African Business Pursuit December 2023 by Business-Pursuit

African Business Pursuit

December 2023 african-business-pursuit.net

Mota-Engil Africa

The company that moves worlds Page 10

Portland Group South Africa Building on every opportunity

editors

African Business Pursuit Published and Distributed by Business Industry Publishing Ltd For any enquires contact info@business-pursuit.net Production Donnie Rust Editor Victoria South Project Manager Victoria@business-pursuit.net Charles Brown Business Development Manager charles@business-pursuit.net James Smith Operations Manager james@business-pursuit.net Harry Lewis Accounts Manager harry@business-pursuit.net Design Felix Baldwin Design Assistant felix@business-pursuit.net Harvey Tarlton Graphic Design harveytarlton.co.uk www.business-pursuit.net If you would like more information about ways in which Business Industry Publishing can promote your business please call +44 (0)20 32878 795 or email | charles@business-pursuit.net. Business Industry Publishing does not accept responsibility for omissions or errors. The points of view expressed in articles by attributing writers and/or in advertisements included in this magazine do not necessarily represent those of the publisher. Any resemblance to real persons, living or dead is purely coincidental. Whilst every effort is made to ensure the accuracy of the information contained within this magazine, no legal responsibility will be accepted by the publishers for loss arising from use of information published. All rights reserved. No part of this publication may be reproduced or stored in a retrievable system or transmitted in any form or by any means without the prior written consent of the publisher.

Business Industry Publishing

December 2023 In this month edition, we delve deeper into the operations of some global powerhouses, we find out about how Bamburi Cement has solid foundations for the future. We also look at the operations of David Brown Santasalo and how they are changing the workplace experience. One of our focuses this month is Business Risk and why taking risks to grow and scale your business can be a very good thing. You and your team may be considering a variety of new business ideas and market opportunities, but not all of them are worth pursuing. It is important to narrow down your options and make sure you focus on the ones that have the highest potential for success.

Charles Brown Business Development Manager

contents

Editor’s Note

News

Mota-Engil Africa

Portland Group

Bamburi Cement

David Brown Santasalo

Ultimate Sports Nutrition South Africa

AB Inbev

Chemical Process Technologies

A South African Legacy

Building on every opportunity

When experience and innovation collide

A South African Legacy

Stoney resilience against challenge

Great Input Equals Great Output

Success through Innovation and Commercialisation

news

Four KZN Entrepreneurs Secure Cash Prizes In Business Accelerator

Durban, KwaZulu-Natal – The Durban Chemicals Cluster (DCC) Business Accelerator held its annual “Dragons’ Den” event at The Pearls in Umhlanga Rocks on Tuesday, 28 November 2023. Emulating the renowned Dragons’ Den format, 11 emerging Black-owned enterprises passionately presented their ventures to a panel of influential ‘Dragons’ who are driving the meaningful transformation of the local chemicals sector; Bridget Bishenden from FFS Refiners, Rudi van Niekerk from H&R, Trevor I’Ons from NCS, and David Lombard from Sherwin-Williams. Beyond the allure of instant cash prizes, the participating entrepreneurs vied for commercial partnerships with the Dragons’ companies, seed capital infusion, and coveted mentorship opportunities from industry luminaries. Open to all Black entrepreneurs in the chemical sector, from start-ups to established SMMEs, the DCC Business Accelerator attracted close to 100 entries this year. The selection process was rigorous and narrowing the pool to the final 33 candidates was a challenging task. The chosen qualifiers then underwent a comprehensive one-day capacity-building workshop in Durban on Wednesday, 25 October 2023. This interactive session facilitated networking with established business leaders, providing a platform for knowledge exchange

and refining business pitches. They also received invaluable insights and expert advice on mastering the art of public speaking. The top 11 pitches then advanced to the ‘Dragons’ Den’ stage and delivered impressive presentations. Ravesha Govender, Programme Manager of the Economic Development Unit at eThekwini Municipality, said she was particularly impressed with the quality of the pitches this year, and emphasised the Accelerator’s role in driving localisation and fostering meaningful transformation in the chemicals industry. Pulse Control Systems claimed the top prize, securing the Best Overall Business Case award and a R35,000 cash prize. A delighted Nimelen Pillay, Managing Director of Pulse Control Systems, from Cowies Hill praised the Durban Chemicals Cluster Accelerator and said, “The DCC has come up with a brilliant and efficient programme that has accelerated my plans for scaling the business through the formulation of a business case as well as exposure to key blue-chip clients.” Pillay also thanked the Durban Chemicals Cluster, the eThekwini Municipality and the private sector lead firms for the invaluable guidance and support received. The additional R25,000 cash prizes recognising outstanding achievements in specific categories were awarded to the following SMEs: • Most Relevant to the Chemical Industry:

Spot on Fire Controls, Lungani Nene from Cato Manor • Best Environmental Sustainability Solution: Virenix, Viren Udith from Mount Edgecombe • Industry Gamechanger: AJ85 Distributors, Anderson Jacobs from Durban Nevertheless, all 11 SMEs ultimately walked away with a reward. According to Kyle Ballard, Head of the Accelerator, each of them has been granted annual membership to the Durban Chemicals Cluster. This membership entails comprehensive diagnostic assessments and access to coaching by industry experts, essential for aligning with customer demands and effectively scaling their businesses. However, the greater reward is that each SME will also receive support to unlock coveted sales and commercial opportunities with the Dragons and potential customers, improving their growth prospects significantly. He highlighted the Accelerator’s proven track record in consistently delivering meaningful results and effecting sustainable transformation in the economic landscape. Ballard also expressed his gratification in being able to play a small part in empowering Black-owned SMEs in the local chemicals sector.

news

Nedbank launches Avo Solar to make solar power accessible to more households and businesses With many South Africans seeking affordable and reliable solar power solutions to protect their homes and businesses from load-shedding, Nedbank has launched its first set of marketleading solar financing packages available on its Avo Solar website. The packages aim to make greener energy supply accessible to households and businesses of all sizes by offering solar and backup batteries at competitive prices in South Africa. All the packages include full installation by certified, Nedbank-approved solar suppliers and installers only. In addition, all solutions come with a 10-year warranty and certificate of compliance, indicative of the high-quality solar brands on offer. ‘South Africans have learned that the only way to live and do business is to build resilience into their energy mix by harnessing the free power of

the sun. To safeguard against unreliable electricity supply and ever-increasing electricity prices, solar and backup power options have never made more sense,’ says Ciko Thomas, Group Managing Executive of Retail and Business Banking at Nedbank. Ciko says that Nedbank has put together a range of packages, from Green right through to Platinum and Premium packages, designed to meet most households’ and small businesses’ requirements. However, he says that the team is more than ready to create a customised package to suit an individual client’s or business’s specific needs. It is estimated that an average household could save around R26 000 per year living off the grid. Most people, however, will choose to use solar and battery to reduce the costs of grid-

supplied electricity and eliminate much of the inconvenience of blackouts. A big barrier to adoption is cost – solar panels and batteries are still not easily accessible to most South Africans. That’s where Nedbank’s ability to provide speedy access to finance, with up to 84 months to pay, has a major role to play in driving inclusivity. ‘We offer a range of payment options, from cash to secure and convenient finance, through Nedbank,’ says Ciko. ‘Reducing your exposure to Eskom is an advantage from a cost point of view, and a way to increase the quality of your life or keep your business firing on all cylinders,’ continues Ciko. ‘We are committed to helping the greatest number of South African households and businesses as possible to solve their energy woes with our affordable and reliable solar energy solutions.’

