2013 ISSUE 10
Poppy Ntshongwana A new Audi Ambassador
Haw and Inglis Investing in people
Lancashire Manufacturing Celebrating 80 years of success
SGS A growing portfolio
Logical Logistics ILS has been consulting on supply chain logistics for 26 years. IndustrySA speaks to Managing Director, Gary Benatar and Executive Director, Martin Bailey, to find out why logistics is becoming more and more important.
Throughout our last ten issues we have discovered awe-inspiring stories of successful entrepreneurship, world-leading innovation and universal inspiration. In the next ten issues we hope to bring you further stories of business excellence and highlight the hard work that is going on in South Africa to develop the nations industries into global leaders.
Your success is our inspiration.
EDITORIAL EDITOR Joe Forshaw SUB EDITOR Lauren Grey WRITERS Colin Renton Tim Hands Roland Douglas Christian Jordan RESEARCH DIRECTOR Chris Bolderstone PROJECT MANAGERS Tonnie Geddes Hal Hutchison John Cliff Ben Martell ADVERTISING SALES SALES DIRECTOR Andy Williams SALES MANAGER Daniel Marshall SALES EXECUTIVE Holly Graham SALES EXECUTIVE Mark Leonard STUDIO STUDIO DIRECTOR Martyn Oakley LEAD DESIGNER Dom Thorby OFFICE MANAGER Tricia Plane ACCOUNTS Mike Molloy, Jane Reeder ECP LTD MANAGING DIRECTOR David Hodgson OPERATIONS DIRECTOR Chris Bolderstone FINANCE DIRECTOR Scott Warman Ferndale Business Centre, 1 Exeter Street, Norwich, NR2 4QB If you would like more information about ways in which IndustrySA can promote your business please call +44 1603 618000 or email email@example.com East Coast Promotions Ltd does not accept responsibility for omissions or errors. The points of view expressed in articles by attributing writers and/or in advertisements included in this magazine do not necessarily represent those of the publisher. Any resemblance to real persons, living or dead is purely coincidental. Whilst every effort is made to ensure the accuracy of the information contained within this magazine, no legal responsibility will be accepted by the publishers for loss arising from use of information published. All rights reserved. No part of this publication may be reproduced or stored in a retrievable system or transmitted in any form or by any means without the prior written consent of the publisher.
Welcome to the tenth issue... This month’s edition of IndustrySA is very special. It is our tenth instalment and one of the very best yet. Since our first issue was released in April 2012, we have worked with some of the biggest and best companies in southern Africa, across many different industries and all the time our goal has remained the same – to bring you stories of inspiration, innovation and business success – a goal which we have so far achieved. So what can we expect from the next ten issues of IndustrySA? Well, of course there will be more exciting stories of business excellence, more interviews with industry leaders, more interviews with inspiring celebrities and more recommendations of the region’s leading organisations in our Industry Recommended directory. This month we speak to ILS Directors Martin Bailey and Gary Benatar and find out how improving your supply chain logistics can vastly increase your productivity and how some of the country’s leading organisations have worked with ILS to advance their supply chain management systems. We also speak to Haw and Inglis for the second time, to discover more about the fantastic work being done by the company to empower and up-skill its employees. Don’t miss our interview with Ralf Dominick, the South African business man who sailed around the entire globe and made history as his boat, Imvubu, became the first South African boat to officially complete a transit of the dreaded North West Passage. If you know of any inspirational entrepreneurs or innovative companies that deserve our attention, please let us know @ industry_sa or www.facebook.com/ECPindustrysa and with your help we can continue to spread the word and promote the visionary forward thinking coming straight out of southern Africa.
© East Coast Promotions Ltd 2013
JUN 13 PAGE 3
3 EDITOR’S PAGE Our best issue yet
6 NEWS All that’s happening in South Africa 10 EnTREPRENEUR A former miss South Africa
12 Innovation FNB and Facebook 14 Inspiration SA Ralf Dominick: Master of the seas 18 Destination Director Prized property 20 Poppy Ntshongwana A new Audi Ambassador
