newsletter dec 2013/jan 2014
Cluster facilitation services are provided by Benchmarking & Manufacturing Analysts SA (Pty) Ltd (B&M Analysts), an organisation that provides high value specialised support services to drive sustainable industrial development. Over the past 15 years, B&M Analysts has developed methodologies and skill sets that allow it to play a unique role in relation to supporting the competitiveness of value chains and the growth of industrial sectors. These services are tailored to support the industrial development goals of government organisations, private sector organisations and public-private partnerships (PPP). B&M Analysts is a verified Level 2 B-BBEE contributor under the Codes of Good Practice for Broad-Based Black Economic Empowerment (B-BBEE). For more information on B&M Analysts please visit www.bmanalysts.com.
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About the Durban Chemicals Cluster
6 Focus Article 1 – Durban Chemicals Cluster Hosts Study Tour to Sasol, Secunda 18 Focus Article 2 – Review of the local regulatory environment and impact on growth 26
27 Farewell 28
Investment and Growth
Value Chain Competitiveness
34 Compliance 36 Transformation 40
SteriTech – Manufacturing Services
About the Durban Chemicals Cluster: The Durban Chemicals Cluster (DCC) is a Public-Private Partnership between the eThekwini Municipality and local chemicals firms that focuses on developing the competitiveness of the chemicals manufacturing industry in KwaZulu-Natal. This not for profit organisation is an industry driven initiative, drawing on the leadership and expertise of individuals from a broad range of member firms. Membership represents approximately 28% of chemicals manufacturing activity in KwaZulu-Natal. The cluster was established in December 2008 with the primary purpose of developing the competitiveness of the local chemicals manufacturing industry. The overarching objective of the Durban Chemicals Cluster is to increase the sales and value addition of the local chemicals manufacturing sector by 53% in real terms between 2011 and 2020. Five strategic focus areas have been identified as being core to attaining the growth aspirations of the KZN chemical
industry and successive ‘business plans’ of the DCC are therefore developed to support progress in each of these five areas. • • • • •
Investment & Growth through market linkages, innovation and investment Compliance through regulatory representation and best practice Value Chain Competitiveness through operational competitiveness Skills Development Transformation
For more information on the Durban Chemicals Cluster please visit www.durbanchemicalscluster.org.za
Focus Article 1: Durban Chemicals Cluster Hosts Study Tour to Sasol, Secunda The Durban Chemicals Cluster (DCC) consists of member firms with varying scales of manufacturing. B&M Analysts facilitates various factory tours for member firms in order to expose them to World Class Manufacturing (WCM) best practices and to allow space for owners and managers to learn the intricacies and decision making needed to implement WCM in their own factories. As a key deliverable of the Value Chain Competitiveness and Compliance Programme, a Best Practice Tour was held at the Sasol Plant in Secunda on 29th and 30th of October 2013. The tour was hosted by Sasol and facilitated by the Durban Chemicals Cluster. The two-day-long tour was facilitated by the DCC Project Manager, Michele Arde, and Senior Facilitator, Sean Ellis. The visit included tours of various sites at Sasol to increase knowledge on manufacturing best practices and supply chain management. Sasol is South Africaâ€™s largest manufacturer, employing more than 34 000 people. The petrochemical giant has recently reported a 25% increase in full year earnings which has been boosted by, amongst other things, higher synthetic fuel production.
The tour commenced with a convoy of member firms disembarking from OR Tambo International Airport on 29 October 2013 in the morning and departing for the Sasol Shared Services Centre in Secunda. Michele Arde conducted an initial discussion outlining the manufacturing best practices and supply chain management imperatives that all firms needed to consider during the tour. She emphasised the need for firms to learn new ways of operating, which is the basis for attaining World Class Manufacturing status.
Thereafter, Mervin Purchase, Corporate Affairs Manager presented a safety video and a general historical overview of Sasol, Secunda. His focus was on the capitalisation of the growth opportunities that Sasol has undertaken which play to their strengths in Southern Africa and the United States. He emphasised that Sasol is one of the worldâ€™s largest producers of synthetic fuels and that they remain one of the countryâ€™s largest investors in capital projects, skills development and technological research and development. Furthermore, Mervin stated that Sasol develops and commercialises technologies and builds and operates world-scale facilities to produce a range of product streams including liquid fuels, high-value chemicals and low-carbon electricity.
