PEoPLE CULtUrE trAVEL ProPErtY BUSINESS WINE SPort ENtErtAINMENt
ISSUE 14 r40.00
Bevcan EXCLUSIVE
Nampak invests $160m in Angola South African Oil and Gas Alliance
Major oil firms turn their attentions to Africa
Davis & Shirtliff
Better access to water and electricity is driving growth
Umfolozi Sugar Mill
South Africa’s sugar output fell 12.4 percent in 2010/11
Big Easy on Course
Pressure on Els to produce an improved course for the BMW PGA Championship
Towards a safer world
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ELECTION FEVER GRIPS SA We’ve been gripped by election fever this month. Thankfully they’ve run smoothly, and people have turned out to vote. The full results aren’t in yet – sadly we go to press before we’ll get them – but at 7am this morning (May 19, 2011) the ANC had gained more than 60 percent of the 10.9 million local government election votes counted. The process of electing local leaders and mayors takes place every five years, and we’ve been watching this years’ local government elections closely. Service delivery protests have broken out across SA over the past couple of years and many municipalities are broke - while budgets have been misappropriated leading to a breakdown in infrastructure. Can we expect change? I think we certainly can. Away from the local elections, this month we have everything you have come to expect from this market-leading magazine. Our cover story is Nampak’s Bevcan. On page 74 you can learn more about Nampak’s $160 million investment in a new canning plant in Angola and how it has ensured that Bevcan’s customers will be more efficiently serviced. Moving to sport, after his design changes to Wentworth were slammed last year, the pressure is on Ernie Els – aka the Big Easy - to produce an improved course for the BMW PGA Championship this month. You can read more about that on page 10. We hope you enjoy these features and everything else in the magazine. Ian Armitage Editor
EDITORIAL
Editor – Ian Armitage Acting editor – Susan Miller Editorial assistant - Inger Smith Sub editors – Jahn Vannisselroy Janine Kelso tom Sturrock Alison Grinter Writers – Colin Chinery Jane Bordenave John o’Hanlon
BUSINESS
Advertising Sales Manager – Andy Ellis Research manager – Andrew Williams Researchers – Jon Jaffrey Elle Watson Chris Bolderstone Dave Hodgson Nicholas Davies Sales executive – rahim Ali Sales administrators – Abby Nightingale Katherine Ellis
ACCOUNTS
Financial controller - Nick Crampton
PRODUCTION & DESIGN
Magazine design – optic Juice Production manager - Jon Cooke Images: Getty News: NZPA, AAP, SAPA
DIGITAL & IT
Head of digital marketing & development – Syed Ahmad
TNT PUBLISHING
CEO - Kevin Ellis Chairman - Ken Hurst Publisher - tNt Publishing Ltd South Africa Magazine, the royal, Bank Plain, Norwich, Norfolk, UK. Nr2 4SF tNt Publishing Limited, 10 Greycoat Place, London, SW1P 1SB tntmagazine.com
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REGULARS
06 10
NEWS
All the latest news from South Africa.
SPORT Big Easy on Course?
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After his design changes to Wentworth were slammed last year, the pressure is on Ernie Els to produce an improved course for the BMW PGA Championship this month.
FOOD & DRINK South Africa’s Finest Food
The Good Food & Wine Show is a showcase for South African produce and culinary skill: anybody who wants to find out what is special about South African food and wine needs to be in Cape Town at the end of May.
FEATURES
Contents
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UMFOLOZI SUGAR MILL SAOGA PANNAR SEED ROYMEC TECHNOLOGIES DAVIS & SHIRTLIFF BURLINGTON DATAPRINT GALDERMA INTERCARE SA
Cover
NAMPAK BEVCAN NWK BEPERK
DELTA MINING CONSOLIDATED IWMSA
Focus
WASTE PLAN
DUCHESS CLOTHING CROSSROADS DISTRIBUTION INSPECTORATE SA SILVERTON ENGINEERING FASA
Focus
SIMPLY ASIA NESTEK ARMCO
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All the latest news from South Africa Business
Sasol leaves rates picks SA Reserve Bank
unchanged new CEO The SA Reserve Bank has left the repo rate unchanged at 5.5 percent. The prime rate will stay at nine percent. This was in line with market expectations and kept the rate at its lowest level in over 30 years. It was the bank’s third consecutive meeting at which it had left the rate unchanged, after it was reduced by 650 basis points between mid-2008 and December 2010. SA Reserve Bank Governor Gill Marcus warned the inflation outlook had deteriorated, and this could see the repo rate temporarily breach the upper target band in the first quarter of 2012. “Inflation is now expected to reach the upper limit of the inflation target range during the final quarter of 2011, and to peak at 6.3 percent in the first quarter of 2012 before returning to within the target range by the second quarter of 2012 and remaining close to the upper limit of the range for the rest of that year,” she said. Marcus added that inflation was expected to average 5.1 percent in 2011 and six percent in 2012. The governor said South Africa’s economic growth was lower than its emerging market peers. The SA Reserve Bank forecast domestic economic growth of 3.6 percent for 2011. Economic growth for 2012 was forecast at 3.9 percent.
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Sasol has confirmed that David Constable will serve as the group’s new chief executive from July 1 when the current head of the company steps down. Constable last served as group president of operations at Fluor Corporation. Sasol said in a release that he has had “global exposure to a range of industrial sectors including mining, power, gas, oil and chemicals” and that his “successful track record in capital project development and execution positions him well to guide Sasol’s significant capital expenditure programme.” Sasol’s search for a new boss started in June 2010, as they looked for a successor to Pat Davies. Davies, who has reached retirement age, will step down at the end of June.
Crime Business
sees 12-year sentence Barclays for Sheryl Cwele ‘growth potential’ Sheryl Cwele, the wife of South African State Security Minister Siyabonga Cwele, has been sentenced to 12 years for drug dealing by the Pietermaritzburg High Court. Her Nigerian co-accused Frank Nabolisa received the same sentence. Judge Piet Koen described their offence as very serious, saying that “many lives” were destroyed by drugs. “Many families are affected by drugs which are brought here illegally. They suffer as a result of dealers who often initiate addiction by constant supply and thrive on that addiction,” he said. The judge said he had considered the fact that the two were first offenders and that they had good prospects of being rehabilitated. The minimum sentence suitable for the offence they committed was 15 years, the court heard. Cwele plans to appeal her conviction.
Mining
Mine fatalities
higher than 2010 South Africa’s mining fatality rate is among the worst in the world. Eight more miners died on the job in the first few months of this year than last year. However, injuries at mines dramatically decreased in the same period, trade union Solidarity says. “We had 39 fatalities between January and April last year and this has risen to 47 fatalities so far this
year... according to provisional data from the department of mining,” spokesman Paul Mardon told Sapa. Half the deaths occurred in gold mines and a quarter in platinum mines. Most of the deaths happened in the North West, Gauteng and Free State. There have been fatalities at Anglo Platinum, AngloGold Ashanti, Harmony, Lonmin and Gold Fields since the beginning of the year.
in Africa
About four years after moving its Africa headquarters to Dubai, the Middle East’s business hub, Barclays is relocating its regional office back to South Africa. The move will involve about 120 support staff and will be complete by year’s end, said a Barclays spokesman. Perry Jones said the move will better position the bank to exploit potential for growth in Africa. Barclays operates in 10 African countries and owns a majority stake in the Absa Group, a South African banking and financial services business. Jones said Barclays is “excited about the growth potential for us in Africa.” The UK banking giant currently runs mainly back office functions for its Africa operations out of its Dubai base. The Africa unit has been based in Dubai since 2007, and before that was previously in South Africa. www.southafricamag.com
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Lifestyle
APARTHEID VICTIMS TO GET TRC PAYOUTS Government will pay out millions of rands to compensate victims of apartheid era atrocities, the Sunday Times reported. Those who qualify for financial assistance include victims and their children, even if they were born in or out of wedlock or were adopted. People with parental responsibilities over victims and their children will also be eligible for compensation. The regulations have come about from the work of a joint committee, established to consider the recommendations of the Truth and Reconciliation Commission (TRC), on reparation for victims. The committee’s
PSL title a
three-horse race
decisions were approved by parliament and now have to be implemented by President Jacob Zuma, the report said. The Justice and Constitutional Affairs Department, has gazetted proposed regulations, paving the way for assistance to victims and their children, at the start of their schooling careers to the completion of their tertiary studies. The gazette indicates that compensation to victims must be paid from the President’s Fund, established to provide reparations to those who suffered gross human rights violations during apartheid. The TRC is said to have collected statements from about 21,000 people.
Sport
The PSL title race became a three-horse race after Kaizer Chiefs thumped leaders Ajax Cape Town 4-0 in their penultimate fixture. The result leaves Ajax, second-placed Orlando Pirates and third-placed Chiefs in the title race. In the final round of games, to be played on May 21, Ajax host Maritzburg United at Cape Town Stadium, Pirates are at home to Golden Arrows at Orlando Stadium and Chiefs tackle AmaZulu at Durban’s Moses Mabhida. Ajax sit top on 59 points. Orlando have 57. Chiefs sit on 56 points.
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Mining
ArcelorMittal
SA reports Q1
turnaround
South Africa’s largest steel producer ArcelorMittal South Africa reported attributable earnings of R184 million for the first quarter of 2011, a turnaround from the R496 million loss reported for the fourth quarter of 2010. The company announced a 14 percent quarter-on-quarter increase in revenue on the back of improved domestic sales and six percent higher average realised prices. Domestic sales volumes rose by 36 percent driven primarily by restocking activities. ArcelorMittal South Africa CEO, Nonkululeko NyembeziHeita, said: “There are positive indications that the South African economy is on a recovery path with a few steel consuming sectors posting real growth, although the construction sector remained sluggish. With South Africa on the verge of another round of its infrastructure investment cycle led by the power station build programme, transport and water systems, we are cautiously optimistic about the months ahead.”
Property
Sexwale unveils new
rental housing project
Human Settlements Minister Tokyo Sexwale has unveiled 341 units of the Morgan’s Village III affordable housing project in Mitchells Plain, Cape Town. The project - a partnership between the national human settlements department, its Western Cape counterpart, the National Housing Finance Corporation (NHFC) and the Cape Town Community Housing Company (CTCHC) - provides affordable rental units to people earning between R1500 and R3500. “Our priority is to ensure that we provide not only decent, but affordable rental units within the city centre in line with our mandate to ensure that people stay nearer to places of work, clinics and schools,” Sexwale said. He added the government was increasing the pace of providing affordable rental units within the city centres across the country, in line with its programme “to do things differently and faster”. The Morgan’s Village project – when complete – will consists of 682 mixed development units.
Politics
Zuma plot “real”
says Masetlha
ANC national executive committee member Billy Masetlha has become the first senior ruling party member to openly say the alleged plot to oust Jacob Zuma as ANC president next year is real. “I know who they are talking to and how they want to do this. I am not going to keep quiet and watch people destroying the organisation,” he told the Mail&Guardian. A reported covert intelligence document claims that a group of “anti-Zuma” members, called the “Mvela Group”, met in Estcourt on January 23 to allegedly plot the removal of Zuma. They allegedly include Justice Minister Jeff Radebe, KwaZuluNatal premier Zweli Mkhize, ANC Youth League president Julius Malema, ANC treasurer-general Mathews Phosa, ANC NEC member and former ANCYL president Fikile Mbalula, Limpopo premier Cassel Mathale, ANC Gauteng chairman Paul Mashatile, ANC deputy secretary general Thandi Modise, and NEC members David Mabuza, Enoch Gondongwana and Tony Yengeni.
NEWSINBRIEF Lifestyle: A company has placed a job advertisement for a “young” and “attractive” female secretary on South Africa recruitment website Job Space. The position pays between R28,000 and R36,000 a month. “An International businessman seeks to employ an attractive young vibrant lady between the age of 18 and 36,” the advert reads. “Experience is not vital, what matters is your looks, and your ability to hold a conversation.” Sport: Former South African pace bowler, Allan Donald, missed out on an opportunity to coach the Australian team, but has expressed his desire for a position within the Protea’s coaching staff. “I’ve not had contact with anybody from Cricket SA (CSA),” Donald said. “But they’re appointing a new head coach soon, and he will need support staff. So who knows?” Money: Capitec has announced plans to open 84 branches on a Sunday. The move is part of a wider plan that could see the bulk of its 460 branches also open throughout the weekend. Absa is currently the only bank among the big four that opens on a Sunday. www.southafricamag.com
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On course? BIG EASY
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Ernie Els sport
After his design changes to Wentworth were slammed last year, the pressure is on Ernie Els to produce an improved course for the BMW PGA Championship this month. by Pierre de Villiers
A
bout 12 months ago Ernie Els cut a very disconsolate figure. His demeanour had nothing to do with his form but rather the news that his efforts to redesign the West Course at Wentworth – one of the greatest golf venues in the world – did not go down too well with fellow pros. After Els had a hand in making alternations to 17 of the 18 holes in an expensive revamp at the club, the likes of Lee Westwood and Paul Casey voiced their disapproval, the latter going so far as to say that, in future, traditional courses had to be protected like historic buildings. Clearly stung by the criticism, Els fired back: “If they had criticisms they could’ve handled it differently. That’s the sad part, a lot of the guys I’ve known for a long time came out and basically put the knife in and I don’t appreciate that.” A lesser player may have been left deflated by the row but, since the controversy, The Big Easy has rolled up his sleeves and joined designers at Wentworth to improve the West Course and ensure that this year’s BMW PGA Championship is enjoyed by players and fans. Top of Els’ to do list over the last few months has been the Par 5 18th hole which, under the original renovation, underwent the biggest facelift - a brook now cutting across the fairway in front of a new smaller, more undulating green. Complaints from some pros that the 18th has lost its drama since players don’t try and reach the green in two anymore, has clearly not fallen of deaf ears. The 18th green has been lowered by 50cm and made over 25 percent bigger, increasing the size of the target and creating more areas in which it is realistically possible to place the pin.
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I believe that in excess of 50 percent of players will take the new green on in two at the BMW PGA Championship
“I believe that in excess of 50 percent of players will take the new green on in two at the BMW PGA Championship,” says Els. “To get this absolutely as we all wanted has required two bites at the cherry, but I think I speak for everyone in saying this ultimately is the best solution for this iconic finishing hole.” Els and his design team have also spent some time improving the 8th hole. The spine that runs through the centre of the green has been softened while the slope of the green towards the water has been made less steep and the greenside bunker a little shallower.
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Such is the attention to detail when it comes to the new course that the designers spent months getting the perfect sand for the bunkers – a compromise between a sand’s ability to drain and offer the right level of porosity with the need to provide a firm playing surface. “That’s the Holy Grail,” says Chris Kennedy, Wentworth’s courses manager. “We’re testing sand for porosity both in the lab and here on the golf course. Also, we’re carrying out hydraulic tests for ball compression to help reduce the likelihood of plugged lies. It’s
Ernie Els SPort
SA women’s golf is going through a purple patch with several young players making their mark.
Lee-Anne Pace qualified for the Ladies European tour in 2008 and really made a breakthrough in 2010 with five wins – including at the Deutsche Bank Ladies Swiss open and the Suzhou taihu Ladies open – ending the season at the top of the order of Merit. Ashleigh Simon was the youngest player to win the ladies’ South African Amateur Stroke Play. She turned professional the day after her eighteenth birthday and won the 2007 Catalonia Ladies Masters, her third event as a professional. She became the youngest ever professional winner on the Ladies European tour. Kim Williams won five South African Provincial stroke play tournaments and also represented South Africa at the Spirit in texas and at the Mexican Women’s Amateur Championship and Pairs where she was runner-up in the individual event. all about getting the right mix of sands, the finished cocktail if you like, and that’s what we’re striving for. We’re working extremely hard and we’re confident we’ll find the best possible solution.”
GARY’S CONTRIBuTION Ernie Els is not the only South African to try his hand at designing a course at Wentworth. In 1990 Gary Player, along with John Jacobs and Bernard Gallacher won the competition to build the Edinburgh course with a design that preserved as
many trees and retained as many natural features as possible in an area that was originally the Great Wood. They managed to create a golf course that capable of testing the game’s best players, but at the same time playable to the handicap golfer. Ten Senior Masters has taken place at the Edinburgh course, the first won by Gary Player himself. END
For more information on the Wentworth Club call +44 1344 842201 or visit wentworthclub.com
www.southafricamag.com 13
food SOUTH AFRICA’S FINEST
The Good Food & Wine Show is a showcase for South African produce and culinary skill: anybody who wants to find out what is special about South African food and wine needs to be in Cape Town at the end of May. By John O’Hanlon
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H
eston Blumenthal has roots in southern Africa and is a regular visitor, so it is something of a surprise to learn that the controversial British chef and restaurateur has never made a public appearance here. That is about to change in Cape Town on May 26 and 29, when he will be live at The Good Food & Wine Show taking place at the CTICC. There’s expected to be a huge demand for tickets from food lovers from all over the Cape anxious to see Blumenthal in action and maybe get a signed copy of one of his books. The show has been bringing the world’s most inspiring chefs to Cape Town for 13 years now, and is now getting almost as well established in Gauteng and Durban, where it launched 12 years ago. However the season kicks off at the Cape Town International Convention Centre. Cape Town could be described as South Africa’s most cosmopolitan
The Good Food & Wine Show FooD & DrINK
You could spend a month in the wine regions and just scratch the surface of the density and quality of the wines produced” Heston Blumenthal
city, though each location has its own unique focus and regional flavours. As Blumenthal said recently: “The restaurants have a huge abundance of outstanding produce to choose from, often inspired by the multicultural population. In the Cape, there are cuisines influenced by countries ranging from Portugal to Malaysia, represented in dishes such as Bobotie and Waterblommetjie. There is a culinary explosion in South Africa at the moment with an amazing new energy. It is testament to the perseverance of South Africa’s chefs – 20 years ago you couldn’t even import basics such as gelatine. They have so much passion and drive and now South Africa is a great location for a culinary holiday.” These passionate South African Chefs will be standing alongside the international superstars at the show and keen to promote local specialities, says Christine Cashmore,
Director of The Good Food & Wine Show. “A number of our Cape Town chefs are sourcing local producers to grow what they want.” Micro herbs are an example – vegetable seedlings raised in a growing medium and picked between six and 21 days old. Or a pig farmer may agree to rear his pork more humanely, a chicken producer to move to free range and organic feed. “The chefs are finding small producers to do that. We are producing Mozzarella from our own water buffalo in the Western Cape now. And Cape Town and the Western Cape are driving all this revolution in food. At the moment the talk of the town is sustainability and eating fresh produce!” Christine’s passion for food, and for the theme of Wellbeing that dominates this year’s events comes through powerfully. “When we started we were the very first interactive food show in South Africa. Since then The Good Food & Wine Show has grown to a standard www.southafricamag.com 15
and level of credibility equal to any in the world.” That is why top chefs are happy to come. The live cooking demonstrations and hands-on cooking workshops mean visitors can rub shoulders with culinary kings and queens like James Martin, Celia Brooks Brown, Masterchef Australia contestant Jonathan Daddia and the man who ‘reinvented Indian cuisine’ Atul Kochhar. “They all know one another of course, and once they come here and experience the atmosphere and the buzz of the show they spread the word back home about it. They know what they are coming to when they come to the Good Food & Wine show in South Africa. They will meet the right target market and audience: they know the publicity will be good and everything will work well!” People are increasingly concerned about what they are eating, Christine believes. The market is reflecting this not only in the way food is produced and prepared but also in the supply chain. There is an awareness of ‘food miles’ and the advantage of local sourcing. Above all, though, it has to do with personal choice. “ People realise that what they eat reflects on how you look, how they feel, and indeed on their whole personality and spirit. That is we are going to be launching a Wellbeing area in Cape Town for the first time. The chefs we have brought in are all going to 16
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be demonstrating quick and easy meals because that is what people want. People are reverting to more wholesome food, using fresh ingredients and letting the taste of the produce come through.” An innovation at this year’s show is a Show Guide that contains many of the recipes presented in the various theatres – it is like a recipe book which families can take home and then reproduce the meals they have seen prepared by professionals, hopefully using ingredients they can get locally. Another theme is vegetarian food. “People want to cook more vegetarian food at home or to be able to find more enticing dishes when they go out to eat. But many people just don’t know how to cook with vegetables and there are far too many restaurants where a vegetarian meal is just a plate of vegetables!” This is not how it should be, she says. You don’t have to be a vegetarian to enjoy vegetarian food: Celia Brooks Brown will be demonstrating simple recipes in the Wellbeing Theatre, and performances by CBeebies’ Katy Ashworth teach children the values of healthy eating in a format that’s fun for the whole family. “Katy introduces children to the vegetables their parents can’t get them to eat, and she does it though singing and dancing!” says Christine.