PAGE 4 JUN 13
Changing logistics in SA
The South African Institute of Architects: Knowledge, advocacy and excellence
30 Formrack Solving storage problems.
74 Compass Insurance A specialist offering
36 Broll Maximising your property’s potential
78 Seyfert Corrugated
38 Haw and Inglis
Innovative packaging solutions with corrugated cartons and board
Investing in people
46 Lancashire Manufacturing
82 Fair Cape Dairies 18 Qualité awards
Celebrating 80 years
86 FeedPro High quality animal nutrition
Built for Africa
90 Continental Coal Expanding operations
60 SGS Acquisitions bolster the SGS portfolio 66 Anglo V3 Lifting the industry
94 Svenmill 50 years of success
98 Industry Recommended This month’s showcased organisations contact details
JUN 13 PAGE 5
NEWS NEWS A brief look at the issues making the news across South Africa. For more news stories visit industrysa.com
Savino aims at ‘best in class’ with customer care centre Savino Del Bene has set a target of 100% in customer satisfaction and to assist in achieving this goal a Customer Care Centre has been set-up to channel and manage all queries in a swift and efficient manner for immediate resolution. “Our target is to provide the best service levels in the Logistics sector” says Jako Nauta the company’s Business Improvement Manager. The team has undergone extensive training in the latest query processing techniques. They have been carefully selected from an operational background with a view to exceeding customer expectations in service levels from a highly professional team and most efficient high-end Customer Care platform, dealing with all the facets of our supply chain management business.
“The aim is to adhere to strict service level agreements. The Savino Customer Care team will in addition analyse and monitor all queries to provide the organisation with insights and the basis for continuous improvement on an on-going basis. The company already set the benchmark with the introduction of a customer care desk dedicated exclusively to its clients in the tyre industry where Savino enjoys a position of leadership. This service offers a totally integrated view of all inventories and deliveries in progress enabling Savino and its tyre clients to track and access movements in real time, literally to the minute, and to proactively manage risk, to avoid eventualities. Nauta explains that the new customer care centre operates in addition to the tyre industry service desk.
Jako Nauta, Savino Business Improvement Maganger, and customer care team
Leonardo DiCaprio buys SA novel Award winning South African author, Lauren Beukes, was celebrating recently after selling the rights to her novel, ‘The Shining Girls’, to American TV production company Appian Way, owned by none other than Leonardo DiCaprio. DiCaprio’s company will produce a television series for the American market alongside independent studio MRC.
PAGE 6 6 JUN FEB1313
The Shining Girls tells the story of a serial killer who discovers a house in Depression-era Chicago that allows him to time-travel through the decades. The book is already a best seller in South Africa and will be released in the US in early June. Beukes tweeted: “I’m pretty freaking stoked, let me tell you.” Her previous novel, Zoo City, won the Arthur C Clarke award in 2011.
International giant invests in SA renewable sector One of the most recognised brands in the world, Google, has invested R103 million in the Jasper power project, a 96 megawatt solar photovoltaic plant near Upington in South Africa’s Northern Cape province. The project will be developed and funded by US solar energy project development firm SolarReserve, wind and solar farm developer Intikon Energy and empowerment investment company the Kensani Group. It is also backed by Rand Merchant Bank, the Public Investment Corporation, the Development Bank of Southern Africa and the Peace Humansrus Trust and when complete, the project will be one of the largest solar installations in Africa, capable of generating enough electricity to power 30 000 homes in the country “South Africa’s strong resources and supportive policies for renewable energy make it an attractive place to invest - which is why it had the highest growth in clean energy investment in the world last year,” Google’s director of energy and sustainability, Rick Needham, said in a statement.
“Just as compelling are the economic and social benefits that the project will bring to the local community. “Jasper will create approximately 300 construction and 50 permanent jobs in a region experiencing high rates of unemployment, as well as providing rural development and education programmes and setting aside a portion of total project revenues - amounting to approximately US$26 million over the life of the project - for enterprise and socio-economic development,” Needham said. It forms part of the South African government’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), which aims to have 3725 megawatts of electricity generated from renewable energy sources for the national power grid. “Jasper and the other projects being developed through the REIPPPP have the potential to transform the South African energy grid,” Needham said. “We appreciate how forward-thinking the South African government has been in designing the REIPPPP to encourage these kinds of local economic benefits.”
