTION ON UP TO 27 PER CENT OR A RAND CAP, AND EVERY EMPLOYER SHOULD LOOK AT THEIR RETIREMENT FUNDING STRUCTURE TO ALLOW MEMBERS THE FLEXIBILITY TO TAKE ADVANTAGE OF THIS.” – MALUSI NDLOVU The next step is educating staff about the different options to help them understand what is available and how their choices could significantly affect their retirement outcome.

For example, if you were to retire at 65, Old Mutual’s actuaries recommend having at least 9 times your annual salary invested if you’re a man, and 10 times that amount if you’re a woman.

This means that a man earning R100 000 per annum will need R900 000 on the day they retire, and a woman R1-million.

Once fund members understand this, they can make the right choices and ask their employer the right questions and, if necessary, ask for changes if the options they need are not available.

For retirement funds and employers alike, empowering and enabling fund members is the first step toward improving South

HOW EMPLOYERS COULD HELP Employers can help by offering employees greater flexibility. “In the past, most employers would choose a default contribution category to which every employee contributed. That meant that everyone contributed the same percentage of their salary each month,” Ndlovu explains. “But that’s not enough.

“Employers must make the effort to make more contribution categories available.

Members can get a tax deduction on up to 27 per cent or a rand cap, and every employer should look at their retirement funding structure to allow members the flexibility to take advantage of this. If someone wants and is able to make that salary sacrifice and contribute more towards their retirement, then they should be allowed to do so.”

Malusi Ndlovu

Africans’ quality of life in retirement.

“Remember those three role players,” Ndlovu concludes. “There’s the fund, the employee and the employer. Through their decisions each can make the situation better or worse, but ultimately it’s the employee who has to live with the outcome.”

This article originally appeared on the Old Mutual Corporate Resource Hub. Visit: oldmutual.co.za/mindspace

OLD MUTUAL SUPERFUND Old Mutual SuperFund is Old Mutual’s flagship umbrella fund solution, created specifically to meet the diverse employee benefit needs of all types of employers and employees in one holistic solution.

At the same time, it offers the one thing that every employer and employee wants when designing the financial future they desire – more choice to meet their needs.

The key product offering of the Old Mutual SuperFund is a selection of retirement fund, risk benefit, preservation and annuity options to suit all businesses and their employees.

More about the Old Mutual Corporate Social Experiment

Old Mutual Life Assurance Company (SA) Limited is a licensed FSP and Life Insurer.

➔ Scan this QR code to go directly to the Old Mutual website.

For more information: thenextbeginning@oldmutual.com www.oldmutual.co.za/superfundpower.

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F OOD A ND BE V ER AGE

SUPPORTING SUPPLIERS TO

SCALE UP PRODUCTION PepsiCo’s Kgodiso Development Fund – a R600-million investment in the food and beverage manufacturing sector – aims to increase local procurement and build supplier diversity, writes TREVOR CRIGHTON

ROLLING BENEFITS Although the fund operates independently of PepsiCo, its core focus areas – agriculture development, training and education, SMME incubation and technological support – support the company’s needs. That’s not to say that their huge financial commitment, to be rolled out over five years, won’t have long-term positive effects on food security and much-needed SMME development that will have a much wider impact.

“The fund prioritises crops that are procured by PepsiCo, as this provides a closed ecosystem approach to development, wherein the fund can support emerging farmers via funding as well as providing technical support – but then PepsiCo can also provide market access to that farmer,” says Tilo. “Market access is one of the largest barriers to entry for emerging farmers. They mostly lack market linkages to sustainable procurement opportunities in large agro-processors. Through this fund, we are addressing this challenge by creating avenues that allow these farmers to sell their produce to us and other corporate partners.”

Tilo says that other industry and value chain spin-offs include improved innovation and technical knowledge and skill among emerging farmers. The SMME focus of the fund is on outbound logistic companies, distributors and township retailers/ supermarkets – all of which play an important role in the value chain.