The Good Food & Wine Show FooD & DrINK
We sponsor bursaries for people who want to pursue a trade in the food industry but haven’t the means to put themselves though college Christine Cashmore
Though the bulk of visitors are individuals and families, this is a commercial show. It is a place where exhibitors can launch their new products, test them on willing consumers, and talk to distributors and stockists about developing the market. There is an entire morning devoted to commercial visitors, she says. Another important link is with the culinary schools which demonstrate their skills and projects on the trade morning. “As a company we sponsor bursaries for people who want to pursue a trade in the food industry but haven’t the means to put themselves though college.” The Good Food & Wine Show additionally hosts the annual Table of Peace & Unity, which raises money for children’s charities. Four days seems hardly enough for all that is going on at the show. There are workshops as well as demonstrations, where the public can cook along with the chefs. Different sections cater for outdoor cooking; desserts; chocolate; and cocktails, which are incredibly
trendy at the moment. Finally, don’t forget those wines. “I love South African wines,” says Heston Blumenthal. “From the great Burgundian chardonnays like Hamilton Russell to the new breed of boutique wine makers who have taken the original South African grape Chenin Blanc to a new height. You could spend a month in the wine regions and just scratch the surface of the density and quality of the wines produced. What’s more, the setting is one of the most beautiful in the world!”
Entrance tickets to the show (R85) and bookings for the Samsungs Chefs in Action Theatre and Wine Tastings can be bought through Computicket, while bookings for the Hand’s On Workshops, which are expected to sell out, must be made through kate@gourmetsa.com or 021 702 2280. END
www.southafricamag.com 17
marvel tHE MILLING
Umfolozi Sugar Mill is owned by a group of four investors comprising a large cane growing company, the largest cane grower in northern KwaZulu-Natal, an unlisted public company whose shareholders grow sugar cane and a large alcohol producing company. By Ian Armitage
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Umfolozi Sugar Mill FEAtUrE
T
he milling sector of South Africa’s sugar milling and refining industry employs upwards of 7,000 people in 14 sugar mills and at the companies’ administration offices, which more often than not are in KwaZulu-Natal or Mpumalanga. Illovo Sugar Ltd and Tongaat Hulett Sugar Ltd own four mills each while Tsb Sugar RSA Ltd owns three mills. Gledhow Sugar Company (pty) Ltd, UCL Company Ltd and Umfolozi Sugar Mill (pty) Ltd own one mill each. Two of the mills owned by Tsb Sugar RSA Ltd are located in the Mpumalanga province, while the remainder of the mills are located in the KwaZulu-Natal province. South Africa’s sugar output fell 12.4 percent in 2010/11 to 1.909 million tonnes. “It is a competitive industry and diversity is the key factor in today’s highly integrated sugar milling operations,” says Dr Adrian Wynne, Umfolozi Sugar Mill (pty) Ltd’s CEO. As the former industrial affairs director at the South African Canegrowers Association (SACGA), there are few that know more about this industry than Dr Wynne. It was his knowledge of the industry which first brought him to the attention of those at Umfolozi – a mill owned by a group of four investors comprising a large cane growing company, the largest cane grower in northern KwaZulu-Natal, an unlisted public company whose shareholders grow sugar cane and a large alcohol producing company. “Until 2009, Umfolozi Mill was part of Illovo,” Dr Wynne explains. “After protracted negotiations with certain other interested groups a consortium consisting of UCOSP Ltd, UVS, Charl Senekal and NCP Alcohols was formed, and on 1st April 2009 the Mill formerly changed hands again, becoming what is now the Umfolozi Sugar Mill (Pty) Ltd. There are effectively two shareholders - GrowerCo holding 75 percent, comprising UCOSP Ltd, UVS, Charl Senekal, and the other 25 percent being held by NCP Alcohols.” www.southafricamag.com 19
Umfolozi Sugar Mill FEAtUrE
The Umfolozi Sugar Mill (Pty) Ltd, affectionately called USM, at the start of its first season (2009/10) employed approximately 240 staff with an expected crush of approximately 1,200,000 tons of cane in a 36 week milling season to produce approximately 140,000 tons of sugar. “How am I finding the challenge of CEO? Enjoyable,” Dr Wynne, who is driving growth within the business, continues. “It was a steep learning curve initially, but it is a great challenge and a very exciting place to be; there are lots of new, projects on the horizon and it is a great place to be. We are starting off from the most basic business model you can imagine and so it is just growth and development and opportunity, which is wonderful; very exciting.” Building on the work of Tony Charlton, Dr Wynne was quick to praise his predecessor. “He provided a tremendous stabilising influence on the business – he has lots of experience, is mature and a very assertive individual. “He oversaw the transition into the new entity.” The former loss leader – which Umfolozi undoubtedly was – has turned a corner and is going from strength to strength. And the firm has a “number advantages” over other players, as Dr Wynne continues. 20
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Bagging Station
Trams going through the tipper
Understanding
the Mining Business
SYSPRO in partnership with www.syspro.com Contact Lorenzo Borelli Telephone: (011) 461 1000 or 0861syspro
Š 2011 SYSPRO. All Rights Reserved. All trademarks are recognized.
Umfolozi Sugar Mill FEAtUrE
“The South African sugar industry is one of the most cost competitive producers of high-quality sugar in the world,” he says. “Obviously we are governed by the Sugar Act. The Act provides for an Agreement to regulate the affairs of the sugar industry, including those who grow sugarcane and produce sugar and associated sugar products. But, because we are owned by growers, we feel we are at an advantage and are faced with somewhat-less red tape. “Also the Act is amended from time to time in response to changing circumstances in the industry and we think a change is coming that will be favourable to us. “Thirdly, there has been a global shortage of sugar and USM CEO Dr Adrian Wynne
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prices have reached record highs. Locally, because of drought, there has been a shortage of sugar in South Africa. Our intention was to bag sugar and sell it to the local market. From that perspective, the conditions, we couldn’t have asked for a better opportunity to get into local sugar sales. That has been very exciting and we have probably got a bit ahead of expectations.” Another exciting opportunity lies in generating electricity. Umfolozi Sugar Mill already generates power from cane residue, which it burns to generate power. “This is a very exciting area. There have been a lot of policy changes at a national government level that is facilitating the possibility of the power we generate being sold into the national grid and we look forward to participating in the renewable energy sector,” Dr Wynne says. “We produce electricity already but it is for our own consumption. The intention is to increase capacity and export the surplus to the national grid.” Opportunity also lies in ethanol production. South African company AGZAM announced plans to invest $251 million in a new sugar and ethanol facility earlier this year; the mill that is set to come online in 2013 should produce 28 million litres of ethanol per year in
Understanding the Mining Business A major copper mine near Kitwe in Zambia is a recent (November 2010) example of iPlan’s methodical approach towards designing, implementing, managing and supporting business solutions which follow industry best practices while simultaneously addressing the unique requirements and opportunities of each situation. The Assignment The mine is considering replacing ineffective current business systems with SYSPRO, an ERP system. It accepted an iPlan proposal to build a Proof-of-Concept model in two weeks to assist with the decision-making process. Map the Supply Chain iPlan’s first step was to map the high-level supply chain, establish the inventory hold points and roughly establish which business processes would need to be investigated. Classify the Business Processes Through interviews with relevant mine personnel at all levels, iPlan established the high-level business process requirements. These were split into fairly standard business processes (such as accounting) and out-of-theordinary or even unique requirements (for example, valuing inventory at ‘potential yield content’).
Configure the System Standard business processes should be based on standard systems and configurations. iPlan built a SYSPRO model for the business processes where the mine personnel felt (and iPlan agreed) that their requirements were fairly standard but could benefit from the best practice systems and data configuration capabilities of a world-class ERP system. Company-specific data were loaded into a database to demonstrate how SYSPRO would work at the mine. Design Business Processes Where business processes were considered unique or a need to redesign current practice was identified, iPlan applied its expertise in balancing the requirements of people, processes and systems to arrive at practical and cost-effective business solutions. Where possible, these new To-Be business processes were also built into the SYSPRO Proofof-Concept model. Teamwork iPlan managed the Proof-of-Concept project and the team, which consisted of iPlan engineers, SYSPRO head office experts, third-party contractors and, while on location, some mine personnel. Most of the team operated at the mine premises in Zambia for the 13 days of the project, with some support provided online from iPlan head office in Pretoria and SYSPRO head office in Johannesburg.
www.syspro.com
SYSPRO in partnership with
Contact Lorenzo Borelli Telephone: (011) 461 1000 or 0861syspro
© 2011 SYSPRO. All Rights Reserved. All trademarks are recognized.
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: (057) 352 1866 : (057) 352 3127 : (057) 352 9451 NO. 4290209735 : (057) 352 8526 : 082 903 1656 : 082 883 8357 STR. 30 BADENHORST : alta@ajatransport.co.za JAN CILLIERS PARK WELKOM 9459
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Company name FEATURE
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www.southafricamag.com
Physical Address: Postal Address:
Telephone: Fax: GPS Coordinates
E-mail: Website:
Umfolozi Sugar Mill FEAtUrE
addition to 200,000 metric tons of sugar. “Ethanol production has lots of possibilities for us,” says Dr Wynne. “This is certainly a longer-term issue, where we would be looking at possibly converting sugar streams into ethanol as a renewable energy source, particularly in the motor sector. I think that is still a long way down the track and it depends on where the oil price ends up. If it stays up at the sort of $150 per barrel levels, unlucky, but that starts making production of ethanol
extremely attractive. The general trend is that it will go up and down, but with an upward trend in the future, which will make ethanol production sustainable and attractive in the long-term. “For ethanol production we would need intensive investment; it is a whole new thing in terms of fermentation tanks and the like. It would need significant investment,” he says. In five years time, Dr Wynne would like to see Umfolozi exporting “a significant amount” of
Panoramic view of USM Factory & Complex 26
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electricity into the national grid and would also like to see the firm selling “the majority of our sugar” into the local market. “Long-term, ethanol production is certainly on the cards,” he concludes. The South African sugar industry makes an important contribution to the national economy, given its agricultural and industrial investments, foreign exchange earnings, its high employment, and its linkages with major suppliers, support industries and customers. END
WESTWEIGH SYSTEMS WestWeigh Systems offers
W
estWeigh Systems was started in 1996 with the aim of becoming a strong competitor in a very specialized field. After a few short years in the weighing and packing industry WestWeigh Systems has made a name for itself. We pride ourselves on our service and dedication to quality. WestWeigh Systems has over 80 years of collective knowledge and experience in the industry, from design to sales and service, and strives to deliver systems that are suited to the client’s requirements in diversified industries and materials. WestWeigh Systems uses state of the art 3D design software to ensure speed and accuracy in design and fabrication. WestWeigh Systems has now branched out to incorporate Automatic Weighing and Packaging lines and robotic Palletizing Solutions with its partners of reputable equipment. Whether it’s raw materials in tonnages or processed food in kilograms, a weighing system regulates the packaging of these materials from bulk into smaller quantities. Frankie de Jesuz, WestWeigh Systems’ general manager, says: “We design and build weighing systems that measure anything from 200g to 2t, offering cost-effective solutions for all budgets.”
“our standard and customised systems are fully assembled and tested in our workshop before we break them down for rigging on site. We work to SABS standards and strive for high accuracy because providing the right equipment for the
design and service excellence right application is crucial. “We have a dedicated basic electronic controller for each of the nett weigh, gross weigh and process weighing systems that we manufacture. Depending on the complexity of the system, this controller is integrated with a PLC system according to the client’s requirements. Control varies from a manual system with buttons for each stage, to a one-touch button system where only the bag is changed manually, while everything before and after is fully automated once the button is pressed,” says De Jesuz. “Servicing and maintaining the equipment regularly is also vital, so we have several service teams in place to assist our customers. We strongly believe that this sets us apart from our competitors.” says De Jesuz.
For more information please contact: tel: +27 11 974 8858 Fax: +27 11 974 8665 Email: info@westweigh.co.za
www.westweigh.co.za
www.southafricamag.com 27
conquer SUPPLY AND
As reserves mature and dwindle, major oil firms have turned their attentions to Africa. this represents a huge opportunity for South African-based companies that supply products and services to the upstream oil and gas sector.. By Ian Armitage 28
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SAOGA FEAtUrE
I
nvestors in the oil and gas sector are a fickle bunch. Last year it was all about the Falklands. Focus then shifted to the North Sea. Now it is all about Africa. Africa is comparatively under-explored; Oil firms have spent the last few decades scouring North America, the Gulf of Mexico, Eastern Europe and the North Sea. Existing reserves have matured and dwindled. The major oil firms have turned their attentions to Africa to refresh their portfolios. This represents a huge opportunity for South Africa and companies that supply products and services to the upstream oil and gas in particular, says Warwick Blyth, executive director of the South African Oil and Gas Alliance (Saoga). He believes South Africa’s West Coast could become a major oil and gas hub for the entire sub-Saharan Africa region. “The offshore area from Saldanha up to the Orange River Basin is an important area for oil and gas exploration and shows great potential for development,” Blyth tells South Africa Magazine. Licences for the West Coast blocks were recently finalised and exploration and development activities are likely to pick up over the next 18 months with www.southafricamag.com 29
SAOGA FEAtUrE
Very visible to residents of Cape town and Saldanha Bay at the moment are a couple of rig projects from Pride/ Ensco and transocean respectively
Forest Oil’s Ibhubesi project potentially leading with a large offshore development, pipeline to shore and a gas plant and power station near Hondeklipbaai, Blyth explains. “I think the biggest opportunity exists in the provision of support, services and equipment to the oil and gas exploration and production activities in the sub-Saharan Africa region,” he says. “The supply industries serving these projects could be very labour intensive; the ship and rigrepair business in particular has great potential to expand and create many jobs.” Saldanha Bay, because of its available land, deepwater port and established engineering community, has the potential to develop significantly as a hub for regional oil and gas activity. 30
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“It could mean that one day South Africa is seen in a similar light as Singapore,” Blyth says. Saldanha could overtake Cape Town as the maritime maintenance and repair hub of the Western Cape, he adds. “The finalisation of licenses for the West Coast blocks means that exploration and development activities are likely to pick up. Very visible to residents of Cape Town and Saldanha Bay at the moment are a couple of rig projects from Pride/ Ensco and Transocean respectively. The Pride project is the first big one on the newly refurbished A-Berth facility. The Transocean one is the first large rig project in Saldanha and promises to establish that port as a second hub for ship/rig repair and maintenance projects going forward. It is important that we continue to drive the development of this sector.” Saoga was formed as an umbrella body for the country’s supply hub and fabrication centres, Blyth continues. “One of our remits is promoting and developing the Western Cape in South Africa. Saoga was set up in 2004 and is a nonprofit organisation. It started due to industrial development work in the provincial government of the Western Cape, which identified an interesting cluster of companies that served the upstream oil and gas market in the region. These firms were providing all sorts of services into that industry, most visibly around our harbour undertaking marine repair, upgrading and maintenance for rigs and various vessels. Clearly it was important for development to be encouraged, so Saoga was formed to do just that.”
Gro-e-Scheme
C R E AT I N G J O B S , G ROW I N G T H E E CO N O M Y
How does the scheme work?
Terms and conditions
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• • • • •
Funding will be made available at prime less 3% to businesses that will create jobs. A minimum of R1 million with a maximum of R1 billion per project will be allowed. The funding is available over five years or until the scheme is exhausted, whichever occurs first. The first draw must be within a year from approval of funding. If not, pricing reverts to normal IDC pricing. Reduced loan pricing will be available for five years, after which normal IDC pricing will apply. Finance required in excess of the scheme’s limit can be accessed through normal IDC funding.
Business support • •
The IDC will also assist businesses with capacity building, where needed. Businesses are encouraged to consider this support, which is partially grant funding.
• •
The funding period will be structured to meet the cash flow needs of the business. Appropriate capital and interest payment holidays will be applied, depending on the financial needs of the business. There is no prescribed minimum for owner contribution. This will be determined by the financial capacity of the entrepreneur and the cash flow profile of the business.
Contact For more information on the scheme, please contact the IDC on 086 069 3888 • •
email: callcentre@idc.co.za website: www.idc.co.za
What sectors does the IDC fund? In line with Government’s New Growth Path and Industrial Policy Action Plan (IPAP2), businesses in the following sectors will be considered for funding: Green industry • Renewable energy • Energy efficiency • Pollution mitigation • Waste management and recycling • Biofuels
©hillibush4470IDC
Manufacturing activities • Advanced manufacturing • Automotives, components, medium and heavy commercial vehicles manufacturing • Clothing textiles, footwear and leather • Forestry, paper & pulp, and furniture • Metals fabrication, capital & transport equipment • Pharmaceuticals • Plastics and chemicals
For further information, please contact: IDC Call Centre: 086 069 3888 Email: callcentre@idc.co.za Website: www.idc.co.za
Agricultural value chain • Agro-processing Mining value chain • Downstream mineral beneficiation • Mining • Mining technologies Tourism and high-level services • Business process services • Tourism Knowledge economy • Healthcare • ICT • Biotechnology
Media and motion pictures • Media pictures production • Media value chain – broadcasting (radio and television) • Media expansion – new media included • Music value chain • Film production and animation
This is an exciting time for Saoga and there is a lot happening upstream. “What’s happening in upstream is very exciting,” says Blyth. “South Africa remains a largely unexplored region in which there have been only modest, mainly gas, discoveries to date. But, current upstream interest is high and we anticipate a significant increase in the amount of upstream activity over the next few years. “It seems as though the industry is waking from its long sleep!” Blyth is right; the industry is waking up. PetroSA’s FO project in Mossel Bay has been approved and a good number of the tender bids are closed or closing. Drilling will start in February 2012 with installation of most of the subsea components in March the following year production should start soon after that. The biggest opportunities though are offshore. “Offshore in the Orange River Basin things are hotting up,” says Blyth. “Forest Oil has said publicly that they are close to concluding commercial power sales agreements that will allow them to proceed with an initial $2.5 billion investment on a gas-to-power project near Island Point in the Northwest Cape. At the same time the clock is ticking on the exploration licenses held by BHP and Forest in the area 32
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the offshore area from Saldanha up to the orange river Basin is an important area for oil and gas exploration
SAOGA FEAtUrE
so it is also likely that rigs will be in the water for exploration drilling in 2012. “Saldanha Bay is becoming increasingly important,” he continues. “There is growing recognition that the natural port and abundant space, not to mention the existing engineering capacity in the area, make it an ideal place for oil and gas activity. I am aware of plans for an oil and gas supply base, an LPG import terminal as well as for long-awaited activity in the dormant fabrication yard. The Provincial government also sees the potential of the area and is pressing ahead with the studies required for an IDZ free zone in Saldanha Bay. No doubt there are a number of other initiatives underway as well that I am not party to. “On the policy front, the upstream oil and gas services sector is being included in the national government’s Industrial Policy Action Plan (IPAP), a huge boost.” There has also been significant interest in onshore unconventional gas resources. Shale gas resources in the Karoo Basin are of huge significance. “Shell is really leading the way,” says Blyth. “This is significant because the power situation in SA is dire. Even with new coal-fired power stations coming on stream in www.southafricamag.com 33
SAOGA FEAtUrE
2013/14 we still face a huge hole. There are definitely opportunities for natural gas. “How does that relate to our members? Well there will be huge opportunity to fabricate and provide a variety of technical services to the industry.” In terms of the African picture, Ghana and Nigeria are obvious oil and gas hotspot. South Africa is already a significant supplier of services and equipment to West Africa, Blyth says. However, he stresses that there is potential for more still. “South Africa’s advanced industrial base and high engineering standards provides a broad base of suppliers and service providers to the upstream industry. South Africa is geographically and politically well positioned to be a base for supplying sub-Saharan 34
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oil and gas projects. Geographically the country is on the southern tip of the African continent and provides easy access to both East and West Africa by sea and air. Politically, South Africa is sound and an active player as well as a leader and partner in the African community.” Blyth has overseen huge transformation in his 18 months at Saoga – at an operational and strategic level. He is determined to make the world aware of what South Africa has to offer. “Over the past few months we have taken a hard look at what we are doing and what we could be doing and have made some significant decisions about where we will spend our energy going forward,” he concludes. END
Process are the Pipe People with the expertise in all aspects of the pipe field. The sales personnel are all knowledgeable, enthusiastic and helpful, with many years of experience in the industry. We have been suppling seamless service to our customers for more than 40 years and are always happy to assist with any problems appertaining to pipes and fittings.. Substantial investments have been made in stocking the correct materials for your various applications.