SA botanist chosen for US National Academy of Sciences South African botanist, William Bond, from the University of Cape Town (UCT) has been elected as a foreign associate of the independent United States National Academy of Sciences (NAS) in recognition of his achievements in original research. Bond, from UCT’s Department of Biological Sciences, joins conservation biologist Richard Cowling from the Nelson Mandela Metropolitan University in Port Elizabeth as the only two current South African foreign associates of the NAS, UCT announced recently. The NAS is a non-profit society of distinguished scholars in their fields, established by an Act of Congress by Abraham Lincoln in 1863 to advance research and knowledge in scientific fields. It provides science and technology advice to members, who are elected to membership by their peers for contributions to research.
There are almost 2200 members, of which 400 are foreign associates and 200 are Nobel Laureates. Foreign associates are non-voting members of the Academy with citizenship outside the US. Bond is the fifth African scientist to be elected to the NAS. Kenya’s Meave Leakey was the only other African to be elected as a foreign associate this year. Leakey is an ecologist with a research interest in the processes that control large-scale vegetation; in particular, his research has looked at how wildfires shape global vegetation. He is an A-rated researcher with South Africa’s National Research Foundation. “African vegetation is particularly interesting and challenging to study because of the complex interplay between climate, fire, large mammal herbivores, people and increasing carbon dioxide, the hidden hand of global change,” Bond said.
JUN 13 PAGE 7
NEWS A brief look at the issues making the news across South Africa. For more news stories visit industrysa.com
SA hotels voted ‘World Best Service’ Three Cape Town hotels have been recognised by the US edition of Travel and Leisure magazine for their excellent service. The magazine’s annual international survey saw the three hotels voted in the top five of the ‘World Best Service’ list, in the Africa and Middle East category. The Twelve Apostles Hotel & Spa took top spot, while the Cape Grace and the One & Only took second and fourth respectively. The best service category of the magazine’s annual “World Best Awards” survey aims to recognise the best hotels, resorts, airlines and cruise liners around the world as rated by its readers. “Excellent service is a definitive factor in repeat visits by overseas travellers,” Western Cape Finance, Economic Development and Tourism Minister Alan Winde said in a statement last week. “I hope these awards serve as an inspiration to the Western Cape hospitality industry to consistently strive for
The Twelve Apostles Hotel
PAGE 8 8 JUN FEB1313
the highest service levels. “I am also confident these awards will encourage more international visitors to our world-class destination,” Winde said. Johannesburg’s Saxon Boutique Hotel, Villas & Spa also featured on the best service list in the Africa and the Middle East category, scoring the same as the One & Only. Singita Kruger National Park and Singita Sabi Sand also made their way onto the list, coming in at second and fifth respectively in the resorts and lodges category. The overall results for best service were reached by surveying the general managers at the top 16 hotels in each region. According to the results of this survey: 44% of general managers admit to using Google and Facebook to research guests prior to check-in; 31% ensure each guest is personally greeted by a manager upon arrival; 50% have a staff-to-guest ratio of at least 1.5 to 1; and 56% offer room service 24 hours a day
Certification bolsters Savino Del Bene’s customer service standing
Jako Nauta, Savino Business Improvement Maganger
Savino Del Bene SA, the global logistics and supply chain management company has been awarded ISO9001 rating. The organisation’s Business Improvement Manager, Jako Nauta says that the certification which covers the SDB operation throughout South Africa will ensure a standardised quality delivery to clients. “Price Waterhouse Coopers conducted the recertification and audit process earlier this year to award the ISO9001 certification which covers inter alia, all process documentation, implementation and improvement in our day-to-day operations. “Savino has built a strong reputation for its high level of customer service in the logistics industry and the rating will reinforce our approach of focusing on, and implementing on customers’ needs,” Nauta says. He points out that the ISO9001 standardisation in quality of delivery to customers brings multiple
external and internal benefits which include increased international trade and domestic market share, customer satisfaction, inter-departmental communications, work processes, and customer/supplier partnerships. “Savino is a leader in supply chain management in the local automotive industry and the authoritative authors on ISO9001 Naveh and Marcus claimed that implementing it led to superior operational performance in the US motor carrier industry – as an example. “Savino Del Bene South Africa is part of a worldwide corporate network that specialises in global logistics, freight forwarding, clearing and supply chain management operating in more than 37 countries with facilities in America, Africa, Asia, Europe, Australia and the Indian subcontinent. The South African division is one of the first in the Group to implement ISO9001.