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Diale Tilo

STRATEGIC FOCUS The fund’s budget is split into three sections.

R300-million goes to agricultural development to assist emerging farmers to upscale their capabilities and ensure they are given opportunities to integrate into the value chain.

R200-million supports education, enabling initiatives that provide appropriate training and upskilling, enhancing the skills pipeline for PepsiCo SSA or other corporates. The final R100-million, allocated to SMMEs, will provide incubation and technological support to those small businesses that can provide their goods or services to PepsiCo or other corporates with whom the company partners.

“The allocated amounts do not indicate our priorities, but investing in projects and people within agriculture and the broader food value chain are key focus areas for the fund,” says Tilo.

The agricultural pillar aims to support farmers who have been in production to scale up their production and become commercially sustainable. “This includes supporting farmers

with investments in areas where traditional lenders have limited or no appetite, for example, establishment costs for long-term crops, infrastructure to optimise production, mechanisation and so forth,” says Tilo.

“However, sustainability headwinds will always play a role, and this is where the technical support that becomes available to beneficiaries of the fund also aims to help boost agricultural processes and systems to assist in the fight against soil degradation, water scarcity, and urban encroachment”.

Tilo says that the biggest challenges to PepsiCo’s production are the inconsistent application of import duties and forex volatility – fluctuating costs, which require highly technical financial management. “If we can boost local production of certain crops, it can greatly reduce the number of imports. Not to mention that if local emerging farmers can increase their production yields, and become consistent suppliers to the various processors, then the farmers, the sector and the country all emerge as winners,” he says.

FAST FACT

South African companies spent R10.3-billion on CSI projects in 2020. Although that amount is down 7 per cent from 2019 – largely due to the economic knock-on effects of COVID-19 lockdowns – support for food security and agriculture increased to 10 per cent from 7 per cent and disaster relief increased to 9 per cent from 4 per cent year-on-year.

Source: Trialogue 2021 Business in Society Handbook

“MARKET ACCESS IS ONE OF THE LARGEST BARRIERS TO ENTRY FOR EMERGING FARMERS. THEY MOSTLY LACK MARKET LINKAGES TO SUSTAINABLE PROCUREMENT OPPORTUNITIES IN LARGE AGRO-PROCESSORS.” – DIALE TILO

IMAGES: SUPPLIED

K

godiso Development Fund’s executive director Diale Tilo says PepsiCo is committed to supporting the broad socioeconomic imperatives of employment, talent development, and benefitting local suppliers through additional investments in programmes to promote opportunity and growth in South Africa. “The fund is operated independently of PepsiCo to allow it to work across public and private sectors, to deliver on its commitments and deploy the range of resources at its disposal.”

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A DV ER T ORI A L S OU T H A F RICA N OIL & GA S

THE ROLE OF NATURAL GAS IN SOUTH AFRICA’S JUST ENERGY TRANSITION The South African Oil & Gas Alliance, the Onshore Petroleum Association of South Africa and other gas industry stakeholders believe that natural gas can play a significant role in Africa’s just energy transition to net-zero carbon emissions

T

SADC gas map: supply, infrastructure and demand summary June 2022.

he South African Oil & Gas Alliance (SAOGA), the Onshore Petroleum Association of South Africa (ONPASA) and other gas industry stakeholders support the goal of net-zero emissions of carbon dioxide (CO2), methane (CH4) and other greenhouse gases (GHG) in the atmosphere by 2050.

We are of the view that gas can and must play a significant role in South Africa’s and Africa’s just energy transition to achieve net-zero carbon emissions, as well as net-zero unemployment, poverty and inequality, by 2050 or sooner.