The first stage of the tour concluded with a tour of the Synfuels Plant. Sasol Synfuels operates the world’s only commercial coal-based synthetic fuels manufacturing facility, producing synthesis gas (syngas) through coal gasification and natural gas reforming. Sasol has three main areas of operation firstly, coal to liquid fuels technology; secondly, the production of crude oil and thirdly, the conversion of natural gas to liquid fuel. Sasol Synfuels receives coal from five mines in Mpumalanga. After being crushed, the coal is blended to obtain an even quality distribution. Electricity is generated by both steam and gas and used to gasify the coal at a temperature of 1300°C. This produces syngas from which two types of reactor – circulating fluidised bed and Sasol Advanced Synthol reactors – produce components for making synthetic fuels, downstream chemicals and gas. With respect to the production of crude oil, Sasol obtains crude oil off the coast of Gabon which gets refined. The third operation utilises gas. Sasol produces natural gas in Mozambique and is expanding its ‘gas to fuel’ technology. The gas undergoes a complex process to produce linear-chained hydrocarbons such as waxes and paraffins. After the Synfuels tour, the tour party departed for the Polypropylene Plant where Eric Munyangane (Area Manager for Production) and Francois du Toit (Operations Manager) presented a brief discussion on the processes of the Polypropylene Plant. Sasol Polymers produces and markets ethylene, propylene, polyethylene, polypropylene, vinyl chloride monomer and polyvinyl chloride,
chlor-alkali chemicals and mining reagents. Eric and Francois explained that their polymer products are important to a wide range of industrial applications including bottles, domestic disinfectants, footwear and packaging while products from the chemicals portfolio are used in industries such as mining (particularly in gold extraction), pulp and paper, steel, textiles and the water treatment industries.
A plant tour of the facility followed the discussion and each participant was required to be in complete Personal Protective Equipment (PPE) attire according to Sasolâ€™s Health and Safety standards. Member firms were escorted around the plant to highlight the successfulness of manufacturing best practices and supply
chain management at Sasolâ€™s Polypropylene Plant. A notable finding during the tour was the emphasis on the Health and Safety practices at Sasol. Sasolâ€™s overarching goal is to never compromise on safety and health of their employees and their commitment to this is enshrined throughout the plant. A high degree of safety awareness together with clear rules and guidelines are clearly visible throughout the plant.
On the final and second day of the tour, firms visited Bosjespruit Irenedale Mine where they were well briefed about the overall management of the mine. The General Manager, Gerrit van der Westhuizen, emphasised that by combining the
talent of their people and their technological advantage, Bosjespruit Irenedale Mine has been a pioneer in innovation for over six decades. As market needs and stakeholder expectations have changed, so too have their methods, facilities and products, driving progress to deliver long-term shareholder value sustainably. The growth and enhancement of their foundation businesses in Southern Africa is complemented by the significant chapter of growth Sasol has entered in its history. Gerrit describes the mine as having a ‘High Performance Culture’, where each employee understands their roles and each one is held accountable for their actions. Furthermore, Gerrit emphasised that employees have adopted a ‘Living the Dream’ approach, which has directly contributed to increasing competitiveness and sustaining a satisfied workforce and this has indirectly benefited Sasol overall.
“If you have a happy workforce, you will have a productive workforce”. Managing Director of Bosjespruit Irenedale Mine, Gerrit van der Westhuizen
To end the tour, the member firm participants were treated to a tour of the working coal mine, where they safely descended 169 metres, to see and experience first-hand what it is like to work underground. Once inside the mine, member firms were broken up into three teams and experienced tour guides highlighted the actual manufacturing process of coal mining.
This was a highlight of the tour since this was the first time that majority of members have toured a coal mine.