JUN 13 PAGE 9
From Miss South Africa
to entrepreneurial superstar By: Joe Forshaw Basetsana Kumalo is a beauty queen, a charity pioneer, a brand ambassador and an entrepreneur among many other things. Her story started in Soweto and has since developed into one of success and inspiration.
PAGE 10 JUN 13
Entrepreneur Our entrepreneur this month had a business mind from an early age however it may not be her business acumen for which she is most well-known. Basetsana Kumalo, or Bassie, was named First Princess at the 1994 Miss World competition and won Miss South Africa, a title which helped elevate her celebrity status. This was after being named Miss Soweto and Miss Black South Africa in 1990, aged just 16. A keen eye for business opportunities was recognised at a young age as Bassie and her siblings made and sold sandwiches at local football matches. Obviously, her beauty was helping to build her reputation, something which was further bolstered by her community and upliftment work, but her entrepreneurial side was also beginning to shine through. While holding the title of Miss South Africa, Bassie began to present the popular TV show, Top Billing, a move which turned her into a household name. She then became the face of an ambitious sub-Saharan and international marketing campaign for Revlon’s Realistic Hair Care range, making her instantly recognisable. One of her early moves in business came in 1995 when she became a 50% partner in Tswelopele Productions, the production company behind Top Billing. In 1999, Tswelopele merged with Union Alliance Media and was listed on the JSE, making Bassie one of the youngest black women directors to be part of the mainstream of the South African economy. Since then, Bassie has made great strides in the business world. In 2000 she started her own clothing range ‘Stature Ladies wear by Bassie’ which was distributed through 240 Ackerman’s stores in the subSaharan region but eventually discontinued. In 2002, under the Bassie brand, she launched an eyewear range, distributed through 60 Torga Optical outlets. She followed this by launching the ‘Bassie Red cosmetics’ range into 100 Foschini stores nationwide, followed with the ‘Bassie Gold range’ in 2006. Travel With Flair, one of Africa’s leading travel management companies, welcomed Bassie as a Director in 2001. The company has since been named the Top Travel agency in 2007, and in 2009 at the World Travel Awards, the agency won three awards, namely Africa’s Leading Business Travel Agency, Africa’s Leading Travel Management Company and South Africa’s Leading Travel Management Company. Bassie is the President of the Business Women’s Association of South Africa. In 2008, Bassie became a new Tawana shareholder through a transaction with her investment company Pro Direct 189. She also sits on
the boards of Unipalm Investment Holdings Vhangana Energy Resources, Tactic Group Limited, SME Financial Holdings Limited, Morongwa Investment Holdings, Seven Falls, Q2 Petroleum and PHAB Holdings. Charitable work is a priority for Bassie and she is involved with numerous ‘good-cause’ organisations. Alongside her husband, Romeo, Bassie established the Romeo and Basetsana Kumalo Family Foundation, an organisation with the goal of helping to develop children, specifically those who have lost parents to Aids or other diseases.
A high point with her charity work was being awarded the Inyathelo Philanthropy Award in 2009, an award given to acknowledge, celebrate and profile those who have committed their personal resources towards broader social development in South Africa. Bassie has received numerous awards and accolades for her charitable work and business success and even after all this, she still continues to be recognised for her glamour. In 1994, she received an honorary scholarship for Overseas Studies from Nelson Mandela. In 2002 and 2003, she was voted by the Sunday Times and Elle Magazine in the TV Style Awards as the most stylish female magazine/entertainment show host. In 2004, Bassie was voted 74th on the list of ‘Top 100 Great South Africans’. In 2006, Cape Town Fashion Festival gave her the ‘Fashion Icon Award’. Femina Magazine nominated her as one of the top ten most glamorous women in South Africa. Being able to combine her business interests with her personal life has drawn further praise. Being a devoted mother and wife while sitting in multiple positions of power has helped to set her apart from the crowd. With her interests being so widely spread, who knows which direction she will take next? Bassie is yet another example of how hard work and ambition can combine to result in a story of brilliance and success that South Africa can be proud of.
JUN 13 PAGE 11
Facebook? By: Joe Forshaw
Would you check your bank balances and make pre-paid purchases over Facebook? Do you feel comfortable banking online at all? Well get used to it because First National Bank have launched a new mobile banking through Facebook project.