Bonus Calculations in the South African Mining Industry The South African mining industry has come a long way since Jan Gerrit Bantjes discovered gold on the farm Vogelstruisfontein in the Witwatersrand in 1884. In the same year, the Struben brothers stumbled on the Confidence Reef on the farm Wilgespruit, near present-day Roodepoort and the rest, as they say, is history. The country’s stock exchange in Johannesburg was established in 1887, a decade after the first diamonds were discovered on the banks of the Orange River, and almost simultaneously with the gold rush on the Witwatersrand. Coal was discovered in KwaZuluNatal, Mpumalanga and the Eastern Province, with the first commercial coal mining established near Molteno, in the Eastern Cape, in 1871. Diamond and gold production are now well down from their peaks, though South Africa is still number 5 in gold production and remains a cornucopia of mineral riches. South Africa is the world’s largest producer of chrome, manganese, platinum, vanadium and vermiculite, rare and in-demand minerals. It is also the second-largest producer of ilmenite, palladium, rutile and zirconium and the world’s third-largest coal exporter. South Africa is also a huge producer of iron ore, most notably to China, the world’s largest consumer of iron ore. Needless to say, mining and related industries play a large role in the economy of South Africa and contribute significantly to GDP.

Bonus Calculations One of the more interesting factors of the mining industry is the calculation and allocation of bonus hours, which can often significantly contribute to the monthly pay of miners. Within the local market, hours of work are governed by the Basic Conditions of Employment Act, as follows. Under normal circumstances, miners can work a maximum of 45 hours plus 10 hours of overtime per week. Some mining companies calculate overtime according to normal working hours over a predetermined period. So, in a two-week period, for example, a worker may work 42 hours in the first week and 48 hours in the second week. The average over the two weeks is 45 hours worked. However, in principle workers are restricted to five hours of overtime per week, spread out over this predetermined time period. This aims to curtail bonus hours worked in order to protect miners and ensure a safe working environment, as fatigue and time

pressures can lead to an increase in reported risks. In general, mines aim for a balance between incentivizing workers and maintaining a robust SHE score. Collective Bargaining Agreements Bonus calculations in the South African mining industry may also be subject to collective bargaining agreements between mining companies and labor unions. These agreements may set minimum bonus amounts or specify how bonuses will be calculated. In some cases, labor unions may negotiate bonus structures that prioritize safety or reward workers for achieving specific production targets. Some of the most common types of bonuses given in South African mines include: 1. Production bonuses: These are based on the amount of ore or minerals extracted from the mine during a specific period, such as a month or a quarter. Production bonuses may be calculated as a percentage of the value of the minerals extracted or based on a set rate per unit of production. 2. Safety bonuses: These are awarded to workers who maintain a safe working environment and follow proper safety procedures. Safety bonuses may be based on a variety of factors, such as the number of accidents or incidents that occur during a specific period or the percentage of workers who complete safety training. 3. Attendance bonuses: These are awarded to workers who have good attendance records and show up to work on time. Attendance bonuses may be based on the number of days worked during a specific period or the percentage of shifts that a worker completes

without being absent or late. Skill-based bonuses: These are given to workers who have developed specific skills or expertise that are valuable to the mining operation. Skill-based bonuses may be based on the level of training or education a worker has received or the ability to operate specialized machinery or equipment.

Mineware Consulting Bonus Calculation Software In light of the various factors impacting the calculation of bonus payments, Mineware Consulting has developed a unique, customised single enterprise-wide reward management system, with the correct integrity and security to deliver bonus scheme outputs efficiently and accurately, to the benefit of all stakeholders. The Mineware bonus system draws data from the survey, safety, planning, time and attendance as well as HR/payroll functions of a mine. Consolidating all this information into a single database, it grants the organisation endless opportunities from a management information systems perspective, not only per single entity but across the enterprise as a whole. The bonus calculation system can be fully customised to set up bonus schemes to benefit the mine or workplace, enabling managers to effectively incentivise the workforce. Mineware software modules allow access to critical data and insights enabling mine managers to make informed decisions that improve efficiency, productivity, and overall safety. Read more about their mine management software packages, including the bonus calculation system online.

Mota-Engil Africa

The company that moves worlds Donnie Rust

Mota-Engil Africa

he continent of Africa has been the second home of Mota-Engil since 1946, and today they are present in fifteen countries across the continent. Sufficed to say this legacy-focussed empire has been working off a long term strategy that has established itself as a primary partner for infrastructure projects across the wide fields of transport and logistics, energy, oil and gas, mining, and the environment. Guided by Africa Chief Executive Officer, Manuel António Mota the company’s expansion into new markets of the SADC (Southern African Development Community) are part of an overall strategy. This has enabled Mota-Engil Africa to grow the technical and financial capacity to develop projects tailored to its customers’ needs. To this end and seeking to contribute to raising environmental quality standards across the continent, Mota-Engil has strengthened its investment in waste management, and currently runs important operations in Angola (Vista Waste), Mozambique (Ecolife) and Côte d’Ivoire (Eco Eburnie and Clean Eburnie). “A great deal of hope for Africa’s sustainable future hangs on the acceleration of infrastructure development,” Mota says, “There are twelve million young people joining the continent’s workforce each year and if these millions of new

working-age citizens are to be employed, Africa must industrialize.”

Mining For Africa Even though the Portuguese based Mota-Engil has been named in the top 30 construction companies in the world, Mota reveals that mining is a staple for the African focus. One of their many projects includes the ongoing involvement with Brazilian mining giant Vale in Mozambique which began in 2019. This project involved the execution of mining services that include drilling, provision of explosives, and load and transport of sterile and coal at Moatize, in the west of the country.

