Business Coverage Issue 4 by Business Coverage

Business Coverage

ISSUE

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WITH AMT, WE LEAD, OTHERS FOLLOW There’s nothing new about Automated Manual Transmission trucks. In fact we’ve been telling you about them for years. We pioneered the technology and introduced it into South Africa and through that became the market leader. But it isn’t just sales that have made us number one. It’s our tried and tested history with this technology and it’s how we apply that knowledge through committed after sales service. Think about this when you’re choosing an AMT.

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EDITOR'S NOTES Welcome to Issue 4 of Business Coverage.

Last edition we featured one of the world’s most recognisable brands, Apple. In this issue we feature one of the world’s most recognisable entrepreneurs - South African born, American business magnate Elon Musk.

Best known for his role as Co-Founder and CEO of Tesla, we discover that there is actually a lot more to Musk than you may think. Musk’s other ventures include SpaceX which designs, manufactures and launches advanced rockets. Musk’s latest brainchild is the co-founding of Neuralink, an American neurotechnology company founded by Musk and eight others. As we continue to live and learn in an increasingly technologically focused world, Musk’s ambitions to change the world are both inspiring and fearless.

Elsewhere in the issue, we look behind of the global fast food phenomena Nando’s, global mining giant Rio Tinto, and Africa’s largest airport OR Tambo International in Johannesburg.

BUSINESS COVERAGE

OKM Media Ltd, 66 Prince of Wales Road, Norwich NR1 1LT PUBLISHER OLIVER MOY OKM@AUBUSINESSCOVERAGE.COM DESIGNER SAM WOOD SAM.WOOD@AUBUSINESSCOVERAGE.COM HEAD OF RESEARCH ABI ABAGUN ABI@AUBUSINESSCOVERAGE.COM HEAD OF RESEARCH SAM HUSSEIN SAHARDID.HUSSEIN@AUBUSINESSCOVERAGE.COM HEAD OF RESEARCH CYNTHIA FALL CYNTHIA.FALL@AUBUSINESSCOVERAGE.COM

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CONTENTS

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NEWS COUNTRY COVERAGE COMPANY REPORTS

NEWS TRANSPORT

QANTAS COMPLETE FIRST EVER PERTH TO LONDON DIRECT FLIGHT

Qantas’ first Perth to London flight has taken off, marking the start of the only direct air link between Australia and Europe – and the fastest way of traveling between the two continents. Operated by a Boeing 787-9, the flight reduces total travel time by eliminating stopovers and taking advantage of the most favourable winds on any given day without having to factor in a mid-point in the Middle East or Asia when choosing a flight path. Qantas Group CEO Alan Joyce, who was one of the passengers on the inaugural flight, described it as a major milestone for Australia as well as global aviation. “This is a truly historic flight that opens up a new era of travel. For the first time, Australia and Europe have a direct air link,” said Mr Joyce. “The original Kangaroo Route from Australia to London was named for the seven stops it made over four days back in 1947. Now we can do it in a single leap. “The response to the flight has been amazing, both for the attention it’s received

since we announced it and the bookings we’ve seen coming in. It’s great for Australian tourism, for business travellers and for people visiting friends and family on both sides of the world.” Mr Joyce said a huge amount of work had gone into improving the experience for customers taking the 17-hour journey. “This is hands-down the most comfortable aircraft that Qantas has ever put in the sky. “Boeing designed the Dreamliner with features to reduce jetlag, turbulence and noise. We’ve taken that a step further with our cabin design, giving passengers more space in every class as well as bigger entertainment screens and more personal storage. “We’ve worked with the University of Sydney and our consulting chef Neil Perry to create a menu that helps the body cope better with jetlag and adjusted the timing of when we serve food to encourage sleep.” The daily QF9 begins in Melbourne, flying to Perth before then flying nonstop to London. Qantas has adjusted the timing of

some domestic services into Perth so that passengers from Adelaide, Sydney and Brisbane can join the flight to London. Today’s first flight coincided with the opening of the airline’s new Perth International Transit Lounge featuring jetlag reducing lighting as well as pre-flight stretching classes, and relocating all of the airline’s domestic and international flights into a single terminal at Perth Airport for faster, smoother connections. Mr Joyce added: “I’d like to specially recognise the support and cooperation of the Federal Government, the West Australian Government and Perth Airport. Without their help this flight, and all its broader benefits, wouldn’t be happening.” Qantas customers can choose from three routes between Australia and London – the direct PerthLondon service on the Dreamliner; a reinstated Sydney-Singapore-London service on the A380; and via Brisbane, Sydney, Melbourne, Adelaide and Perth to London via Dubai with partner Emirates on mix of A380 and 777 aircraft.

BUSINESS COVERAGE

CONSTRUCTION

TAYLOR WIMPEY MAKES STRONG START TO 2018

Taylor Wimpey said it has made a good start to 2018 as the housebuilder reported a rise of more than 10% in underlying annual profit. Pre-tax profit before exceptional items for the year to the end of December rose 10.7% to £812m, driven by improved performance in the UK and at the company’s Spanish business. Total pretax profit fell 5.8% to £555.3m due to an exceptional charge resulting from a leasehold review. After paying out £451m or 13.79p per share in total

dividends for 2017, the FSTE 100 company intends to pay roughly £500m in 2018, comprising an ordinary dividend of about 4.9p per share and a special dividend of 10.4p per share. Pete Redfern, Taylor Wimpey’s chief executive, said: “2017 was another strong year for Taylor Wimpey and we enter 2018 in a good position with positive forward momentum. “We have been encouraged by early trading patterns at the start to the year and despite some wider macroeconomic uncertainty, consumer

confidence remains robust and market fundamentals are solid.” Revenue in 2017 rose 7.9% as demand for houses remained strong and UK average selling prices rose 3.5%, the company said. About 43% of total sales used the government’s Help to Buy scheme, which lends money to buyers. Trading in central London was stable as customer confidence improved during the year and business in outer London was “robust”, Taylor Wimpey said.

NEWS FOOD & DRINK

NESTLÉ TO MARKET STARBUCKS PRODUCTS IN DEAL WORTH $7BN

Nestlé have been granted perpetual rights to market Starbucks consumer and foodservice products globally, outside of the company’s coffee shops. This transaction provides Nestlé with a strong platform for continued growth in North America with leadership positions in the premium roast and ground and portioned coffee businesses. It also allows Nestlé to capture exciting new growth opportunities in the rest of the world with Starbucks premium products. As a complete provider of coffee solutions, Nestlé will accelerate growth in outof-home channels. The two companies will work closely together on innovation and go-to-market strategies to bring the best coffee to customers around the world. “This global coffee alliance will bring the Starbucks experience to the homes of millions more around the world through the reach and reputation of Nestlé,” said Kevin Johnson, President and CEO, Starbucks. “This historic deal is part of our ongoing efforts to focus and evolve our business to meet the changing consumer needs, and we are proud to

work alongside a company that is committed to our shared values.” “This transaction is a significant step for our coffee business, Nestlé’s largest high-growth category,” said Mark Schneider, CEO, Nestlé. “With Starbucks, Nescafé and Nespresso we bring together three iconic brands in the world of coffee. We are delighted to have Starbucks as our partner. Both companies have true passion for outstanding coffee and are proud to be recognised as global leaders for their responsible and sustainable coffee sourcing. This is a great day for coffee lovers around the world.” As part of this transaction,

Starbucks will receive an upfront cash payment of USD 7.15 billion for a business which generated annual sales of USD 2 billion. The transaction does not include the transfer of any fixed assets, which facilitates a smooth and efficient integration. Nestlé expects this business to contribute positively to its earnings per share and organic growth targets as from 2019. Nestlé’s ongoing sharebuyback program will remain unchanged. Approximately 500 Starbucks employees will join the Nestlé family to drive performance of the existing business and global expansion. Operations will continue to be located in Seattle.