In July 2012, First National Bank (FNB) launched a banking innovation that could have major impacts on the way you manage your money. The bank announced recently that its mobile banking customers will now be able to do their banking through the social network website Facebook. This is a first for South Africa and something that FNB are very proud of. Mobile banking customers will now be able to link their Facebook accounts with their cell phone banking profiles. The objective of this innovation is convenience and choice. CEO of FNB cell phone banking, Ravesh Ramlakan said: “This is an opportunity for us to tap into a new and fresh market, introducing our diverse product offering to a different audience in a ‘cool’ way.” When customers ‘like’ the mobile Facebook banking application they will be able to check their balances, purchase pre-paid products including airtime, SMS and BlackBerry bundles and also view the Lotto and
PAGE 12 JUN 13
PowerBall results. “As a bank, we average around 15,000 conversations monthly, via social media, with existing and potential customers, “There are currently more than 4.7 million active Facebook users in South Africa, and more than 150,000 of those are FNB Facebook fans. It is easier for our customers to purchase a data bundle or airtime while using Facebook,” said Mr Ramlakan. At the start of 2012, FNB introduced a project which allows people to buy vouchers through cell phone banking and post them to Facebook for others to redeem and turn into cash or use as prepaid airtime using FNB’s eWallet service. “The spirit of innovation is driven by the need to provide our customers with the best possible banking experience. For us to remain as leaders in the innovation race we need to rapidly adapt to the constant changes in our environment,” said Mr Ramlakan.
The news from FNB came after it was announced that Facebook is working with the Australian Commonwealth Bank to develop a full service online banking arrangement to be made available through the most recognised social network site on the planet. In the future FNB hopes that online payments will be able to be made through Facebook but the issue of security still remains. More and more people are coming forward with complaints about hacking and privacy but Mr Ramlakan said there will be a similar platform in place to that used for the mobile banking operations. Only a handful of banks around the world have ventured into social network banking and Mr Ramlakan said he would have liked to have been first but the innovation was expensive and has resulted in an entire new team being formed to oversee the project’s success and the innovation is a first for South Africa – something which FNB is not complacent about. “FNB
customers expect you to be technologically savvy,” said Mr Ramlakan. All cell phone banking members with WAP enabled phones and a Facebook account should be able to use the app and it bears testament to the innovation of the country. FNB is South Africa’s second largest bank and now you will be able to combine updating statuses, tagging photographs or checking in with making balance enquires.
“For us to remain as leaders in the innovation race we need to rapidly adapt to the constant changes in our environment” JUN 13 PAGE 13
Master of the seas By: Christian Jordan
South African sailor and business man, Ralf Dominick, has achieved his dream of circumnavigating the globe. He tells IndustrySA about the route which saw him travel 41,625 nautical miles around the world.
In 2010, Imvubu, a 53-foot Barens Seatrader sailing yacht, sset off from its home in South Africa, Captained by Ralf Dominick of BBD, a South African custom software development company. Setting sail marked the start of an epic, three year-long adventure which saw Ralf and his team circumnavigate the globe and master some of the world’s most notoriously difficult stretches of water. All in all, the voyage covered 75,000km and Imvubu saw some of the most unique sights on earth. Ralf recently spoke to IndustrySA and explained more about his route. “We went from Durban to Cape Town, ironed out the last few problems and then stocked up with provisions for six months. “We left Cape Town on the 21st of February 2010 and sailed to St Helena, then the Ascension Islands, then Brazil. “On April 23rd we headed for the Caribbean and stayed there for the rest of 2010. From July to November she was out of the water in Trinidad for the hurricane season. After this we pushed north onto the Bahamas and eventually the US and Charleston, South Carolina. “Now in May 2011, we headed up the east coast, in and out of marinas. We made stops in Norfolk, Virginia, Washington DC, Delaware and New York City.
PAGE 14 JUN 13
“We spent two weeks in New York; there is a marina in Manhattan on 34th street, unfortunately it was full so we had to berth across the Hudson at the Liberty City Marina. “Now we were pushing time, we had to get up to Newfoundland and we pushed past Maine and Nova Scotia in June. When we arrived in St John’s, Newfoundland, we made the decision that we would tackle the North West Passage.” The North West Passage is one of the most notorious waterways in the world, considered impassable by many sailors. Running right along the top of North America, the passage sits just 1930km from the North Pole. When he made it through the passage, Ralf became just the 157th person to have mastered the passage from Arctic Circle to Arctic Circle. “Newfoundland was the decision point; was the crew ok, was the boat ok, was the weather forecast ok, if we had all those things in place we would go for it. “We had to get to the entrance of the passage for the last week of August so we had to motor, 24 hours a day, about 2000 miles. “About two days before we were due to stop for fuel, we picked up a tender, a small dingy floating in the Arctic Ocean. We reported this to the coast guard and they were quite disturbed by this; there shouldn’t be things floating around in the Arctic.