A Diversified Approach Diversification was inevitable over the 75 years of continuous presence in Africa. Today, mining projects amount to around 20 percent of the Company’s current backlog of contracts, a stream of work which amounts to more than $3 billion. Construction and engineering projects account for 60 percent and the remaining 20 percent covers waste management and collection. In Malawi, Mota-Engil Africa is delivering several road infrastructure projects, including an 82-kilometre road linking Thyolo and Thekerani and a 95-kilometre highway out of Lilongwe.

“There are twelve million young people joining the continent’s workforce each year and if these millions of new working-age citizens are to be employed, Africa must industrialize.”

Mota-Engil Africa

This adds to recently completed works covering hydropower stations and rail upgrades. Further west, the firm is engaged in a seven-year contract for urban cleaning, collection, and transport of solid municipal waste in Abidjan, the capital of the Ivory Coast. These operations involve around 280 vehicles and 2,000 employees who serve 4.6 million citizens and collect more than eight million tonnes of waste.

Resources Making sure that they are able to cater to clients across their diverse portfolio, Mota-Engil Africa makes full use of their significant pool of locally based resources. On an average project there are 4,500 items of heavy equipment on site, with key materials stored at a warehouse in Viana, situated in Angola’s Luanda province. Additionally, the firm holds complimentary warehouses in South Africa and across other countries in the region. Precast factories and project camps help to enable self-reliance in remote and challenging areas, bringing prefabrication capability and project management closer to the client. Such camps also house the workforces responsible for delivering these developments. A network of quarries and aggregate batching plants supply vital construction materials to the frontline. This is made up of 19 plants in Angola, nine in other Southern African Development Community countries and three in East Africa, combining to offer an installed capacity of 2,940 tonnes per hour. “Our logistical and mobilisation capacity is what stands us apart in Africa,” Mota states. “Add this to the fact we are vertically integrated, and it demonstrates how much of a unique player we are. We have a strong HR and asset base, and that allows us to operate independently across the different countries, with the capability to provide all construction works with in-house capacity.”

Staying Ahead Mota recognises that continual investment and a flexible approach to company development is crucial if it is to build on this formidable foundation. Especially on their asset base to stay ahead of the competition. Specifically, automated drone systems are expected to become an essential technology in future mining automation and digitisation activities, with several mining giants already adopting this to enable rapid data collection.

Investing In People Of the 12,600-plus employees currently on the company’s books, some 91 percent are locals, a figure which rises to 94 percent in Malawi, 95 percent in Tanzania, 97 in Zimbabwe and 98 percent in South Africa. “This is a key factor for us,” says Mota. “We try to keep our expat base to the bare minimum, and to develop local resources. In some countries we have been more successful than others, and each time we see more local people taking more responsibility within our organisation.”

Building A Bright Future And it is over the next three to five years that Mota aims to solidify the company’s leading status across the continent, building on the foundations built over the previous seven and a half decades, both in terms of business and community relations. Mota-Engil Africa can also impact the bigger picture. Africa is a continent of small and open economies that rely on trade as their major source of growth, and such international trade is no longer about manufacturing in one place and selling in another. Rather, cooperation across boundaries and time zones to minimise production costs and maximise market coverage comes to the forefront. Infrastructure is thus vital to the smooth running of these value chains. Also, given Africa is a relative latecomer in its economic development, the benefits to be reaped from improved infrastructure are higher than other parts of the world. Companies like Mota-Engil Africa, therefore, have the power to push economic progress, especially given the wide reach the firm already has across the Sub-Saharan region. Mota explains, “We aim to establish ourselves as a leader in the continent in our areas of action and at the same time to make a difference in the countries we have more recently moved in to, and this is something we are doing step by step. Growth must be expansive but with sure footing.”

Portland Group South Africa

Building on every opportunity Donnie Rust

Portland Group South Africa

t is well known that businesses in South Africa have a stoic, stand-alone providence that sets them apart on the global stage and makes them incredibly resilient in the face of competition. Portland Group, the Western Cape’s leading supplier of ready-mix, aggregates and precast concrete, was founded in 1988 by Nico Heyns and Helenus Scholtz, during a period of growth in the residential market. Here they remained for twelve years, carving out a groove in the homebuilding market based on results and reputation that they could have happily remained in and stayed prosperous. However, this was not in their nature. At the turn of the century, Portland Builders acquired a 65 Hectare quarry with Malmesbury Horrfels deposits just beyond the beautiful Durbanville winelands. Soon after the acquisition, the quarry underwent a major facelift that saw new offices built, new roads scraped and updated crushers installed. Then, in 2001, Portland Group yet again expanded their business by installing three readymix concrete plants on the site and acquiring a fleet of ready-mix trucks for delivery.

Things were busy for the following seven years as these investments were consolidated and capitalised on until 2008, when further expansions occurred with operations to the manufacture and installation of precast Hollow core slabs. To ensure that they were producing the highest quality slabs that would keep them ahead of the game, they acquired state-ofthe-art technology from Elematic, a notable technology supplier based in Finland. In 2015, the Hollowcore factory underwent a much-needed facelift which saw four extra lanes added along with new Weller technology from Germany. Finally, the stockyard was extended to the outside of the factory which more than doubled the capacity of production to meet the then surging boom in the local construction industry. In 2018 the company celebrated its thirtieth birthday and towards the end of 2019, the opportunity presented itself for Portland to become involved in two new quarries along with Tip Trans Resources. In November of that year, Portland Aggregates was established with two

new quarries, namely Portland Weskus Quarry (in Jacobsbay) and Portland Worcester Quarry (in Rawsonville),

Main Verticals And Products At Portland Group there are three main verticals, Portland Hollowcore, Portland Readymix and Portland Aggregate, which are all in turn used to provide full services to the construction industry, not only within the residential arena but also with business supply.

Portland Hollowcore Portland Hollowcore provides a complete service using their own bespoke teams. Their inhouse design team handles the engineering and construction design, their purpose-built factory handles the manufacturing of product and their experience rigging teams take care of the final installation. Hollowcore makes use of the latest precast technology, and the extrusion method of manufacturing has quickly become a costeffective alternative to poured and traditional concrete methods.

Portland Group South Africa

Additionally, they frequently upgrade their operations and have recently expanded the stockyard to increase storage capacity. Extra casting beds were installed to increase capacity for production and with these new extensions, they ’ve created better turnaround times, higher production levels, better handling of panels and loading of trucks. As they say, the devil is in the margins. The Portland Hollowcore production plant, which is situated at the Durbanville quarry premises in Cape Town, produces an average of 700 square metres of precast slabs per day. Despite these numbers, the directors insist that they are still learning daily and apply every bit of knowledge and experience to continually improve and exceed client expectations.