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● Serving West and East Africa ● Direct deliveries to Cabinda, Malongo, Soyo, Luanda and Lobito
DURBAN 263 Paisley Road, Jacobs 4052, Durban, P.O. Box 72626 Tel: + 27 ( 31 ) 468 - 1211 Fax: + 27 ( 31 ) 468 - 1629 CAPE TOWN 5 Neutron Street, Bellville 7530, Cape P.O. Box 125 Tel: + 27 ( 21 ) 946 - 3275 Fax: + 27 ( 21 ) 949 - 8984
Our centralized email address in RSA: FTW4560
success SEEDS oF
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Pannar Seed (Pty) Ltd FEAtUrE
Pannar Seed, a dynamic agribusiness group, was founded in South Africa over 50 years ago. It has remained a family-owned South African group with seed as its core business. By Ian Armitage
G
reytown-based Pannar Seed was founded in 1958. It is a South African seed business, with commercial operations throughout Africa and the rest of the world. Over the decades, Pannar has exceeded the boundaries of performance. It has its own seed businesses in nine African countries - South Africa, Lesotho, Swaziland, Mozambique, Zimbabwe, Zambia, Malawi, Tanzania and Kenya – and operates in many other African countries through a broad network of agents and distributors. Pannar has fully fledged commercial seed operations in the US and Argentina too, and licenses its maize and sunflower genetics to companies in Europe and further afield. It has extensive research activities - in Africa, Europe, the US and Argentina - aimed at breeding highyielding hybrids and varieties. “It is Pannar’s goal to produce new cultivars that will perform even better, for markets that span the globe,” the company’s website, www.pannar.com, says. “If you ask about the difference between Pannar and any other seed supplier in South Africa, we can give you many different answers,” it continues. “We can talk about our market leader status…. We can tell you that cutting-edge technology and research give us the edge against our competitors…. We can mention our investment in people who work hard to establish our reputation through excellent service. But the greatest difference between Pannar and any other seed producer is a benefit we call ‘Living the Pannar Experience’. Part of the experience is peace of mind,
It is our objective to offer our customers a complete range of products to meet all their requirements
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Pannar Seed (Pty) Ltd FEAtUrE
knowing that all our seed is performance tested and has undergone strict quality controls. The experience is also about adding value to our partnership by providing expert advice and assistance, technological innovations, quality products and unbeatable service. It’s also about adding meaning to our relationship through mutual trust, respect and friendship.” Pannar’s origins are deeply rooted in agriculture. It has come a long way since the early days when it only marketed maize seed. Today Pannar markets a range of seeds including sunflower, soybeans, grain sorghum, forage sorghum, dry beans, wheat and a comprehensive range of pasture seeds. Through sister company Starke Ayres it also supplies vegetable and flower seeds. “It is our objective to offer our customers a complete range of products to meet all their requirements,” the company says. “We operate with honesty, integrity, transparency and professionalism,” it adds. “We encourage creativity, initiative and enthusiasm. We are proud of our independence.” Quality seed production is one of the keys to Pannar’s success. Seed is produced by selected growers and all production activities are closely supervised by Pannar’s production team. 38
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Pannar Seed (Pty) Ltd FEATURE
The company has a proud tradition of fine products and rapid and continuous growth. It is the largest seed group in Africa and a respected role-player in the international market.
PIONEER BID Pannar hit the headlines recently following a bid by US-based Pioneer Hi-Bred, one of the world’s leading agricultural businesses, to acquire the firm. In December, the Competition Commission blocked the deal, explaining: “The commission found that the merger would substantially prevent or lessen competition in the maize seed market in SA.” In Feburary the pair announced their intentions to participate in a Competition
40
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Tribunal public hearing in support of their request for approval of Pannar to sell a majority share of its business to Pioneer. “The public hearing is part of a process that is expected to conclude with a final hearing in September,” a joint company statement reads. “The two businesses have already submitted written representations as to why the transaction should be approved.” Pannar and Pioneer have requested the Competition Tribunal to review the December 2010 decision of the Competition Commission to prohibit the transaction. In their filing with the Tribunal, the seed businesses say that there are convincing grounds for the Competition Tribunal to approve the partnership.
GEOTAB (PTY) LTD GEotAB (Pty) Ltd was established in 1998 with their Head office based in Midrand, Johannesburg. Corporate offices are located in Johannesburg, Cape town and Durban, with accredited fitment and support centres throughout South Africa. Geotab exports to some 20 countries in Africa. When including North America, Australia and various countries in the Middle East and Europe, the international footprint extends to more than 65 countries. this world-wide footprint enables Geotab to provide localised support to meet specific requirements while also ensuring that their systems and offerings remain at the forefront of available technology. In 2010 Geotab Inc was recognised as being one of the top 50 technology Companies in Canada being ranked 41st in the Deloitte technology Fast 50™ ranking. “We are extremely pleased and honoured to be ranked among the top growing companies in Canada. We pride ourselves on technical excellence, delivering what customers want and bringing innovation to business management” said Neil Cawse, Geotab North America’s CEo. Early in 2010 Geotab was selected to provide fleet management to the world-wide fleet for Pannar Seeds, due not only to the superiority of the product but also because the world-wide distribution of the Geotab system, especially into Africa which closely matches that of Pannar Seeds. this ensures the availability of a single platform, operating system and support network across the entire fleet. Geotab has always enjoyed a reputation for producing reliable and dependable systems with long operating life, essential given the areas and environments in which the Pannar Seeds fleet operates. the brief to Geotab included the need for a single database with access to relevant regional branches or the option to utilise a stand-alone database for countries where internet access is limited or intermittent. the ability to interface with multiple mapping sources, including Pannar’s own GIS mapping database and to import details of existing client information was identified by Pannar
as being critical. Geotab’s ability to provide both standard system reports as well as the ability to customise reports to Pannar’s specific requirements was a further advantage. Geotab personnel worked closely with Pannar Seeds to plan and implement the system, paying particular attention to ensure that the database setup and consequent vehicle allocation and user hierarchy matched Pannar’s requirements. the main database is hosted at Pannar’s Greytown Head office, and provides access to users so that managers and staff have access to information on vehicles either simply within their own area, or provincially, nationally or regionally depending on their security and responsibility level. Standalone sites are located in Zimbabwe and Zambia due to intermittent internet access in those countries, although a range of standard reports and procedures is in place across the entire fleet. Geotab’s uniquely simple ability to customise rules and groups allows users to source and review pertinent information across the entire fleet; or across particular segments (by country, region, or department); or for example even by type of vehicle (cars as opposed to light trucks, heavy trucks or tractors) or even by individual vehicle. of particular import is the ability to be able easily to change or create rules as required and then not only apply these to current or future information, but also to easily reprocess historic data and thus redefine information as required. As all Geotab reports are generated in Microsoft Excel, users have the ability to generate reports and then apply calculations or settings to them, and to email or print as they require. Qualified Pannar It personnel also have the ability to customise existing reports or even to build custom reports from scratch using Geotab’s free Software Development Kit (SDK). the Pannar Seeds management was unwavering in their approach of the system being used as a management tool; to provide critical information regarding the use and allocation of assets and staff, and to enable this to be correlated with projects and sales efforts across the region.
www.southafricamag.com 41
We operate with honesty, integrity, transparency and professionalism
The transaction has already been approved by competition authorities several other African countries - Zambia, Tanzania, Malawi, Kenya, Namibia and Swaziland. “Pannar needs a partner and chose Pioneer,” Brian Corbishley, chairman – Pannar, said. “Through this partnership, our operations in South Africa and our contribution in Africa will be strengthened, our business will be more competitive, and we will be able to deliver better products, faster.” Pioneer intends, if the transaction is approved, to expand the two businesses’ existing South African research capabilities stimulating a transfer of skills and technology to South Africa, with benefits to farmers and consumers throughout Africa. 42
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The partnership will allow Pannar access to Pioneer’s complementary plant genetics and advanced breeding technologies; Pannar’s ability to compete and bring new products to the market quicker would be greatly enhanced. Both Pannar Seed and Pioneer Hi-bred are world leaders in hybrid and GM seed technology that includes several white and yellow maize varieties. GM maize makes up about 70 percent of South Africa’s commercial maize crop. Pannar and Pioneer say the transaction could also help improve food production in South Africa and throughout Africa. “The increases in farmer productivity through higher crop yields and better use of technology are a critical component
Pannar Seed (Pty) Ltd FEAtUrE
in addressing the need to feed rapidly increasing populations, in Africa and globally,” the joint statement says. “According to the United Nations, food production will need to nearly double by 2050 to feed a growing global population. Africa’s population will soon pass 1 billion and could reach up to two billion by 2050, at which time it will represent more than 20 percent of the world’s population.” Biotechnology would increase food security by ensuring higher yields and better use of available resources, it seems. Those opposed to the deal claim it would result in a seed cartel that could affect local agriculture negatively. Pioneer Hi-Bred is a subsidiary of Iowa-based DuPont, the world’s leading developer and supplier of high-tech plant genetics. END
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P.O. Box 2089, Kempton Park, 1620 Tel: 011 – 397 4336 (Head office) 028 – 271 4687 (Cape) www.chemtura.com Chemtura (Pty) Ltd. ®
Anchor Red Reg. Nr: L 7301 Act nr. 36 of 1947. Active ingredients: Carboxin 200g/L. Thiram 200g/L. Caution. Vitavax® Neutral Reg. Nr: L 3695 Act nr. 36 of 1947. Active ingredients: Carboxin 200g/L. Thiram 200g/L. Caution. Ingwe® 6FS Reg. Nr: L 7567 Act nr. 36 of 1947. Active Ingredient: Tebuconazole 60g/L. Caution. Badger® 15FS Reg. Nr: L 7565 Act nr. 36 of 1947. Active Ingredient: Triadimenol 150g/L. Harmful. Royalcap® FS Reg. Nr.: L 3152 Act nr. 36 of 1947. Active Ingredient: Captab 500g/L. Caution. RoyalGuard® 50EC Reg. Nr: L 7766 Act nr. 36 of 1947. Active Ingredients: Permethrin: 100g/L. Pirimiphos methyl 400g/L. Harmful. Askari® Reg. Nr: L 8541 Act nr. 36 of 1947. Active Ingredient: Imidacloprid 700g/kg. Caution. Solect® Reg. Nr: L 8572 Act nr. 36 of 1947. Active Ingredient: Imidacloprid 600g/L. Harmful. Anchor®, Vitavax®, Ingwe®, Badger®, Royalcap® en RoyalGuard® are registered trademarks of Chemtura Corporation, USA. Askari® is the registered trademark of DVA Agro, Germany. Solect TM is a trademark of Universal Crop Protection (Pty) Ltd, South Africa. RoyalKote TM, RoyalKare TM en RoyalTag TM are trademarks of Chemtura Corporation, USA.
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tHE
F I LT R AT I O N A N D
S E PA R AT I O N SPECIALIStS
Roymec Technologies is an engineering and project management specialist company providing process equipment, plant design and, where required, turnkey construction solutions and services in the field of solid liquid separation and allied processes. By Ian Armitage
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Roymec Technologies (Pty) Ltd FEATURE
R
oymec Technologies, little known as it may be, is a valuable case study of how to get things right. By focussing on the details the Johannesburg, Sandton-based company has supplied equipment into 25 countries globally, including 12 in Africa. It is a R140 million company. “Roymec Technologies’ growth has been impressive by any measure,” says sales director Hoosen Essack. “Reference installations in 25 countries is no insignificant achievement.” Established in 2000 in association with the materials handling engineering and construction company Roymec (Pty), Roymec Technologies began life as an equipment retailer. It now no longer simply sells equipment but partners with clients, and is able to offer turnkey equipment solutions, from concept through to commissioning of complete solids liquid separation processes. Major African projects undertaken include equipment supply to the gold industry in Mali and Tanzania, the coal sector in South Africa and Botswana, the copper and cobalt sectors in Zambia and the DRC, the zinc sector in Namibia, the uranium sector in South Africa and Malawi, and the more recently the base
metals sector in Madagascar. “We have a lot of experience of equipment supply for a variety of clients, into a variety of sectors, in a variety of locations,” Essack says. “This is a clear demonstration of our ability to deliver the right solutions.” Roymec Technologies supplies a range of owned and licensed solid liquid separation equipment including thickeners, linear screens, vacuum belt filters, filter presses, pin bed clarifiers, segmented tanks, flocculant and reagent plants and SX dual media filters. It has recently added the technologically upgraded disc and drum filter range from German company Bokela to meet the need of fine coal dewatering in the local coal and energy sector. “We deliver as a partner rather than as an equipment vendor,” Essack says. “Our basic philosophy is that we supply equipment to people. The humanity of these interactions makes us partners, and as a result more than just equipment peddlers. It is therefore why many of the people we supply equipment to become lifelong customers. A simple yet effective and rewarding relationship for all.” The point at which clients come back is somewhat of a key milestone in any business. One can argue what they’re coming back for is www.southafricamag.com 45
Roymec Technologies (Pty) Ltd FEAtUrE
the process equipment, which involves a large capital outlay for clients. That being said what they really want is a committed and trustworthy project partner to deliver on the promise of cost effective, reliable and an optimised solution. “Our product range is extensive and spans a wide range of solids liquid separation equipment and processes from molecular level to ultrafine clarification to coarse particle thickening and filtration,” technical director Bruce Martinson adds. “Our close relationships with our clients translates into developing unique tailored solutions to specific challenges that they have. Clients see us as an extension of their business, which gives us the opportunity to add greater value than mere equipment supply.” The products Roymec Technologies supply are mainly used for ore processing on metallurgical plants, but have found applications in the effluent treatment, pulp and paper, water, food, energy and industrial sectors. “We provide total solutions from concept through to commissioning,” says Martinson Roymec Technologies Technology’s products are unique in that they are custom designed and individually built for each client and every application. Its equipment offering is tailored to the applications and the client’s specific needs. Part of the equipment supply aspect involves both mechanical and process warranties which are an integral component of the business. “Our products have been developed over decades, and refined across the globe on actual operating plants,” says Essack. “Roymec Technologies and our global partners have a history of development.” Roymec Technologies’ products are manufactured locally and abroad. The designs are also completed in-house, where it is able to keep an eye on quality and test the products thoroughly prior to them being released to the client. In cases where it supplies designs for manufacture abroad, Roymec Technologies is involved in the workshop inspection during 48
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SOS Tool and Plant SOS Tool and Plant was established in 2002 and is wholly owned by Andries de Kock, Managing Director, who is assisted by his partner Sarel de Kock, Technical Director, in the running of the business. SOS Tool and Plant provides engineering, fabrication and plant erection services related to the supply of bag filters and commodities, tanks, structural steel work, chutes and ducting, cyclones, silos, furnaces, fired and air heaters and pre heaters, thickeners, float cells and agitators and construction/ erection and installation.
The mining, petrochemical and power generation industry will be significant growth areas, de Kock explains.
It is a broad offering and the company counts the likes of Concor Engineering, Group 5 Mechanical, EPC Engineering, DRA Associates and Roymec Engineering amongst its clients.
Okay, so what is the secret to SOS Tool and Plant’s success?
“We are structured in three divisions: material preparation, fabrication and construction,” says Andries de Kock, Managing Director. “The divisions can operate independently, but often cooperate to handle turnkey projects.”
“To be Honest” and “keep your client informed at all times”, says de Kock.
SOS Tool and Plant’s headquarters and fabrication shop are in Brakpan, Gauteng. It subcontracts designs to ASME, BS, API and AWS codes and has full access to group facilities to work to other recognised international standards. It also has access to detailing contractors and often provides those services, de Kock says. “Project and production planning and control are done inhouse on Microsoft Project,” he adds. “We can finance up to R150,000 million per annum and our maximum tender value is R250,000 million.” SOS Tool and Plant is a strong business. High growth is expected in the fabrication industry, driven by South Africa’s demand for electricity. The commodities market is offering newfound hope too and a number of projects – halted by the downturn – are expected to ramp up in the near future.
“Honesty is our secret,” he concludes. “We are honest; we are privately owned; and we are a young dynamic company. We are all professionally trained and home-grown specialists in the industry. We have a lot of experience in the supply of equipment to the mining, petrochemical and power generation industry. “We pride ourselves on price, quality, honesty and always being on time.” SOS Tool and Plant recognises NUMSA (National Union of Metal Workers of South Africa), and South African Mine Workers Union – SA Boilermakers.
Growth is also expected in upstream South Africa. Having come through the recession, de Kock is optimistic. “The market has stabilised,” he says. “The bigger guys have struggled through the recession but we are in good shape and things are picking up. The work that has been coming in has been at an extremely tight margin. I see a future in the market, I think it will turn and South Africa will start making money again.”
Should you require any other information regarding SOS Tool and Plant please feel free to contact:
AJJ de Kock Managing Director andries.dekock@soseng.co.za
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Roymec Technologies (Pty) Ltd FEAtUrE
manufacture and assembly to ensure highest quality standards are kept. “Quality is important to us and our products have been successfully operating on major projects around the world,” says Essack. Roymec Technologies is wholly South African owned. It was formed by a group of qualified engineers who are to this day hands on in the day-to-day operations of the business. This seems to be at the core of the success of this business. “It’s business as usual,” says Essack. “Roymec Technologies continues to service the industrial and mining sector with the supply of client focussed, tailor made filtration and separation solutions and process equipment. The recent purchase arrangement of Roymec (Pty) Ltd has not affected the ownership or operation of Roymec Technologies (Pty) Ltd., as the FLS range is a high end product directed at wealthy clients.” Being financially strong, with an excellent market share, Roymec Technologies continues to grow. In fact it is currently staffing up to cope with a predicted upswing of the mining and metals sector where it does the bulk of its business. Roymec Technologies also continues to invest in R&D and is at the point of formally announcing the realisation of over eighteen months of intensive research that will dramatically enhance its thickening and screening equipment performance and provide significant cost and operating benefits for its clients. “Our clients are very demanding and we are committed to finding the best possible solutions for them; R&D is vital in this respect,” Martinson says. “We understand clients’ focus regarding value, cost of ownership and reliability, and are constantly looking at our products with a view to developing them further and improving efficiency and performance,” he adds. “R&D is a cornerstone of our business and we are constantly refining our 50
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our product range is extensive and spans solids liquid separation equipment, processes and technologies and comprise thickeners, clarifiers, screens, vacuum and pressure filters, ion exchange, dual media and coalescing filters, elution systems and reagent and flocculant plants
Tuffias Sandberg KSi Chartered Accountants SA) Registered Auditors Business Consultants and Tax Advisors
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technology to exceed market demands.” “We are bullish about the future,” says Martinson. “We are particularly excited by the energy sector, particularly uranium. Over the last 30 years uranium has been the ‘black sheep’ of the metallurgical industry. The specialist skills pool in uranium extractive metallurgy has been dispersed. Together with improvements in screening, separation and thickening we have become an established separation specialist in this field.” Roymec Technologies has been involved in each of the last five uranium projects in Africa. “We see it as an important growth industry for us,” says Essack. Roymec Technologies is also looking to move into other energy related sectors like coal. “We want to grow our product and client base,” says Essack. “Our growth is a remarkable story and it’s up to us to take the next step and become a truly global brand – that’s the aim,” he concludes. END www.southafricamag.com 51
plans
DAVIS & SHIrtLIFF IN
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Davis & Shirtliff FEAtUrE
B
etter countrywide access to water and electricity is driving growth in Africa’s emerging economies. There is money to be made bringing clean, safe water to the masses – just ask those at Davis & Shirtliff (D&S), a leading supplier of water related equipment. D&S is a name familiar to many and it has been rapidly expanding its business in the wider East African region, using Kenya as a hub, off the back of increasing demand for access to water. “More and more our business has been coming from outside Nairobi – which was our only branch just 20 years ago - and we continue to see a need to penetrate the East and Central African region,” David Gatende, Deputy Group CEO says. “The lifting of trade barriers has aided our regional expansion and made it easier to export products across the neighbouring national borders.” “We have been taking advantage of Kenya’s central location to expand regionally,” Alec Davis, Group CEO adds. “It is gradually being accepted that Tanzanians, Ugandans, Rwandans, Burundians and Kenyans are part of the East African region and intra-regional trade has increased significantly when compared with business with Europe,” Gatende continues. D&S is an ambitious, innovation-led business, focused on several distinctive business sectors. It is involved in the importation, distribution, servicing and installation of surface and borehole water pumps as well as the supply of water treatment, swimming pool, solar and power products. The company also has a fabrication workshop where it manufactures and
It is an increasingly competitive world and only those that demonstrate international standards of excellence will survive Better countrywide access to water and electricity is driving growth, says Davis & Shirtliff a leading supplier of water related equipment. By Ian Armitage
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Davis & Shirtliff FEAtUrE
assembles water treatment and swimming pool equipment. “Despite having a fantastic reputation for drilling boreholes, we do not drill boreholes and never have! Instead we have chosen to concentrate on the supply and installation of borehole pumps and related accessories,” says Gatende. “A recent focus has been the emphasis on what we call the ‘Emerging Business Segments’ which are water treatment, power and solar which we feel have much untapped potential.” Headquartered in Nairobi’s Industrial area, with subsidiaries in Uganda, Tanzania, Zambia, Rwanda, Ethiopia and a presence in Southern Sudan, D&S has an extensive network that is the envy of many suppliers. “We distribute high quality equipment from a number of leading manufacturers from Europe, Japan and Australia, and we also assemble pressure sets, fire sets, water purifiers and reverse osmosis plants, to name a few,” Gatende says. “We offer our customers a comprehensive and competitive product range with regional availability, technical and service support.” D&S is always looking for ways to improve, which is captured in the third company value - “altiora peto” - which 54
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More and more our business has been coming from outside Nairobi – which was our only branch just 20 years ago - and we continue to see a need to penetrate the East and Central African region is Latin for “I seek higher things”. The other two prized company values are “quality” and “integrity”. “It is an increasingly competitive world and only those that demonstrate international standards of excellence will survive,” says Davis, the driving force behind the company. “This business was founded in 1946 by E.C. Davis – my father - and F.R. Shirtliff and has grown from humble beginnings to become one of East Africa’s leading specialists in the supply of water related equipment. Our vision is ‘to become a world class organisation comparable in every way to the best international standards by demonstrating exceptional levels of corporate performance, professionalism and integrity and
to set the example that an indigenous African organisation can compete at the highest level in its selected field of activity’ and I believe we are well on course for that.” “We are much bigger than everyone else in the industry, so we use the scale to our advantage,” adds Gatende. “One of our main strengths is the wide product range which is supported by a strong supply chain”. Despite its 65 years of age, D&S is continuously evolving and adapting to the changing requirements in the market. He notes that the type of submersible pumps D&S has been selling has been changing gradually. “People now need pumps with more stages, more power and bigger motors to get water out of the ground as the water table continues to drop,” says Gatende. “Another recent development has
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been the introduction of more affordable products branded ‘Dayliff’ targeted to cater for the man in the street and others who are price-sensitive.” “This is part of our goal of increasing our product offering,” says Davis, who points out that the availability of cheap manufacturing materials and labour from the Far East is facilitating this. Davis just returned from China where he and his son Edward visited D&S’ ever increasing supply base there. “The factories we saw were impressive as was the focus on quality and many Chinese products are now world class. We are building relationships with the larger and better resourced industry players and I left with great confidence that the products we offer are of excellent quality and give remarkable value for money.”