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We believe that natural gas (gas) can contribute to: 1. Environmental sustainability 1.1. Gas to power generation, filling the daily and seasonal intermittency gap of solar and wind power generation, thereby supporting the further use of renewable energy (RE) in line with the energy mixes of industrialised countries, such as the United Kingdom and Spain, as well as the recent renewed uptake of gas in Germany, Italy and elsewhere in the European Union to provide a reliable, yet lower emitting,

energy mix; noting that only approximately 20 per cent of South Africa’s total RE capacity is available at the evening peak, and that gas to power can be turned off whenever RE is able to adequately meet electricity demand.

1.2. Reducing GHG emissions where gas can replace dirtier fossil fuels; noting that gas’s own emissions can be further optimised by including proven gas leak detection, sealing and other abatement solutions as acknowledged by the United Nations in its most recent IPCC report.

Furthermore, as noted in the International Energy Agency’s Africa Energy Outlook 2022

S OU T H A F RICA N OIL & GA S A DV ER T ORI A L

report (IEA June 2022), even if Africa utilised all of its known gas resources, it would only contribute four per cent to global GHGs, which would remain the lowest per capita carbon footprint of all the continents.

1.3. Noting that almost all RE technologies, including photovoltaic solar, wind and battery energy storage, are made in China, which itself generates 62 per cent of its electricity from coal.

2. Greater value for money, as defined in section 217 of the SA Constitution, because of: 2.1. Its relative affordability when one compares gas to power to the combined costs of RE and energy storage that is needed to deliver the same amount of energy (MWh) on a 24/7/365 basis, and as a cleaner substitute for the additional dirtier fossil fuels required for load-following power generation to ensure that variable RE output does not destabilise the electricity grid at times of no wind, no sunshine or extreme demand.

2.2. Its contribution to socioeconomic development to address poverty, unemployment and inequality among South Africans, especially black people, women, youth, people living with disabilities and military veterans, through participation as owners, managers, employees, suppliers and beneficiaries of skills development and enterprise development programmes, as well as the potential assembly and manufacturing of local content, and community development across the gas industry comprising: • upstream gas projects, including exploration and production drilling campaigns and environmental management.

• midstream gas projects, including the construction, operations and maintenance of port, pipeline, road and rail infrastructure for gas transport and environmental management; noting that liquefied natural gas (LNG) could be imported either using a ship specifically designed for the floating storage and regasification of LNG (FSRU) in the ports of Richards Bay, Coega or Saldanha, or Matola in Mozambique, or any other port in South Africa with a container terminal or truck reloading facility for containerised LNG. • downstream gas projects, such as gas to power (using internal combustion engines and gas turbines); gas to industry (for example, for boilers and burners); gas to commerce (for example, backup generators); gas to transport (in other words, using gas for new vehicles or converting existing petrol and diesel vehicles to use cheaper and cleaner gas); gas to liquids (in other words, converting gas to cleaner liquid fuels, fertilisers and other petrochemicals at the existing Sasol and PetroSA refineries); and gas to residential (for example, for cleaner cooking and heating).

2.3. Reducing the cost of importing refined liquid fuels (including petrol, diesel and liquid petroleum gas, commonly known as LPG); noting that LNG import regional gas (for example, from Mozambique or, in due course, Namibia) and locally produced gas (for example in the Free State, Mpumalanga and other gas fields under development close to Eskom coal power plants), as depicted in the map, are cheaper and environmentally cleaner than most refined liquid fuels that are presently imported due to the closing of almost all SA’s oil refineries.

3. Energy security by: 3.1. Generating electricity from gas to power only as and when required (peaking), early morning to late evening (mid-merit) or all the time (baseload) to arrest load shedding, as soon as possible, especially since: • Eskom uses dirtier, less efficient and more expensive diesel for its gas to power fleet, which operates as peaking and mid-merit power plants.

• By 2035, Eskom plans to decommission 22 000MW of its aged coal power plants that provide baseload power; noting that Eskom’s overall fleet operates at only 61 per cent of its full capacity, (in other words Energy Availability Factor) (Eskom 2022), which is the major cause of load shedding.