KEY LEARNING: Themes Evidence Health and Safety The importance of Health and Safety has been emphasised and has been noted as a priority at all sites and by all persons engaged with. PPE requirements and Visual Management Systems were extensively emphasised. Occupational health and safety plays a fundamental role in their daily routine. Their safety strategy is built on a strong foundation of leadership and competency, and is strengthened by clear policies and procedures relating to incident investigation, safety risk management, behavioural science and best practice performance standards. A brief review of their approach in each of these safety focus areas is listed below: - Embedding the culture: â€œSafety minutesâ€? are an integral part of all formal meetings and are an opportunity to reflect on shared learnings. - Mining safety: as mining traditionally has greater safety risks, they have embarked on a significant effort to improve safety performance in
Health and Safety... this area. They have implemented a safety improvement plan in 2012 and adherence to this has been successful. - Process safety: They have implemented a process safety management system in each of our businesses. Process hazard analyses have been undertaken and all significant safety incidents are being reported and thoroughly investigated. - Employee conduct: They have implemented strict rules that employees need to adhere too, for example: all employees need to adhere to specific speed limits and receive warnings or dismissals if not adhered to. Generation of Value from Noted, especially at Synfuels, that there is Waste By-Products: an on-going focus on extracting and generating value from waste by-products. All waste generated is viewed as a value generation opportunity, and investment for future revenue.
Team-based Manufacturing Team-based manufacturing systems was Systems greatly emphasised especially at the Bosjespruit Irenedale Mine where each sections of the mine had specific teams working in achieving certain targets. Team-based systems have encouraged collaboration and cooperation to achieve shared goals and thus increasing productivity. Incentive Systems Incentive systems identified at the Bosjespruit Irenedale Mine have proved to be successful since teams are encouraged to meet targets and in turn are financially rewarded. The Sasol Tour was a fantastic learning opportunity for all member firms that attended. The tour was greatly appreciated by participating firms and has provided valuable insight into the practical implementation of World Class Manufacturing as well as demonstrating the ideological shift needed to implement lean in a comprehensive manner. Many member firms expressed that more tours of this nature should be organised since the information received could improve their organisational processes.
Focus Article 2: Review of the local regulatory environment and impact on growth Introduction B&M Analysts (BMA Knowledge Unit) conducted a research study to unpack the differential regulatory environment that is yielding sluggish growth of the eThekwini chemicals manufacturing sector and create a more â€˜level playing fieldâ€™ for local manufacturers. The study was completed and presented to cluster members on 10 October 2013. The findings of the study were discussed by the cluster to explore additional interventions regarding the chemicals industry growth. This article will provide a brief overview of the study and the critical findings thereof. Background The growth of the industry in South Africa (and KwaZulu-Natal) clearly out paces that of eThekwini, suggesting that the operating environment of firms in eThekwini is less conducive to growth. The source of this likely relates to the inconsistent application of national regulations by local authorities as well as supplementary regulatory requirements within eThekwini. This study focused on the municipal level, with this including both regulatory requirements generated at this level as well as the interpretation of national/provincial requirement at this level.
Methodology The methodology adopted in the study consisted of secondary and primary research. Secondary desktop research explored the background of the chemical industry in KwaZulu-Natal, specifically focussing on eThekwini. This also included the review and understanding of the legislative environment as it pertains to the chemical industry. Primary research consisted of both expert and firm-level interviews. Primary research does pose a risk, as information obtained is subjective to the individual being interviewed. The research team made every effort to mitigate this as much as possible. Stakeholder interviews conducted included representatives at the eThekwini municipality, the district manager at the KZN Department of Agriculture and Environmental Affairs and the author of the eThekwini Value Chain Study. The objective of the stakeholder interviews was firstly to assist in identifying the elevant legislation impacting on firms in the chemical industry in eThekwini. The interviews were used to investigate whether there is any difference in how national legislation is implemented and/or monitored at a local level, and whether any of the relevant by laws are particularly onerous in relation to the rest of KZN and South Africa. Four member firms were interviewed and were selected based on their size and regional representation.
Results: Regulatory Environment
The above figure illustrates the regulatory environment overview, the study primarily focused on the National Environment Management Act (NEMA), National Water Act and Hazardous Waste Act.