Davis & Shirtliff FEAtUrE
“That said, we will continue to promote premium quality products,” Gatende says. “The top-end market, which consists of customers and industries that have higher technical requirements, will still remain a very important market for us in our projects.” “Our strategy is to enlarge our footprint,” Davis adds. “At the moment we have 25 branches, and we aim to double that in the next five years.” With a large amount of business in the sectors D&S presently dominates, and an abundance of opportunity on the horizon, D&S looks set to further increase its already extensive product range, cementing its leading position in sub-Saharan Africa for many years to come. “We have a Product Manual that we distribute widely that catalogues all the
products we offer. It’s not really the done thing here and in time our manual will become the standard reference for the whole region, which makes it unique,” Gatende says. “There are many things about us that are unique!” “We are currently in the middle of a premises expansion and the construction of a new Distribution Centre is making good progress on the recently purchased Beta Healthcare site. As markets and the number of D&S branches grow, product distribution is going to become increasingly important and complex and we are keenly aware of the need for a well resourced and adequate working environment,” says Davis. “When the new facility is ready we will be equipped for a much greater scale of operation,” he concludes. END
PUMPS FOR ALL PURPOSES
GRUNDFOS (PTY) Ltd HEAD OFFICE Tel (+27 11) 579 4800 Fax (+27 11) 455 6066 DOSING AND DISINFECTION Tel (+27 12) 665 2077 Fax (+27 12) 665 2063
Burlington D a t ap r in t
Integrity, commitment, service and attention to detail bring in the rand at South African printers Burlington Dataprint. By Ian Armitage
W
hen offered this assignment, I jumped at the chance. Burlington Dataprint is one of South Africa’s leading commercial printers after all! The Joburg-based firm has a national reputation for quality, serving a broad client base in industries as diverse as retail, manufacturing, leisure and, obviously, publishing. It is widely regarded as one of the most diverse and technologically advanced printers in the country and services include general sheet fed printing, web to print – B-online, instant proofing, personalisation, continuous printing and collating, typesetting, collating and finishing, stripping up, plate making, computer to plate, forms management system, and DTP services.
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Most impressive of all, Burlington was founded in 1911. “We are specialist suppliers and do printing, colour, black & white, litho, short run printing, direct mail, direct marketing, personalisation, image personalisation, digital variable data, business cards, continuous forms, brochures, manuals, web, and variable data printing and digital on demand,” says managing director Rory Flanagan. “We have consistently grown with adaptation of modern technology, introducing the first litho continuous press into South Africa,” he adds. “We have a sound financial base and are always planning for the future, offering a complete spectrum of services. We believe we are leaders in our field.” Saying a company was established in the 1900s isn’t strange anymore since we live in the 21st century, but the fact Burlington is 100 this year is an achievement nonetheless. What is the secret behind this longevity? It is a “proper printer” says Flanagan. “Some people talk customer service, others deliver it. “When customers are up against it, that’s when we get them through a tight spot and help
Burlington Dataprint FEAtUrE
them save money and they are reassured they can rely on us again and again. “For us it is about giving people value for money and it is about getting that phone call from the client that praises that last job. “We do it better than anyone else, consistently and we always go that extra mile.” Taking a proactive approach and going the extra mile sets Burlington Dataprint apart from its rivals. “We are a medium sized employer and employ 170 people,” says Flanagan. “Some of them have been with the company for 40 years and we are proud to say we have three generations working in our factory. “I did a calculation the other day that there is about 4,000 years of printing experience on my floor – that is a hell of a long time. With it there is a lot of strength, a lot of experience and a lot of knowledge.” While the ownership of the company has changed over the years, printing methodology and digital too has slowly but surely made its mark in a constantly changing industry. “We continue to move with the times,” says Flanagan. “That said, we keep the underlying values and that special something, be it commitment, ethics, attention to detail, superb quality or the heart of good people, which keeps us at the top of the trade. “We are here to stay.” The company values staff empowerment and development and has an apprenticeship programme. Many members of staff joined Burlington as apprentices. “A lot of our staff members have a long
service record,” says Flanagan. “We are committed to customer satisfaction, superior quality and service. We have also kept abreast of print technology and can count some of South Africa’s leading corporations amongst our most valued customers. Many companies have been with us for decades, this being due to our policy of strict quality control and service excellence.” Burlington was elected as one of the printers to manufacture the Ballot papers for South Africa’s first democratic election in 1994. It also – rather interestingly - printed and distributed European newspaper titles during the FIFA World Cup to the soccer players wishing to keep informed of the latest news from home (Spain, Holland, France and Switzerland). The total amount of newspapers that Burlington Dataprint printed amounted to 5,975 copies. “We’ve numerous projects we are very proud of,” says Flanagan. “I think what makes us different is that we are proud of every project, small or big; we care about the work we do and the quality of the print.” The South African printing industry is the sixth largest industry in South Africa. The race for the future is fierce. The question is, which of today’s printing firms will survive and which will fail. Of those that survive, which will thrive in the future? “I firmly believe Burlington will be here for many years to come,” says Flanagan. “It is a challenging industry but at the end of the day you have to keep going and trying: we carry on; we are diversifying; and we are following the digital route because we believe it is the future.” Burlington has been experiencing strong
the great thing about the new South Africa is that it has opened up and things are more colourful; there are more brochures and leaflets and more competition in certain markets
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Burlington Dataprint FEAtUrE
digital printing growth and it has also gained market share across Southern Africa. “We are investing into digital black & white and colour, and various software solutions that support our digital expansion and future plans as we have seen that there is a huge demand for marketing material, manuals and educational materials. We are also dealing with a few global companies that are looking for an African printer to supply their particular branches, agencies or franchises in South Africa. We seem to be doing pretty well out of that and the global community is becoming aware of Burlington Dataprint as a trusted supplier. We are also developing our personalisation and variable data offering; South Africa is growing 22 percent year on year in digital technology and print. “Digital is doing well,” Flanagan adds. “In terms of litho printing, we are busy now putting in a new colour press. The great thing about the new South Africa is that it has opened up and things are more colourful; there are more brochures and leaflets and more competition in certain markets. There is a nice business in full colour printing and one big thing in our favour is that we seem to have penetrated the African market to some degree and it is growing rapidly from year to year. We are getting work from Angola, Mozambique, Zambia, Malawi, Botswana, Lesotho, and we have just run a ballot paper for Nigeria. We are getting some nice work from outside our borders, which is slightly more profitable than the work we get inside.
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“The market is tough, but we have a lot to be proud of,“ an enthusiastic and passionate Flanagan says. Burlington was the first in South Africa to order the Xerox iGen3; it was installed as “a first for South Africa”. “As a Premier Partner with Xerox it enables us to have digital print capabilities across the globe,” says Erika Hearnshaw, digital sales and marketing manager. “This capability enables us to offer our clients the luxury of placing a order in South Africa and having as many as 20 different partners scattered across the globe ready to print at a push of a button and deliver in country. The power of Digital is in fact alive and well in Burlington Dataprint and its Partners is a digital click away from delivering.” “Digital is one of the fastest growing sectors in our organisation and it is complimenting Litho in a phenomenal way. Burlington Dataprint perceived to be as one of the foremost digital printers in South Africa, and highly regarded in the eyes of the majority of the international companies it collaborates with,” Hearnshaw concludes. END
Bytes Document Solutions is Africa’s leading technology and services company which offers the widest portfolio of offerings through three independent business units. Bytes Document Solutions is also the authorised Werox distributor for Sub-Saharan Africa. XEROX Xerox is a leading global enterprise for business process and document management. Through its broad portfolio of technology, services and outsourcing offerings, Xerox provides the essential back-office support that clears the way for clients to focus on what they do best: their real business. LaserCom / PaperGeni As a leader in personalised communication solutions, LaserCom generates more than 30 million pages a month on behalf of corporate South Africa. LaserCom delivers mailing services, data printing, print-on-demand, electronic document delivery and direct marketing services. PaperGeni, a division of LaserCom, designs and manufactures a wide range of specialised envelopes depending on customer requirements. NOR PAPER NOR PAPER is one of the largest paper merchants in South Africa. NOR Paper offers comprhensive paper, board and sundry supplies and is a one-stop shop for all printing Physical Address : Andre Greyvenstein Avenue, Isando, Gauteng, Johannesburg, South Africa 1600 Sales (+27) 11 928 9111 - Support 0800-117-843 - Email xerox@bdsol.co.za - Web www.bdsol.co.za
Passion for Print
Manufacturers and suppliers of top quality printing ink
Congratulations
on your
0th Anniversary
Burlington Data Print
Heidelberg Southern Africa congratulates Burlington Dataprint on their 100th Anniversary in the printing industry and wishes them many more to come. Heidelberg Graphic Systems Southern Africa (Pty) Ltd -RKDQQHVEXUJ 7HO ū &DSH 7RZQ 7HO ū 'XUEDQ 7HO www.za.heidelberg.com
Support your local maufacturer Johnannesburg (011) 622-2812 Cape Town (021) 511-8739 Durban (031) 700-4222
its skin CoMFortABLE IN
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Galderma FEAtUrE
Galderma South Africa is the African face of the worldwide leader in Dermatology, a medical research and manufacturing company specialising in skin health and finding powerful backup to South Africa’s growing private clinical markets. By John o’Hanlon
I
t would be helpful to start out by saying what Galderma is not. Despite its origins as a joint venture formed in 1981 between Nestlé and L’Oréal, it is in no way a part of the cosmetics industry. You will not find Galderma products alongside the in-store boutiques of Clinique, Dior or L’Oréal itself: indeed you won’t find them in any retail store in Africa because Galderma sells exclusively through pharmacies, mostly on prescription and health professional recommendation. Galderma is a fast growing company, driven by research in dermatology, carried out at its state-of-the-art R&D Centre at Sophia Antipolis in France. In 2010 world sales reached €1.2 billion, an increase of 16.1 percent over 2009. According to the healthcare market intelligence company IMS, however, the South African company is showing growth of 19 percent and outperforming the general dermatology sector in SA by a factor of three. Its expertise covers a broad spectrum of skin, hair and nail diseases and its products range from topical gels and cream to antibiotics widely used to treat acne, to treatments for diseases like rosacea, psoriasis and other steroid-responsive dermatoses, onychomycosis (fungal nail infections), pigmentary disorders, skin cancer and medical solutions for skin aging plus a range of therapeutic skin products consisting of cleansers and moisturisers specially formulated for all skin types. Galderma South Africa is based in Johannesburg, and Jenny Wright has been managing director of the company for nine years. Having gained many years of experience in pharmaceutical sales and marketing, Wright is passionate about dermatology and the company she leads: “My personal commitment is to ensure a sustainable business in South Africa far into the future. To uphold all the global values of Galderma, and to provide a working environment in www.southafricamag.com 63
Galderma FEAtUrE
which individuals are able to develop to their highest potential, and feel appreciated and rewarded for their efforts.” Galderma’s global brands clearly fit South African demand well, and the company leads the market in all segments of dermatology in which it is present, especially acne, scalp psoriasis and medical cleansers and moisturisers. “Whilst Galderma has strong global strategies for the marketing of our brands internationally, we are still able to make local decisions and adapt them to suit our market needs,” says Wright. “We do also manufacture locally, though a BEE partner who makes some of our non-prescription products for us. We have the technology in South Africa to manufacture these products and we believe this is an important way for us to invest in African skills and enterprise.” This year, she adds, the range of products produced by its BEE partner will increase. Other changes are taking place as new technologies are developed. “We’ll be bringing these products into South Africa and are really looking forward to being able to offer these solutions to medical practitioners in addition to the portfolio that we market currently to general practitioners, dermatologists, podiatrists, paediatricians, nursing sisters and pharmacists.” In general the dermatology market still holds good opportunities for growth, Wright continues. “While many sectors of prescription medicines are static, new technologies such as the biologicals have entered South Africa, bringing new treatment options for patients with severe diseases such as psoriasis. The over-the-counter business has seen the introduction of many new line extensions to major brands as companies endeavour to offset the static price controlled medicine sector.”
My personal commitment is to ensure a sustainable business in South Africa far into the future
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In South Africa the national regulating authority is the Medicines Control Council (MCC), a statutory body that regulates the performance of clinical trials and registration of medicines, and the counterpart of the Food & Drug Administration (FDA) in the US. Proof of safety, quality and efficacy must be submitted when applying to the MCC for approval and registration of a medicine for use in South Africa. The process of product registration by MCC is not a rapid one. It can take more
Judin Goldman Judin Goldman ATTORNEYS
Established in Johannesburg in 1936, Goldman Judin Inc. (‘GJ Inc.’) has long enjoyed a reputation as one of South Africa’s premier boutique law firms. GJ Inc. covers several fields of local and International law, including:
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Judin
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Established in Johannesburg in 1936, Goldman Judin Attorneys Inc has long enjoyed a reputation as one of South Africa’s premier boutique law firms. It provides clients with both local and cross-border solutions and its expertise covers several fields including corporate and commercial law, distribution, agencies and licenses, commercial and corporate litigation, intellectual property, international transactions, joint ventures, mergers and acquisitions and trade law. One such client, Galderma South Africa, owes much to this Joburg-based legal specialist. Galderma South Africa started in 1996 and is a wholly owned subsidiary of Galderma, a joint venture between Nestlé and L’Oréal. Its parent company Galderma Pharma is based in Switzerland. Goldman Judin Attorneys were instrumental in Galderma coming to SA. J Michael Judin, Senior Partner, takes up the story: “Our relationship with Galderma goes back to before they came here; we worked closely with them to assist with the formation of Galderma South Africa in 1996,” he says. “There are number of important issues to consider for existing businesses, outside of South Africa, that wish to set up a South African branch or commence local operations. We provide advice and assistance on such matters.”
2nd Floor, North Block Thrupps Illovo Centre 204 Oxford Road Illovo 2196 PO Box 78662 Sandton 2146 Docex 264 Randburg E-mail: law@elawnet.co.za Tel: (+27 11) 268-0287 Fax: (+27 11) 268-0282 www.elawnet.co.za
Judin adds: “I was contacted by Galderma in Paris. In fact, I went over and met with them in France, taking instructions on setting up a subsidiary; then we did the set up. My involvement with Galderma SA goes all the way back to their inception in South Africa. It has been a very long and close relationship.” Goldman Judin has a reputation for providing high quality legal services. It is also uniquely well-situated as a result of its associations with various international law firms, tax consultants and others. “We represent a wide range of South African and international interests in commerce, industry, finance, marketing, government, the environment, labour and more,” says Judin. “Our clientele ranges from multinationals to small businesses and individuals. The firm has developed a clear understanding of the evolving local and international scenes and we cover the broadest spectrum of the law.” Goldman Judin Attorneys’ strong internal structure is the foundation for its ability to provide excellent legal services. The firm consists of six attorneys, each with his or her own areas of specialised expertise, as well as an accounting department and a support and administrative professional staff. Po Box 78662 Sandton 2146 Docex 264 randburg Tel: (+27 11) 268-0287 Fax: (+27 11) 268-0282 Email: law@elawnet.co.za
than four years for a new application to be approved, which puts a brake on growth. Additionally, the price of medicines is controlled under South Africa’s single exit pricing scheme introduced in 2004. “The idea is to maintain lower, fair prices of medicines, and of course that is something we support. The challenge for us is that we deal primarily in the private sector which covers only around 10 million patients,” says Wright. Galderma, she adds, has only a very small market in the state healthcare system, which relies heavily on generics. All these present challenges for Galderma, though its growth figures show that they are not restricting growth significantly. Wright sees good opportunities across the business and is eager to market the product offering into the rest of Africa. “Expanding our reach
Expanding our reach across sub-Saharan Africa will open a totally new market for us, and turn Galderma South Africa into a continental hub 66
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across sub-Saharan Africa will open a totally new market for us, and turn Galderma South Africa into a continental hub.” Cetaphil®, is one of the world’s leading dermatological therapy brands, and the brand of choice for many. This year South Africa is one of two pilot countries in the world where Galderma has entered into a collaboration agreement with the Nutrition Division of Nestlé to launch an innovative cleanser and moisturiser called Cetaphil ®RESTORADERM™ as part of a joint initiative to offer paediatricians and other healthcare practitioners extended protection for their patients with atopic dermatitis. The launch of these revolutionary new skincare products, Cetaphil® RESTORADERM™ Skin Restoring Body Wash and Cetaphil® RESTORADERM ™ Skin
Galderma FEAtUrE
Restoring Body Moisturiser, is good news for atopic dermatitis sufferers, as they will do much to reduce redness, dryness and irritation which are common symptoms of this skin condition. Both contain patented new ceramide and filaggrin technology which helps replenish the skin’s natural lipids and restore moisture to help rebuild the damaged skin barrier. Clinically proven to be non-irritating, these products are highly tolerable and fragrance free, with studies showing that they can be used in children as young as three months with atopic skin. Galderma invests approximately 20 percent of its global turnover into discovering and developing new products and accessing innovative technologies. In South Africa it works closely with the Dermatological Society
PACKAGING CONSULTANTS CC We offer general consulting and sales in all forms of packaging to the trade.