• Solar, wind and battery energy storage are at risk of global raw material and equipment supply shortages, which has rapidly resulted in price increases – evidenced by the fact that most preferred bidders in the most recent government tenders for renewable energy and emergency power are no longer able to keep to the prices they had tendered.

3.2. Noting that 68 per cent of all energy consumed in South Africa is for non-electrical uses (for example, transport, industrial and commercial use) (IEA 2019).

THE GAS INDUSTRY IS READY SAOGA, ONPASA and the other gas industry stakeholders, representing the upstream, midstream and downstream parts of the gas value chain in South Africa, are confident that the gas industry in Southern Africa is ready, willing and able to make its contribution to a just energy transition, including all 17 of the United Nations Sustainable Development Goals, as summarised by the harmonisation of the 5Ps of Planet, People, Prosperity, Peace and Partnership.

SAOGA, ONPASA and the other gas industry stakeholders are encouraged by government’s initiatives to solve the present energy and electricity crises and are available to participate in any and all consultative fora on behalf of its members and broader stakeholders.

➔ Scan this QR code to go directly to the SAOGA website.

➔ Scan this QR code to go directly to the ONPASA website.

For more information: https://www.saoga.org.za/ https://onpasa.co.za/

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A DV ER T ORI A L S out hern A frican Energy Efficiency Confederation

SAEEC 17 CONFERENCE TH

The Southern African Energy Efficiency Confederation (SAEEC) – the local recognised chapter of the Association of Energy Engineers® (AEE) – 2022 conference will be held in Johannesburg from 28 to 30 September 2022. This is to be the 17th annual Conference. Our Conference theme this year: ENERGY EFFICIENCY, Building the Nation to a Cleaner, Brighter and SelfSustaining Future.”

S

outh Africa is in the process of rebuilding after the damage sustained as a result of riots and the coronavirus pandemic, while the threat of climate change continues to loom large. The focus of this year’s conference is the way we rebuild. The right way to do this is through energy efficiency (EE). EE projects are sustainable, stimulate an economy and offer cost savings. This conference aims to guide individuals and companies alike through conversations that can accelerate the rebuilding of our nation by embracing energy efficiency.

In an ever-changing world, energy consumers at all levels need to be self-sufficient to insulate themselves against the uncertainties around them.

All energy sources are included with a focus on the benefits!

BENEFITS OF JOINING OUR CONFERENCE The SAEEC Conference runs from 28 to 30 September 2022 and we are offering two pre-conference training sessions from 26 to 27 September 2022: The SAEEC 2022 Conference is a complete package of knowledge-sharing and business development ideas, the benefits include: 1. Topics of great relevance relating to energy and water efficiency and climate change in South Africa.

2. Government speaker who can provide insight into government policy developments towards energy and water efficiency and a just transition.

3. World-class speakers, who are energy and water efficiency specialists, discussing topical issues.

4. Finance specialists to address your questions and give you answers about financial packages available for funding energy projects.

5. The importance of measurement and verification.

6. Information on carbon tax – mitigation and adaptation.

7. Opportunities to network and develop your business at an in-person event.

The Divisions and Interest Groups of the Southern African Energy Efficiency Confederation.

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S OU T HERN A F RICA N ENERGY EF F ICIENCY CONF EDER AT ION A DV ER T ORI A L

8. Opportunity to attend the two pre-conference sessions and educate yourself further.

9. Earn two AEE renewal credits if you attend the three-day event.

10. Earn two CPD credits for attending the three-day event.

11. Have your technical paper published in the GO2Energy Digital Connect Technical Journal.

12. Have an exhibition stand to attract and promote business for your company.

WHO SHOULD attend the conference • • • • • • • • • • • • • • • • • • • • • •

Building owners and managers Energy engineers and managers Water engineers Emissions managers Certified energy managers Certified building commissioning professionals Facility managers Accountants and CFOs in the energy industry Business energy professionals Plant engineers and managers Industrial/commercial/institutional purchasing agents Government facility managers and engineers Corporate directors Energy project developers Energy service professionals Utility professionals Energy procurement professionals Electrical and mechanical engineers Facility and maintenance engineers Electrical/mechanical contractors Commercial/industrial developers Architects, designers and consultants.