National Legislation â€˘ The National Environmental Management Act (NEMA) incorporating the Biodiversity Act, the Water Act and the Air Quality Act, is a critical piece of national legislation. The national department of Environmental Affairs (DEA) and the Provincial Department of Agriculture and Environmental Affairs (DAEA) is responsible for implementation and enforcement of the various aspects of NEMA. Compliance with NEMA is quite onerous and it can take firms a long period of time to become compliant. Examples through stakeholder interviews suggested firms that have withdrawn investment because of EIA approval delays (regulations under the Biodiversity Act), as well as new developments where authorization was declined. Examples provided however, were not specific to the chemicals industry. â€˘ The Air Quality Act classifies areas according to their air quality. This forms part of the legislation and is done at a national level. This forms part of the legislation and is done at national level. Areas that are classified as Priority Areas (e.g. the Vaal Triangle) require a lot of focus to improve air quality. Growth of industries that omit air pollution will be inhibited in these Priority Areas. KZN is classified as having poor air quality but the legislation does not classify any areas in KZN as Priority Areas which would serious inhibit industrial growth. Under this Act the municipality has more of a direct influence with the issuing of Air Emission Licences (AELs) falling to the local Health Departments. Municipalities where resources are limited are assisted with issuing licences by the provincial department.
â€˘ The Waste Act (NEWA), the Water Act and the Hazardous Waste Act are also all national pieces of legislation which are implemented and monitored at a national and provincial level. These Acts seek to protect the national environment through the control of hazardous waste and the protection of the environments and the countryâ€™s scarce water resources. Municipalities do not play a direct role in the enforcement or monitoring of this national legislation, although larger municipalities that have sufficient resources are likely to assist the provincial government where they can but they do not have a direct mandate to do so. eThekwini is an example of a larger municipality that will have the resources to assist the provincial government and it therefore follows that implementation in eThekwini is likely to be better than smaller municipalities. However, the same applies to other large municipalities around South Africa such as Ekurhuleni Municipality and the City of Cape Town. Municipal By-Laws Through stakeholder interviews, by-laws were identified that impact on chemical manufacturing firms. The by-laws that were identified include the Waste By-Laws and Schedule Trade Permit. Waste By-Laws All municipalities have a number of waste by-laws that firms need to comply with. The national regulations deal with the countryâ€™s water resources, whilst municipalities are mandated to manage their own sewage systems. eThekwini does assist with
monitoring of national legislation. The local by-laws state that firms need to have a water use licence from the Department of Water Affairs, and eThekwini will report any illegal discharge into rivers that it is made aware of. However, eThekwini has no direct control over the enforcement of national legislation. In eThekwini the by-laws state that firms have to apply for an effluent licence to be able to discharge any liquid waste into the sewage system. This licence will be granted on the level of pollutants in the effluent. This is not dissimilar to by-laws in other municipalities around South Africa and is thus not viewed as being more onerous than regulations in other municipalities. Scheduled Trade Permit One significant difference in the local legislation is the requirement for firms to have a Scheduled Trade Permit (STP) to operate in eThekwini. This requirement applies to firms that participate in activities which are listed in Schedule A of the by law which has been in place since 1979. Similar legislation is not found in other municipalities in South Africa. The STPs are issued by the Department of Health and take into account all aspects of human health and the receiving environment, as well as compliance with all other local and national legislation. Firms in eThekwini that do not get approval for a STP will be prevented from operating in the municipality.
Firm-level Interviews In order to get a clearer understanding of the of the impact of the regulatory environment on chemical manufacturers in the municipality , firm-level interviews were conducted to identify the main pieces of legislation impacting on firms as well as note any additional by-laws enforced by the eThekwini municipality. Three pieces of national legislation emerged from discussions with the firms namely 1) Occupational Health and Safety Act, 2) Compensation for Occupational Injuries and Disease Act and 3) National Environmental Management Act. Two out of the three key pieces of national legislation identified are largely labour regulations not specific to firms in the chemical sector. In addition to the national legislation, three by-laws were identified, two of which are permits and the third a certificate of registration. The three by-laws identified being the Schedule Trade Permit, the Trade Effluent Permit and the Certificate of Registration: Flammable Substances. The firm responses indicated that whilst there may be a degree of variation with regard to the enforcement of regulations by municipalities around the country, the additional requirement placed on firms located in eThekwini through the various municipal by-laws do not seem to be any more/less onerous for these firms when compared to those operations located in other major cities nationally. Interrogating the impact of the regulatory environmental has had on growth for firms located in eThekwini, the firm-level findings are clear. All four firms believe that the regulatory environment has had no impact on their firmâ€™s growth. It was noted that high levels of regulation are typical characteristics of the chemical manufacturing sector and firm growth is instead determined by market factors.