of South Africa, and has set up a Dermatology Ethnic Working Group, to share information on ethnic skins, facilitate skills transfer and assist with research through a specific study grant allocated to work on black skin and hair types. “The award is adjudicated by a special committee of the Dermatology Society of South Africa,” explains Wright. “The recipient is required to give a presentation at the society’s annual congress, and often presents the work at international congresses too.” The programme is now in its fifth year, recent awards having been made in 2008 to Prof N Khumalo for her work on black hair; the 2009 award to Dr F Esmail, whose work entailed the clinical and genetic categorisation of atopic dermatitis (eczema) in Xhosa children in South Africa and in 2010 to Dr I. Brown for research into skin manifestations of HIV. END
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WItH HEALtH A Hot toPIC INTERCARE DELIVErS oN
EXCELLENCE & VISION Quality care, customer focus, and an integrated offering define leading healthcare group Intercare. And as South Africa awaits core details of the National Health Insurance scheme, CEo Dr Hendrik Hanekom says Intercare is well positioned to co-operate in its plan to transform the nation’s healthcare. By Colin Chinery
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Intercare SA FEAtUrE
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hile four out of five South Africans are currently dependent on the public health sector for basic health services, only 40 percent of the budget is allocated to maintain this sector. The remaining 60 percent of total health spend is targeted in the private sector, serving the one in five positioned to access its highly specialised and hi-tech services. And here escalating costs are putting pressure on medical aids and the patient. The National Health Insurance (NHI) Scheme is set to change the face of the current public health sector and although details are not clear, it is evident that the NHI will have to join hands with private healthcare groups to make their plans work. The Intercare Group, one of the country’s most successful and respected healthcare service providers, has a proven track record of accessible, quality and cost-effective healthcare delivery. www.southafricamag.com 69
Intercare SA FEAtUrE
With the public sector’s shift in emphasis from tertiary to primary healthcare in recent years, private hospitals have begun to take over many tertiary and specialist health services. “There’s an over-burdened public sector, demand is increasing for a better standard of service delivery coupled with affordability and accessibility for a larger part of the population. I think we are very well positioned to participate in this field,” says Dr Hendrik Hanekom, CEO of the Intercare Group. Providing job opportunities for almost 500 personnel, the Intercare Group specialises in the provision of a variety of healthcare services across the network of the company’s 13 medical and dental centres and a sub-acute and rehabilitation hospital. The next steps 70
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are the expansion of the national footprint of the medical and dental centres, growing the sub-acute and rehabilitation hospitals and establishing the Group’s first day hospitals. The Intercare brand is based on three pillars, says Dr Hanekom: customer focus, quality care and an integrated offering. “Our customer focus is all about convenience, speed and efficiency; you don’t wait hours in a queue. Quality care is delivered by best of breed professionals at a personal level, and finally we offer an integrated service – a onestop-shop. We are not only rendering services, we are selling convenience and access to quality healthcare. That is unique to the Intercare experience.” Intercare was founded in 2000 with the
Symington and Partners Radiologists located in many Intercare Clinics provide a general radiological x-ray service to the Public and to all Doctors by utilising computerised X-Ray imaging. With this development in teleradiology and our experienced Radiographers an efficient reporting and x-ray service can be expected. Gauteng South. Glen Marais (011) 922 5070
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establishment of its first medical and dental centre in Lynnwood, Pretoria 2002. Three other medical and dental centres followed shortly, one in Fourways, Johannesburg and two in the Western Cape, in Tyger Valley and Blaauwberg. Expansion has been impressive, with eight in Gauteng, two in the Eastern Cape and three in the Western Cape. Five years ago the company entered the hospital market with the opening of the 58-bed Tyger Valley Sub-Acute and Rehabilitation Hospital. In 2009 Intercare Hospital Holdings was registered to focus on the building and management of hospitals with special emphasis on day and sub-acute hospitals. Intercare Medical & Dental Centres are based on the retail concept of availability under one roof - saving the patient time, money and effort – and longer opening hours makes it more accessible for the busy family of today. Services include doctors, dentists, oral hygienists, pathologists, radiologists, physiotherapists and optometrists. Most Intercare centres also host dieticians, psychologists, psychiatrists, audiologists, speech therapists, biokineticists and prosthetists. Baby clinics and travel health services are also available, while nursing services offer wound care. Aligned with its commitment to promote pro-active healthcare, Intercare established the Centre for Lifestyle Management (CLM), identifying and treating patients with conditions including high cholesterol, diabetes and hypertension. The aim here is to equip patients with knowledge about their disease, treatment options, and help them manage their lifestyle to ensure optimal wellness. Another innovation in this regard is the Intercare Centre for Sexual Health, providing a confidential service where qualified practitioners - part of a caring multidisciplinary team - are supported by state-ofthe-art equipment and the latest research. “What is important is that we don’t focus only on sickness but also wellness,” says Dr 72
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Hanekom, 56, whose specialties include the design, development and administration of integrated healthcare delivery systems. With more and more patients needing additional care and rehabilitation before returning home, but for a variety of reasons unable to stay in an acute hospital, Intercare established its first Sub-Acute and Rehabilitation Hospital in the Western Cape in 2006. The approach here is ‘high touch, low-tech’ as opposed to the ‘hightech, low touch’ of acute care facilities, and is part of Intercare’s strategy to encourage full recovery from serious illnesses and prevention of future complications. Approval for two new licences have been awarded for similar facilities in Pretoria and other major city centres is in the pipeline. Rising medical costs and less money per episode of care are resulting in a growing move towards alternative options for treatment. And it seems more and more South Africans are prepared to pay for private healthcare as long as they are getting value for money in terms of standards of service and care received. Intercare Day Hospitals are responding to this market with alternatives to acute care facilities. Internationally, 70 percent of all surgery is done in day hospitals. Recently, Intercare was awarded the approval of two licenses for day hospitals in Pretoria, responding to the market and ensuring easier and more affordable access to healthcare. Dr Hanekom was a general practitioner seven years before joining the Medical Association of SA, a professional association
for doctors. He became chief executive in 1990 and played a leading role in its transformation into the South African Medical Association. For eight years he served as a board member of the World Medical Association, and was an advisor to the Director General of the World Health Organisation. Hendrik left organised medicine in 1999 and in March 2000 established NovaHealth, a company pioneering healthcare innovation, with partner and colleague, George Veliotes. NovaHealth is the founding and majority shareholder of Intercare, a healthcare provider organisation, as well as Syzygy Clinical Research Services, a site management organisation. Hendrik is the Chief Executive Officer of both Intercare and Syzygy. 16 years ago, writing in his role as Secretary General of MASA, Dr Hanekom called for the South African medical profession to “take quantum leaps. We must have the courage to look beyond the status quo and not be afraid of the unknown.” Private sector advances he urged included cooperation within multidisciplinary and multi-professional healthcare delivery systems, participation in preventive and promotive healthcare, and rapid progress towards identifying and implementing more cost-effective therapies. Today he says the details and grand design of that call are now incorporated and functioning in the Intercare Group. “We at Intercare are striving to create a better health experience – altogether - for the people of South Africa. That is our vision.” END
our customer focus is all about convenience, speed and efficiency – you don’t wait hours in a queue. Quality care is delivered by best of breed professionals at a personal level, and finally we offer an integrated service – a one stop shop
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NAMPAK INVEStS $160M
Nampak’s $160 million investment in a new canning plant in Angola has ensured that Bevcan’s customers will be more efficiently serviced and signals that Nampak’s African expansion is back on track. By Ian Armitage
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n 2009 President Jacob Zuma paid Angola a state visit. He took 150 South African business leaders with him; trade was top of the agenda. He remains intent on paving the way for South African business to invest in Angola and in a recent trip to the country said: “To us it was important that we pay this visit to strengthen relations.” Racked by almost 30 years of civil war, public infrastructure in Angola is weak. But because the country is abundant in natural resources it is seen as an untapped investment opportunity. Angola is one of sub-Saharan Africa’s largest economies, with a rapidly expanding financial sector and huge potential in areas such as agriculture, telecoms and energy. There are no shortages of opportunities for South Africans, just ask Nampak. Its $160 million investment in a new Angolata canning plant – in Viana, a industrial area near the capital Luanda - has ensured that Bevcan’s customers Cuca BGI (part of the Castle Group) and Coca-Cola Bottling Luanda (managed by SABMiller) will be more efficiently serviced. Angola is an increasingly important market for Bevcan and the first can production line can produce 1,800 cans per minute, which means a capacity of up to 750 million cans per annum. Erik Smuts, the managing director of Nampak’s Bevcan, says there are huge opportunities in Angola. He cautioned though that it had not been an easy place to work. “The big problem we’ve found is red tape. The high levels of bureaucracy are a problem as we discovered first hand.
this is Bevcan’s first and Nampak’s single largest greenfield investment outside of South Africa
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Nampak’s Bevcan FEAtUrE
“I would say that doing business in Angola takes more than money; you need to be patient,” he says. “But there are wonderful opportunities.” Bevcan’s Angola project was initiated in 2004 and the official opening of the plant will take place on 29th June 2011 – it’s been a long time coming. “This is Bevcan’s first and Nampak’s single largest greenfield investment outside of South Africa,” says Smuts. “Angola is the fastestgrowing economy in Africa and one of the fastest growing economies in the world. “We want to use the factory to secure Bevcan’s current market of over 600 million cans per year, which we export from South Africa at present, and gain enough market share to justify installing a second line, which we have already laid the foundations for. “We see this as a springboard for further investments into other types of packaging.” According to Bevcan, the Angolan market currently consumes around 1 billion cans per year. The investment will reduce customers’ lead times significantly - from three to six months to one to two weeks, says Smuts. 76
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“There will be less importation costs,” he explains. “The benefits of producing the cans in Angola is that we are creating direct jobs for locals and are more effectively servicing our customers. We will be more competitive in terms of price versus the cost of import, but the main benefits are in bringing down our customers’ lead times, decreasing working capital costs in raw material stockholdings, storage and demurrage costs and also removing the logistical headache.” The steel for the cans will be imported mainly from Europe; other raw materials will mostly come from South Africa. Bevcan will also be manufacturing the can ends in South Africa, as this is cheaper than manufacturing them in Angola. “Another great thing about this is that it alleviates the worry with respect to the Rand,” says Smuts. “We no longer have to worry about the strength of the Rand and whether producing 600 million cans in South Africa and exporting them to Angola will be profitable at the prevailing exchange rate. “On the flip side, this will take work out of our Durban and Cape Town plants, which will
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Nampak’s Bevcan FEAtUrE
now have spare capacity. We have to look at creating new local and export opportunities,” he adds. Bevcan has also established Reclata, its Angolan recycling operation as a legal entity in Angola. Smuts says this was done even before building the Angolata plant. “We are committed to recycling and I think our Collect-a-Can operations in South Africa are testament to that,” he says. Reclata is a partnership between Bevcan and its customers, which will recycle scrap from the can making process, as well as collect used beverage cans from the consumer market. “We will model Reclata on our self-sustaining Collect-aCan business, a JV between Nampak and ArcelorMittal SA. It has been collecting cans for 17 years,” Smuts adds. “In South Africa, over 70 percent of all beverage cans produced are collected for recycling. “The set up costs will be high but it is important to begin recycling and raising environmental awareness in the country.” Environmental awareness and CSR are obviously key to Nampak and its Bevcan division. Interestingly enough, and very much tying in with this, the firm has embarked on its biggest marketing campaign to 80
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Hulamin Hulamin is a leading semi-fabricator of aluminium in the region. We are proud to be a supplier of Bevcan’s aluminium canstock products and we wish them well in their expansion.
We want to use the factory to secure Bevcan’s current market of over 600 million cans per year
Nampak’s Bevcan FEAtUrE
date - a nationwide campaign called ‘Every-can-counts‘ (www.everycancounts.co.za) that aims to raise R10 million from the sale of cans in aid of education in South Africa. “We are encouraging South Africans to make a difference by choosing their favourite beverage in a can,” explains Smuts. For every can sold by Bevcan it will donate 3c towards education in South Africa. “We are contributing to education and transformation, doing what we can for the good of the youth of our country.” The promotion runs from 18 April until the 18 July 2011 and its message is being promoted across a wide range of media such as SABC 1,2 and 3 as well as ETV. Radio ads will be aired on Highveld 94.7, Cape Talk, Umhlobo Wene, Ukhozi, Thobela, But, once the R10 million (or more) has been raised, the work won’t stop and Nampak and Bevcan will be supporting further initiatives.
A BRIGHT fuTuRE These are exciting times for Nampak, Bevcan and us ordinary South Africans – on all fronts, it seems. Angolans too have reason to cheer. “It is all very promising indeed,” says Smuts. “I am excited; we are excited by the future. We also need to consider all potential threats to the business and we need 82
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to also look at our costs and make sure we are competitive. “We produce about 2.6 billion cans in South Africa. The local market is actually fairly small and it has been categorised over the last 10 years or so by a massive drop in beer and cider volumes, where a lot of those volumes have gone to returnable glass in a bigger formats like 750ml bottles. However, we are starting to see this cycle changing and in the last year we have seen significant growth in our beer volumes. “On the soft drinks side, the big thing we’ve had over the last two years has been a shift from cans to PET bottles. Interestingly, we have done market research here that shows us that from the consumer point of view there is actually a preference for soft drinks out of cans. Our research shows consumers believe that soft drinks taste better out of a can; it is colder, fresher and fizzier.” He says the company is certainly looking at expanding its footprint in Africa. “Opportunity is all around,” concludes Smuts. END
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seedtime FroM
harvest to
Colin Chinery goes inside NWK, a massive presence on the wide plains of the North West Province. By Colin Chinery
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NWK FEAtUrE
F
rom seedtime to harvest and onwards, NWK is a massive presence on the wide plains of the North West Province - the ‘Texas of South Africa’. NWK is a “producers’ and buyers guide, mentor and partner”, and provides “the logistics and expertise powerhouse” for modern and efficient farming. It offers a complete service to the producer. “We offer a complete service to the producer, miller and buyer; everything conceivable from agricultural management to getting credit and investment resource, buying seed, fertiliser and equipment, and all the way through to harvesting and subsequent handling services,” says corporate marketing manager, Johan Bezuidenhout. “And for the new producer we can help from day one. “Big guys will get bigger and with costs rising noone will make it on say 1,000 hectares and planting maize. But on the agricultural www.southafricamag.com 85
NWK FEATURE
services side we are very closely involved in developing up-coming farmers, taking them to the next level to become commercial farmers.” Around 12 percent of the national landmass can be used for crop production. Less than a quarter is highpotential arable land, of which more than 60 percent is given over to South Africa’s most important crops - cereals and grains. South Africa has a dual agricultural economy; a well-developed commercial sector and a predominantly subsistence sector farmed by black farmers. Yet South Africa has the ability to be self-sufficient in virtually all major agricultural products. Since NWK was founded as a co-operative more than a century ago, South Africa’s population has increased
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from four million to 40 million. And in the last 30 years, in the predominantly white-controlled commercial sector, applied research and improved farm management have nearly doubled agricultural production. South Africa is not only self sufficient in virtually all major agricultural products but in a normal year is also a net food exporter, making it one of only six countries in the world capable of exporting food on a regular basis. NKW has been a pioneer in the development of North West Province agriculture, surviving wars, depressions, storms and inclement weather. It is a saga of determination, courage, cooperation, innovation, service, ambition and integrity.
“We’ve always had a very good reputation as a company, regarded as people of integrity who are straightforward in business with no strings attached, with values focused on the client,” says Bezuidenhout. With grains and oilseeds forming a major part of agriculture in the North West, NWK’s Grain Services are perfectly placed and geared to provide producers with a comprehensive service from agronomics to marketing. To make delivery convenient silo facilities are strategically placed within NWK’s service area, with backup services spanning weighing, grading, cleaning, drying and storage. NWK also offers professional marketing, price risk management and stock-adding services to grain buyers and sellers.
NWK FEATURE
NWK’s Liquid Fertiliser Plant Other key NWK operational produces a complete range of liquid components include: Agricultural Management: With fertilisers with high quality requirements the pressure on producers to increase as well as outstanding support and advice. production in the face of macro-economic Financial Services: The NWK and climatic uncertainties, the support of Financing department understands the expert partners is essential. NWK’s wide producers’ needs, offering custom-designed range of specialised precision services packages to enable the farmer to manage includes GPS land-mapping, mechanical more competitively. As and chemical well as financing solutions precision farming, for production costs, NWK soil analysis and also provides financing mapping. Specialised for farm implements, agricultural vehicles, insurance and management other needs. services range from agronomical and NWK Insurance livestock management s in Zeerust, The inside of one of our trade store Brokers “supply the best to agricultural North West Province insurance products”, economics. including short term insurance, crop, and Trade: NWK Trade offers its input insurance, and retirement planning, clients a range of high quality input efficiently, professionally, and at the most and consumer goods at competitive competitive price. prices, while the Industries: Epko, Mechanisation a subsidiary of NWK, Business Unit focuses has facilities to press on the marketing and sunflower oil and servicing of a prime sunflower oilcake from range of agricultural seed and refine crude implements sunflower oil and bottle including tractors pure sunflower oil of the and harvesting highest quality. Noordfed equipment. Setter passage at manufactures and markets Opti Chicks hatch ery The Seed a superior range of wheat, Department supplies and markets a wide grain-sorghum and maize products. variety of quality seed, and stringent Opti Feeds, another NWK subsidiary, quality requirements ensure it complies produces and sells an inclusive range with the highest standards. of animal feed, backed by an excellent Fertiliser marketing operates under technical support team. Opti Feeds based the banner of the NWK-Omnia agency and in Lichtenburg, North West province, is a focuses on the marketing and supply of dry subsidiary supplying the eastern part of and liquid fertiliser and agricultural lime, Botswana with products including a range as well as scientific nutriological advice. for poultry, pigs, (beef) cattle and sheep. 88
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We at Prestige Credit Insurance Consultants are a dynamic team with extensive experience in the Credit Insurance field. We pride ourselves in developing tailor made credit insurance policies to suit your company’s needs. Our main focus is to keep our client’s best interest at heart! We are associated with all the major Credit Insurers in South Africa. They are: Coface South Africa, Credit Guarantee Lombard Insurance Group Licensed Service Provider
We ensure that our clients enjoy competitive rates within the market by providing you with comparisons between all the Credit Insurers. We ensure that our clients receive the service you expect, as well as strive to exceed your service expectations. We assist you with any service related matter you may have with your Credit Insurer and strive to achieve a positive end result! info@prestigecredit.co.za www.prestigecredit.co.za Tel: +27 (0) 11 022-0642
The list is impressive. But it doesn’t end there. Chicken is South Africa’s favourite meat and poultry production - especially broiler production - is big business. With the huge market demand set to grow even further, Opti Chicks is part of NWK’s longterm strategy to diversify and invest in enterprises supporting core business. As part of its expansion strategy, rearing and laying sites have been built in the Ottosdal district. Two years on and 100,000 eggs are being produced daily, and 500,000 day-old broiler chicks brought to market. “It requires a scientific approach. You can’t just jump in and assume you are going to be successful, but we are doing well,” says Bezuidenhout. One of the main challenges facing South African agriculture, he adds, is food security, an increasing and worldwide issue.
NWK’s strategy is to grow and increase differentiation. “We also want to streamline and take the company to a new level of production and effectiveness, aligning ourselves with new market opportunities, and play an increasing role in agricultural and business as a whole,” Bezuidenhout says. “For us and our clients we always want a win-win situation, a cost-effective service that is always a pleasant experience for anyone who does business with us. “We have a new slogan – ‘Your Grip on the Market’ - which means we will help any farmer to get a grip on whatever market he is in. “South African farmers are ordinary people doing extraordinary things, and together we can tackle any situation in the changing and challenging world of agriculture. NWK is here so the producer can flourish.” END
South African farmers are ordinary people doing extraordinary things
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black gold?
ALL IMAGES Š Sable Mining 2010
CoAL:
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tHE
Delta Mining Consolidated (DMC) has joined forces with AIM-listed resource company Sable Mining Africa Limited, creating several exciting opportunities for South Africa.
www.southafricamag.com
Delta Mining Consolidated (DMC) Ltd FEAtUrE
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he coal industry is a lucrative market where opportunity is abound. South Africa has long been Europe’s major supplier of coal and exports have begun to shift east, as part of Asia’s coal boom. The stage is set for South Africa to become an increasingly influential player in the market, determining how the world trades and prices coal. And, we need more coal at home specifically for new coal-fired power stations like Eskom’s Kusile. There is ample opportunity. “In the coming decade South Africa will face a number of difficult decisions around how to meet domestic coal demand and deal with increasing exports, building the infrastructure that would enable the country to significantly expand market share in the global coal trade and climate concerns,” an expert told South Africa Magazine at a recent mine expo. Delta Mining Consolidated (DMC) aims to capitalise on this with major projects all over Africa. The company has joined forces with an AIMlisted resource company Sable Mining Africa Limited, which has a key objective of foreign investments and early exposure to mining businesses. Sable Mining has invested in DMC with a focus on mining assets in sub-Saharan Africa, understanding that it has much-needed experience in this area. Sable Mining CEO Andrew Groves believes that DMC owns world-class coal assets in proven mining jurisdictions. “…We believe that with our support and guidance, its [Delta Mining Consolidated] welldefined coal portfolio can be rapidly advanced towards production,” he says. DMC controls four major coal interests in South Africa and Botswana. Groves labels the portfolio “world-class”. In a statement in March, Sable Mining gave an update regarding its proposed acquisition of DMC. www.southafricamag.com 91
Delta Mining Consolidated (DMC) Ltd FEAtUrE
Regulatory approval of the acquisition was received from the Department of Mineral Resources, but a number of other conditions central to completion of the acquisition remained “outstanding”. “Sable Mining and DMC are actively working towards the satisfaction of these conditions,” Sable said in a statement. “The board of Sable Mining has also become aware that DMC had a different interest in Springbok Flats coal project… DMC management are in advanced discussions directly with the tribal authorities on a new arrangement which will involve obtaining a 70 percent participation in the Springbok Flats project.” DMC’s assets in South Africa include the Rietkuil coal deposit, the Springbok Flats project, and the Limpopo coal project. In Botswana, DMC and Sable Mining are working on the Dukwe project, which consists of 12 greenfield concession blocks covering 8,682 sq. km. The majority of these blocks are situated within the same coalfield of Morupule Colliery. This area provides about 80 percent of Botswana’s domestic power generation. In terms of its South African operations, Sable Mining recently announced that it had been awarded mining rights for the Rietkuil coal project by the Department of Minerals and Energy.
