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NEWSLETTER

JANUARY/MARCH 2012

Construction of a

seawaterpipeline

to boost aquaculture cluster

Enabling infrastructure central to the success of businesses in the marine aquaculture cluster has been put in place by the East London Industrial Development Zone (ELIDZ). Since 2010, construction workers have been hard at work on the Sea Water Abstraction facilities that will serve investors that settle in the 32 hectare cluster in Zone 1A. Zone Operations Executive Manager Johan Burger speaks glowingly about the facility that boasts two reservoirs that will feed the much needed seawater resource to investors. “We are proud of this facility as it will feed an estimated 185 litres per second of sea water; this will allow fin fish farming to thrive in the IDZ,” says Burger “It is estimated that once, the cluster is fully developed, about 4000 tons of fin fish will be farmed in the IDZ annually , for each major investor , once their facilities are in full operation . Those are important figures for us when it comes to our contribution to the rest of the sector in the country.” According to Burger the East London IDZ will own, operate and manage the facility that was tested successfully in December 2011. “We will take between 2 to 3 months to complete the facility thereafter, allowing us to iron out any difficulties, or problems during this period; so that we are fully confident of its working condition before offering its services to our investors,” concludes Burger

ICT node-room for ELDZ investors In an effort to enhance its current Information Communication Technology (ICT) services to investors, the East London IDZ is construction an ICT node room in Zone 1A.

The node room will enable the ELIDZ to improve its provision of bulk telecommunication/ data services to its customers. Explaining how the node room would work Johan Burger says the ELIDZ would be in a position to be the sole distributor of ICT services to tenants. “What we have currently is a number of telecommunications service providers directly supplying ICT services to [our]customers; this is not ideal both for us and our clients,” says Burger, adding that the Node Room would enable the East London IDZ to streamline ICT services to investors in the zone. Some of the services to be supplied from the world class facility include internet bandwidth hosting, Internet Protocol telephony, video conferencing and fax, which will be able to be linked to a system of fibre optic cables throughout the Zone.

1. EAST LONDON IDZ | ZONE BEAT


ELIDZ Board

WELCOMES two new members

East London IDZ chairman - Zolile Tini welcomes BCMM Executive Deputy Mayor Mzwanele Msoki and Local Economic Development Portfolio Councillor Pumla Nazo

The East London IDZ board welcomed two new members at the company’s Annual General Meeting (AGM) on Wednesday October 26. The AGM was attended by the ELIDZ stakeholders that include the Department of Trade and Industry (Dti), the Department of Economic Development and Environmental Affairs and Tourism (DEDEAT), the Buffalo City Metropolitan Municipality (BCMM), and organised Business, represented by the Border Kei Chamber of Business Executive Director Les Holbrook. The two new board members, BCMM Executive Deputy Mayor Mzwanele Msoki and Local Economic Development Portfolio Councillor Pumla Nazo replace former BCMM board representatives Alderman John Badernhorst and Mhleli Matika. Councillor Msoki is proud to be part of a board that is entrusted with the responsibility of guiding the ELDZ towards achieving its all important mandate; that of attracting FDI and bring economic growth to the region. “As a municipality, we are very keen on supporting economic development initiatives. Being a representative of the metro on the ELIDZ board is an honour and I am looking forward to engaging with other board members, and learning more about the business,” says Msoki

Nazo, entrusted with leading the Metro’s LED department, was also equally besides herself about the prospects of being part of the ELIDZ team of board members.

“Our LED department aims to assist the metro in boosting local economy, and working with the ELIDZ will help in developing small businesses in the metro, thereby boosting the local economy. I am looking forward to contributing to the success of the East London IDZ,” Nazo says For Msoki, however, being part of the ELIDZ board also presents a very important opportunity, he says: “We will be able to better understand bottlenecks the ELIDZ faces when dealing with the metro and try to improve on those and provide better services to the company.” Msoki will head the Investment Committee, while Nazo will be part of the Finance and Tender Committee.

From the TENANTS

Foxtec-Ikhwezi diversifying its PRODUCT range construction to general engineering. It was a natural progression for us to include different types of products in our manufacturing process.

ZoneBeat: What this means for Foxtec’s sustainability AF: Our sustainability is dependent on

stakeholder satisfaction and we will continue to do this on all fronts ensuring everyone from our Customer, shareholder and employees are satisfied.

Antony Funston - General Manager

ZoneBeat: When did the idea of diversifying come about? Was it ever in the original plans? AF: Growth of any business is critical and one

way of doing this is through the process of diversification. Our shareholder Otto-Fuchs has been manufacturing components for many different industries for many years, everything from Aerospace, automotive, 2. EAST LONDON IDZ | ZONE BEAT

ZoneBeat: What products will foxtec be diversifying into? And who’s the potential clients AF: We will diversify into a variety of products in non-ferrous metals. We have the ability to manufacture many smaller sized products for the general engineering type industries and for Customers ranging from Electricity component suppliers, Railways components, decorative components, clamps, valves, connectors, etc.