CALL FOR SPEAKER’S ABSTRACT All submissions are welcomed and will be peer-reviewed. Technical papers might be published in our bi-annual GO2Energy Digital Connect Technical Journal. Our Conference Tracks include, but are not limited to, the below.

• Measurement and verification; • All about carbon; • Sustainable generation; • Energy nexus links; • Energy efficiency in industry and Industry 4.0; • Energy management and resources; and • Energy efficiency in buildings and lighting.

CALL FOR SPONSORSHIP OR PARTICIPATION The Southern African Energy Efficiency Confederation board cordially invites you to consider participating in the forthcoming 2022 SAEEC Conference to be held from 28 to 30 September 2022 in Johannesburg.

The 2022 SAEEC offers numerous opportunities to enhance your prominence and visibility to decision-makers in the industry with business-to-business meeting opportunities for delegates.

Sponsorship opportunities include track branding, breakaway session branding, programme branding and event marketing exposure, speaker slots, website exposure, training sponsorship and advertising space in the GO2Energy Digital Connect platform.

Conference participation includes: • Delegate/attendee; • Conference co-host; • Track sponsorship; • Exhibitor; • Pre-conference training sponsorship; and • Gift sponsorship.

CONFERENCE ENDORSEMENTS • • • •

South African Institute of Electrical Engineers (SAIEE); The Institute of Energy Professionals Africa (IEPA; Energy & Water Sector Education Training Authority (EWSETA); Energy Services Companies Association of South Africa (EASA);

• • • •

South African Females in Energy Efficiency (SAFEE); Association of Energy Engineers (AEE) South African National Energy; Development Institute (SANEDI); and Illumination Engineering Society of South Africa (IESSA).

➔ Scan this QR code to go directly to the saeeconfed website.

For more information: General conference enquiries: Motlatjo Ramaloko: +27 82 3426 955 events@saeeconfed.org.za Exhibition, sponsorship and speakers: Helen Couvaras: +27 73 198 2626 go2energy@saeeconfed.org.za , membership@saeeconfed.org.za Pre-conference training/workshops: Thieda Ferreira: +27 84 011 5500 training@saeeconfed.org.za, secgen@saeeconfed.org.za

ABOUT SAEEC We are local… We are global…

We are AEE Southern Africa industrial, commercial, institutional, government and utilities.

The Southern African Energy Efficiency Confederation (SAEEC) is the local recognised chapter of the Association of Energy Engineers® (AEE) and the first chapter established in Africa in 2002, now celebrating 20 years in the industry.

SAEEC and its divisions support all global and local efforts aimed at focusing on and increasing the energy efficiency transition towards a low-carbon and green economy and sustainable energy for all. We do this by participating in the following initiatives that support energy efficiency and carbon emission reduction: • Advocating and supporting government energy efficiency and carbon emission reduction imperatives, policies, strategies, standards and regulations.

• Providing access to and a platform for developing government policies, strategies, standards and regulations.

• providing a platform for knowledge-sharing between stakeholders.

• Promoting the meaningful participation and advancement of women and youth in energy management through SAFEE and SAYES. • Partnerships with relevant and reputable skills development and training providers, and through our divisions and interest groups.

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PL A S T IC S S A A DV ER T ORI A L

THE PLASTICS INDUSTRY IS TACKLING PLASTIC WASTE The South African plastics industry is taking steps to mitigate the negative impact of plastic waste on the environment and society. This is evidenced in the degree of plastic waste recycling undertaken in the country and the initiatives geared towards keeping water-catchment areas free of plastic litter

Hanekom. “They play a vital role in addressing society’s largest challenges, including improving medical outcomes, access to fresh and healthy foods, hygiene and sanitation, modern communication, transportation systems, infrastructure, and employment.