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WEBBER WENTZEL Webber Wentzel is one of the leading corporate law firms in South Africa with a significant international practice. The firm has developed an enviable reputation as a consistent provider of appropriate and valuable legal assistance to the mining sector, backed by absolute commitment to service excellence. The firm has over 360 professionals (over 145 are partners) in a variety of legal disciplines.
The granting of the rights is the latest step in the development of a mine at Rietkuil, which is being designed to process three million tons a year of coal, with a 30-year life-of-mine, Sable Mining says. Rietkuil is adjacent to Exxaro Resources’ Leeuwpan colliery and Kuyasa Mining’s Delmas colliery. A Bankable Feasibility Study was completed in May by SRK Consulting, The granting of the rights marks another significant step towards the mine’s development; it was a key milestone. END
delta mining PROJECTS Rietkuil The Rietkuil Coal Project is a major project for DMC. It is located within the Delmas magisterial district in Mpumalanga; conveniently situated close to Johannesburg, Pretoria and Witbank. To date, 254 cored boreholes have been completed. “Rietkuil has the benefit of being in close proximity to established infrastructure including rail and roads linking the mine to the port of Richard’s Bay and domestic clients,” Sable Mining says. Importantly, Rietkuil is also located approximately 30km from the nearest Eskom power station, and a tender has been submitted to become one of Eskom’s preferred suppliers. Eskom is South Africa’s largest consumer of domestic coal, and it is Sable’s intention to target Eskom as a major off-take customer for its power station grade product. Springbok flats Springbok Flats Project, which covers 53,000 hectares, is situated less than 80km from Pretoria and constitutes a large part of a major undeveloped coalfield in South Africa.
There are approximately 290 historical boreholes on the project with in-situ tonnages currently modelled at over two billion tonnes. Sable plans to develop the project and thereby earn-in up to 51 percent share in the project. The project is situated close to existing modern infrastructure and the project has potential for coking and thermal coal. Dukwe Delta Mining and Sable Mining’s Botswana assets cover 8,682 sq. km. and includes the 628 sq. km. Dukwe Coal Project, which consists of 12 greenfield concession blocks. The majority of these blocks are situated within the same coalfield of Morupule Colliery. “This area provides about 80 percent of Botswana’s domestic power generation,” says Sable Mining’s website. “Exploration of Dukwe commenced in October 2010. Since then, 10 boreholes have been created,” it adds. Limpopo The 7,500 hectare Limpopo Coal Project in the Limpopo Province of South Africa is another key project that Delta Mining and Sable Mining are working on. The project consists of three contiguous blocks - South, Riedel and North, and according to Sable Mining’s website is “adjacent to the Vele Project of London quoted Coal of Africa plc, which has been granted a mining licence by the Department of Minerals & Energy in South Africa.” www.southafricamag.com 93
tHE rECYCLING
WAT C H D O G The Institute of Waste Management of Southern Africa (IWMSA) was set up 30 years ago with the objective of providing South Africa with something that is written into South Africa’s constitution, the right to a clean and healthy environment. By John o’Hanlon
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WMSA’s biennial conference WASTECON is the largest industry event in southern Africa and the occasion for the election of a new president to serve for the next two years. Last year’s WASTECON in Johannesburg attracted more than 700 delegates and was the largest in IWMSA’s history. The man elected to lead the Institute until 2012 was Stan Jewaskiewitz, a consultant whose firm Envitech handles civil and industrial projects and has worked extensively throughout southern Africa and the Middle East. Jewaskiewitz is a pragmatist, with no illusions about the size of the task facing Africa if it is to catch up with the rest of the world, though a passionate advocate for better training and status for the industry and for the better direction of resources. While regulation and international benchmarking has driven improvements in industrial practice - for example the management of tailings dams in the mining industry - municipal waste collection is still very patchy in South Africa. “One of the biggest problems we are addressing as a country is how we are going to reduce the amount of waste going to landfill,” says Jewaskiewitz. The Polokwane Declaration signed in 2001 set targets for a 50 percent reduction in waste to landfill by 2012 and zero by 2022. “There will always be a certain amount of waste left over, of course, but the declaration aimed to achieve maximum recycling by that date.” This was the first attempt to get South Africa aligned with European and global practices, but it was never going to be easy to reach these targets. Although the most economically developed country on the
African continent, South Africa is faced with numerous priority issues such as public safety, housing, education, health and the like, so waste management is often perceived to be of lower importance. Rapid population growth, use of high-tech materials, the tendency to congregate in large cities and the establishment of informal settlements where waste management is limited or non-existent have resulted in increasing pressure on waste management resources. In any case the Polokwane Declaration has now been overtaken by the Waste Act of July 2009, which sets a new agenda for the industry; one in which IWMSA will undoubtedly play a pivotal role. “The first requirement is to set up a truly national waste management strategy – we are currently working on this and setting new targets, not just for waste to landfill reduction but addressing the lack of waste collection facilities in South Africa,” Jewaskiewitz says. He estimates that 50 percent of population have no service at all, though the situation varies wildly, with only the large cities having adequate services. In local municipalities, the landfill is often an unmanaged dump. Illegal waste dumping is common. The Waste Act calls for more licensing at every stage in the process. If it is properly implemented, industry will have to introduce cleaner production technology. Households will have to separate their waste; the country will develop a recycling infrastructure. IWMSA started its preparation two years ago when it held a strategic planning session that took a long hard look at the industry. “We had to refocus, and we decided the first thing we needed to do was to bring our
one of the biggest problems we are addressing as a country is how we are going to reduce the amount of waste going to landfill
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Bisasar Road landfill gas to electricity project in Durban, part of first CDM project in South Africa.
communications up to date,” says Jewaskiewitz. The website (www.iwmsa.co.za) was upgraded; the Institute started to send electronic newsletters to members and the public at large. Nowadays it is regularly featured on radio and TV and is recognised as the mouthpiece of the industry, though it has some way to go before it attains the status and ‘teeth’ enjoyed by the UK’s Chartered Institution of Wastes Management for example. The biggest single problem in the region is a shortage of skills so the Institute has thrown its 96
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Some of the larger metros have put out tenders for alternative technology for the treatment of waste
weight behind education and training. “We have developed training courses and materials right up to degree level,” Jewaskiewitz says. “We have a tie up with the Cape Peninsula Institute of Technology (CPUT) and the local government SETA (Sector Education and Training Authority).” Education and training is at the forefront of the development plan that IWMSA is currently working on, with the aim of creating a structure that will really support the industry. Already, young people are starting to view waste management as a
IWMSA FEATURE
career path, and Jewaskiewitz hopes newly qualified engineers will soon come along to plug the woeful gap in skills at local and municipal level. There are more incentives for local authorities to invest in recycling than just cleaning up the environment. Though few at present, waste to energy schemes are beginning to appear in South Africa. Separation and treatment reduces waste to landfill but it also generates valuable materials and by-products that can be recycled, sold, exported or used to generate electricity. “Some of the larger metros have put out tenders for alternative technology for the treatment of waste,” says Jewaskiewitz. “The projects are all fronted with a recycling plant. The waste arrives at the facility, goes through process where the recyclables are separated out
and the organic matter goes to the energy component. This could be incinerated, fermented or gasified to generate steam to drive turbines.” Many IWMSA members are involved in these projects, and while training is its first priority its second is the task of persuading local authorities to make enough financial provision for waste management and recycling. Finally, the Institute is lobbying hard to introduce accreditation for service providers. While engineers are governed by their professional bodies, anyone can set themselves up as a waste management practitioner and it would help control the industry if they were required to be accredited by IWMSA. “As things stand, we can only suspend their membership if they violate our code of conduct,” Jewaskiewitz concludes. END Outdoor exhibition of vehicles and equipment at WasteCon 2010
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garbage, oNE MAN’S
treasure ANotHErS
Waste is not waste, it is a resource, says Waste Plan Managing Director Bertie Lourens. By Ian Armitage
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Waste Plan FEAtUrE
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reen is in and whether you want to save the world, stop global warming or simply reduce the waste you send to landfill, there are companies out there that can help. One of them is Cape Town-based Waste Plan, the most significant recycling supplier in the Western Cape. According to Managing Director Bertie Lourens, it diverts about 1,000 tons of refuse, including paper, plastic, and aluminium from landfill every single month in the city of Cape Town, from about 60,000 houses. “Our goal is to transform the way people – individuals, families, businesses and government - see waste,” Lourens says. “Waste is just not waste any longer. Waste is now a resource. It really is a resource that could make earnings, but it can conserve the resources, which we use on an everyday foundation.” Waste Plan, which was formed in 2003, has recycled enough paper to preserve the lives of more than 62,000 pine trees, Lourens says. He adds that individuals are “voluntarily taking part in the recycling system.” “We specialise in recycling and landfill reduction.” Waste Plan also aids businesses with waste reduction systems – it works with the likes of Tiger Brands, DHL and Makro - and has employment initiatives to assist in supporting people who are homeless. “The services we offer include onsite sorting and cleaning, waste reduction/removal
I think we demonstrate that waste is not waste. Waste is a resource: it can generate income, create jobs and save the environment
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Waste Plan FEAtUrE
RED DESIGN Waste Plans’ brief to RED was to create a corporate look changing the way people think about waste. With targeted visuals and payoff lines, a distinct look of professionalism and quality, RED ensured Waste Plan a competitive edge within their market. By carrying the brand through to relevant corporate products, a professional brand was established within the field Waste Plan attend. Driven by big dreams, passion and creativity, REDs’ team takes the growing of their clients’ brands very seriously. RED work with new business concepts and great ideas, creating a strong brand to reach the target market professionally.
www.redadvertising.co.za studio +27 867272899
and electronic monitoring,” says Lourens. “Our main focus point is on removal reduction and in turn waste to landfill reduction. “Waste is a risk that needs to be managed by a professional,” he adds. “For a business, we will do a waste audit free of charge, apply our formulas to their waste streams and if we can reduce the waste they send to landfill, we will propose a service where we manage their waste in the most cost effective and environmentally friendly manner. “For each kg of waste that we remove from the waste stream there is a double benefit - reduction in landfill cost, as well as income from the recycling of that kg. “Of course, everyone is interested in saving money, and more so now that things have been a tougher with the economy. Also with green targets, CSR and environmental responsibility how it is, companies want to be seen to be green and caring for the environment.” 100 www.southafricamag.com
Waste Plan FEAtUrE
Waste is just not waste any longer. Waste is now a resource
Waste Plan’s involvement with some blue chip companies have increased recycling rates from below 50 percent to above 80 percent. Waste Plan profits from the reduction of waste, and saves businesses money, Lourens says. “We aren’t just about recycling or waste management; we also do waste reduction.” Waste Plan is the biggest company of its kind in the Western Cape. It also has a growing presence in Gauteng. Next up is KZN. “We are expanding in KZN,” says Lourens. “We have grown in the Gauteng, where we have set up a division which has been running for about a year now – I moved to Pretoria to head up that division. “Our KZN general manager is in training at the moment in Cape Town. When we are ready we will launch in KZN. It could be before the end of the year. “It is exciting for us as then we will have a very secure platform – a Western Cape, KZN and Gauteng footprint. From there we will plan the next, smaller provinces.” Reducing the amount of waste going to landfill is a huge challenge, but Waste Plan is making big strides. The Polokwane Declaration signed in 2001 – which led to the Waste Act of July 2009 – sets ambitious landfill waste reduction targets. 102 www.southafricamag.com
“Waste is a risk and it costs money. It only makes sense that it needs to be managed by a professional that is focused on reducing your waste. We are that professional,” says Lourens. Are enough people recycling in South Africa? Sadly not, Lourens concedes. “As a country, no, not at all – we don’t do enough; there is absolutely more that could be done. There is a willingness to recycle more, but government needs to put the infrastructure in place to enable a greater rate of recycling. “I think we demonstrate that waste is not waste. Waste is a resource: it can generate income, create jobs and save the environment.” Waste Plan’s story is remarkable. It
has enjoyed growth that is the envy of competitors; it is the sort of growth that would make a 1990s Bill Gates jealous. “Our story is one worth shouting about,” says Lourens. “Over the last four years we have doubled turnover and profit each year. I don’t think you will see that kind of growth from any company and I attribute that to the change in legislation and the change in the way the world views the environment. “Companies, governments and individuals are becoming more aware of the importance of the issue of how to deal with waste, although there is plenty more to do. “Growth has been phenomenal and we can’t see how that will possibly slow down over the coming years,” he concludes. END
CAPE USED COOKING OIL COLLECTORS Registered for spent oil collection and biodiesel production Please contact Elsa Olsen Cell: 082 871 81 51 Tel / Fax: 021 854 39 23 Email: olsenelsa@yahoo.com Or visit our website:
www.cucoc.co.za
Caring for our Environment! Registration # 2001/018687/23 ● VAT Registration # 477 019 38 88
Dressed
impress to
Uniform and corporate wear provider Duchess has had an immensely successful year and counts some of South Africa’s biggest corporate and public organisations amongst its clients. However it has not all been plain sailing, as Jane Bordenave finds out.
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Duchess Clothing (Pty) Ltd FEAtUrE
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ounded in South Africa in 1934, Duchess has grown from a family business into one of the largest workplace garment producers in the country. In 2007, it was taken over by the Taylor Family Trust and now has 145 employees. It counts among its clients Free State Province Department of Health, South Africa National Blood Service, Cape Peninsula University of Technology, GrandWest, City of Joburg and Royal Serve. It also caters to beauty and heavy industry. Duchess has long been a byword for quality and this is something that the business continues to aspire to. As Robyn Graney, sales, design and marketing director at Duchess explains, “it’s not easy to differentiate us from the competition in this industry. However, the main thing that we strive for and which defines us is the quality of our garments and fabrics. This is something we have been known for since our inception. It’s something customers, both potential and
actual, can put their trust in.” This commitment to quality and bond of trust sits at the very heart of the company and is reflected in its mission statement, “we want to dress the world – to be recognised as a world class, eco friendly manufacturer. We want to deliver quality and style, to fire passion and spirited optimism, to support growth and to have fun on our mission.” This statement is not just an internal focus, though. Duchess aims to bring its clients into these values and aims as well. “We want our customers to be passionate, excited and enthusiastic about the garments we are making for them,” says Graney. “In turn, we want the people on our team to be passionate and excited about our products too. We want them to be proud to work at Duchess and to be ambassadors for the brand.” Through these strategies, the organisation seeks not only to achieve continual steady growth internally, but also that of its suppliers in the local community, she adds. One of the other ways in which the business hopes to achieve growth is by making its goods relevant to all markets, not just in South Africa, but internationally. “The concept of work wear is changing,” says Graney. “Uniforms are becoming increasingly chic and stylish – you only have to look at sir stewards and stewardesses now to see how this industry has been revolutionised. “We are very responsive to these demands and want to provide a portfolio of garments that are not just good quality but that are fashionable,” she continues, explaining that as a worker may be wearing their uniform five days out of seven, it needs to be desirable to wear, as well as durable and comfortable. The continued success of the company – which has seen a 25 percent growth in turnover over the past 12 months – is thanks largely to a revamp it underwent between 2008 and 2010. When the Taylor Family Trust took majority shareholding, Duchess was dying on its feet. Turning around its fortunes www.southafricamag.com 105
Duchess Clothing (Pty) Ltd FEAtUrE
required a complete overhaul of the company, starting with the brand itself. “There had been no change in our corporate identity since 1957, which presented a perception problem for us in the marketplace,” Graney. “Our brand acts as a showcase for our business. We wanted to be seen as a more professional corporate organisation, not just ‘people who make uniforms’. So it was very important for us to create a refreshed image and establish ourselves in the market as a younger, more modern brand. Amongst other things, this included an overhaul of our logo, our corporate colours and so on.” This revamp went beyond a simple change of image, though. Graney has previously worked at such big names as Arcadia Group in the UK and brought to Duchess extensive experience of purchasing, marketing strategy and fashion. She was able to apply this knowledge not only to the change of corporate identity, but a fundamental change in the way the company did business. The next focus was to radically change the organisation’s catalogue. “We did a lot of very hard work on this. We had to be sure that we had available in our range everything that a customer might want, but also to lay it out in a logical, easy-touse way in our catalogue.” Consequently, customers are not presented with whole outfits, but with a flow of garment types, from tops to jackets to skirts and trousers. Photographs of different styles are shown, with colour swatches to choose from and line drawings next to each item. This approach allows the purchaser to build up a uniform in a logical, stepby-step manner. It has also taken into account maternity wear, religious 106 www.southafricamag.com
Trubok is a successful clothing manufacturing/distribution company that was established in South Africa in the early 1930’s and who’s vision is to be Africa’s top supplier of quality, on-trend fashion, offering value for money, impeccable design and styling, manufacturing excellence and superior customer service. The brand’s excellence lies within an eight decade tradition of fine South African craftsmanship and exquisite quality and style. They have a long successful track record of supplying garments (in-house brands and private labels) to leading corporate and retail shops. Their strengths lie in their:
• Award-winning designers on board • Technical team with over 70 years expertise in corporate, retail and export markets • Textile technologists and specialists in fabric selection, supported by independent Lab reporting • In-house product development • Gerber trained, computerised pattern technologists
Leading CLothing ManufaCturer speCiaLizing in Ladies and gent’s Corporate and retaiL wear. Please visit our showrooms or contact our offices at: Johannesburg 011 321 6600 Port Elizabeth 041 369 0023 Durban 031 305 2113 Cape Town 021 790 2252
www.trubok.co.za email info@trubok.co.za
sensibilites and the different demands faced in each of the industries it caters to. The catalogue strategy also includes frequent updates delivered to customers. “We are not the kind of organisation that will issue a generic catalogue every year or two years,” explains Graney. “We follow fashion trends and provide them to our clients. So the ability to update our catalogue is very important.” The company is able to offer this constant flow of updated designs using a lean manufacturing strategy, eliminating warehousing altogether and producing garments to order. This ideal of constant refreshment is carried over to Duchess’ website too. “The website we inherited in 2007 was very basic and provided little useful information to clients,” says Graney. “Consequently, when we overhauled the company, we also completely rebuilt our internet presence.” The website now showcases its products by industry and by garment type, as well as providing additional information on ordering and areas such as corporate social responsibility (CSR).
Finally, the organisation is committed to working in partnership with its clients. “We are able to provide advice to our customers regarding their own logos and corporate branding and how that can be incorporated into their choice of uniform,” says Graney. “We are also aware that some big corporates operate across different industries and, while having different uniforms for these areas, will want to keep an element of corporate identity across them all. We can help them to do that.” In terms of the future, Duchess will continue to follow key trends and provide practical yet stylish garments to its customers. It also has its eye on international expansion, having already established itself as being of global standard. In total, over the next five years, it hopes to grow by around 130 percent. Duchess has undergone a transformation over the past 36 months that has enabled its current success and allowed it to set ambitious targets. And with skilled managers such as Graney on board, the only way is up. END
Every minute, every hour, Crossroads Distribution (Pty) Ltd is a business poised for growth says Danie Schoeman, Executive: Customer Solutions & Client Acquisitions.
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Crossroads Distribution FEAtUrE
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rossroads Distribution (Pty) Ltd is a contract logistics business that offers clients tailormade solutions to suit their logistical and supply chain needs. These include courier, express and parcel services, shared or dedicated warehousing solutions, fulfilment services, freight brokerage solutions, freight consolidation for the mining industry as well as transport solutions that include the movement of fuel and chemicals, scheduled line hauls for time-sensitive freight, movement of food grade products, specialised materials management, and transport of hazardous materials. It also has the ability to integrate multimodal operations with contracts where it integrates road and rail. “Crossroads Distribution has its roots in Jowells Garage and Transport, founded by Joe Jowell, which began in the 1930s and was primarily centred in Namaqualand and the Northern Cape,” Danie Schoeman, Executive: Customer Solutions & Client Acquisitions, tells South Africa Magazine. “The firm was established in 1997 when the Transport Division of Trencor was acquired in a buyout by management and a Black Empowerment partner.” Crossroads has since positioned itself to offer broader supply chain solutions, Schoeman says. “We are a supply chain solutions company.”