With regard to the impact the regulatory environment has on investment in the chemicals sector in eThekwini, responses varied in focus, yet did not suggest local regulations have had a major impact on investment in the municipality. Conclusion Most of the legislation affecting firms in the chemical sector is national, including environmental legislation as NEMA and the Water Act, as well as labour legislation such as the Occupational Health and Safety Act. The importance of labour legislation to firms in the chemical industry was an interesting and unexpected finding to emerge from the study. National and provincial bodies are primarily responsible for the implementation and enforcement of this national legislation. eThekwini does not have any direct involvement in enforcing national legislation, aside from issuing Air Emission Licences. As a larger municipality, eThekwini may raise issues and influence provincial and national departments with regards to regulations. This may contribute to a growth differential between eThekwini and the rest of KZN, but it does not explain the difference between eThekwini and the rest of SA where there are other large municipalities that also have the resources available to assist. With regards to by-laws, most of the by-laws in eThekwini (e.g. waste by-laws) are similar to other municipalities; the obvious exception is the Scheduled Trade Permit (STP). Since the STP takes into account all aspects of the environment,
human health and regulations; it is not possible for a firm to operate in eThekwini unless it is fully compliant. First impressions of the STP is definitely that eThekwini has by-laws which are more onerous than other municipalities and which would certainly impede growth in the municipality. It was therefore surprising when the interviews conducted did not support this hypothesis. Respondents were very clear in their interviews that they did not feel that the STP or eThekwiniâ€™s involvement in national legislation was impacting negatively on growth in the industry.
New Members: The DCC would like to welcome two new members to the cluster. KZN Resins and Resinkem have recently joined the DCC and we anticipate an effective and sustainable relationship with both firms that will enable a rewarding experience through their cluster membership. Resinkem (Pty) Ltd is a 50% joint venture between AECI (SA) and Georgia-Pacific (Luxembourg). Resinkem specialises in the manufacturing of formaldehyde, urea formaldehyde resins and phenol formaldehyde resins using expertise from its technology partner, Georgia-Pacific Chemicals. Other products include animal feed supplements, pulp and paper additives, extenders and scavengers.
Resinkemâ€™s products may be applied in numerous sectors including fishing, mining, adhesive, resin coating, agricultural and foundry industries. Resinkem is based in the Umbogintwini Industrial Complex. KZN Resins is a proudly South African company that manufacture unsaturated polyester resins and gel-coats for the composite market, as well as Alkyd and Acrylic Resins for the coatings and automotive industries within SA and abroad. KZN Resins is based in Jacobs, Durban.
The DCC is pleased to be affiliated with these two new member firms and hopes this alliance is beneficial to all the organisations involved as well as the industry.
Farewell The DCC would like to take this opportunity to bid farewell to Ravesha Govender. Ravesha has served as Chairperson of the Compliance and Value Chain Competitiveness Programme for the past three years and in this time has provided invaluable contribution to the operations of this programme and the cluster as a whole. We would like to thank Ravesha for her enthusiastic commitment to the DCC and wish her well in her future endeavours.
Investment and Growth: MCEP Firm-Level Application Assistance - Capital Investment MCEP is a Department of Trade and Industry (dti) incentive programme of which the objective is to promote enterprise competitiveness and job retention within the manufacturing industry. The programme provides funding for various initiatives such as capital investment and green applications. The Department of Trade and Industry (DTI) has launched this new incentive that offers R5.8 billion in cash grants to the manufacturing sector and the objective is to promote enterprise competitiveness and job retention within the manufacturing. The support being offered through the DCC relates to (a) ensuring that firms are aware of the incentive programme, how it operates, what can be covered, and the value that they can obtain, (b) assisting firms complete and submit an application and the necessary supporting documentation, and (c) following up and engaging with the Department of Trade and Industry to ensure that applications are processed and that all necessary queries and concerns are addressed. If firms require support with respect to MCEP applications, please do not hesitate contacting the DCC directly.