For example, using plastics in vehicles and building insulation, reduces energy use and greenhouse gas emissions. These benefits are jeopardised if plastic waste pollutes our environment,” he explains.

CLEANING UP PLASTICS’ IMAGE

P

lastics are affordable, practical and versatile; a material with which other materials cannot compete when it comes to its myriad uses and applications.

South Africa has seen a notable increase in the consumption of plastic packaging products.

The per capita consumption of plastic products is about 24kg per South African citizen and 29kg per person when adding recycled content, according to Plastics SA. Even though the last 10 years has seen a 35 per cent increase in the use of recycled content in plastic products, the plastics industry is convinced that more can be done and achieved if the country’s broken waste collection and recycling system is fixed.

“Thirty-four per cent of households throughout South Africa still do not have access to formal waste collection. Waste that could have been collected and recycled is either sent to landfills or ends up in the environment. The majority (64 per cent) of recyclables still come from landfill and other post-consumer sources where it becomes dirty and contaminated. Recyclers have to

Mindful of the impact on the environment and communities, the plastics industry is working hard to improve its reputation and reduce the amount of plastic waste that ends up in the oceans and on beaches.

“Research has shown that 80 per cent of litter on beaches and in the oceans consists of land-based waste.

“We have launched a number of initiatives geared at keeping our country’s riverinvest in expensive wash plants to clean the catchment areas clean of plastic waste. We material collected,” explains Anton Hanekom, work in close partnership with all relevant executive director of Plastics SA. stakeholders, including various levels “We can have the best products specifically of government, producer responsibility redesigned to be 100 per cent recyclable, but organisations and educators to focus on unless they are separated at household level improving waste management and recycling and moved to a central place for sorting and recycling, they will continue to end up in a landfill and offering ongoing education, training and awareness in communities around the country,” or the environment.”

Hanekom says.

One example is the Inkwazi Isu (Fish Eagle) UNDERSTANDING PLASTICS’ ROLE IN A project, launched along the KwaZulu-Natal LOW-CARBON FUTURE South Coast after flash floods washed up As the umbrella body representing all sectors tonnes of plastic litter onto beaches. of the South African plastics industry, including Later this year, Plastics SA will once again be polymer producers and importers, converters, co-ordinating its annual Clean-Up & Recycle machine suppliers, fabricators and recyclers, SA Week (12–17 September), which culminates Plastics SA plays an active role in encouraging in River Clean-up Day (14 September), National the growth and development of this priority sector. It is currently in the process of developing Recycling Day (16 September) and the World Clean-Up Day/International Coastal Clean-Up a clear understanding of the local plastics industry with regards to circularity, its application Day (17 September). in the real world and the role that plastics play in a low-carbon future.

“Plastics are essential for achieving a low-carbon future and meeting Sustainability Development Goals,” says

PLASTICS IN CAR MANUFACTURING Because it takes less energy to accelerate a lighter object than a heavier one, lightweight materials, such as plastic, offer great potential for increasing vehicle efficiency. A 10 per cent reduction in vehicle weight can result in a six to eight per cent improvement in fuel economy.

➔ Scan this QR code to go directly to the Plastic SA website.

For more information: www.plasticsinfo.co.za www.cleanupandrecycle.co.za

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A DV ER T ORI A L S A PPI

MAKING MORE OF WHAT THE WORLD NEEDS Dissolving pulp, used in textile manufacture, is in high demand globally.

In response, Sappi has expanded its mill to increase annual production.

By ZELDA SCHWALBACH, External Communications Lead, Sappi

W

ith the worldwide demand for dissolving pulp (DP) – used in textiles, particularly viscose and lyocell fibres – on the rise, the recent expansion at the Sappi Saiccor Mill in KwaZulu-Natal has come at a good time.