“We were the first South African boat in history to officially complete a transit of the North West Passage” “They asked us to take it on board and deliver it to them and they would arrange some fuel for us. We never heard officially from the RCMP (Royal Canadian Mounted Police) but through second hand information I believe the dingy was from a yacht that sank two years prior to that. The yacht had disappeared off Greenland and the dingy had found its way to the Arctic. “We refuelled at a settlement called Pond Inlet and then raced on as we had a large storm system behind us. The rule is to refuel wherever you can there so we refuelled again in Cambridge Bay and then once more at Tuktoyaktuk before pushing onto the Bering Strait. “When you pass through the Bering Strait you have Russia on the right and America on the left, you see both at the same time, there’s probably enough radar energy there to fry a chicken! “We were the first South African boat in history to officially complete a transit of the North West Passage
and we were about the 100th vessel to complete the journey since the first passage by Amundsen in 1904. “It was now winter time and we were pushing down the west side of North America, stopping a few times in Alaska to hide from the weather. “We then headed down to Vancouver, Seattle, Newport (where we spent Christmas), San Francisco, under the Golden Gate Bridge and San Diego where we began to slow down, preparing to cross the pacific in March, avoiding cyclone season. “We had the boat out of the water to make minor repairs in San Diego before heading down to Mexico and eventually setting sail across the pacific to French Polynesia, the Cook Islands, Tonga, Fiji and Australia. “We sailed around Australia to Darwin before heading to Christmas Island, the Cocos (Keeling) Islands and then Mauritius before heading back to Durban in November 2012.” Unlike the early explorers of the North West Passage, Imvubu is fitted with sophisticated satellite technology to make navigation easier. “We have a satellite dish on the boat, a giro-stabilised dish, that tracks the Inmarsat satellite dishes all the time. We also have broadband internet so we can download up-to-date weather reports and ice maps; it costs an arm and a leg but it’s definitely worth it. You’re not sailing blind anymore.” Ralf says that the macro plan was to sail around the
JUN 13 PAGE 15
Inspiration SA world but the majority of the stops were ad hoc and the whole voyage was dependent on global weather patterns. As for his next adventure, Ralf will be setting off in November to head for Antarctica. “We will sail from Cape Town to the Falklands, then round to Chile before heading down to the Antarctic Peninsula. After that we will head up the west coast of South America to the Panama Canal and then through the Caribbean and onto Europe and possibly spend a season in the Mediterranean.” Even during down time, things are exciting for Ralf who is also an aerobatic pilot and used to lead Sasol Tigers display team. “I’m catching up on flying at the moment and I am still Chairman of the Board for BBD so I try to help out with the business where I can when I’m in South Africa.” The fantastic achievements of this South African adventurer and his boat are truly inspirational and with big plans on the horizon we can only wish Ralf good luck in his future exploits.
PAGE 16 JUN 13
EASY CHOICE FOR TOUGH JOBS. Tough work on a tight schedule. With reliable, high-performance Cat速 marine engines, maximum uptime is given - along with power, fuel economy, and emissions compliance. Plus, Barloworld Power supports you with expert service and genuine parts anytime you need it, offering easy finance solutions. The choice is clear. Visit us today and discover how easy it is to enjoy Cat power for years to come. For more information call Barloworld Power on 021 959 8200 or visit www.barloworldpower.com, or email firstname.lastname@example.org
Scan here to go to website
JUN 13 PAGE 17
Prized property By: Christian Jordan
Everyone wants to live in a safe, comfortable, clean and quiet environment but sometimes you have to pay the price to get that exclusivity that is so competitively sought after. IndustrySA has searched for four of the most elite real-estate regions to suit the life of a Director; just beware of the pricesâ€Ś
If you have been dipping in and out of the property market over the past few years, you will recognise that prices in South Africa have fluctuated significantly but have generally been on the increase since 2009. The area of the country totals more than 1.2 million kmÂ˛ and across this vast expanse there are various regions that have become known for being the most expensive and prestigious areas, home to celebrities, wealthy executives, politicians and prosperous foreign investors. If you are looking to move to a new area and you have the hard-earned cash to fund something special, we have compiled a list of four of the most exclusive but pricey communities in the country. If you are only just starting out in your career, this maybe something to aim for a few years down the line.