Our first Customer is Peterstow Aquapower in Lesotho who have developed a technologically advanced mining drill. We supply them with small components on this equipment. We

believe there is an opportunity to reduce the number of imports on smaller components and supply the local market with locally manufactured parts with locally produced raw materials. Numerous export opportunities also exist and it is a market we are actively pursuing.

ZoneBeat: Are these new products – never seen before by the SA market? And what kind of machinery is used to make these products AF: Most of the components are existing,

however we are in discussions with potential Customers on components never seen on SA before. The equipment used is a hot forging press as per our existing equipment, this is where our expertise lie.

ZoneBeat: Any plans to expand? AF: We believe there are opportunities to

supply the local market and certainly export market as well. This will result in expansion potential and with the support of our Shareholders Ikhwezi investment Holdings and Otto-Fuchs, support for further expansion is guaranteed.


From the TENANTS

Espadon catches

big fish days. I completed my accounting degree at University of Pretoria (Tuks) and finished post graduate studies at UNISA while completing articles at PriceWaterhouseCoopers and qualified as a Chartered Accountant. I later undertook and completed a Master’s Degree in Taxation, specialising in the taxability of loyalty rewards. Although academic qualifications are important it doesn’t really define you as a person – this is done by forming relationships whereby one gets to learn more about oneself and one’s abilities and how this can be used to motivate other people to achieve common goals. One should always and continuously be learning and improving oneself.

Espadon Marine Managing Director Frans-Johan van Dyk Mention the Pretoria Rugby franchise, the Vodacom Blue Bulls, and the first thing that comes to mind, apart from their success, is farmers clad in shorts and long socks; and the legendary Toyota Hilux bakkie. But, Espadon Marine Managing Director Frans-Johan van Dyk (affectionately known as FJ) is a bit different; although a Bulls supporter he is into a different kind of farming, and he wasn’t wearing shorts and longs socks when ZoneBeat visited him at the Espadon Marine fin fish farm. And, this is not the only unique aspect of the affable TUKS alumni, he’s also one of those cool accountants that you would just like to play golf with. But then again, he does play Golf and has a single handicap; clearly a man of many talents. ZoneBeat pinned him down to find out why he came to our shores and what plans he has for Espadon.

ZoneBeat: Who is FJ? FJ: I was brought up in a small town called

Meerhof next to the Hartbeesportsdam where I received my first lessons in aquaculture – catching barbel using a hand-line with live frog attached to the other end! We got roughly R1 a kilo which was good pocket money in those

ZoneBeat: But, why would an accountant come to the finfish industry? FJ: When I joined Espadon, it was for my

accounting skills but more importantly, the opportunity of being part of the development of a new industry in South Africa was what really interested me.

ZoneBeat: in what capacity? FJ: My initial appointment was that of Chief

Financial Officer, our board felt that with my background as CA my skills would be useful in improving the implementation of systems and controls which forms an integral part of a successful business. At the same time we needed a fresh and objective change in our executive structure and I subsequently accepted my new responsibilities as the Managing Director of the company.

ZoneBeat: and you took to your new responsibility as a fish does to water? (Excuse the pun) FJ: (Laughs) I thrive on challenges; there was room for improvement and new strategies had to be developed for us to achieve our objectives (check side bar for the Espadon

vision, mission and values) of being an industry leader in farmed finfish species, and for me this was an exciting challenge. Espadon Marine is a leader in supplying finfish products to the market based on “green” farming principles. People who are conscientious about what impact the food they eat have on the environment (in our case the oceans of the world) and specifically the conservation of marine species, will be our ideal customers. Look, our industry is still in its infancy stage in South Africa, currently demand outweighs the supply; so for me to work for a company that aims to not only satisfy the need of the South African fish lovers, but to do so by applying environmentally responsible farming techniques was a great opportunity. We have many challenges ahead of us and it definitely is not easy pioneering an industry, however, we have a great team and very supportive and experienced board that guides and supports us.

ZoneBeat: What are your goals? FJ: We are already selling limited quantities

of our product to outlets outside of the province; so far we have had exceptionally positive feedback. One goal is to also focus on getting East Londoners to buy our product; it’s important to have local buy in. We’re also looking at increasing our capacity, but to achieve that we need to increase our efficiencies and become more competitive with wild caught fisheries. Once this is done and the South African demand has been met we will start with exporting our products.

ZoneBeat: those are noble goals, what is the company’s short term goal then? FJ: To reach full production from our current infrastructure by July 2012. This depends on the successful implementation of many elements of which a big component is the completion of the Aquaculture enabling infrastructure by the East London IDZ.

Murray behind the wheel at Fehrer A drive down the Buffalo Pass in 1999 was enough to convince a Port Elizabeth faithful that East London was not a bad town to pitch tent in. Fast forward to 2011, and Feltex- Fehrer newish Plant Manager Alistair Murray (AM) is still convinced that leaving friends and family over a decade ago, was not as bad an idea as initially thought.