Portland Readymix With operation sites in Durbanville, Paarl and the West Coast, Portland Readymix they provide a range of ready-mix concretes designed for the whole spectrum of the construction industry. These products are backed by their expertise and tight quality control which brings a guarantee of strength and workability. They provide standardized, premixed concrete that is specified by a standard strength, slump, and maximum size aggregate. Additionally, high performance, decorative and special application concretes to cater for all needs are offered. Backed by a rich history of product development, reliability, and technical expertise they have the unique capability to pool resources and execute large and challenging pours anywhere in the Western Cape.

Mentionable Developments In construction, your bite must count more than your bark, and with a focus on less talking and more doing, Portland Group are responsible for some magnificent projects demonstrating the sheer range of their expertise.

To start with, there’s Asanta Bloubergrant and Speranta. The former is a luxurious apartment building in West Beach, offering amazing views of Blouberg beach and the iconic Table Mountain and is ideally situated close to all the amenities and many social hubs. With the development being directly across the road from the Blouberg beach, all the apartments have full frontal, uninterrupted sea views. Twelve spacious apartments are available, with a combination of 2and 3-bedroom types. There is also a 4-bedroom, 4-bathroom penthouse. SPERANTA on the other hand, offers seventeen well-proportioned 1 and 2 bedroomed apartments situated in the sought-after Waves edge area of Blouberg with easy access to the CBD and other business nodes. Nivica, a Langebaan Property Development is the latest project of Portland Group. This palatial property is perfectly situated up on the koppie just above Club Mykonos where it takes full advantage of the spectacular views of the lagoon and breathtaking sunsets. This gem of a development offers a selection of 80 spacious one, two and three bedroom luxury apartments all set in a “lock up ‘n go” environment. Each unit has either a patio or balcony offering either views of the sea or the garden and pool area and has its own braai area and balcony. Situated only three minutes from the famous Langebaan Lagoon with its turquoise waters and only a hop skip and jump away from the Club Mykonos Resort and Casino where some of the best entertainment and family friendly attractions on the West Coast can be found. Nivica has been carefully planned to ensure that the facilities and amenities on offer are centred around family and a relaxing community lifestyle.

Bamburi Cement

Stoney resilience against challenge Donnie Rust

Bamburi Cement

ince the start of the 20’s, East Africa’s cement industry has been on a bit of a rollercoaster. Straight off the back of the first of the Covid years, lucrative government contracts in ’21 seemed to pave a prosperous road ahead but two years later the industry suffered a savage decline. For the rest of the decade, the future of this sector will be written by those companies with the heart and the fortitude to withstand these challenging times. If we look at the history of Bamburi Cement, we see that they have weathered far greater challenges than a dip in the market. Furthermore, unlike so many companies that have overreached without paying attention to their foundations, they have quite literally set itself in stone.

Building, Slowly, Meticulously.

It is an unfortunate reality that many companies are short-lived because they try to reach for the sky when they should be hardening the ground. Meanwhile, other businesses manage not only to survive but adapt to changing environmental and economic conditions, thriving, and growing not by leaping but by building the necessary steps to ascend. Over 70 years ago, a business was started in a small shaft kiln in Mombasa, and today is the undisputed leader in East Africa.

With a history that is well documented on their website, which is worth a read through to get a good scope of just how meticulous this company is with their development, the success of Bamburi Cement is clearly not accidental. Rather, through an ongoing and repeated process of updating technology, enhancing progress, developing of new procedures and ideas to support better efficiencies, this company thrives by adapting to challenging conditions. As we spoke about the last time, we featured Bamburi, Holcim is enabling greener cities, smarter infrastructure and improving living standards around the world. With sustainability at the core of its strategy they are becoming a net zero company, with its people and communities at the heart of its success. Contributing to a circular economy as a world leader in recycling, part of Bamburi’s approach is to supply and nurture relationships with professionals across the building industry, discriminating against none. These include DIY enthusiasts to large construction outfits and everybody in between is catered for with high quality cement ready to deliver at a moment’s notice.

Working Small While Thinking Big Success is about attitude and level thinking. There is a current decline in East Africa’s cement industry, and in 2023 Bamburi Cement had to

sell off their stake in the Ugandan subsidiary, Hima Cement Ltd. This was due to a challenging cement market across the East African region made worse by increasing competition and high production costs. The deal came against a backdrop of shrinking revenues in Kenya and Uganda, which the firm attributes to a challenging operating environment that has slowed down the cement market demand, high costs of energy and increased raw material costs. The situation has been compounded by the Kenyan government’s decision vide the Finance Act 2023 to impose a 17.5 percent Export and Investment Promotion Levy on clinker, which is a key ingredient in cement manufacture, atop already high production costs. All of this means that last year, turnover declined five percent to Ksh39.2 billion driven by decline in volumes in Kenya and Uganda. During these times however, Bamburi Cement has focussed ever more on the relationships with their clients and customers. Taking the time to prepare and consolidate their projects and goals to find firmer footing on stronger foundations. Dips in markets change and those businesses with the capacity to see that such market movements are opportunities, like athletes taking steps backwards to prepare for a run up.

FAST TRACK TO SUCCESS

WITH LOESCHE`S COMPACT CEMENT GRINDING PLANT Proven modular design adapted to your needs for a wide range of cement types and Supplementary Cementitious Materials (SCM).

www.loesche.com

Bamburi Cement

Four Foundations. Four interconnected foundations have been instrumental in Bamburi’s growth and stability during the current difficulties within the construction supply sector. Currently, it works with cement, aggregates, ready-mixed concrete, and other construction materials. Supporting these are quarry ownership, people empowerment and a focus on environmental responsibility. Combined, these elements are what makes the business stand out in a competitive field. Overarching this, is another motivation that Bamburi wishes to be a key part of their legacy, which is the promotion and specifically the activities of creating safe working conditions for their staff. Extending its safety commitments outside of operational plants and offices, the company is implementing change across its entire supply chain and throughout every region where it works. With numerous initiatives to attain the highest possible levels of health and safety compliance, Bamburi is well known to be one of the world’s safest places to work.

Environmental Concerns A proactive company with a focus on action, Bamburi does not care for providing mere lip service to causes for environmental sustainability but takes a more engaged and results driven approach. They have installed a company culture that reaffirms that actions today will impact future generations and stand as their legacies. As such, the company seeks to make positive choices and is working towards ambitious sustainability goals.