CLIFTON, CAPE TOWN Clifton is well known as an affluent suburb of Cape Town. It sits right on the Atlantic Ocean with internationally recognised beaches and while some of the property is relatively small, the price tags can rise to match some of the highest in the country. Lightstone Properties recently released a report which listed Clifton as the most expensive real-estate region of South Africa with average house prices of R12 million. The homes in the region are nestled in the cliffs and provide fantastic panoramic views of the ocean. The
PAGE 18 JUN 13
beaches in the region are also well protected from the notorious coastal winds that blow hard around other regions to the south. This makes the area popular for sea bathers and you will often see private yachts anchored around the coast during the hot summer weekends. The white granitic sand is popular among water sports enthusiasts and surfers and the close proximity to Table Mountain Park makes the region popular with tourists as well as locals. Located not far from Clifton in The Glen, one of the most expensive homes ever to hit the market in South Africa, The Enigma Mansion, was sold for R300 million!
“The resort is perfectly positioned to experience the unmatched magnificence of the KwaZulu-Natal province”
STEENBERG GOLF ESTATE The Steenberg Golf Estate is located in Constantia, another wealthy suburb of Cape Town. Lightstone Properties estimated this region to have the second highest average property prices, sitting at around R11 million. Set over a stunning 18-hole golf course, the 40 hectare site had a design brief of make the homes a harmonious part of the course and to afford each home a maximum share of the Capes beautiful mountain and fairway views. Just a 20 minute drive south from Cape Town city centre, this area provides a secure and private environment for residents and the region is also widely regarded as one of the best wine growing districts in the country with many historic estates. The historic Tarrystone House, once owned by Charles Spencer - 9th Earl Spencer (brother of Diana, Princess of Wales) was recently placed on the market for R80 million.
ZIMBALI COASTAL RESORT The Zimbali Coastal Resort is located in KwaZuluNatal and was listed seventh on Lightstone Properties most expensive places to live. It is reported that property prices average around R8 million but the resorts website suggests it is “perfectly positioned to experience the unmatched magnificence of the KwaZulu-Natal province.” Made up of 700 hectares of Dolphin Coast,
the Zimbali Coastal Resort claims to be a place of expansive beauty, endowed with lush vegetation and an abundance of indigenous wildlife. Aptly, it’s Zulu name means ‘valley of flowers’. The architecture in the region boasts Indonesian influence and some of the grandest properties will sell for over R40 million. Being only 45km from Durban, the resort is perfectly located to mix privacy and exclusion with the busy, modern city and the warm Indian Ocean waves.
WESTCLIFF Westcliff is a suburb in the north of Johannesburg. It is home to the popular Westcliff Hotel and in this region real-estate goes for a premium price. Average house prices are over R8 million and the area is often listed in the top five most expensive spaces in the country. Slightly different to the other areas as it is not by the coast, Westcliff is situated right on the edge of the busiest city in South Africa but offers a calm, slower paced life. The Killarney Mall, mall of Rosebank and the lovely village of Parkhurst, with its pavement coffee shops and restaurants and distinct element of street life, are all close enough to reach quickly and provide hours of entertainment. Perfectly situated to provide easy access to arterial roads, living in Westcliff is perfect for a fast commute to all of Johannesburg’s surrounding areas, Pretoria and the whole of Gauteng.