BUSINESS COVERAGE

HEALTHCARE

ASTRAZENECA’S LEUKAEMIA AND BREAST CANCER TREATMENTS MAKE REGULATORY PROGRESS

AstraZeneca has reported regulatory progress in the US and Europe for treatments for a rare form of leukaemia and breast cancer. The pharmaceutical company said the US Food and Drug Administration (FDA) had granted priority review to moxetumomab pasudotox - a potential new treatment for hairy cell leukaemia (HCL). The immutoxin is intended for patients who have

received at least two prior lines of therapy for HCL, a rare variety of leukaemia which affects about 1,000 people in the US each year. Though many patients respond initially to treatment up to 40% relapse. “With no established standard of care and very few treatments available, there remains significant unmet medical need for people with relapsed or refractory HCL,” AstraZeneca said.

NEW MEDICLINIC CEO TO START IN JUNE Leading international private healthcare services group Mediclinic have announced that Dr Ronnie van der Merwe will succeed Danie Meintjes as CEO of the Company on 1st June and will be appointed as an Executive Director

of the company from that date. This follows on from the previous announcements made regarding Mr Meintjes’ intention to retire as CEO by 31 and the subsequent announcement of Dr Van der Merwe being designated as his successor.

NEWS LOGISTICS

BIS AWARDED FIVE-YEAR GBU COAL MINE CONTRACT

Leading resource logistics provider Bis has continued its expansion into the Indonesian resources market by securing a longterm contract to deliver load and haul services at the Gunung Bara Utama (GBU) Coal Mine in East Kalimantan, Indonesia. Under the contract, Bis will deliver load and haul services from 2018 – 2023, with a two-year option to extend. Bis CEO Brad Rogers said his team would be working closely with their new client to deliver its safe, efficient and innovative

solution to the project. “We are excited to partner with GBU to help deliver on their high quality Indonesian coal project, through the application of our innovative and proven high payload haulage solution.” “Building local capability is integral to our approach. Our 120 strong workforce will be resourced from the local area, and a significant proportion will be housed locally within the community.” “As always, our commitment to Zero Harm will be a key focus. We will look to replicate the success

at our nearby Tabang project, which recently passed the milestone of three million hours Lost Time Injury (LTI) free.” Bis President Director of Indonesian Operations, Andy Coles commented, “We look forward to developing a strong partnership with GBU over the coming years and to supporting them to achieve their goals.” The GBU project is located in Mantar village, Damai sub-district, West Kutai Regency of East Kalimantan, Indonesia, and provides resources internationally to the world’s coal markets.

BUSINESS COVERAGE

MANUFACTURING

HEINEKEN TO OPEN $100M BREWERY IN MOZAMBIQUE

Heineken is to build a $100 million brewery in Mozambique. The factory, scheduled to produce its first batch of beers in the first half of 2019, will give Heineken a substantial presence in the southern African country, where annual beer consumption averages 11 litres per person. Mozambique’s economic

growth prospects, along with its youthful population, were behind the decision to set up a plant there, said Boudewijn Haarsma, Managing Director of Heineken’s east and west Africa operations. The factory will have a production capacity of 0.8 million hectolitres and is expected to create up to 200 jobs.

NEWS TRANSPORT

RYANAIR LAUNCHES TWO NEW ROUTES FROM LONDON STANSTED TO UKRAINE

European airline Ryanair has launched two new routes from London Stansted to Kiev and Lviv as the airline announced that it will now fly to Ukraine, its 36th country. The new services will commence from the end of October, as part of their new Winter 2018 schedule.

Ryanair’s Chiara Ravara said: “We are pleased to launch these two new routes from London Stansted to Kiev and Lviv in Ukraine, our 36th country. These new services will operate from the end of October, as part of our Winter 2018 schedule. Seats from £19.99 are already on sale on Ryanair.

com, and UK consumers and visitors can look forward to even lower fares and the latest “Always Getting Better” improvements including reduced checkedin bag fees, Ryanair Rooms with Travel Credit, connecting flights at Rome, Milan and Porto, and Ryanair Transfers”

BUSINESS COVERAGE

MINING

AUSDRILL MD ANNOUNCES RETIREMENT

Ausdrill have announced that its Managing Director, Ron Sayers, who at the age of 65 has decided to retire after successfully leading the Company for 30 years. Sayers has given 12 months’ notice of his intention to retire, and will remain in his role to enable a smooth transition. The

Company will complete an international search for a new Managing Director including internal and external candidates. Sayers founded Ausdrill in 1987, establishing the Company initially as a Kalgoorlie-based drilling company. Today, Ausdrill is a multi-disciplinary mining services company operating

in 10 countries. Ausdrill’s Chairman, Ian Cochrane, said “The Board would like to thank Ron for his years of service and leadership. We look forward to Ron’s ongoing support of Ausdrill during his welldeserved retirement. He has left a great legacy that we will continue to build on in the years ahead.”

NEWS AUTOMOTIVE

RENAULT LINKED TO MERGER WITH NISSAN

Renault shares have risen fuelled by reports the company is in merger negotiations with Japan’s Nissan. The companies who have been in a strategic alliance since 1999, are reportedly discussing becoming one giant entity and merging their stocks. Earlier in the month, the pair were reported by Reuters to be planning on a closer tie-up of their alliance, including buying the French state out of its 15% stake in Renault.

HEALTHCARE

SHIRE’S ANGIOEDEMA TREATMENT FAST-TRACKED BY EU AND CANADA

Shire has gained approval from the EU and Canada for accelerated assessments of its lanadelumab treatment for hereditary angioedema (HAE). The European Medicines Agency has validated Shire’s marketing authorisation application for lanadelumab and Health Canada has accepted a new drug

submission under priority review for the treatment. The EMA’s validation means an accelerated assessment for the potential therapy can begin after the number of evaluation days required was reduced from 210 to 150 in January. Health Canada’s acceptance of the treatment for priority review shortens the timeline from 300 days to

180 days. HAE is a rare, genetic disorder that causes debilitating, painful and sometimes life-threatening swelling in the body. Lanadelumab is an antibody Shire is seeking to develop for the prevention of angioedema attacks in patients aged 12 and older with the HAE.

BUSINESS COVERAGE

TECHNOLOGY

MONEYSUPERMARKET TO BUY DECISION TECH FOR £40M

Price comparison website Moneysupermarket has agreed to buy home communications and mobile phone comparison business Decision Tech for £40m. Mark Lewis, Moneysupermarket Chief Executive Officer, commented: “We are delighted to announce this transaction and I look forward to welcoming Michael and his team to the Moneysupermarket Group.

We said we would be working to take price comparison to users via sites they regularly visit on their mobiles, and Decision Tech’s B2B operation does just that. “Decision Tech is one of the UK’s leading platforms for helping consumers compare and choose home communications, broadband and mobile phone deals. This is an area people find complex and confusing,

and where there are plenty of savings to be made by customers”. Decision Tech is headquartered in London and employs a team of over 40 staff. Following completion, Michael Phillips, Founder and CEO, and the Decision Tech management team will join the Moneysupermarket Group and will continue to lead Decision Tech from their current offices in Holborn.