“Our focus continues to be on building sustainable relationships with our stakeholders at local and national level. As a member of the Lafarge Holcim Group, we have entered a new phase in our sustainability commitment with the launch of “The 2030 Plan’’, the new Sustainability Strategy,” a recent press release from Bamburi notes, “The sustainability ambitions are organized around the three main pillars of sustainable development, which include social, economic, and environmental, combined with demanding quantitative targets. We firmly believe that a responsible company has an active role to play in the development of the communities within which it operates in. The implementation of proactive measures in favour of sustainability creates value not only for its shareholders but also for its teams, its customers, and the community at large.” BY 2050, over 70% of the global population will live in cities which is twice as many as in 1970. Whether large, medium, or small, whether in mature or emerging countries, cities are central to the challenges facing the planet. It is for East Africa’s cities to grow and facilitate greater opportunities for those people living there, that businesses like Bamburi Cement exist.

David Brown Santasalo

When experience and innovation collide Donnie Rust

David Brown Santasalo

elying on three hundred years of accumulative experience in gearbox manufacturing, David Brown Santasalo’s hallmark is precision engineering. Based in the United Kingdom but nevertheless a global business, the company has twenty-seven facilities around the world, over one thousand employees and a track record of combining rich brand heritage with applied experience, that offers a full lifecycle of support to their clients, be it with heritage gearboxes or third-party gears irrespective of make and model.

The Heritage The company David Brown can trace its roots back to 1860 when the founder, David Brown, commenced cast gear manufacturing for the UK market. In 2016, the company joined with Santasalo and became one of the world’s leading mechanical power transmission brands. Bringing together almost three centuries of combined gear engineering leadership and substantial geographic coverage. The companies were a good fit for each other, as at the heart of both lay a rich gear engineering heritage encompassing wellknown brand names. It is these brands that have given David Brown Santasalo the experience and knowledge that is used today to drive value into their customers’ processes.

The Core Elements At the company’s core is the commitment to delivering proven gear systems that meet the impressive standards of international industrial processes. The sorts of environment where reliable precision is paramount. Be it gear manufacturing, servicing or design, their teams encompass this, as well as application and service.

The Flagship Facility Two years ago, in 2021, they completed Phase 1 of a new purpose-built facility in Jyväskylä, which has been one of their most substantial investments yet, to serve both DBS and the wider Finnish industrial gearbox market to date. The impressive and revolutionary build produced a state-of-the-art flagship facility, which spans almost 10,000m2 and boasts an abundance of carbon efficient features. This flagship facility has meant another exciting step forward in creating energy and carbon efficient buildings across David Brown Santasalo’s global business and complements their recent commitment to the Science Based Targets initiative.

Paying Forward. Company Commitments To Apprenticeships At David Brown Santasalo their people are their

greatest asset, as they are the investment into the future. These people thrive on having the correct tools needed to carve out a successful career, with competence, confidence and value. Apprentice programmes have been established across the business to aid this, allowing the company to welcome the next generation of engineers through their doors each year and getting them started on shaping and creating the next world. The team at DBS UK recently celebrated three employees who have finally reached the end of their apprenticeship period and are about to embark on the next adventure. Alfie Brown, Ruby Davenport and Max Foster have been rising stars of the company’s apprenticeship programme over the past three to four years, with many achievements under their belts. Most recently, Alfie achieved the BOSIET (Basic Offshore Safety Induction and Emergency Training), which is specialist training enabling him to work on offshore oil rigs. As they begin their full-time employment with David Brown Santasalo, Alfie and Max will each take on the role of Mechanical Fitter within the Aftermarket team, and Ruby will begin her training in Metallurgy. Setting them on this path their future successful careers in DBS will require a vast amount of focus and hard work,

Established in 2006, Venter Consulting Engineers, proud partner to David Brown Santasalo, is a leader in advanced technological engineering, design, and manufacturing in Southern Africa. We provide services to a wide range of markets such as the petrochemical, power & utilities, mining, aerospace, nuclear and industrial manufacturing sectors. We have completed over 2000 projects and support a wide range of business products. Examples include: •

Design, retrofit, reverse engineer & manufacturing of high-speed rotary machinery components for: •

Compressors, turbines, pumps, motors, and generators;

•

Mechanical transmission components such as turbomachinery gears, couplings, torque tubes & fluid drive torque converters;

•

Specialized gears such as spiral bevel, zerol, hypoid, cycloidal, helical, epicyclic, globoid, hirth & spline tooth connections.

•

Cement and mineral milling drive trains including; •

Combiflex type dual drive self-aligning gearboxes;

•

Vertical spindle mill gearboxes;

•

Girth gear design and manufacturing;

•

High purity filtration design and manufacturing.

David Brown Santasalo but the programmes are designed to install these principles to help them flourish in their respective disciplines. David Brown Santasalo are also pleased to welcome onboard their new intake for 2023, which includes Charlie Watson, who will begin a Technical Support Apprenticeship, Kayden Ford who will begin a Machining Apprenticeship, and Che Furey who will begin an Apprenticeship in Fitting.

2023 Developments

In September this year, David Brown Santasalo of f icially joined forces with ZF Wind Power and R& D Test Systems to deliver an innovative gearbox supply solution for a 30MW test rig at the new Test and Protot ype Centre at ZF Wind Power. The test rig will enable them to validate and evaluate gearboxes used in wind turbine applications.

The gearboxes, delivered by David Brown Santasalo will be built at the abovementioned facility in Jyväskylä, Finland and will be equipped with their proprietary condition monitoring tool, GearWatch, which is an advanced monitoring system designed to optimise gearbox performance and increase operational efficiency. ZF Wind Power’s advanced technology and service solutions contribute to the transformation of the global energy system, in which reliable, robust and efficient products and systems conserve precious resources. Continuous innovations in research and development, product and service are key in developing renewable energy into a low-cost and reliable power source that can meet the changing needs of the power generation industry. Wind power has emerged as a prominent renewable energy source, offering a clean and

David Brown Santasalo

sustainable alternative to traditional fossil fuelbased electricity generation. Within the wind power industry, gearboxes play a critical role in transferring rotational energy from the wind turbine rotor to the electrical generator. Efficient and reliable gearboxes are vital for maximising the energy conversion process and ensuring optimal power generation. Meanwhile, R&D Test Systems, which was founded in 2005, is developing the 30MW test rig, a highly advanced facility replicating real-world gearbox testing conditions. This test rig is designed to simulate various operating scenarios, allowing ZF Wind Power to evaluate the performance and durability of its gearbox designs. By subjecting gearboxes to rigorous testing, ZF Wind Power can identify and rectify potential weaknesses, resulting in enhanced reliability and reduced downtime in wind turbine applications. Undertaking such challenges fall

David Brown Santasalo are also pleased to welcome onboard their new intake for 2023.

well within their wheelhouse as the business was founded with the ambition to turn challenges into world-class engineering. What started as a passion is now a pioneering company of specialized engineers developing innovative solutions for a wide range of influential companies from the wind and aerospace industry. To ensure the performance of the test benches’ two gearboxes delivered by DBSantasalo will be equipped with GearWatch. GearWatch combines innovative sensor technology with advanced data analytics to provide real-time insights into gearbox performance. By continuously monitoring key parameters such as temperature, vibration, and lubrication, GearWatch enables proactive maintenance, early fault detection, and optimised operational performance. Producing the kind of information and data that will shape future projects and ideas.