Business Retention & Expansion (BRE) Cluster Support Desk The Business Retention & Expansion (BRE) Cluster Support Desk initiative is a resource designed for member firms to contact when they are experiencing issues in their companies. The Support Desk institutes a multi-tiered trouble shooting approach by having facilitators address these issues. This month the support desk provided assistance to three member firms namely, Air Liquide, Dow Chemicals and Arkema. Due to the diverse nature of queries multiple departments of the eThekwini municipality were contacted. Two queries relating to acquiring EIAâ€™s were addressed and these member firms have reported that they are satisfied with the feedback received from the respected Municipal Departments that they were referred too. Furthermore, the Support Desk is also currently assisting one member firm with sub-division queries. The DCC Support desk is designed to provide on-going theoretical and practical assistance to all member firms through various channels. Firms are requested to contact the DCC to assist them with any technical problems that they are experiencing, with these issues to be addressed through the BRE Cluster Support Desk.
Quarterly Investment & Growth Meeting The fourth and final Quarterly Investment & Growth Technical Steering Committee (TSC) meeting for the year was held on 04 December 2013 at NCS Resins in New Germany. The session included presentations by John Williams Buyers (JWB) on Procurement Best Practices, Trade and Investment KZN (TIKZN) on the 12i Tax Incentive which is designated to assist with Greenfield Investments and Dave Watts on Port Tariffs within South Africa.
Value Chain Competitiveness: Firm-Level Benchmarking & Manufacturing Support Firm-level benchmarking presents individual firms with continuous improvement opportunities. The benchmarking process provides firms with a process benchmark and a customer benchmark which assists companies with strategies and identification of opportunities that illustrate areas that need to be focused on to secure World Class performance standards in the future. Nine member firms have joined this exciting benchmarking programme. The member firms are also currently participating in the manufacturing intervention provided by the DCC. The intervention provides firms with consultancy support, the support is based on the recommendations of the firm-level benchmarking reports. Carbon Footprint Assessments The cluster is providing member firms with free Carbon Footprint Assessment, in order for firms to initiate carbon reporting. Carbon reporting will become compulsory for industry at the implementation of the Carbon Tax in 2015. A total of eleven firms are participating in the Carbon Footprint Assessment.
GHS Training An “Introduction to Global Harmonised Systems” (GHS) training session was held on 01 October 2013. The course was hosted by Liz Anderson from Responsible Packaging Management Association of Southern Africa (RPMASA). GHS is vast becoming a new regulatory means of communicating hazards in industry and for the consumer. GHS falls under a number of regulations – apart from the need to use products; the Department of Environmental Affairs has just published the Waste Classification Management Regulations for immediate implementation, which requires classification using GHS. This one day course demystified the confusion surrounding implementation of the GHS both in South Africa and Internationally. The session was highly interactive and the DCC was impressed by the enthusiasm from member firms.
World Class Manufacturing Tours: The DCC together with the South African Automotive Benchmarking Club (SAABC) hosted a World Class Manufacturing tour in Port Elizabeth / Uitenhage region in November 2013. The tour visited four firms focussing on Total Productive Maintenance (TPM). Key highlights from firms TPM implementation journey • Leadership must lead and drive the implementation • Standardised work is a foundational requirement • Why - reason for change requirement must be clearly understood and communicated continuously • Measurement -current performance must be measured and improvement results tracked and successes recognised • People engagement, training and selection • Change management • 5 S – visual management on the shop floor supports leadership management by walk about as well as coaching and mentoring • Plan Do Check Action (PDCA) or Plan Act Measure Control (PAMC) measure before and after each initiative and do not be scared of failure, opportunity for improvement and learning
The recent study tour focused on Evaluation of process flows and bottleneck identification, Systems supporting SMED implementation and optimisation, SMED application in current operations and SMED enablers in Machine and Component Design. The tour took place on 19 & 20 November 2013, visiting three best practice firms in KwaZulu-Natal.