BUSINESS COVERAGE

ELON MUSK

ENTREPRENEUR FOCUS

Elon Musk is best known for his role as the co-founder, CEO and product architect at Tesla, Inc (Tesla). However, there is more to Musk than you may initially think. A forward-thinking entrepreneur, Musk’s many business ventures cover a range of sectors but have one thing in common: a goal to change the world and humanity. Musk began his business life when he co-founded Zip2, a web software company, which was acquired by Compaq for more than $300 million in 1999. The entrepreneur then founded X.com, an online payment company which went on to merge with Confinity in 2000 and became PayPal which was later bought by eBay for £1.5 billion in 2002. It was in 2003 that Musk founded Tesla and by 2006, had created SolarCity, a solar energy services company that is now a subsidiary of Tesla. Musk’s innovative inventions are revolutionising the automotive industry with Tesla’s Model S taking the title as the world’s bestselling plug in electric car in 2015 and 2016. The range of electric vehicles available from Tesla continue to gain attention in the mass market and media. Tesla continues to make the idea of owning an electric car, which not long ago would have been

considered a fantasy, more achievable for the public than ever. Most recently Musk’s team released the Model 3 and by early 2018, the Model 3 had become the best-selling electric car in the U.S. Musk, a South African-born American business man and engineer is also the founder, CEO and lead designer of SpaceX. Like Tesla, it was founded with the ambition of revolutionising the way that the human race lives. SpaceX designs, manufacturers and launches advanced rockets and spacecraft. Musk founded SpaceX in 2002 to revolutionise space technology, with the goal of reducing space transportation costs and enabling people to live on other planets. SpaceX has since developed its Falcon launch vehicle family and Dragon spacecraft family which both currently deliver payloads into Earth’s orbit. In 2015, continuing his ambitions of transforming the world in which we live, Musk cofounded OpenAI, a non-profit research company that aims to promote friendly artificial intelligence. Following the advancements made in both the electric car and space industries, Musk’s latest brainchild was the co-founding of Neuralink, an American neurotechnology company founded by Musk and eight others. Publicly

announced in 2017, it is reported to be developing implantable brain-computer interfaces with the aim of treating brain diseases but reportedly will eventually strive for human enhancement through linking the brain and computers. Musk also founded The Boring Company in 2016 which is another business pursuit he serves as CEO of. The infrastructure and tunnelconstruction company was allegedly founded in response to the traffic issues that Musk experienced in LA in a bid to ease congestion. Musk is undoubtedly a force to be reckoned with and his work will likely impact more than those in the business world if he continues to aim for changing the planet we know today. Having recently been listed on the Forbes list of the World’s Most Powerful People, Musk was also ranked 53rd richest person in the world by Forbes in February 2018. As we continue to live and learn in an increasingly technologically focused world, Musk’s ambitions to change the world are both inspiring and fearless. Which is great, as it requires a brave entrepreneur to defy the status quo and achieve goals that include reducing global warming through sustainable energy production and reducing the risk of human extinction by establishing a human colony on Mars.

COUNTRY COVERAGE SINGAPORE

MANUFACTURING

It has long been known that Singapore is one of the world’s leading countries in commerce and finance. Late last year, Singapore set out its plans to strengthen its status as a financial hub in Asia, with the aim of growing the sector more than 4 percent a year and creating thousands of jobs. Being able to adopt technology to increase efficiency is a huge part of this process, according to the Monetary Authority of Singapore. It said it will take steps such as collaborating with financial institutions to create common utilities for services including electronic payments, as well as investing in research to develop solutions such as “distributed ledger technology” for inter-bank payments and trade finance.

As the central bank balances new technology and innovation with the safety risks that inevitably come with them, there is another sector that is booming in the country. Singapore’s manufacturing sector expanded for the 19th consecutive month in March, according to data released by the Singapore Institute of Purchasing and Materials Management (SIPMM). At the forefront of this increase is electronic production. Growth in the sector was further underpinned by news that US chipmaker Micron Technology is set to expand its Singapore presence with the addition of a new cleanroom space to meet future manufacturing requirements for its 3D NAND flash memory products. The semiconductor giant

will build the multi-billion dollar facility expansion on a 165,000 sq m land plot, adjacent to Micron’s existing manufacturing complex at North Coast Drive. Construction of the new facility is expected to be completed in mid-2019, and Micron will boost its 7,500-strong Singapore workforce by 1,000 people over the next five years. Singapore is also Micron’s designated NAND Centre of Excellence, driving the implementation of the company’s leading-edge 3D NAND production for use in mobile phones, solid state drives, digital cameras and other products. The move will strengthen Micron’s already watertight ties to Singapore, where over a fifth of the company’s 34,000 workforce are based.

BUSINESS COVERAGE

ICELAND

ECONOMY UNCOVERED

Having progressed from a once isolated North Atlantic island, to a desirable holiday destination, Iceland is increasingly considered a land of opportunity for businesses, tourists and jobseekers. Whilst the domestic market is small, with a population of around 350,000, Icelanders are well-educated, unemployment is low and there is a remarkably even distribution of income. Consumers boast sophisticated tastes and the means to pay for quality. There is little manufacturing of consumer goods which continues to result in demand for imported products and with almost all Icelanders speaking some English, there is virtually no language barrier for English speaking organisations. Information technology service industries have prospered in the last decade, particularly in the software production and biotechnology sectors with Iceland widely recognised as one of the most technologically advanced countries. Energy is also excellent value as Iceland is one of the world’s leaders for renewable energy. The Icelandic energy grid derives almost 100% of its power from geothermal and hydro and wind power resources, making it uniquely attractive for energydependent industries. It is the country’s cheap

energy and advanced technological infrastructure that has resulted in a thriving market for Bitcoin mining, where a combination of its affordable energy, super-fast fiber-optic networks and cold climate provide ideal conditions for Crypto miners to succeed. In a recent World Economic Forum report, it was revealed that Genesis Mining, one of the largest crypto miners in Iceland had just opened three mining facilities. The Icelandic economy depends heavily on its fishing industry, which accounts for almost half of the country’s merchandise export earnings, more than 12% of its GDP and employs nearly 5% of its work force. Iceland remains sensitive to declining fish stocks and fluctuations in world prices for its main exports: fish and fish products, aluminium and ferrosilicon. It is however, the tourism

industry that has become Iceland’s main pillar of economic growth since 2010. The industry has continued to boom in recent years with the number of tourists visiting Iceland exceeding 2 million people in 2017, a noteworthy number of visitors reaching more than 5 times the Icelandic population. This growth has produced a vast number of investment opportunities for the tourism industry. In recent years, US based companies have responded to the increase in demand through constructing hotels, opening restaurants and retailing its consumer goods. The sustained growth in many sectors is making Iceland an attractive market for many businesses to explore, with a new consumer market emerging alongside a fastgrowing tourism sector and consistent demand from both domestic audiences and international visitors alike.

O.R. TAMBO INTERNATIONAL AIRPORT

COMPANY REPORT

BUSINESS COVERAGE

The gateway to Africa

COMPANY REPORT

.R. Tambo International Airport, the biggest and busiest airport in Africa is situated in Ekurhuleni near South Africaâ&#x20AC;&#x2122;s economic capital, Johannesburg. From its humble beginnings in 1952, the airport has undergone two name changes from Jan Smuts Airport to Johannesburg International in 1994. It was renamed O.R. Tambo International Airport on 27 October 2006 after the late freedom stalwart, Oliver Reginald Tambo. The airport services airlines from five continents and plays a vital role in serving the local, regional air transport needs of South African and international travellers. This transport hub boasts key elements

required for a world-class airport business: location, accessibility and connectivity. It is ideally situated in the heart of South Africaâ&#x20AC;&#x2122;s commercial and industrial hub, with excellent road infrastructure, linking it to the national road network. Since 1996, O.R. Tambo has been the busiest airport in the continent, overtaking Cairo International Airport. With 170 retail outlets, there are also top class hotels and a fully-equipped gym close by so that travellers have everything on hand to make their airport experience enjoyable. South Africaâ&#x20AC;&#x2122;s struggle with apartheid meant that the airport endured a tough time in the 1980s when many countries