We are also focusing strongly on environmental and green issues, and are in the process of measuring our impact on the environment
STORY Of SuCCESS
The story of Crossroads Distribution is one of vision, success, commitment and dedication. And, having undergone a major restructuring in the last year, it is set for future successes. The recession presented an excellent chance to streamline and improve, it seems. “This was not as a result of our performance during the recession, as this was constant, but rather an opportunity to streamline the service we offer to our clients,” Schoeman says. Crossroads Distribution now consists of two operating divisions: Skynet Worldwide Express and Crossroads Distribution Logistics Solutions. www.southafricamag.com 109
Crossroads Distribution FEAtUrE
CROSSROADS DISTRIBuTION Crossroads Distribution’s head office is based in Cape Town, while the head offices of Crossroads Distribution Logistics Solutions and Skynet Worldwide Express are in Gauteng. Combined, the group has an impressive 43 branches, 150 agencies and 90 dedicated in-house operations on client premises throughout southern Africa. It serves more than 5,000 customers in over 1,600 communities daily. Skynet Worldwide Express offers international services through 1,115 offices in 209 countries. The Group maintains a fleet of more than 700 vehicles, made up of on-site handling equipment, truck tractors, and trailers of various combinations. “The Group has its own fully equipped workshop and administrative facilities at all of our major depots, which provide the technical support necessary to successfully run client contracts,” explains Schoeman. Crossroads Distribution has certainly made its mark and is recognised as one of the leading contract logistics companies in South Africa - It has an annual turnover of R1.2 billion and offers “innovative, synergistic and practical solutions in logistics and supply chain management,” says the company. 110 www.southafricamag.com
the Group has its own fully equipped workshop and administrative facilities at all of our major depots LOGISTICS SOLuTIONS Crossroads Distribution Logistics Solutions ranks as one of the top five road transport operators in southern Africa. Providing a variety of services - including on-mine handling and bulk transport; bulk liquid and powders distribution; freight consolidation and cross-docking; scheduled national line haul; dedicated distribution fleets; freight management; warehousing and distribution; fulfilment, and management of mission critical components - clients are primarily in the “blue chip” strata of the commercial, industrial and mining sectors, the company says.
SKYNET WORLDWIDE EXPRESS Skynet Worldwide Express offers its clients national and international courier services; national express road freight; specialised distribution; technical courier; pick-up and dropoff; supply chain solutions; warehousing and distribution;
document consolidation; mailroom outsourcing; in-house distribution: mail-house facilities; and on-site contract management. “Skynet has an impressive pedigree,” the company says. “From humble beginnings in the early 1980s, the company has enjoyed remarkable growth.” In South Africa Skynet Worldwide Express is now arguably one of the largest courier companies, the second largest mover of international traffic and the fifth largest independently owned network in the world, the Crossroads Distribution website adds.
PREPARING fOR GROWTH Looking forward, Crossroads is determined to strengthen its position in the industry; having come through the recession ”in pretty good shape”, it has been sharpening its customer focus strategy to grow as its clients grow, as it were. “This will help us to achieve our growth target of 30 percent this year,” says Schoeman
“We are also focusing strongly on environmental and green issues, and are in the process of measuring our impact on the environment,” he adds. Crossroads Distribution is certainly looking at expansion. “Our business is poised for growth, and we have plans to selectively expand our footprint further north of South Africa’s border,” says Schoeman. “As the first privately owned logistics company to have black shareholding partners, Crossroads Distribution is one of the largest black-owned logistics companies in South Africa,” Schoeman continues. Crossroads Distribution’s clients benefit from its unique selling points including an EmpowerDEX Level 3 rating, and ISO 9001, ISO 14001 and OHSAS 18001 accreditations. “We deliver operational excellence where it matters most – to our clients,” Schoeman concludes. END
Testing times IN SOUTH
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AFRICA
Inspectorate SA FEAtUrE
Professional inspection services are critical whenever custody of goods transfers between buyers, sellers and traders, while independent laboratory test results ‘prove’ integrity, chemical composition and physical properties of a given product. Fanie Nel managing director of sector leader Inspectorate South Africa says his company delivers the resources of a global group with cutting edge technology and a local tightly focused personal service. By Colin Chinery
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nspectorate is one of the world’s leading independent laboratory analysis, commodity inspection and testing organisations, delivering service at key commercial locations throughout the globe. Here in South Africa a major part of its business is centred on the coal industry, including on-site mine laboratories, exploration, plant, and shipment consignments. Another prominent division of its Johannesburg-based operation specialises in metals and noncoal minerals such as platinum, chrome and industrial minerals. Inspection of commodities imported into and exported out of South Africa along with movements within the national borders is also an area of focus. Port activities include administering the Richards Bay Coal Terminal Laboratory on behalf of the shareholders as well as a presence in Maputo. “We act in a third party position. If two parties buy and sell a product, we perform an inspection service and undertake qualitative and quantitative analysis,” says Inspectorate South Africa’s managing director Fanie Nel. Socalled ‘Clean Chemistry’ – pharmaceutical, environmental and food – is an increasingly important niche, he adds. “It’s one of our big growth points. We are involved in a variety of testing for most of the major pharmaceutical companies and it’s growing every day. We are also providing environmental and food testing, for clients but generally not at the front end. For example, regarding environmental services, in the main we work with environmental engineering companies supporting them in base-line and pollution monitoring testing studies for major
our single biggest asset is our staff plus the awareness of where we are going and what we need to deliver
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Inspectorate SA FEAtUrE
QUANTUM BIOTECHNOLOGIES (PTY) LTD. Quantum Biotechnologies was formed as a result of the sale of the Oxoid division of the C.A. Milsch (Pty) Ltd. business in May 2007. Quantum Biotechnologies is a privately owned South African registered company which distributes Oxoid microbiological media and reagents a well as lyophilized microorganisms from Microbiologics Inc. We also offer feminine health products from Swiss Precision Diagnostics and a novel range of alcohol-free hand sanitisers from Cyan Trading in the UK. Our goals are to deliver world-class products to our customer base throughout Southern Africa and to provide strong technical support to the wide range of laboratories that use our products. Our offices are based in Randburg and we have a branch office on Cape Town.
companies, especially those in the petroleum and mining industries.” Much of the growth here is driven by legislation and international standards and the need for companies to comply with and adhere to legislation. “The public and businesses are increasingly aware of the importance and significance of these issues,” says Nel. Operating in a “very competitive market” means that competition is experienced from big global companies and also small private and local businesses operating in each sector. So what differentiates Inspectorate SA from its rivals? “Our single biggest asset is our staff plus the awareness of where we are going and what we need to deliver,” explains Nel, who has been with the company since 2002. “Although we are part of a big international group with all the advantages this brings, we provide very dedicated and specialised services to our 114 www.southafricamag.com
customers. So our strength is firstly our staff – our compliment is very strong and experienced - and then an awareness of what is required of us and where as a company we want to be.” Another corporate characteristic says Nel is a personalised service in the locations where its clients operate. “We believe every contract is unique. Each of our customers in each sector, whatever the commodity, trades in the same commodity or sells the same product. Each runs their business differently, identifying key drivers and the specifics they require from us as a service. So we set out to understand what those needs are, what is unique to the client and then to ensure that what we deliver the service that makes and keeps them happy.” Inspectorate’s roots in South Africa go back to the 1930s when it operated as a family business. “Many customers and others involved have known the company for
sixty seven years.” Then in the late 1990s it became part of an international group, with accelerated expansion and multi-million rand investment programming, much of it focussed on growth and training. “Developments in the coal industry consume considerable capital investment, simply to fund growth. We have also invested significantly into delivering to the pharmaceutical sector as well as the metals and minerals side. We assess where the markets are going and try to establish where we should be in 12-18 months, looking at
Developments in the coal industry consume considerable capital investment, simply to fund growth
movements in each market and equipping ourselves to satisfy customers. “A large part of our growth is determined by the performance of the industries we serve. The coal industry, for example, has seen huge expansion recently and we have been fortunate to benefit from this. Changes in the pharmaceutical industry have seen us develop a significant increase in business. And with new legislation pending, we are looking at each part of the business, each sector and assessing what levels of service we need to deliver in order to grow.” www.southafricamag.com 115
Inspectorate SA’s biggest single problem and challenge however is the skills shortage, the scourge of South African industry and business. “Being part of such a big and successful international group, resources are not as big an issue as the skills shortage and acquiring enough suitable staff to deliver the services demanded by our customers,” Nel explains. “If you consider any South African company, whether technical or nontechnical, the local skills pool is very limited. There are many people out there but the training is lacking – and in our technical field, especially so. “Nowadays you battle to acquire analytical chemists; in fact there are very few people with the relevant experience. Since we are a fast-growing company, we try to identify young candidates, bring them to the business and then expose them to specific areas where we would like them to deliver a service. Much of our training is in-house, where we take already qualified or semiqualified people and then train them for specific tasks and roles in our business. “Much of our industry is driven by engineering, chemistry and similar technical skills, and globally there is a shortage of suitably qualified personnel. South Africa has recently experienced a large exodus 116 www.southafricamag.com
of such people, not necessarily only out of the country but also out of the industry. You now find engineers working in banks and chemists running their own businesses. There was a huge exit out of the industry and that gap has never been filled. So the experience factor has not been passed to the next generation. Overall it’s a global problem but in South Africa we are possibly seeing the worst of it.” Inspectorate SA’s growth target is ambitious, but realisable says Nel – a 30 percent increase in capacity and revenues and a wider geographical reach. “We are seeing movement throughout Southern Africa. At the moment we have several significant projects on hand, including a number in Mozambique, and are busy
Inspectorate SA FEAtUrE
negotiating future projects. As part of the Bureau Veritas Group there are also significant business opportunities in Namibia and other West African countries. “Just in Southern Africa we anticipate substantial growth for our business, and are busy focussing on that over the next 24 months. As a company we have grown significantly over the last five or six years and our vision will continue to be the preferred global supplier of professional laboratory and commodity inspection services to industry. “We have a range of plans and objectives to which we are aspiring, and you will hopefully see many new developments from us over the next few years. It’s exciting stuff!” END
SMM Instruments our Vision: ‘to be a globally respected instrumentation company that prides itself on having excellent people in all spheres of its activities.’
SMM Instruments (Pty) Ltd is a socially progressive company and prides itself on having excellent people in all spheres of its activities. this is also reflected in our vision statement. SMM Instruments (Pty) Ltd was founded in 1978 and provides solutions to virtually every need of the Analytical and Laboratory community. Exclusive International Agency Agreements, professional Sales Staff and Experienced Service Engineers ensure that solutions to application problems are readily available and enable SMM Instruments (Pty) Ltd to Service and Support its entire range of instruments throughout SubSaharan Africa. the company’s impressive product portfolio features world renowned process and analytical equipment for industries such as Chemical, Petrochemical, Food & Beverage, Agricultural, and Medical & Surgical.
Kyalami Business Park, Unit 10/11, Kyalami Crescent, Kyalami BoulevardJohannesburg, South Africa, Phone: +27 (0) 11 540 6000 - Fax: +27 (0) 11 466 2220 email: info@smmafrica.com - website: www. smmafrica.com
S I LV E R T O N E N G I N E E R I N G
CoMPLEtES
GALVADIP
ACQUISItIoN Pretoria-based Silverton Engineering proud of its ability to adapt in ways that benefit its customers. Its latest move – the acquisition of Galvadip, a hot dip Galvanizing facility - is an extension of this. By Ian Armitage
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Silverton Engineering FEAtUrE
S
ilverton Engineering was established in Silverton, Pretoria in 1949, as a manufacturer of copper and brass radiators. It has grown over the years to become South Africa’s largest heat exchange manufacturer, adding power transformer oil coolers, transmission oil coolers, mining and agriculture products to its range. After being part of the Behr group of companies for a decade, the company is once again privately owned and is a wholly owned subsidiary of the holding company Silverton Industries (Pty) Ltd. Its factories occupy over 60,000sqm of space and employ over 350 people, drawing on the skills and expertise from the surrounding area. “Our customers include names like Ford, Nissan, Honda, John Deere, and Toyota and Mahle-Behr/Hella” says commercial director Theo von Bardeleben. “We produce a range of heaters, surge tanks, transformer coolers, transmission oil coolers, charge air coolers and radiators,” he adds. The product range is diverse. And in March, it got even bigger. Silverton Engineering completed the acquisition of Galvadip, a hot dip galvanising facility, which has a reputation of producing some of the best quality in the galvanising industry. “It is a significant and important acquisition for us,” says von Bardeleben. “It is an acquisition that makes us more competitive on price and one that broadens our horizons.” The cost of galvanising, he explains, was such that it meant Silverton Engineering’s products were becoming more and more expensive. Clients, naturally, wanted cheaper product and with the flood of product from Eastern Europe, China and Asia, something had to give. “One of our products requires galvanising and we were getting a little bit of pressure from our customers on
pricing,” von Bardeleben says. “We looked at a couple of options and one of them was to vertically integrate and get our own galvanising on site. That opportunity arose and we acquired Galvadip, moving into the galvanising industry. We have brought the galvanising business and all the other business that comes along with it, which is not necessarily our specific business. That is an added bonus; it allows us to diversify our portfolio where we are not just galvanising the products for our sake but we are now involved in various other industries which we weren’t involved with before.” Galvadip’s operations will eventually move onto Silverton Engineering’s site in Pretoria. It has excess space. “Why did we choose Galvadip?” von Bardeleben asks. “They were our supplier and it just so happened that as we were looking, the majority shareholder of Galvadip was ready for retirement. It went through on March 1, 2011.
For us, in terms of the industries we work in, we still see massive potential in Africa. We see lots of things going on but we feel it is still largely untapped
Truck core drying process www.southafricamag.com 119
“What are the main benefits of the acquisition? Well, we are under a lot of pressure from imported product, cheap imports. We had to do something on pricing. Once you control the whole process, the whole value chain, you are able then to move the margins to where it suits best and with this [acquisition] we now control the full process and are able to offer our customers better pricing and compete with imports. Then hopefully with that we gain extra volume in the business, which will then offset the lower margins that we have had to accommodate.” In the short-term the plan is to consolidate. “It will certainly be a year of consolidation and we - I wont say we’ll rule out anything - will continue with organic growth. But, if something that looks economically viable comes long we will look Transformer welding
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at it,” von Bardeleben says. With the increase in the price of commodity-based metals like copper, brass and zinc, Silverton Engineering continually seeks cost effective solutions to ensure that a competitively priced, yet technically and structurally sound product finds its way to market. “That is very true,” von Bardeleben says. 2010 witnessed South Africa successfully host the Soccer World Cup. The Gautrain link between Sandton and OR Tambo was also completed. In 2011, the R15 billion Gauteng Freeway Improvement Project continues to make great progress. “There is opportunity,” says von Bardeleben. “South Africa is coming off a very low base, but we have got a lot of good capital projects in the pipeline: the government is doing the freeway improvement project which is a massive project around Gauteng. The Gautrain is almost ready for completion. And there is a power station or two, specifically the multibillion rand Medupi Power Station. Now we aren’t first tier suppliers but from all of those projects there have been lots of little spin-offs in the second and third tiers, which has been great for us. “The mining industry is also picking up as commodity prices increase, so it is brining infrastructure spending back into mining and we’ll benefit from that. Construction is really low, but our broad portfolio helps us manage risk – we aren’t too exposed to one sector.” Silverton Engineering is seeing good growth in the mining industry, he stresses. “In the past, the automotive industry formed a large part of Silverton Engineering’s business,” says Maartin Boshoff, managing director at Silverton Engineering. “During the last few years it has seen the global financial crisis take its toll on the industry. This prompted a re-think of our strategy and led us to explore new business avenues into the industrial heat exchange markets.” Despite the strong value of the Rand,
Silverton Engineering FEAtUrE
Transformer radiators stacked pre delivery
Silversolder SA Supplier of high quality Silver Solders and Brazing Alloys
A leading supplier of solders, fluxes & solder pastes, pewters, white metals etc. to the Electronics Manufacturing Industry in South Africa TEL: +27 11 824 1427 FAX: +27 86 530 4110 E-mAiL: info@techmet.co.za WEb: www.techmet.co.za www.silversolder.co.za
Silverton Engineering continues to see exports increasing into Europe and the US. It continues to supply the likes of John Deere, Freightliner and Mercedes Benz for the OES markets, von Bardeleben says. “Where would we like to grow and develop?” he explains. “For us, in terms of the industries we work in, we still see massive potential in Africa. We see lots of things going on but we feel it is still largely untapped.” “At Silverton Engineering we inspire our team to achieve success and growth, both personally and within the company. We subscribe to Jim Collins’ principles of “Good to Great” in order to move the company forward and to deliver products and services that exceed customer expectations. “We are proud of our ability to adapt in ways that benefit our customers,” he concludes. END
S W I F T TO O L S Since 1983 Suppliers of: Abrasives - Welding Equipment - Tools Protective Wear - Fasteners - Paint Cleaning Materials
We are proud to be associated with Silverton Engineering
PO BOX 404 OLIFANTSFONTEIN, 1665 NAIL AVENUE, OLIFANTSFONTEIN TEL: (011) 316 1931/316 2775 FAX (011) 316 3901
Resilient Franchising Big Draw For ASPIRATIONAL SoUtH AFrICA A franchise is essentially a replica of an existing business and the right franchise can provide a measure of security often missing from new ventures. But it’s not roses all the way, and with its large and increasing appeal to enterprising South Africans. Vera Valasis executive director of sector association FASA talks to Colin Chinery.
T
he news that Cyril Ramaphosa one of the country’s most prominent and politically connected businessmen is taking over SA’s McDonald’s restaurants throws a spotlight on the franchise sector that employs half a million people in South Africa. The former union leader and ANC general secretary during the constitutional negotiations that ended apartheid in 1994 has gone on to found an investment empire with interests including a power plant, a Coca-Cola bottler and mines. Chairman of leading blackowned and managed investment 122 www.southafricamag.com
Focus FASA
company the Shanduka Group, Ramaphosa is paying for a 20-year master franchise agreement to run all 145 McDonald’s restaurants in South Africa. Unlike a conventional franchisee, development licensee Ramaphosa will own all the assets, including owning or leasing the real estate. “There’s no one in South Africa more qualified to get the development licensee than Cyril. His experience, track record, values, and community involvement speak volumes,” says Dave Murphy, divisional president of McDonald’s Asia-Pacific, Middle East and Africa. His enthusiasm is shared by Vera Valasis, executive director of the Franchise Association of South Africa (FASA). “We are very excited about the acquisition. Cyril is a fantastic businessman with a very good track record,” she says. A recent research report sows that franchising is contributing 11.8 percent (R287.5 billion) annually to South Africa’s GDP. It is a proven business model – 29,204 outlets under 551 systems at the close of February 2010 - presenting many opportunities for entrepreneurs to grow with minimum investment, security of investment, and returns. The biggest franchising sector is petroleum - forecourt retail offering makes it a popular attraction followed by retail fast food and restaurants. Currently there is good growth in the homebased education sector – additional to formal schooling provision - with home
care (for the terminally ill for example) among the latest entrants. “This is something we haven’t seen before. Whether it will take off I’m not sure because it’s still very new,” says Valasis. Based at Bedfordview, Johannesburg, FASA’s primary role is to define franchising while ensuring all parties adhere to internationally-accepted business principles. Another is to promote the advantages of franchising business to entrepreneurs, prospective franchisees and to the public at large. Traditionally, FASA members make a voluntary commitment to abide by the ethical standards laid down by FASA and the international franchise world, but new legislation sees a decisive toughening up. Up to now the industry has been unregulated, and the worst a member who had transgressed FASA’s code of ethics could face was expulsion. But with the Consumer Protection Act that came into force in April all franchise companies must comply with its terms or face fines. “We’ve been working with the Government for the past four years, and very much welcome this protection,” says Valasis. Ethical violation has been an issue outside the FASA fold, she adds. “And these people have given the entire industry a bad name. Some would sell a franchise and then vanish overnight with the potential franchisee’s funds to Australia or some other destination. And these kinds of incidents have happened quite frequently in recent years.” Valasis is the first woman executive director in FASA’s history. Her experience in franchising spans over 20 years from her early days managing restaurants and in retailing, to
Franchising is a very sound and reliable business model with a very successful track record here as all over the world
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holding the position of managing director for leading brands Milky Lane and Juicy Lucy under the Pleasure Foods banner, and more recently as MD of Debonairs for Famous Brands. Set against the recessionary backdrop, she says South African franchising “somehow manages to hold its own. If you look at the sector’s contribution over the last couple of years it has waned a little but we haven’t seen a major fall-out.” If commitment and adequate funding are among the givens for running a successful franchise, Valasis adds another; a strong emphasis on attention to detail. “A question often asked within many successful businesses is why one franchisee is so much more successful than another. There will be similar personal traits, equally fantastic locations and good staff, but the one doesn’t deliver the same sales turnover as the other. And the answer every single time is that the successful person is pedantic about every detail. And this is absolutely crucial in our business. An employee might not have that same level of attention to detail but as a business owner this is an imperative. It makes 124 www.southafricamag.com
the difference between success and failure.” Entrepreneurs beware however. “Such people are temperamentally averse to the cookie cutter approach and find it hard to apply themselves to a business model. And it is this that is required to make a success of a business originally conceived by the owner. It’s crucial that franchisees implement the business model in its entirety, but not everyone is cut out for that restricted environment.” Switching hats, a potential franchisor should first analyse whether a business is franchisable. “And if so what are the barriers to entry? There are many businesses that are franchisable but have very low barriers to entry. In this case growth potential will be difficult because potential and existing franchisees look at the model and copy it. “The other issue to consider is the high cost of supporting a franchise system. You have to employ top notch staff, pay them well, and willing and able to support your franchisees. Many potential franchisors do not understand that this is probably going to be the biggest single investment they have to make in the business.”