USN (Ultimate Sports Nutrition) South Africa

Great Input Equals Great Output Donnie Rust

USN (Ultimate Sports Nutrition) South Africa

oday, Ultimate Sports Nutrition, based in South Africa is a global brand delivered to seventy countries that plays an important role in the health, well-being, and physical development of millions of people. Recognized as one of the world’s fastest growing sports nutrition brands they are a pioneer in the industry as, amongst other things, they are the ﬁrst multi-national supplements company in Africa to embark on due diligence screening and HFL Sports Science testing programmes. Started in the year 2000 by ex-policeman Albé Geldenhuys, who after seeking a change from the police force entered the gym membership sales-rep game and capitalised on an opportunity to sell his own mixture of nutritional supplements to generate extra income. The company has its roots and philosophies firmly imbedded in customer focus and proven results. An old-fashioned business that relies on supply and demand of strong, proven products. “We focus on creating effective, scientifically

relevant products utilising the highest quality raw materials and products that are stringently evaluated, quality tested and accredited by independent laboratories,” Albé says, adding, “We’ve also invested in effective distribution and warehousing capability to ensure continuous availability of our range to meet growing international demand.

The Range Sports performance, weight control and musclebuilding supplementation are the cornerstones of USN’s premium product offering, along with beverages and bars. USN also plays a major role in the growing self-help movement by providing effective nutritional supplements to consumers. They use the latest veriﬁed and peer reviewed nutritional research throughout the development of their products and employ the latest protocols with regards to manufacturing.

The Team Albé reveals that every USN employee embodies

the characteristic qualities of the brand. They are professional, committed to excellence, healthconscious and goal-driven. Quality and accountability are USN’s global underpinning values and this reflects in the way they conduct their business and the way their staff conduct themselves. Albé adds that the business is built on the founding ethics of the brand, and this shall never be compromised in any way. Utilising third-party, locally and internationally accredited pharmaceutical laboratories for the global development and manufacturing processes ensures that all required practices are in place to keep every product consistent in terms of organoleptic profiles, quality and efficacy. Concurrently, every manufacturer adheres to the domestic legal requirements and is guided by the relevant domestic and international manufacturing policies and Good Manufacturing Practice (GMP) standards, where applicable. USN makes extensive use of third-party

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USN (Ultimate Sports Nutrition) South Africa

“The initial idea was to make some money on the side, but word of mouth led to sales doubling each month... that’s when I realised there was a real business opportunity.”

professionals, including pharmacists, food technologists, scientists and dietitians who reflect the company’s commitment to nutritional safety, efﬁcacy and quality. HFL Sports Science testing remains an effective measure of quality and they protect the USN brand, their consumers, and ambassadors through this initiative. Select products are sent to the UK for screening against protocols available for substances listed under the World Anti-Doping Agency (WADA) Banned and Prohibited Substance List, further supporting their aim to offer the finest products in the industry that are safe, pure and effective.

a clear need for a well-researched, legitimately progressive home-grown alternative. Albé did his homework and began experimenting with his own formulations. Mixing them in his kitchen in an old hand-cranked Sputnik washing machine and testing them on himself, once satisfied with his creation he began selling them to the network of clients he was generating at the gym who had faced the same problems. “The initial idea was to make some money on the side, but word of mouth led to sales doubling each month,” he reveals, “That’s when I realised there was a real business opportunity.”

stories of the likes of Gymshark who utilised brand ambassadors and influencers online to drive their company success, USN relied on word of mouth and ambassadors to grow their brand out of necessity due to a limited market budget. One of the first ambassador successes was Jaco van der Westhuizen, who had been injured and then worked his way into the Springbok team after using USN products. Today, they also make use of print and digital advertising to create brand awareness and invest in in-store training at retail outlets to ensure sales staff are aware of the benefits of their products.

It’s Important

Being Different

Being Earnest

Albé Geldenhuys did not set out with the intention of starting a business nor such a recognisable brand. Instead, it grew organically based on an ascertained need and quickly expanded thanks to his reputation, enthusiasm and the quality value of his product and the results to his customers. “Coming from a family of civil servants, I never dreamt of starting my own business,” he says, “I pictured myself climbing the ladder at the police force as my dad and granddad did before me and after spending six years in the service, I hit a rut and decided to go into sales at what was then known as the Health & Racquet club in Hatfield.” Albé reveals that he has always been passionate about health and fitness and was interested in the way in which nutritional supplements could enhance people’s health and performance; especially after the hype around ex-Springbok rugby player Percy Montgomery’s transformation when he started using creatine in the late 1990s. By the 2000s the market was saturated with local products of generally poor quality while the imported brands were exorbitantly expensive. There was

Right from the start USN products were of the same quality as the high-quality imported products, but slightly cheaper because they manufactured locally, and this was after Albé built in an initial 60% mark-up into prices to make some room for error. Of course, over the last two- and a-bit decades, prices have changed, ranges expanded, and the business has transformed but the originating idea of combining great product value with a better than market price remains. Also, where most of the imported products targeted the bodybuilding market, USN differentiated themselves by being less intimidating and more focussed on the 90% of gym goers who are going there to improve their health and not necessarily to bulge out their shirtsleeves. Albé started with the network he’d made of sales contacts through his repping and built it from there and by 2002, the product made its way into pharmacies and other health shops across the country, with a monthly turnover in the millions. Long before the modern success

Working from his own experience in growing a brand, Albé believes it is important to have a well-educated person at point of sale, to ensure consumers get the right product for their needs when they are confronted by shelf upon shelf of nutritional supplements at retailers. This personal experience counts for a lot from a customer point of view because health and fitness are an investment of time and effort but when a customer has an experienced guide helping them, progress on that investment can be tracked very early.

The Future After twenty-three years, Albé knows his business well enough to know that the future is unpredictable, and all that a business can do is focus on how they approach things. With hundreds of employees and millions of customers, the aim is to continue to expand their international footprint. “As a business owner, you cannot be complacent: A business is either growing or losing market,” he says, “There is nothing in-between.”