BUSINESS COVERAGE

stopped trading with the country. Sanctions meant that South African Airways were refused rights to fly over most African countries forcing them to fly around the “bulge” of Africa. This required specifically modified aircraft like the Boeing 747SP until sanctions were lifted. AEROTROPOLIS Airports Company South Africa, which owns nine across the country including O.R. Tambo, is working hard to deliver a nationwide concept called aerotropolis. We spoke to General Manager Bongiwe Pityi who explained more. “An aerotropolis is not merely having an airport at the centre of economic activity, boosting aeronautical and nonaeronautical revenue streams, but rather to create value and increased sustainable long-term growth for the company and our stakeholders within a 20 km radius around our airports,” says Pityi. “We believe that by 2025, our airports will play a key role in shaping the cities and regions they serve, developing and integrating places where people will live, learn, work and play. Central and West African airports offer less distance for global transport and cargo travel for logistics businesses and passengers. “In this regard the implementation of Airports Company South Africa Vision 2025 is critical. This vision seeks to ensure that we effectively run airports, develop airports and grow our footprint (through Business Development).” Although positioned far lower on the continent, the company believes that

focused application of the aerotropolis concept in South Africa will attract business and make its airports preferable (due to facilities such as cargo storage and multi‑modal transport options), providing the best value in line with global value chain trends. Particularly for cargo movements, which have intensified in the last few years. Working hand in hand with the Ekurhuleni Metropolitan Municipality (EMM), the upgrade of the airport and its facilities will enhance economic growth, reducing the cost of business, skills development, further integrating the public transport network, integrated spatial planning, improved logistics networks and handling. A main focus area for O.R. Tambo International Airport is cargo and logistics development in order to secure further courier and logistics-based business. “In close co-operation with the City of Ekurhuleni and the Gauteng Province, we plan to further develop the Midfield Cargo facilities,” says Pityi. LEADERSHIP So who is Bongiwe Pityi, the woman who leads the continent’s busies airport? In 2014, she became the first woman to manage an airport in Africa. Having successfully undertaken several different roles including Assistant General Manager and Project Leader, Pityi combined her industry knowledge and Law degree to take on a critical role at Guarulhos International Airport in São Paulo, Brazil. There she was Assistant Director: Airport Operations in the crucial period leading up to the 2014 FIFA World Cup in Brazil.

COMPANY REPORT

BUSINESS COVERAGE

Upon returning to South Africa, Pityi was appointed General Managaer of O.R. Tambo where she is responsible for its stakeholder management (including airlines, government agencies, ground handlers and concessionaires) and ensuring there is strict compliance of all regulations in the management of facilitators and aviation safety. After practising as an attorney for two years before joining the aviation industry, Pityi believes that her legal training equips her with an appreciation of whatever the prevailing laws and regulations currently, which is highly relevant in her current role.

PROCUREMENT AND THE ECONOMY A strategic objective of Airports Company is to raise the portion of nontariff revenue to 55% of total revenue by 2020. Non-tariff revenue includes airport retail space, parking, advertising and property, car rentals and other ancillary services. For Airports Company South Africa, procurement from suitably qualified black-owned enterprises is essential in contributing to the transformation of the historically white-dominated economy. “Our procurement and bidding performance has reached the stage where black-owned companies are replacing other black-owned companies

Otis Africa (a company affiliated to Otis Group and member of United Technologies Corporation, USA), operates in the industry sector of passenger’s vertical and horizontal transportation systems. Having a large footprint in the continent, Otis Africa expands its new operation base in Johannesburg and its coverage through 4 subsidiaries, 25 distributors, 1000 employees and mechanics who maintain a base of more than 25.000 Lifts, Freight lifts, Escalators and Moving Walkways in offices, hospitals, industrials and Airports. Otis systems are used in many airports in Europe, Asia, Middle East and Africa and prestigious international Hubs such as Paris-Roissy Charles de Gaulle in France and OR Tambo International in Johannesburg. Otis was founded in 1853 and is the world’s largest manufacturer of people moving products including elevators, escalators and moving walkways. In 2016, Otis realized a turnover of 12B$, employs 67,000 people worldwide and maintains 2 million elevators and escalators in more than 200 countries. Otis is engaged in Ethics, Safety, Green environment and People employment diversity. 25

COMPANY REPORT when contracts come to an end. We regard this as a strong indication of progress made,” says Pityi. “It also demonstrates that Airports Company’s transformation policy is benefiting as broad a base of people as possible rather than awarding contracts to similar faces every time contracts are up for re-bid.” Airports Company South Africa awarded 44 retail contracts to the value of R210 million in the 2016 financial year. The company has fostered the emergence and development of 1107 small, medium and larger companies through its procurement practices in the

last financial year. At O.R. Tambo, building strong relationships with both national and international brands is imperative to the airport’s success. These notable companies include the likes of Otis, Reshibile Aviation & Security Services,Technique Engineering Services, Hetlisa Cleaning Services and Zeag South Africa. TECHNOLOGY O.R. Tambo fully subscribes to the IATA Fast Travel concept and have successfully completed our self-bag drop trials and will be rolling out the

Email: tebello@reshebile.co.za / info@reshebile.co.za, Telephone: 086 111 7277 / 011 6160134

Address: Operational office: 71 Crn Rudo Nell and Kelly road, Merinda industrial Park, Unit 25 B&C, Jet Park, 1469 Corporate Office: 2 Bradford Road, Bedfordview, 2007 Website: www.reshebile.co.za

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Reshebile Aviation and Protection Services (Pty) Ltd, known as RAPS, was formed in 2001 by two companies - Zonkizizwe Security Services and IEPS Protection Services.

Email: tebello@reshebile.co.za / info@reshebile.co.za, Telephone: 086 111 7277 / 011 6160134

Address: Operational office: 71 Crn Rudo Nell and Kelly road, Merinda industrial Park, Unit 25 B&C, Jet Park, 1469 Corporate Office: 2 Bradford Road, Bedfordview, 2007

The intention was to create an internationally recognised security service provider in the field of aviation, an industry which has always had fewer black and previously disadvantaged ownership. Website: www.reshebile.co.za

Through hard work, RAPS has earned a top reputation. It is now a security provider to South African Airways nationally and did work for the Gautrain project. The company recently signed a security service contract to provide security services to Airports Company South Africa (OR Tambo International Airport and East London Airport). RAPS also provides services to various companies such as South African Social Services Agency (SASSA), University of South Africa (UNISA) to mention a few. It has achieved a strategic partnership with IATA (The International Aviation Transport Association), and is also recognised and certified by Airports Company South Africa (ACSA) to operate in all South African International Airports. 27

COMPANY REPORT

Technique in a mission for Africaâ&#x20AC;&#x2122;s renewal n New generator sales, installation & maintenance support n New change over panels & distribution boards n Upgrade of existing controls for generators n Maintenance contracts & after hours support n Electrical services provided n Mechanical services, exhaust systems, ducting & louvers n Industrial maintenance & commercial maintenance n After hours support services for our signed up customers n Certificate of compliance for house installations & commercial sites n Cable work & reticulation services n Plumbing services

www.techniqueservices.co.za Tel: 011 026 3200 Cell: 076 242 8519 / 078 968 2990 Email: info@techniqueservices.co.za / sales@techniqueservices.co.za 44 Jansen Road Jetpark 1459 Gauteng South Africa