By using a renewable resource such as woodfibre to manufacture a versatile and

necessary product such as dissolving pulp, the company believes that it is achieving its purpose to help build a thriving world. By transforming the future with innovative, bio-based, and renewable materials, we are able to harness the power of the circular economy as we strive to minimise our negative impacts and increase our positive impact on people

We are embracing new thinking and emerging technologies so that every solution we create through our value streams supports our goal of making our products and processes more sustainable.

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and the planet, while securing sustainable profit margins.

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 cool on the skin. It is luxurious and soft to the touch and also drapes very well. Besides textiles, Verve is used in myriad other applications – from nonwoven applications for wipes and healthcare products, cellulose films for packaging, cellulose sponges and cloths for homecare to microcrystalline cellulose for pharmaceutical and food applications.

S A PPI A DV ER T ORI A L

INNOVATIVE TECHNOLOGY AND SUSTAINABLE DEVELOPMENT The R7.7-billion expansion and environmental improvement programme at the Saiccor Mill does not only meet the growing demand for DP, but is also a critical element of the company’s quest to achieve its ambitious 2025 sustainability targets, where it has globally committed to an 18 per cent reduction in greenhouse gas emissions.

The expansion will halve carbon dioxide emissions, reduce sulphur dioxide emissions by 35 per cent, improve water use efficiency by 17 per cent and reduce waste to landfill by a massive 48 per cent.

Each of these improvements will contribute significantly to the company’s support of the United Nations’ Sustainable Development Goals (SDGs) – in particular our commitment to SDG7: Affordable and Clean Energy and SDG13: Climate Action.

All of these improvements will be realised as well as increasing the mill’s production capacity by 110 000 tonnes, taking it from 780 000 tonnes to 890 000 tonnes per annum.

The expansion will also create permanent employment opportunities and save the company at least R300-million annually through improved and more efficient processes. While these are excellent benefits for the company,

INTERESTING FACTS ABOUT THE CONSTRUCTION PHASE • The biggest crane on site was a 600-ton crane.

• 110km of cabling was installed.

• 56km of piping was installed.

• About 30 000 tonnes – more than 2 000 trucks of concrete – were used.

• About half the amount of steel that went into building the Eiffel Tower in Paris went into the construction.

the economy of the KwaZulu-Natal province also receives a welcome boost, with an additional R1-billion annually in direct benefit.

The expansion and upgrades include: • A new evaporator; • Recovery boiler; • Screening and washing plant upgrades to the bleach plant and pulp machines; • Improved recovery circuits; and • Additional magnesium digesters.

The environmental improvements will be achieved by employing Best Available Technology (BAT) and by focusing on enhancing machine efficiencies, digitising our processes to make the smart factory a reality, reducing variable costs through new

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.

practices in logistics and procurement, as well as implementing go-to-market strategies, which lower the cost of serving our customers and increase customer satisfaction.

We are embracing new thinking and emerging technologies so that every solution we create through our value streams supports our goal of making our products and processes more sustainable.

The conversion of the calcium cooking line to the more sustainable magnesium bisulphite technology reduces the need for coal-based power generation at the mill, significantly reducing the carbon footprint. It will also facilitate considerable variable cost savings.

Additional new technology that has been implemented relates to improved washing technology to optimise water and energy efficiency, optimised cooking technology for improved pulp quality control, the application of robotics to facilitate debottlenecking and shop-floor digitisation for improved commissioning, control and operational efficiency.

➔ Scan this QR code to go directly to the Sappi website.

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

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CELEBRATING

PUBLISHED IN SEPTEMBER 2022 To advertise in the upcoming issue of celebrating women, please contact: Tarin-Lee Watts Business Development and Project Manager 087 379 7119 | 079 504 7729 www.businessmediamags.co.za wattst@picasso.co.za

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