Focus FASA
Companies have different views about franchises. Grocery chain Spar and restaurant company, Famous Brands do not have any corporate-owned stores and work only with franchisees, while Pick n Pay and Shoprite have more corporate stores than franchises. The high take-up of franchises in South Africa is said to be due in part to poor education levels, with companies struggling to find high-quality managers. “It’s certainly an issue. Many franchisees battle with this especially when it comes to senior managers.” Entry stakes are rising too. “After 2008 we’ve seen many of the franchisors are now placing their financing requirements at a higher level. Up till then - and depending on your profile personal funding injection might have been 40 percent. Now it’s up to 50 percent. This has made things more difficult of course, but one can understand why these new requirements have been put in place.” Funding access - or lack of it - is a major issue. “I’m passionate about the funding issue. The Government says we need to create jobs and upskill people but what the funding agencies and media are saying - and what is happening on the ground are two different stories.
“We are getting enquiries from prospective franchisees on a very regular basis saying they have approached various Government funding agencies, and they are not getting a response, are being rejected, having to wait six months for an answer, or told the budget has run out. It’s all hugely frustrating for young Black people coming up and who are excited about the opportunities. It’s a very big dampener of the growth and future of the industry.” Despite these frustrations, franchising remains a catalyst for growth in South Africa. “Very much so. Many of the corporates who over the years took the franchise route have been blown away by the performance of those franchised stores. By putting franchisees in those businesses they saw a 20 percent – 30 percent growth. When they were company—owned outlets they could not have achieved those figures. “Franchising is a very sound and reliable business model with a very successful track record here as all over the world. It has shown that despite the recession the industry can and does hold itself well during hard times and you can’t say that about many sectors. “The proof of the pudding is there. If your business is placed well in terms of funding and location it will continue to grow. I strongly believe there’s a great future for franchising in South Africa.” END
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SIMPLY A unique dining experience…. By Ian Armitage
I
love Thai food. It is fantastic. I love everything about it; there are many, many Thai dishes I love to eat. I would love to be able to cook them, but I can’t even scramble an egg! Lucky, Simply Asia is just down the road. Now, you have probably never eaten Thai, and might be quite sceptical (unless you’ve been: in that case you’ll agree), but let me tell you, it is wonderful. 126 www.southafricamag.com
Simply Asia sells great authentic Thai food, offering an exciting, fresh and healthy alternative for time-strapped contemporary diners like me. You can sit-in or take-away. And better still is it something different: something new. “Simply Asia Thai cuisine and Noodle bars are an exciting, fresh and healthy alternative… we are for diners who are looking for authentic Thai cuisine,” says franchise manager
Simply Asia FASA
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Simply Asia FEATURE
Enzo Cocca. “With a business model already proven in 21 restaurants it is expanding rapidly. Simply Asia was established in Cape Town in 2003 by Thai entrepreneur Chaiphorn Lekcharoensuk, who wanted to introduce authentic Thai food to South Africa. The concept is straightforward and Simply Asia aims to serve “Thai food in a chic, modern and trendy quick-service restaurant” that pays special attention to the take-out trade. Elements of the Thai food cooking style are made visible in store, bringing in the authenticity that made my dining experience more enjoyable. “We have been able to draw on the experiences of sister restaurant brand Wang Thai,” Cocca says. “ Simply Asia is an exciting concept.” Many Simply Asia dishes boast exclusive sauces, made with ingredients imported directly from Thailand. “The concept involves creating traditionally healthy and authentic Thai food and Asian complements in a modern quick-service environment,” Cocca says. “Thai food offers a selection of curries and noodles dishes with specific flavours from traditional ingredients such as lemon grass, Jasmine rice, ginger and roasted chilli paste,” he adds. 128 www.southafricamag.com
Catering to many different South African tastes, Simply Asia’s extensive menu offers many options to diners. And my favourite feature – which can apparently be found in each and every store - is the windowed kitchen, where the customer is able to watch the authentic Thai chef cooking each and every dish.
FRANCHISE OPPORTUNITIES The Simply Asia head office is situated in Cape Town, which is also the home of a central warehouse that houses exclusive stock imported for use in each store, as well as the kitchen facilities that produce an exclusive range of products and sauces. “Franchises are supported by HQ, which includes central kitchen that services outlets,” Cocca says. A team of operational support staff provides guidance and support on all operational aspects of the running of the business, he adds, while senior chefs measure the performance of store chefs on product quality and sound kitchen management principles.
Simply Asia Fasa
“We offer franchisees on the job training,” Cocca explains. Initial training is conducted over four to six weeks on a full time basis. Ongoing training provided covers all operational aspects of the business. “The in-house marketing department, supported by a professional advertising agency, provides guidance in respect of local marketing,” the company said in a recent web campaign. “Simply Asia franchisees are people oriented and highly motivated individuals, possessing sound business acumen, good communication skills and a high level of commitment to operational excellence,” it continued. Simply Asia is a huge success; there has been widespread acceptance of and demand for Asian food in South Africa. “We are a fresh healthy alternative for consumers – an alternative to burgers, pizza and chicken, which currently dominate the fast food market,” Cocca says. Simply Asia’ continues to grow from strength to strength; it thrives by offering
quality food at reasonable prices: Simply Asia restaurants are well known for providing substantial portions of food made with fresh, seasonal ingredients. “We believe that the root to our success has been the fact that we provide excellent food at affordable prices. While people may have cut other luxury restaurants from their monthly household budgets, Simply Asia’s patrons keep coming back because our food is healthy, tasty, exotic and value for money,” states founder Chai Lekcharoensuk. An expanding consumer base with an appetite for fast food as well as a high quality sit-down meal is making South Africa an appealing option for quick-service expansion. Customers love the unique tastes and the amazing combinations of ingredients on offer at Simply Asia. The menu is flexible, offers superb nutritional value and is affordable. “Great food, great people, great times,” Samantha Mignotte, a Simply Asia customer from Park Road in Cape Town, says. “We have a passion for good food,” Cocca concludes. END www.southafricamag.com 129
H E AV Y M E TA L FOR HARD ROCK
the story of Nestek, South Africa’s leading manufacturer of components for water-powered rock drills, is a textbook example of how an independent minded individual can forge his own and his family’s good fortune given enough determination. By John o’Hanlon 130 www.southafricamag.com
Nestek FEAtUrE
B
ack in 1978 when Ken Burrows was working as a Works Manager for Nordberg Manufacturing, an American company specialising in rock crushing equipment for the mining industry, he decided he would really rather be working for himself. Many people get that feeling: few do anything about it. But Ken weighed up his assets: “I had very little cash, but I had confidence in my abilities as an engineer, so I sold a boat and a caravan that I had and took a bond on my house. With that money, I bought a lathe, a milling machine and a power saw and hired a small workshop in Germiston.” The first orders came from Ken’s former employer, and to supplement them he and his brother-inlaw scoured the Johannesburg area for any work they could get. At this early stage Nestek was making general spares and doing maintenance work but networking soon brought in some valuable contacts, significantly the Chamber of Mines of South Africa, which had an interest in the development of water hydraulic power systems. “Getting involved with the Chamber was quite a boost for us,” says Burrows. At the same time as establishing this crucial connection, the fledgling Nestek formed a connection with two key ‘commercial’ customers for which the company still works. These were the leading South African abrasives company Grinding Techniques for which Nestek started making grinding wheel moulds and RNE Pumps, a specialist manufacturer of pumps for mining operations, also recently founded and in a position to outsource some precision machining. With these three customers Nestek grew successfully and by 1982 it had outgrown the small workshop it started in and had to move to larger premises, also in Germiston, taking on a couple of employees on the way. This growth continued until the recession of 1984 hit South Africa; demand for the products of Nestek’s customers dropped, and orders dwindled.
These were lean years as Ken Burrows recalls, and he nearly went to the wall. His original partner quit the business to get a regular job: ironically it was the fact that a regular salary would not have sustained the bond that Burrows had taken out on his house that sustained his resolve not to capitulate. “I was virtually bankrupt, but just managed to keep the company going: fortunately a collaborator of the Chamber of Mines saw our potential and decided to back us. He managed to pay some of our creditors and got us out of our immediate problems. We battled on for another couple of years until the economy started looking up and we succeeded in getting the company into a position where it was again economically viable.”
Getting involved with the Chamber of Mines was quite a boost for us
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Nestek FEAtUrE
By 1987 the economy started to improve again and the Chamber started ordering more components from Nestek. This was low volume work connected with the hydro power drills the organisation was working on, and by this time the company had forged itself a niche in this key technology for hard rock drilling. “The machines required testing, and once again we found our premises were not big enough to house the equipment, pumps and water tanks that were needed.” At the same time things started looking up for his other customers. Grinding Techniques increased its range and volumes as it started to export its products, and RNE Pumps, whose volumes had dropped to very low levels during the lean years, experienced a boom in sales as mining activity increased. In 1989 Nestek moved into a larger factory. Up until this point all the work had been carried out using manual lathes but Burrows realised that to achieve the intricate shapes, the quality of finish, the precise radii and above all the repeatability needed for the drills he would have to invest in CNC machinery. Three used
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CNC lathes were installed at the new premises, giving the firm the ability to produce runs of precision components. In the same year Nestek was accredited to the ISO 9001 international quality standard that it maintains to this day. The next five years were stable enough as Nestek established its expertise in hydropower drilling component manufacture, into which the Chamber of Mines’ research arm COMRO had been working for decades. The technology was gaining acceptance in the mining community, but Nestek lacked the finance to produce enough volume to meet growing demand. Gullick Mining however was appointed by C.O.M. to market water-powered drills, Nestek then continued to produce part’s for Gullick.The opportunity arose when Gullick decided to focus on the coal mining market and to divest its rock drilling operation. In 1997 Nestek formed a consortium with the water-powered rock drill design marketing and consulting company Novatek and bought out Gullick’s hydropower rock drill manufacturing and IP. This was a step change for Nestek. Today the two companies share premises in Johannesburg,
Milllington Steel and Alloys provide ‘COST EFFECTIVE TOOLING SOLUTIONS’ through distribution of high qualityPOWDER METALLURGICALLY produced Tool steels HOT WORK Tools steel ● COLD WORK Tools steels ● PLASTIC MOULD Tools Steels ● HIGH SPEED Steels ● MARTENSITIC STAINLESS Steels ●
●
We have been supplying the South African toolsteel market for almost seven years and have recently expanded into larger premises in Midrand Gauteng. We are the official agents for Robert Zapp Werkstofftechnik who are the European distributors for CPM and ASP materials. We also source high quality conventional toolsteels from mills such as Dorrenderg Edelstahl in Germany and other high quality steel mills.
Ken Burrows managing director
with Novatek carrying out the design, development and marketing and Nestek the manufacturing in its 3,000 sqm factory. Equipped with 10 modern CNC lathes, three CNC vertical machining centres, two 10 ton overhead cranes and a variety of other machine’s. “We currently have 54 employees,” says Burrows. “The factory is audited once a year by TüV to ensure its manufacturing facilities and working procedures are kept up to the standard required for ISO 9001/2008 quality system.” From the garage operation Burrows started in 1978 Nestek has established its place in the South African engineering industry specialising in the MNF of mining equipment – a market that is expanding in tune with world mineral demand. The future looks secure, but Burrows is retiring this year, happy to leave the running of the company to his two sons Michael and Dennis, currently works manager and production manager respectively. Both are experienced engineers, Michael having worked for Eskom before joining the business and Dennis with Iscor (now Mittal Steel South Africa).
PO BOX 2143, RANDPARK RIDGE 2156 CELL: 082-567-6679 TEL: 011-312-0817 FAX: 011-312-2587 EMAIL: millington@imaginet.co.za
Michael’s son Jeffery also works at Nestek, having recently completed his trade apprenticeship as a turner along with black colleagues, under the tutelage of his grandfather. Though Burrows is looking forward to having more time to explore the less accessible parts of southern Africa in his off-road vehicle and trailer he will continue his involvement in training. “No engineer can fail to regret the lack of skills in South Africa and I will do all I can to pass on to these youngsters the passion I have for manufacturing.” Having three generations of his family actively involved in the business he started gives him immense satisfaction, Burrows admits. And he will continue to oversee the maintenance of Nestek’s ISO rating, another contribution that he can make without working full time. After all at 74 and having kept faith with his vision through extremely difficult times he has surely earned some time for relaxation! END www.southafricamag.com 133
REDUCING
DEATHS oN SA roADS
How Armco Superlite is helping to reduce deaths on our roads. By Colin Chinery
134 www.southafricamag.com
Armco FEAtUrE
F
ifteen thousand people are killed on South Africa’s roads in a typical year – over 200 died over the recent Easter Holiday – prompting Transport Minister Sibusiso Ndebele to say “There is war on our roads and we must win this war against road deaths.” In Britain the corresponding figure is 2,250; in Australia – with a population half that of South Africa – it is 1,600. The Government has set a target of halving SA’s current death toll by 2014. ”We must reach a stage where we obey road rules through voluntary compliance and self-consciousness and not merely law enforcement,” says Ndebele. “In South Africa we are not anywhere near that. There is still a lot of work to be done with regards to self-consciousness.” www.southafricamag.com 135
The manufacturing of road safety products in South Africa is “still in its relative infancy,” says Tom Loughran, director of Armco Superlite, the Johannesburg-based Group whose Road Safety division designs and manufactures - to the most exacting international standards - high quality products such as crash cushions, delineators, guardrails, wire rope safety fences, speed ramps and road cones. “Lives are easily lost in a split second on roads, so one cannot compromise on any level of quality,” he says. “And because Armco road products have been regarded as the leading items in road safety, we have worked continuously for many years to become just that - the preferred South African road safety company.”
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Armco belongs to JSE-listed O-line Holdings, and Road Safety is one of three Group divisions within the Armco Group. From its formation six years ago its vision has been to work within a partnership with SANRAL – the South African National Roads Agency Limited - consultants and contractors in creating safe roads for motorists in South Africa. Together, says Armco, “we want to generate ‘Forgiving Roads” SANRAL’s Road Safety Management System gives an overview of the processes for managing the SANRAL road network to improve safety, ensuring that road safety is a central consideration in every decision made about construction, maintenance, operation and the management of its road network. As
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part of this RSMS, a Road Safety Strategy was developed to identify key issues and set goals. SANRAL supports the integrated approach to road safety and sees the disciplines of engineering, education, and enforcement (the Three E’s of Road Safety) each play a vital role in reducing the carnage on South Africa roads. And while SANRAL’s primary sphere of influence is engineering, the RSMS allows for the facilitation of the integrated approach to road safety. What differentiates the Armco Group from its competitors? “First of all
I’d like to think we are quite nice guys to do business with. In terms of our road safety side we are definitely the leaders. We’ve spent a lot of school fees and homework getting the products in a short time,” says Loughran. “To give an example, in the brief time we’ve been manufacturing crash cushions and other products for Trinity in the States, we’ve installed some 250 crash cushions around the country in seven years, and we’ve got orders for another 100. “So from having no market, we’ve effectively captured the market. In achieving this we have inevitably opened
the manufacturing of road safety products in South Africa is still in its relative infancy
OUR PRODUCTS INCLUDE: Steel Wire Rope Steel Wire Rope Slings Alloy Chain Slings Polyester Slings Shackles Wire Rope Clamps Thimbles Hooks Turnbuckles
Chain Hoists Lever Hoists Lashing Chains Load Binders Webbing Load Restraints Plate Lifting Clamps Tirfors and Tirfor Ropes Fitted Ropes Nylon and Manilla Ropes
OUR SERVICES INCLUDE: Technical advice and back-up A view of a road crash site where two female British students were killed, on June 10, 2010 in Johannesburg. © Getty Images
Splicing and socketing of steel wire ropes on site splicing and socketing of steel wire ropes on site P.O. Box 1440 Bedfordview, 2008 26 Crucible Road, Heriotdale, Johannesburg Tel: (011) 626 2936/7/8/9/40 Fax: (011) 626 2047 Email: sales@wirerope.co.za Web: wirerope.co.za
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ARMCO at a glance Armco Superlite (Pty), Ltd. offers solutions to road building, mining, and various other applications. Its products include safe hit channelisers, bases, waterfilled barrier, ABC terminal, truck mounted attenuator, melba cones, soft cones, speed ramps, barrier guard, quadguard system, wire rope safety fence, delineators, triton barrier, ironman barrier, guardrail, and stopblock. The company was incorporated in 1997 and is based in Johannesburg. It operates as a subsidiary of O-Line Support Systems (Pty) Ltd.
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ourselves up to competition. By doing all the ground work and having the various systems accepted has encouraged other players to enter the market. But as a company operating in the road safety sphere we are still very much the front runners. “Our mission is to do the best that we can. We are a vibrant company complying with the highest international standards, always seeking to do better in the markets in which we operate, and use our assets to the maximum capacity. “ We look at the value of lives, the effect of ending those lives on our roads, and say; ‘We have an answer to it.’” END
The Armco Guardrail
AGUSTAWESTLAND A PROUD SUPPLIER TO RED CROSS AMS OF SOUTH AFRICA In September, AgustaWestland, a Finmeccanica company, announced that the Red Cross Air Mercy Service (AMS) of South Africa was expanding its emergency medical services operational capabilities by introducing into service a fourth AW119Ke single engine helicopter and one Grand light twin helicopter. These aircraft are being used for EMS and rescue tasks from bases across the country.
For more information please contact: tel: +44 (0) 1252 386429 Fax: +44 (0) 1252 386457
www.agustawestland.com
AgustaWestland has achieved major growth in the South African commercial helicopter market in recent years having received orders for approximately 30 helicopters of various types. The Precision Aviation Services (PAS) authorised AgustaWestland Service Centre based in Pretoria is also making a major contribution to the recent commercial success of commercial products by providing a comprehensive range of support services. The AW119Ke single engine, the AW109 Power and the Grand light twins as well as the AW139 medium twin helicopter model have all been ordered and introduced into service in South Africa performing a large variety of missions including VIP/corporate transport, emergency medical service and harbour pilot shuttle. With its fleet growing in the country, AgustaWestland is committed to providing ever improving levels of support services to its customers. To maximize the operational effectiveness of customers helicopters AgustaWestland is continually expanding it support services as close as possible to where its customers operate. The SA Red Cross Air Mercy Service (AMS) is a non-profit organisation with bases in Cape Town, Oudtshoorn, Durban, Richard’s Bay, Nelspruit, Bloemfontein and Kimberley that provide an air ambulance network, rural health outreach and emergency rescue service to metropolitan areas and remote rural communities. Since its inception in 1966, the AMS has expanded its services to provide a comprehensive emergency aero-medical and rescue service to the Western Cape and Mpumalanga and health outreach programmes to the more remote communities of KwaZulu-Natal and the Northern Cape, who previously had little or no access to basic healthcare services. www.southafricamag.com 139
KINGJAMES 20547
ROSES ARE RED, BUT THE ACSA FEATHER AWARDS ARE GREEN. Winner of the 2010 ACSA Feather Award for OR Tambo, Cape Town and King Shaka International Airports, in recognition of service excellence.
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