BUSINESS COVERAGE

service to passengers as soon as approval is given from the South African Civil Aviation Authority (SACAA). In November 2016, the airport was the first in Africa to implement the Smart Security checkpoint that will digitise the security check process, speed up passenger progress through security and further enhance security through use of state-of-the-art scanners. The pilot implementation phase of the Smart Security system was recently completed and its performance is currently being evaluated. The new checkpoint includes a new conveyor system for checking hand luggage

and new scanning booth for individual passengers. With the new system there is almost be no need for physical patdowns of passengers who set off security alarms because the scanning technology is much better at detecting objects that should not be carried on or around the person. There are also be less frequent requirements for laptops to be removed from bags and switched on. So how will ever advancing technology help the airport to improve? “The impact of technology is fundamental to the future of the airports business. We are moving from being an airports company that runs technology to a digital

Technique Services has a mission. Not just to support Africa’s renewal and new infrastructure developments as well as creating new opportunities, but also to develop skills and offer quality training. “With the right partners and good support, we will train and develop our young people, as our future lies in their hands” Inkunzi ise Matholeni. We offer free quotes for maintenance contracts and after hours support for our signed up customers. Remember, when you buy your product through Technique, you are being provided with our support and a strong relationship, too. You are welcomed as a member of the Technique family

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BUSINESS COVERAGE

that runs airports. We have embarked on a number of initiatives to turn this ideal into a reality,” says Pityi. “These include customer-facing digital projects as well as ensuring that back-end systems are ready for the challenges posed by digital transformation. In practical terms, this means providing a seamless experience for people using the airports. This means you should be able to buy your ticket at home, book your parking, drop your bag through a self-service mechanism and walk on the aircraft with as little friction as possible.”

SUSTAINABILITY O. R. Tambo International Airport is one of four South African airports that have been awarded Airport Carbon Accreditation (ACA), in line with a key strategic objective of Airports Company South Africa to enhance sustainability and reduce its environmental impact. Achieving Level 1 ACA accreditation is an important milestone on the journey to becoming carbon neutral. It is the company’s goal for all of its nine airports achieve an Airport Carbon Accreditation rating and we continue to strive to reduce the impact of operations on the environment.

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BONGIWE PITYI

GENERAL MANAGER: O.R TAMBO INTERNATIONAL AIRPORT

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CUSTOMER FOCUSED O.R. Tambo remains focused on providing an enjoyable, seamless experience to passengers travelling to or from the airport. Its record of high customer ratings in independent surveys ranks O.R. Tambo alongside global airports. Promoting South Africa as a tourism destination is also a priority, and the airport works with its partners to do so. “Customers across virtually all age and demographic profiles are increasingly sophisticated and comfortable with digital technology to the extent that they expect – demand, even – the most seamless and technology experience

possible,” says Pityi. “In practical terms, this means providing a seamless experience for people using the airports. This means you should be able to buy your ticket at home, book your parking, drop your bag through a self-service mechanism and walk on the aircraft with as little friction as possible.” Despite the tough economic conditions in South Africa, O.R. Tambo has managed to uphold its reputation as the premier gateway to Africa which is profitable and forward-thinking. Under the strong leadership of Bongiwe Pityi, it continues to thrive as it looks to achieve its 2025 goals.

SCHINDLER LIFTS

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A family-owned business with global grandeur

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hey have over 1000 offices in more than 100 countries and are responsible for transporting one billion people around the world each day via elevators, escalators and moving walks. But despite their global grandeur, when it all boils down to it the Schindler group is still a family-owned business at heart. KEYS TO SUCCESS Founded in 1874 by Robert Schindler

in a joint partnership for the production of lifting equipment and other machines in Lucerne, Switzerland, it has grown during the past 142 years from a local manufacturer into an international elevator and escalator business. Far from its humble origins, Schindler now employs more than 57,000 people across the globe, including 981 in the Australian arm of the group, which was founded in Melbourne in 1981. Ranked number two in the Australian â&#x20AC;&#x153;urban mobilityâ&#x20AC;? market in terms of

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turnover – with designs on first place – Schindler Lifts Australia manufactures, sells, installs, maintains, repairs and modernises lifts, escalators and moving walks, with six offices located in Queensland, NSW, ACT, Victoria, South Australia and Western Australia. While it is clear the original family tree has grown a few extra branches over the years, the roots upon which it draws its strength remain the same according to Schindler Lifts Australia Managing Director Rob Seakins.

“There are two key things for me - one is about how we work with our people and the second one is how we service our customers,” he said. “Employee engagement is the foundation of our business and we spend a lot of time and effort in making sure that our employees are engaged.” Just as it is within a family unit, the key for the company in forming connections with employees – and customers – is trust. And among the elements that have

COMPANY REPORT helped develop that is the company’s commitment to safety. “Safety has two components and the first is employee safety; making sure our employees get home safely at the end of the day,” Mr Seakins said. “That’s our first priority as an organisation. “But equally important is product safety and product safety is about looking after the people that ride in and use our lifts, escalators and moving walks. “We transport one billion people a day globally so if we don’t get that right we won’t exist as a company. “We do a number of things over and

above the regulatory requirements here to make sure that the Schindler products we install and maintain are safe for people to use. “The company is still a family-owned company, there still is a Mr Schindler and his name is on every product that we put out in the marketplace … This is the discipline he puts through the company, that employee safety and product safety are our biggest priority and will always be our biggest priority.” Effective communication has also been crucial in ensuring people - both inside and outside the company – remain engaged with and committed to Schindler’s products and services.

Difficult just got easy. We provide the industry with high-quality elevator cables, backed by decades of experience in the Australian market. Our cables have been developed to provide optimum performance, maximum safety and extended life for applications requiring power and control. Features include ease of installation for high levels of efficiency, and options for maintenance, service and modernisation.

www.siemens.com.au/auto-cables

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“It’s not rocket science, it’s really about being proactive with our communication and being responsive as an organisation,” Mr Seakins said. “We have a person in our organisation who is dedicated to running what we call customer excellence, and this is about raising the profile of good customer interactions within the business. “We know if we have better relationships with our customers, we will retain our customers and invariably help grow our customer base.” PROJECTING CONFIDENCE

Each year Schindler Lifts Australia supplies around 1000 units to clients across the country for projects of all sizes. One of the biggest in recent years saw them provide 106 elevators to Lendlease for the landmark Barangaroo South development. The $6 billion waterfront project on the western edge of Sydney’s CBD aims to be the first development in Sydney that is entirely ‘climate positive’, generating at least as much energy and water as it consumes and recycling more waste than it creates. This vision meshed perfectly with

Schindler Lifts asked. We listened.

Siemens elevator cables are manufactured to the highest of standards to ensure maximum safety, longevity and ease of installation.

Siemens cables benefit from world-renowned engineering. All products are manufactured where rigorous process controls are combined with the highest quality of materials to guarantee a superior end product. Our cables are also the result of customer consultation. At Schindler Lifts request, Siemens designed a new Flat Travelling Cable to service Low, Mid and High Rise Elevators in just one cable. This innovation provides integration for applications to multiple devices in a single cable (e.g. swipe cards, telephone security, card readers & key pads). “It is an excellent combination comms travelling cable that we now predominantly use across our Modernisation, New Elevator and Repairs business” Tom Geister, Schindler Lifts. Siemens elevator cables are manufactured to the highest of standards to ensure maximum safety, longevity and ease of installation.