Plant Manager Alistair Murray

And, as a Western Province and Stormers supporter he’s not fazed by the fact that it’s been a decade since the glamour boys of South African rugby have lifted any silverware of note. He believes that soon the men in blue

will turn the corner and bring silverware for the Newlands faithful. I say, keep up the faith. ZoneBeat had chat with him to understand why would anyone switch allegiances and cross the fish river to the other side.

ZoneBeat: So what is your work background? AM: As I’ve already said, I grew up in PE;

so my first job was in the windy city for the pharmaceutical company that was known as Lennon Ltd as an Industrial Engineer. 3. EAST LONDON IDZ | ZONE BEAT


From the TENANTS cont ZoneBeat: You didn’t start in the auto industry? AM: No, but after working in the

pharmaceutical industry, I then switched to the auto sector and worked at BridgestoneFirestone for three and half years.

ZoneBeat: And how was that? And why did you move to the auto industry? AM: I still remember it like it was yesterday;

I walked into the Firestone factory and was amazed and how dirty it was from all the carbon black; the pharmaceutical industry puts a lot of emphasis on cleanliness. This was chalk and cheese to what I was used to and that was a big change for me. The Eastern Cape is an auto hub, and this influenced my decision tomove to the industry, I wanted a new challenge.

ZoneBeat: Did you enjoy it? AM: I did, it was a great experience for me,

and I learnt an incredible amount about Kaizen and the Toyota production systems. But, I received an opportunity to move back to the Pharmaceutical industry (to escape the carbon black) and the opportunity was in East London with Aspen Pharmacare. I’d never thought I’d leave PE, so it was a difficult decision to make. However, after touching down in EL and driving through the Buffalo Pass I fell in love with the place and, I phoned my wife and told her that if I get offered the position, I’d take it. And, here I am in East London. I worked in the pharma industry until I decided to venture into my own business. This was during the time of the recession and it was difficult for small business to succeed during this time

ZoneBeat: It was indeed. Then how did you end up at Feltex? And, what do you bring on board? AM: I saw the position of Plant Manager

at Feltex -Fehrer and wanted to pursue this new challenge. With my experience in the pharmaceutical industry where quality is of the utmost importance; I feel that I can bring that experience to the auto industry.

The combination of quality and I.E. / kaizen knowledge ensures that quality principles are brought into any improvements from the thought outset. This industry is not too different from the pharmaceutical, because it also puts tremendous emphasis on quality. And up to now the transition from pharmaceutical, to auto has been fairly smooth; and I owe this to a great team that I work with. They made it so much easier for me to be a part of this family. The guys are dedicated and want to make this plant even better than what it already is. The factory flow is very good and makes it conducive to smooth operations. I want to continue on that, and also work hard on improving the quality of our products. When I came here, my main theme was developing a culture throughout the plant based on Respect, Honesty and Trust, with this in place we will have a strong foundation in place and this will be a great platform in assisting us in our endeavours to be recognised internationally. Wherever we have focussed as a team, we have made significant improvements, especially in terms of quality and plant efficiencies and this boosts us in wanting to become the best.

ZoneBeat: Based on what you’ve seen here what would you like to see happening more? AM: I honestly think that the IDZ environment

is very good for East London. I would also like to see a closer working relationship between the various businesses. There’ll be caution, however, when it comes to company secrets of the various entities, but it’s always good to have good working relationships so that we can all share our knowledge and experiences because we all want to be part of the economic growth of this city. The stronger the individual grows, the stronger the team grows, the stronger the company grows and the stronger economy grows within the area. And this leads to a stronger South Africa and that is what I am passionate about.

For any queries contact Nonkumbuzo, Mdintsi Tel: 043 702 8200, Fax: 043 736 6405 info@elidz.co.za, www.elidz.co.za

4. EAST LONDON IDZ | ZONE BEAT

East London Plant celebrates more than

500 days without injury.

The East London Johnson Controls Facilitiy has achieved over 500 days injury free days. This remarkable achievement also means that the plant ends off their FY11 year on Gold Status for both their Safety and Environmental Programme. This success is hugely attributed to the Safety Programme that is in place at the plant and all the employees that support it. TSC, Total safety Culture is a behaviour based safety programme and has shown far reaching results. TSC ensures comittment to employee engagement and continuous improvement. It is essential to implement and monitor a system that everyone can be involved in. Management Committment is of a very high standard in East London with each Management Team Member heading up a TSC team along with their area HSEE Representative. TSC has certainly raised the bar across all South African Plants. This plant believes that working safely prevents accidents and it has! Safety and the well being of our employees is a core value of Johnson Controls – Congratulations Team East London, we have a lot to be proud of. TEAM EAST LONDON COMMITED TO EXCELLENCE Team East London proudly show off their Safety Board Status with more than 500 days without lost time or recordable injury on the facility.


EL IDZ_ Zone Beat_Dec 2011