Compliance: Compliance and Legal Register Update The last quarterly meeting for the year took place on 10 October 2013 at B&M Analysts in Gillitts. The cluster members were provided with an environmental register update which specifically focused on the new waste regulations that were gazetted in August 2013.
New Waste Regulations At the recent Compliance & Value Chain Competitiveness Programmeâ€™s Technical Steering Committee (TSC), Natalie Kohler (Waste Management Consultant: Golder Associates Africa) conducted a presentation focussing on waste management, classification regulations as well as NEMWA. Natalie assisted members with identifying waste minimisation opportunities and highlighted on the impact of the new waste regulations and how firms can overcome this challenge. The session took place on 02 December 2013 at Premier Hotel in Pinetown.
Transformation: B-BBEE Information Session The DCC hosted a B-BBEE information session on 20 November 2013, the session focused on the newly promulgated B-BBEE codes. Dr. Robin Woolley lead the session which highlighted the changes to the codes and the implication these changes will have on your business and how companies will approach their B-BBEE Scorecard strategy. Dr. Robin Woolley explored the changes and interpreted issues and the technical comparisons of the changes. The following topics were discussed: • High level Strategic implications of the changes for South Africa as a nation. • Focus on the new combined pillars and the impact on your strategies around these pillars. • Enterprise Development and Preferential Procurement now combined into Enterprise Supplier Development. • Verification preparation Implications. Important key principles of the revised codes are the following: 1. There will only be 5 elements and not 7 2. Management and Employment Equity will be merged 3. Enterprise Development and Preferential Procurement will be merged to
4. 5. 6. 7. 8.
for Enterprise & Supplier Development (ESD) ESD beneficiaries will be black-owned EME’s & QSE’s Enhanced recognition for Black-owned businesses (Level 2) Enhanced recognition for Black-owned EME’s (Level 1) 3 Priority elements with minimum thresholds i.e. Ownership, Skills Development & Enterprise & Supplier Development There will be a discounting of scores for not meeting minimum thresholds of priority elements
CHIETA SME Development Programme and Closure Workshop: The DCC have initiated coaching support with SMEs that are participating in the Chieta SME Development Programme. The support is provided to each SME on an individual basis based on and identified intervention where a gap has been recognised. Each SME receives business plan training, by reviewing the current business plan, or compiling a new business plan to possibly obtain additional business. The SMEs underwent individual coaching which covered different aspects of the business such as financial planning and production flow. A Breakfast Closure session was held on 12 December 2013 at the Durban Country Club celebrating the participation of the SMEs that participated in the SME Incubation Programme. The session brought closure to and addressed the successfulness of the SMEs. Firms were able to showcase the products at the session.
Skills Development: Skills Pipeline Study The DCC Skills Development Technical Steering Committee (TSC) hosted a workshop on 16 October 2013 where the findings from the Skills Pipeline Study were presented. This included findings on employment growth, broken down into specific employment categories within the chemicals sector as well as projected skills demand. These findings were utilised to determine a targeted skills programme for the cluster going forward.
SteriTecH: Manufacturing Services Notio Technologies (Pty) Ltd located in Johannesburg, has spare capacity and is offering their services to anyone of the Durban Chemicals Cluster (DCC) member firms. The quality management systems at Notio Technologies covers but are not limited to the manufacture of infection control products, insect repellents and pool care products. At Notio Technologies (Pty) Ltd they constantly strive to provide their customers with products that exactly suit their requirements. In this way they make themselves indispensable to their customers, in order to ensure their and their customers success. All products are manufactured according to appropriate standards in order to ensure consistent quality and reliability.
The quality management system is intended to meet the relevant requirements of ISO 9001:2008. Other specific client requirements such as ISO 13485 and SANS 636 are also in place. Products are developed from existing sample formulations. Notio Technologies are willing to mix and bottle any products. If anyone of the DCCâ€™s member firms are interested in utilising the services of Notio Technologies or require additional information please do not hesitate to contact Naadira Nadasen from the DCC on (031) 764 6100 or email: firstname.lastname@example.org
Trade Statistics: The Trade statistics contain export and import figures (Rand Value) for September to October 2013:
The DCC would like to wish all our firms a Happy Festive Season and a Prosperous New Year.