COMPANY REPORT Schindler’s own global commitment to sustainability and more specifically, the company’s A-rated energy efficient 7000 high-rise elevators being used for three office towers at the site. The elevators feature an energy-recuperation system that feeds excess power back into the building’s electricity grid. Other major projects wrapped up or in the works for Schindler Lifts Australia include the Darling Harbour Convention Centre in Sydney, two major Victorian shopping centres at Chadstone and Werribee, a major Queensland Government commercial building (1 William Street) and the Perth Children’s

Hospital. While there is a commitment to quality on every job they complete, one in particular in recent years saw Schindler Lifts Australia receive a global tick of approval. Their striking installation of twin cylindrical glass “executive express lifts” running through the atrium of Macquarie Bank’s global headquarters in Sydney was named the 2015 Elevator World Project of the Year. The award recognises innovative designs, special application or an approach that has solved a major problem or overcome a unique

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challenge, which in this case involved working with both the building’s Heritage listing and the need for the elevators to be not only practical but also aesthetically pleasing. TECHNOLOGICAL ADVANCEMENTS While Schindler has built its name and reputation based on the quality - and sometimes even beauty - of the products they install, there’s little doubt the future of the business, particularly when it

comes to maintenance, will be driven by technology. Mr Seakins said Schindler was “on the cusp of some fundamental changes” that will alter the way the company engages with and services their customers. At the core of this is Schindler’s “Digitisation Strategy”, which will reengineer their enterprise software and create a “closed loop” system that will provide real time information on

COMPANY REPORT breakdowns and repairs for Schindler’s customers and technicians via the Schindler Dashboard. The next step after, according to Mr Seakins, will be leveraging the “internet of things” via a partnership with GE. While he said it was very early days and the details were still under wraps, it will in essence enable Schindler to interpret the data collected from their lifts and escalators and turn it into information to allow for a more efficient use of their maintenance workforce. And as with everything at Schindler, Mr Seakins said the success of even these technological advancements will

come down to how well the company engages with its workers. “How you bring your employees along with you as you go through the technological change is absolutely mission critical,” he said. “The transformation in people is almost as big as what’s required in the transformation in technology. We have to start thinking about that, preparing the people and giving them the competencies and skills to deal with that. “For me, adapting to that change successfully will define how well this organisation does.”

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NANDOâ&#x20AC;&#x2122;S BUSINESS COVERAGE

Global fast-food chain with distinctive South African flavour

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amous for its signature peri-peri sauce, Nando’s has grown from a single restaurant to a global chain that has more than 1,000 restaurants in more than 30 countries. The one-of-a-kind sauce that gives Nando’s chicken its distinguished flavour is a product of the African Bird’s Eye Chilli, which was discovered hundreds of years ago in Mozambique by Portuguese explorers. A few centuries later, in 1987, the very same peri-peri sauce inspired Fernando Duarte to invite his friend Robbie Brozin to a small Portuguese eatery in Rosettenville, South Africa, to try some peri-peri marinated chicken. In Duarte’s own words, “I knew nothing about the food business, I just knew that it was the best chicken I had ever tasted.” The pair bought the restaurant, named it

Nando’s, and the rest is history. In 2016, Nando’s is more than just a chicken restaurant. The distinct flavour of peri-peri has been bottled for sale alongside other sauces in retail shops and supermarkets. SOUTH AFRICAN ROOTS Nando’s restaurants and menus are adorned with imagery of Barcelos Cockerel - which for centuries has been a symbol of faith, justice and good fortune due to a 14th Century legend told in Portugal. If the logo, taste of peri-peri and grilled chicken aren’t necessarily synonymous with South Africa, each Nando’s diner has its own unique design, with earthy textures and colours, designed to “remind us of our sunny Afro-Portuguese roots.” They feature original, local South African art and unique design touches, all while Afro-Luso beats play out through the speakers.

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THE NANDO’S WAY One of Nando’s unique selling points is the fact that customers can have chicken their own way. They decide on the heat of the sauce they wish their chicken to be cooked in, from Lemon and Herb to Extra Hot. Chickens are locally-sourced, delivered fresh and never frozen. They are marinated for 24 hours, in a marinade that contains no preservatives, colourants or artificial flavours. Chickens are trimmed of excess fat before cooking, and flame-grilled which reduces

the fat content even further. Nando’s restaurants are a mix of privately owned establishments and franchises. Due to the high demand, Nando’s franchisees must be talented business owners, promoting an excellence in service levels and able to create a personalised, friendly and fun environment. Responsibilities include marketing the restaurant and the brand; business management, customer orientation, community relations; and people management.

COMPANY REPORT CUSTOMER PROMISE In South Africa, each and every restaurant has the Escudo promise blazoned on its walls. This passionfilled promise is to give customers the excellent quality and flavour that they expect. “It’s the Nando’s stamp of quality and something that we take very personally,” says the company. “We know our integrity lies in providing only the best products and service and that’s why the Escudo is such an important symbol to Nando’s and why it holds pride of place on our packaging and in our store.”

PEOPLE FIRST “Nando’s is not just about the chicken. It’s never been just about the chicken. It’s about the people who make the chicken.” That one simple motto has been a Nando’s saying from the very beginning. The ‘Nandocas’ as staff are collectively known, are the ‘big family’ people bringing the Nando’s experience to customer’s tables. Employees must buy into the company’s values: Pride, passion, courage and integrity. Nando’s couldn’t put it better. “Like in every family, some are quieter than others, some are the

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For more info contact: Sales - John Duffy 49 Tel: +27 (0)11 680 2537 Email: john@dhfoods.co.za

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life and soul of the party and others are somewhere in-between. But, at Nando’s, we love the fact that everyone is different – which is why everyone is welcome at our table!” SAUCES AND MERCHANDISE Peri-peri is at the heart and soul of Nando’s food. Its popularity led Nando’s to bottle the secret ingredient so the flavour can be taken anywhere on the go. Across the world, consumers can buy a range of sauces, marinades, spices, salts and snacks from retail stores and supermarkets. Despite being imported into a number of different continents, each bottle of periperi sauce is produced at a factory near Johannesburg overseen by co-owner Fernando Duarte and follows the unique recipe made in the same tradition as they

were hundreds of years ago. In South Africa, the Loja (store) sells a wide range of Nando’s merchandise, from aprons to beach towels. SOUTH AFRICAN CHANGES An average of around 20 new restaurants a year open in South Africa, and last year Nando’s began a major relocation and revamp programme that Nando’s Southern Africa CEO Geoff Whyte says would “add larger, more beautiful stores.” Earlier this month, Nando’s announced the appointment of Doug Place as Chief Marketing Officer of its Southern Africa business. Place joins Nando’s from SterKinekor Theatres where he had been marketing director since 2011. “Doug is one of the smartest marketers in South Africa. He boasts an enviable track record of success as evidenced

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by his impressive collection of local and international awards,” commented Whyte. “Nando’s is delighted to have someone of Doug’s calibre join our leadership team and we are looking forward to seeing him apply his special brand of magic to one of the world’s bestloved brands.” Research from Euromonitor International states that the value of SA’s chained fast-food chicken category is worth about R11.43bn, making it the strongest fast-food category in SA. Nando’s reach is set to continue to extend across the country, continent and world, too.

www.ctppackaging.co.za

• State-of-the-art litho and gravure printing. • Design of cartons and conceptualisation. • Latest computer software to keep abreast of design agency trends and technology. • Specialised experience in packaging with its multiple shapes, creases, folds and cuts is available from CTP’s highly trained staﬀ. • A wide variety of board types and grades; both local and imported. • Value added processes include, foil stamping, embossing and high speed specialised clamshell and “leak proof” carton production, all done in-house. • ISO 9001 : 2008. • BEE Level 3; 110% Procurement Recognition.