AB Inbev

A South African Legacy Donnie Rust

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asily one of the oldest companies in South Africa, SA Breweries, now AB Inbev, was founded in 1895, and is not only South Africa’s premier brewer but also an integral part of the social fabric of the country. Flourishing for almost a century and a half, the business has witnessed the most important changes in South Africa’s history as well as been ahead of many radical curves.

Politically And Professionally Pioneering

SAB is known as a corporate trailblazer and adopted its first employment equity policy as early as 1971, making them a company focussed on the future and fairness. Considering the uncertain politics of the country during the time this was not only forward thinking but incredibly brave. In 2009, SAB tabled its broad-based black economic empowerment transaction, SAB Zenzele. Through its various corporate social responsibility programmes, SAB actively invests in community partnerships and works to promote socioeconomic and enterprise development to build a better and stronger South Africa. This includes supporting local farmers to establish thriving barley, hops, maize, and malt industries and investing in local suppliers

to promote enterprise development through business coaching and engineering support. Additionally, they invest in communities to promote and support sustainability education, safe driving, responsible drinking, and alternative energy use.

Further Commitments Last year, South African Breweries (SAB) has reaffirmed its commitment to ignite economic growth in South Africa with a pledge to invest an additional 920 million rand ($63 million) into its Prospecton and Ibhayi breweries, boosting its total investment commitment for 2022 to 4.5 billion rand ($309 million). According to Richard Rivett-Carnac, the company CEO, the beer industry continues to be a key contributor to the South African economy, citing a recently published Oxford Economics study which revealed the nation’s beer industry contributed 1.3% of the national GDP in 2019. At that time, the sector sustained over 248,000 jobs, which was equivalent to 1.5% of national employment. The tax impact was approximately 45 billion rand ($3.09 billion) in 2019, which was the equivalent of 3.3% of government revenue. As one of the largest businesses in the country, Richard said SAB plays a significant role

“the beer industry continues to be a key contributor to the South African economy”

ALWAYS IMPROVING THROUGH

INNOVATION

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in igniting economic growth and recovery, “These investments will give us the capacity to not only contribute to the economy but also to be able to contribute to job creation, tax generation, and procurement spend.” Commitments like these create direct and indirect employment opportunities and help SAB continue transforming the industry through partnerships with black suppliers, like HTP and Isanti Glass. Most of the investment will fund an expansion of the Prospecton brewery in Durban. The project is expected to add an estimated 3.1 billion rand ($213 million) in tax revenue and create up to 24,000 jobs throughout the value chain. Approximately 270 million rand ($18 million) were used to upgrade the Ibhayi brewery in the Eastern Cape. Considering the economic impact of the COVID-19 lockdowns, Richard explains that SAB’s intention is to assist with economic recovery. “The budget delivered by the Minister of Finance in February ensured that economic recovery was prioritized by keeping the beer excise adjustment closer to inflation,” he says, “This has provided us with the financial space to grow the beer category responsibly and aid our government in our collective mission towards economic recovery and growth.”

Investing In SA Despite the negative impact of the lockdownrelated alcohol bans in South Africa – particularly in 2020 –Richard Rivett-Carnac and the CEO of their parent company Anheuser-Busch InBev (AB InBev) CEO Michel Doukeris have reiterated the group’s commitment to investing in South Africa, “We are at a pivotal moment after the last couple of years, but we are very confident about the way forward,” Richard says. Speaking together, Richard and Michel are keen to demonstrate this commitment and emphasise the importance of continuing to grow the business across Africa, with SAB’s operations in South Africa as the base. Both are new to their roles, with both Richard Rivett-Carnac and Michel Doukeris taking their offices last year. And it has certainly proved to be an interesting time since then. Since their respective appointments, they have taken the opportunity to relook at AB InBev’s African growth strategy through SAB and have seen enormous opportunity in Africa, and especially South Africa which fits in well with their growth strategies. The opportunities he refers to include the

digitisation and monetising of the ecosystem within which the company operates. Richard suggests the rollout of digital technologies among retailers, taverns, and various other supply chain stakeholders across the continent. He also refers to AB InBev’s $4.5-billion investment that was revealed at the Africa Investor Conference in March last year.

The Breweries About R650-million has been invested at the SAB Prospection Brewery, in KwaZulu-Natal, to expand its facilities. This investment would generate 24 000 jobs through the full value chain, Richard said. A further R270-million will go towards upgrading the SAB Ibhayi Brewery, in the Eastern Cape. Additionally, significant investment has been committed to bolstering the local bottle-making aspect of the business. “During the pandemic, we learned a lot of things, one of them being that the beer industry is not recession- or pandemic-proof,” says Michel, “However, I believe we have earned our way to becoming an essential business.” He explains that, during the pandemic, the beer company’s extensive logistics networks helped other businesses survive and continue to distribute products. It continues to help retailers remain in business particularly in more remote areas. According to Michel, AB InBev’s strategy of buying the commodities that are needed to produce its products well in advance protect the company and consumers from sudden spikes in prices on the back of rising global inflation. “We learned how much we can have a positive impact when we use our resources,” he reveals, “During those years we manufactured alcohol gel and hand sanitiser globally to donate during the height of the pandemic and facilitated blood donations, helped implement and educate on Covid-19 protocols, assisted with the building of emergency hospitals and clinics, and also helped campaign for vaccinations.”

Chemical Process Technologies

Success through Innovation and Commercialisation Donnie Rust

Chemical Process Technologies

nnovators of specialist chemical synthesis, Chemical Process Technologies (CPT), based out of their sprawling 10,000m2 site in Waltloo, Pretoria South Africa, currently exports products to over 15 countries across five continents and has one of the most enviable cast of expertise and talent in the industry. Despite the trials of the Covid years, Managing Director Hannes Malan explains how a focus on quality and the ability to develop and commercialize technology keeps CPT ahead of their competitors. Founded in 2001, Chemical Process Technologies employs 74 permanent employees and is a private chemical synthesis company within the animal health industry who also supply fine chemicals to various other sectors in a global marketplace. The company specializes in the synthesis, creation, of several fine chemicals and formulates numerous end-user products, which are exported to countries in Europe, South America, and Africa. “Chemical Process Technologies is uniquely positioned when it comes to animal health in South Africa,” says MD Hannes Malan, “Thanks

to our combined capacity to synthesize active pharmaceutical ingredients and commercialise them into formulated products.” In late 2020, CPT Pharma which is owned by Chemical Process Technologies was granted a license by the South African Health Products Regulatory Authority SAHPRA to manufacture APIs (active pharmaceutical ingredients) for the human medicine, which was a significant step forward for the SA pharmaceutical industry.