34 Barbara Road, Elandsfontein, 1406, South Africa P.O. Box 6610, Homestead, 1412, South Africa Tel: +27 11 345-4000

Fax: +27 11 345-4257

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RIO TINTO

Producing metals and minerals that are essential to global development

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ou’d be forgiven for being surprised that the Rio Tinto Group is a BritishAustralian multinational. It’s name is not derived from either culture, but does reflect its multinational nature. In fact, the company’s roots date back to 1873, when a consortium of investors purchased a mine complex on the Rio Tinto river in the southwestern city of Huelva in Spain from the countries government. Fast forward more than 140 years on, and the Group is headquartered in London, with a management office in Melbourne, Australia. Rio Tinto specialises in producing many commodities, and also has operations in refining, particularly for refining bauxite and iron ore. RIO TINTO IN AUSTRALIA Rio Tinto has been part of Australian life for over a century. More than 200,000 Australians are shareholders in the Group, while half of the company’s global assets are based there. The company produces iron ore, coal, bauxite, alumina, aluminium, uranium, diamonds and salt from more than 30 operating sites and processing plants around the country. It has offices in Melbourne, Perth and Brisbane. Rio Tinto Coal Australia is one of the country’s leading mining organisations with a highly successful record in developing and managing world-class coal operations. It produces both thermal and coking coal from five operations including the Hunter Valley in New South Wales and

Queensland’s Bowen Basin for international export. In Queensland, the company operates the Hail Creek and Kestrel mines. In New South Wales, Rio Tinto Coal Australia manages Coal & Allied’s operations at Mount Thorley Warkworth, Hunter Valley Operations and Bengalla. IRON ORE Rio Tinto’s Pilbara operations in the west of

the country include a world-class, integrated network of 15 iron ore mines, four port facilities, a 1,700 kilometre rail network and related infrastructure. These are specifically designed to respond rapidly to changes in demand and are supported by an Operations Centre in Perth. “We’re expanding our operations in the Pilbara to epic proportions while

introducing next generation technologies to deliver greater efficiency, lower production costs and improved health, safety and environmental performance,” says Rio Tinto. HIsmelt is Rio Tinto’s patented technology that is short for high-intensity smelting. It is the world’s first commercial direct smelting process. It produces premium quality pig iron directly from iron ore. The technology brings many advantages to the steelmaking

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Komatsu autonomous haulage Lifting Productivity for Australian Mining Today

DRIVeRless teChnologY

www.komatsu.com.au 1300 566 287

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industry, such as lower operating costs, lower capital intensity, lower environmental impact, and greater raw material and operational flexibility. The Iron Ore operations are led by Andrew Harding, who was appointed Chief executive, Iron Ore in 2013. Mr Harding joined Rio Tinto in 1992 and spent seven years in Rio Tinto Iron Ore. He has also held a range of positions in Technology & Innovation, Energy and Aluminium and was President and Chief

executive officer of Kennecott Utah Copper. Prior to his current role, Andrew spent three years as Chief executive, Copper, where he was responsible for a range of mines and projects including the development of the world-class Oyu Tolgoi copper-gold mine in Mongolia. MINES Since 1983, Rio Tinto has operated the Argyle diamond mine in the remote East Kimberley region of Western Australia.

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Since then it has become the world’s largest supplier of natural coloured diamonds, one of the world’s largest producers of rough diamonds, producing more than 800 million carats of rough diamonds. Located in the hot, dry climate of northern Western Australia, Dampier Salt is a joint venture between Rio Tinto (68 per cent), Marubeni Corporation (22 per cent) and Sojitz (10 per cent), Dampier Salt Limited (DSL). Uranium has been mined at Ranger mine for over 30 years. It is operated under the name Energy Resources of Australia Ltd and

is the country’s largest continually-operating uranium mine. It is one of only three mines in the world to have produced in excess of 100,000 tonnes of uranium oxide. TECHNOLOGY AND INNOVATION Rio Tinto recognises the ever-increasing role technology has to play in the mining and minerals industry. “Improvements in technology can change the way that we look at mineral deposits, make our operations safer, help us manage costs and respond to environmental imperatives,” it states. That’s why it established the Technology

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Civiltest Pty Ltd Geotechnical Consultants has been in business for approximately 25 years, and employs a

range of dedicated staff across their ofďŹ ces and NATA accredited Laboratories. The company provides civil

engineering testing services for both small and large civil engineering projects.

Civiltest Pty Ltd, 10 Latham Street, Mornington 3931 VIC T (03) 5975 6644 F (03) 5975 9589 www.civiltest.com.au

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& Innovation (T&I) group, which is dedicated to creating sustainable value and competitive advantage by making improvements to the way the Rio Tinto operates. Employing more than 600 people, T&I partners with the business and external partners to provide technical insights into how Rio Tinto runs its operations

and delivers its projects. “To help us achieve our goals, we’re also working with some of the best minds in the world of academia, through partnerships with leading institutions such as the University of Sydney and Imperial College London,” says the Group, Rio Tinto also works hard to come up with ways to improve environmental

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performance through more efficient ways of mining and processing. Part of this involves looking to create new, more highly-specialised, career options for its members of staff. For 8 years, the Mine of the Future programme has been running with the sole aim of changing the face of mining with step change improvements in productivity and efficiency.

Rio Tinto is in the process of rolling out a number of technological advancements across its operations to meet the three key themes of the programme: • Autonomy – to achieve massive efficiency in surface bulk mining • Recovery – to increase efficiency by sorting waste before it gets to process plants • Tunnelling – to access deep

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orebodies faster SUSTAINABLE DEVELOPMENT “Focusing on sustainable development means we constantly challenge ourselves to do better, in every aspect of our business,” says Chief Executive Sam Walsh. “While social, environmental and economic issues present challenges

to Rio Tinto, we prefer to see them as source of opportunity and new value.” Protecting the health, safety and wellbeing of employees, contractors, customers and host communities is of utmost importance to Rio Tinto. It works hard to minimise its impact on the environment, and ensure communities benefit from the value generated by its operations and will continue to do so.

TWINSAV

COMPANY REPORT

Tissue makers investing in people and technology

VER

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here are some products that we use every day without thinking too much about their origin. Everyday essentials that are easily taken for granted. Tissue paper and its associated products fall into that category. Toilet tissue at home, paper towels at school or the office, a takeaway paper cup in a cafe, tissue paper products can be found pretty much anywhere. In South Africa, Twinsaver is the market leader in quality tissue paper products, supplying a hygiene product portfolio to domestic consumers and business customers across the country.

The Twinsaver Group manufactures, markets and sells toilet tissue, facial tissue, paper towels, serviettes, paper plates and cups as well as soap and dispensing solutions. Its head office is located in Bryanston, South Africa, while manufacturing and converting facilities are based in Vereeniging, Pretoria, Durban and Cape Town. The Group also holds a 50-percent equity stake in Neopak Recycling – a waste paper collection business. This has allowed for vertical integration in manufacturing processes and the recycling operations are located in Johannesburg, Pretoria, Pinetown and

The Transpaco Group through Disaki Cores and Tubes are proud to be associated with the Twinsaver Group. Disaki Cores and Tubes is South Africa’s leading manufacturer of paper tubular cores, carton dividers, void fillers and angle board. Disaki, an ISO accredited manufacturer, operates through production sites in Guateng, Kwazulu Natal and the Western Cape. Modern, fully automated plant and equipment is used at all three sites. Disaki and Transpaco focuses on providing customers with affordable competitive solutions, superior quality product and efficient service delivery. The Transpaco Group is also active in the Flexible Plastic Packaging, Printed Folded Carton, Pallet Stabilisation, Plastic Recycling, Geneneral Packaging and Refuse Bag markets.

www.transpaco.co.za/tubularcores

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Cape Town. Reinvigoration In April 2015, Twinsaver - which was formerly known as Nampak Tissue - was acquired by Ethos Private Equity Group. The Group recognized the opportunity to invest for growth using the iconic Twinsaver brand as the platform for value creation, and the need for new leadership and the development of a new strategic direction for the Group. This exciting new direction saw the appointment of senior executives joining from KC to oversee the transition from what was largely a product and packaging,

manufacturing-led company to a consumerled, solutions-based, fast moving consumer goods brand organization. Born in Johannesburg, Towell spent more than 18 years at Kimberly-Clark Corporation where he held several senior leadership and executive director roles in South Africa and across the Middle East, Eastern Europe and Africa. His invaluable experience in the industry has been crucial in carrying out the company’s strategic ambition. “We intend to grow the brand, improve our customer experience, optimize cost and ultimately expand the product portfolio,”

ChemSystems Paper and Leather supporting the Pulp, Paper and Tissue industry since 1963

Established in 1958, ChemSystems is a wellestablished business within the AECI group of companies and forms part of the specialty chemical pillar of AECI. ChemSystems is located at ChemPark, Chloorkop, where the primary manufacturing facilities, product application and research laboratories, sales, marketing and administration teams and warehousing is located. A second manufacturing plant is located in Durban at the Umbogintwini Industrial complex.

“Our expertise, your solution” Tel 0861 - 299 918 / 0871 - 513 349 www.chemsystems.co.za

These facilities support the 5 business unitsIndustrial and Mining, Paper and Leather, Consumer Specialties, Construction and Refractory and Foundry and Timber Board.

ChemSystems has warehousing facilities at Chloorkop as well as in Cape Town and Durban, all managed by outsourced warehousing and logistics partner Heneways.

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Towell said at the time of his appointment. Major Investment In August this year, Twinsaver announced an ambitious R580 million investment to upgrade its manufacturing facilities, which was lauded by Minister of Trade and Industry, Dr Rob Davies. As part of the Group’s strategic investment program in South Africa, the investment will include the introduction of state-of-the-art production equipment at its Bellville and Kliprivier operations. The Kliprivier project – installing a new TOSCOTEC tissue machine - is due to start

in January 2017, and is expected to take 15 months to complete. Post completion, the Group’s annual tissue output will be the largest in sub-Saharan Africa. The company has already completed the installation of an R80 million PCMC Forte converting line at its Bellville factory in the Western Cape, thereby doubling production capacity and creating additional employment across the tissue value chain. Improving Skills The Group appreciates that investing in people is pivotal for future growth and

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sustainable success. The investment in programs such as Learner-ships (Pulp and Paper) assist in developing skills, tertiary qualifications and work experience for individuals, as well as assisting the Group in developing talent pools for both the company and the paper industry. The investment in Apprentice-ships and Graduate programs enable a similar skills development and work experience opportunity - currently, the Group as 40 individuals participating in these programs.

and skills development programs will enhance both productivity and efficiency improvements across its value chain. Strategic supplier partnerships will simplify complex distribution networks and provide carbon footprint reduction benefits. The annual South African Logistics Achiever Awards aim to reward logistics and supply chain excellence in Southern Africa and encourage world-class standards, and this partnership was recently recognized with the award of a Gold accolade for re-engineering and optimizing a total supply chain. The supply chain process has been

Optimizing the Value Chain The Groupâ&#x20AC;&#x2122;s major equipment investments Imperial | Twinsavers 20year final advertP.pdf

2016/11/25

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made much more efficient, with a large reduction in the amount of stock in hold and improvements in service levels. GPS trackers and route planning systems have been installed in all trucks, enabling automated routes and the elimination of unnecessary journeys. And national planning has been implemented, streamlining stock movements across all sites and making direct routes possible, further reducing transport costs, and optimizing total value chain costs. The Group is steadfast in its mission to remain the #1 Tissue Company in South Africa. As Towell says equivocally: -

“Due to our size and industry expertise, we will attempt to maintain this position by investing in new capacity, new capability and be recognized as the thought leader in our market. Our integrated operations will be used to continuously drive costs down to ensure global competitiveness, while our national footprint will be used to meet our market’s needs, secure preferred supplier status with customers and branded preference with consumers.” Visit: - www.twinsavergroup.co.za Visit: - www.twinsaver.co.za

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SOUTH 32 A different kind of resource company

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2 73

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outh 32 has operations across five countries and is listed on three continents. Yet despite being a global organisation, at the heart of South32’s success is its ability to focus on the communities it works with. Spun out from BHP Billiton in 2015, South32 mines and produces commodities in a safe, sustainable way. The company mines and produces bauxite, alumina, aluminium, energy and metal lurgical coal, manganese, nickel, silver, lead and zinc in Australia, Southern Africa and South America. South32 is the world’s largest producer of manganese ore, a top producer of silver and one of the world’s largest ferronickel producers. These products can seem obscure to those not involved in the resource industry, but they are vital to everyday lives. They help to power homes, start cars, build infrastructure and even make coins and jewellery. The South32 corporate office is located in Perth,Western Australia, with global shared services based in Johannesburg and marketing activities managed through Singapore and London. Its operations in Brazil Alumina is managed from an office in Rio de Janeiro. The organisation is due to spin off its South African Energy Coal business in six months but will continue to focus on its existing operations in South Africa which include aluminium and manganese.

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A preferred Underground and Surface contract Mining Company

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Open Cast Mining Tell +27 13 007 1359 Email info@modimining.co.za Underground Mining Tell +27 14 592 1560 Email info@modimining.co.za

www.modimining.co.za

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A SIMPLIFIED APPROACH It may be a worldwide company, but South32 was determined to avoid the pitfalls that big businesses can often encounter, like complex management chains which can slow operations down. It has instead adopted a back-to-basics approach, simplifying operations by combining them into regions which reduces layers of management and provides a leaner corporate centre which insides a centralised marketing model. “At the heart of our operating model is the way we work, which is focused on building an inclusive workplace with a strong culture of care and accountability,” says South32. “Our vision is to create a safe working environment, where we can guarantee that everyone goes home safe and well every day. To achieve this, we are making sure all our work is well-designed to deliver safe outcomes and we are constantly learning and improving.”

PEOPLE AT THE HEART OF THE BUSINESS Like any successful company, South32 knows that it is only as good as the people it hires. That’s why the company celebrates difference and hiring a strong team made up of a diverse range of experiences and perspectives. Chairman David Crawford underlines that importance in the notes in the 2017 Annual Report. “We have set ambitious diversity targets, particularly focused on gender and ethnicity, and we are pleased to report our progress,” he says. “During the year we spent US$1.8 million addressing the gender pay gap and we ran campaigns to improve the gender and ethnic diversity of our workforce, particularly in core disciplines such as engineering.” “We also implemented policies and practices to enable a more flexible work environment. Employee survey results showed 78 per cent of our employees felt

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they have appropriate control over the way they complete their work, which includes working flexible hours.” EXPLORATION South32 is always looking to partner and invest with junior miners, which allow the company to access attractive opportunities while reducing operational risk. Current exploration projects are; • a strategic alliance with AusQuest to develop a pipeline of high-potential exploration opportunities such as copper, zinc and nickel projects in Australia and Peru • an agreement with Trilogy Metals to explore their high-grade copper resources in Alaska • a 15 per cent interest in Arizona Mining, which is looking to develop a zinc mine in the United States • a strategic alliance with North

Queensland Resources to appraise several exploration opportunities targeting gold, silver and base metal deposits in North Queensland, Australia “We continue to look for new opportunities to expand our horizons,” says South32. “We invest in exploration inside and outside of our portfolio, but making sure they match our capabilities. Our exploration activities are carefully selected to have a high chance of success and are spread around the world, including places we have not operated in before.” Last year was a record breaking one for South32’s manganese sales in South Africa. Approximately 1.07 million tonnes (Mt) of manganese ore was produced at the South African operations, in Hotazhel, meaning South32 received a $238m net contribution from its share in Samancor, the joint venture with Anglo American, which holds the manganese assets.

Oliver Moy Publisher

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