Active Growth According to Hannes, CPT is an innovative chemical synthesis company with an enviable capacity and ability to develop and commercialise competitive organic synthesis routes. This means that CPT has the capacity to create various molecules, he adds, “In developing our own process technology there is a significant emphasis placed on current and environmentally responsible processes.” Their team coordinates various chemical manipulations including oxidation, amidation, alkylation and heterocyclic chemistry, while

technology for the commercial manufacturing of water-based nanomaterials is also something the company is involved in. “We are always in the process of commercialising another API,” Hannes says, “We have almost finished developing the technology for a further three which we would like to manufacture locally and then export.” O n the A PI side there are signif ic ant oppor tunities for grow th . H annes explains that while the number of animals in S outh Afric a is st aying largely the same, whic h result s in the market almost being f ixe d, that they are still able to improve their share of it . “ We ac hieve this by providing our renowne d excellent ser vice and also by means of the qualit y system that we’ve implemente d and embe dde d within the company,” he says . Despite limited expansion opportunities, Hannes still sees possibilities and prospects in the provision of active ingredients. He adds that this is a company priority, “Because these are not used only in South Africa but also in a fair number

METAL TANK INDUSTRIES

Interview with Rob MacGregor, Managing Director Thanks to an entrepreneurial spirit and an all-encompassing approach to business, South African tank manufacturer, Metal Tank Industries has found itself well placed to capitalise on the boom experienced within the hygienic, pharmaceutical, cosmetic and food and beverage industries. As the go-to partner for businesses within these sectors, managing director Rob MacGregor reveals to African Business Pursuit, that they are being kept busy. “Currently we are experiencing buoyancy in all sectors,” he says, “As we work hard to keep ahead of the growth of our longstanding clients.” Relationships Heavily focused on export throughout countries south of the Sahara such as Zimbabwe, Botswana, Uganda and Malawi as well as Namibia and of course South Africa, Metal Tank’s ability to offer high quality services across a range of manufacturing needs is thanks to the twenty six years the company has spent building meaningful relationships with clients and, fundamentally, staff. “We like to keep hold of our people,” Rob explains, “And have team members that have been with us for over fifteen years and companies, such as Chemical Process Technologies who have been collaborating with us for over twenty years.” This kind of relationship means a couple of things. Firstly, Metal Tank have an intimate understanding of their clients’ needs and are on a first-name basis that allows them to offer honest expertise and evaluations. Secondly, having this sort of relationship with fast growing businesses like Chemical Process Technologies means that they are adept at keeping pace with trends, changes and new developments. Thirdly, clients bring their challenges to Metal Tank, which has helped them expand their range of services so that when all the verticals are offering opportunities (as is the case now), they are in the position to accept. “None of which would be possible without our team working together and making full use of their faculties and expertise,” Rob adds. Projects It has been a busy year. Metal Tanks have been involved in a number of project upgrades with CPT (Chemical Process Technologies) involving the redesign of reactors, blenders and pipework. They were awarded a large contract for an oil and lube company in SA to expand their plant, as well as being involved in the installations of a number of brewing plants in Zimbabwe and Zambia specialising in traditional beverages. This has led to new developments in greenfield opaque beverages that have taken Metal Tank Industries to countries like Mozambique, Angola and Tanzania.

Inhouse Developments   Rob reveals that over the last couple of years Metal Tank Industries have expanded to integrate the latest technology in “vertical tank building”. This included the purchase of highly specialised European equipment from Italy and Austria, and as far as he is aware they are the only tank manufacturer in Africa using this technology. The traditional boilermakers use a roll-and-stack method with sheet metal to create a cylinder, which is later shaped. Whereas vertical tank building takes material from a steel mill in a continuous roll and creates one single automated weld cycle. Plates aren’t used, and the automated welding creates a continuous seam, providing greater weld precision. “It’s an example of how we like to keep our facility as self-sufficient and in-house as possible,” Rob says, “This allows us to manage our quality and grow ahead of our client’s needs. This way, when they need something done, we can do it.”

Chemical Process Technologies

of other countries in the southern hemisphere, that is the area on which we are focussed. To commercialise the technologies that we have developed as quickly as possible so that we can supply more and more to these countries.” He goes on to explain that on the formulation side, it is with local formulators for final product that CPT are having to compete, “Again, the quality systems that we have implemented are important in keeping us ahead. Multinational companies have the same quality system and standards on the animal health products as on the human side, and we have moved a long way down that route ourselves. We are in the process of executing a project to upgrade one of our facilities to be GMP compliant- set to be executed by the third quarter, which will set us apart from any of our competitors in South Africa, most of whom are still adhering to far more lenient local regulations.” This willingness to invest and continually improve their systems will stand them in excellent stead and the GMP facility will also open further export opportunities which are currently unavailable to them.

Maintaining Competitivness The flexibility build into CPT’s manufacturing systems is an irreplaceable component to the success of the company’s ability to formulate. Although, this does come at a price. “Our business is seasonal,” Hannes says, “And it is almost impossible to guess when customers will need our product. This makes things difficult as the lead times on a lot of the raw materials that we import can be anything from six to twelve weeks, and opportunities do not wait around for that sort of timescale.” They have built and tweaked certain aspects of their business to give the flexibility to ensure that they continually have enough of those required raw materials in place, aided by good relationships with their suppliers assisting them in short lead times for local deliveries.

CPT’s willingness to adjust their product plan to align with their customer’s priorities has, in turn, positioned them superbly well in the south African industry. From the chemical synthesis point of view, there is nobody else doing what CPT are doing in South Africa which is, according to Hannes, another vital differentiator. “Our competitors are all located in India and China,” he says, “Our technology sets us apart from them, however we still import most of our raw materials from the same supplier that they are using, therefor our approach, typically, is to look at the molecule that we believe to be of value and then see if there is anything we can do around the technology to allow us to manufacturer the product locally and at a better price.” Having the ability to develop and commercialise technology is what they use to remain competitive against those countries. Going through the process of scaling up and commercialising is a painful and challenging route, says Hannes, but he is convinced that it is the only real way to maintain independent and competitiveness in the chemical manufacturing industry. Recently, the company has benefitted from a boom rather than a bust, giving the global crisis everyone went through three years ago. It turned out to be a good time for agriculture - food supply has of course been very important and there have been favourable conditions in the industry which has enjoyed a growth of around 24%, which CPT really benefitted from. On the human side, Hannes said, what was most significant was the boost in interest in local manufacturing and there has been a lot of interest from the south African government and donor organisations that would like to ensure Africa’s independence when it comes to pharmaceutical products

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