JUN 13 PAGE 19
“I like to have as much fun as possible” By Joe Forshaw Poppy Ntshongwana’s career in radio began in 2003 when she started presenting on Tuks FM at the University of Pretoria. Since then, she has become a successful national DJ, model, fashion guru and accomplished public speaker. The newly appointed Audi Ambassador recently told IndustrySA that her style involves having as much fun as possible…
PAGE 20 JUN 13
Poppy Ntshongwana It has been said that you were ‘born for radio’. Do you think this is true? I think it’s something that I was drawn to and just happened to love. I hope I was born for this. It’s my everything. Would you say you have a distinctive style while presenting radio shows? I like to have as much fun as possible. I want people to remember the madness they heard and the fun they had listening to me. It’s about leaving a lasting impression and having a blast while doing it. That’s my approach to it. How much have your Political Science and International Relations studies helped you in your career so far? Initially it was very important because I started out as a newsreader and was fascinated by how the world worked politically, and in terms of international relations, it has definitely helped me connect the dots a lot and understand the world better. Would you recommend studying at university to young people who have the opportunity? What advice would you give to a young person trying to create a career in media? I’d say go into the field you want to be in. No use wasting time on something you’re not passionate about. Pursue what makes you happy and the rest will come. It’s worked for me. Where do you see yourself 20 years from now? I have business interests that I’d like to pursue. I’d like to work towards building my business edge. I’m definitely going to be a successful business woman, with five kids and a stay at home husband. LOL! You are known for having a fashion obsession. Are there any SA designers that we should be aware of throughout 2013? There’s a local designer now who has my attention, her name is Sandi Mabasa. I’m loving her vibe. She’s awesome and she’s talented. As someone who has been involved with fashion campaigns as a model, what would your advice be to people who are looking for a career in modelling? It’s a tough industry and it’s not going to get any easier. You need a thick skin and lots of focus and determination. I’d say look into the business side of things as well, so you don’t have to spend your life depending on campaigns and getting booked. Which South Africans should we be looking out for in the music scene in the second half of 2013? There’s a couple of DJs who’ve ventured into production and the actual music side of things, they’re adding their own edge to the industry and I think they will be putting out some great hits. We’ve caught on to the David Guetta side of life, and some DJs are making it work. It’s freaking awesome!
What does it take to be a confident public speaker, something which you have mastered but many people struggle with? Confidence and preparation. You can’t go wrong with those two. Enjoying speaking is also key. People can pick up whether you’re just saying things because you have to or if you believe in what you’re delivering. So I’d say authenticity and having fun are key elements to being a great orator. How are you enjoying being a new Audi Ambassador? I’ve loved every moment. I’ve just been spoilt from day one. The car is a dream to drive and it’s automatic. YAY! I feel incredibly blessed. The Audi family have been so good to me.
“I live and breathe radio. My life has been radio for the last 10 years. Everything else is a result of my career in radio”
JUN 13 PAGE 21
“We have and we are changing the face of logistics in South Africa” Editorial – Joe Forshaw Production – John Cliff With a portfolio of successful projects completed all over the world, ILS is now the recognised industry leader in supply chain logistics consultancy. IndustrySA recently spoke with ILS MD, Gary Benatar and Chairman, Martin Bailey, to find out more about what makes the company so successful.
It is common knowledge that Africa contains some of the world’s fastest growing regions. According to the IMF, Angola was the world’s fastest growing economy last year and Mozambique was the fastest growing non-oil producing country. Six of the world’s ten fastest growing economies are in sub-Saharan Africa. There are certain factors that have to be in place for this growth to continue, one of them being effective supply chain management. Running supply chains in the correct way is critical to Africa’s success. As growth continues, these supply chains will be put under increasing pressure and as consumer demand continues to rise, customers will not stand for empty shelves and unfulfilled promises. So how can businesses ensure that their operations are slick and ready to cope with unexpected booms in demand? Industrial Logistics Systems (ILS) Chairman and Executive Director Martin Bailey believes you need to get
PAGE 22 JUN 13
the supply chain right and then effective operations will fall into place. “You can have two operations with exactly the same processes, the operations are identical but the technology and the methods used to execute strategies are different. When you get the execution of the supply chain right it makes everything easier.” So what exactly is supply chain management? Modern supply chain management deals not only with physical process flows, but also encompasses information flow and cash flows. The goal of Supply Chain Management has evolved into the enabling of a company’s business strategy. It can create a competitive advantage by driving overall volume and revenue growth, increasing profits and improving customer service levels and responsiveness. ILS is a leading supply chain and logistics consultancy and is continually working with major brands to help them improve the efficiency of their supply chains. Whether it is upgrading technology or building a brand
Industrial Logistics Systems
new warehouse, ILS has internationally recognised expertise in all areas of supply chain management. The company was started in 1987 by Gary Benatar and Martin Bailey and the pair had the idea of providing facilities planning services. “We were doing facilities planning, laying out operations and using our skills as industrial engineers to lay out a site or operation and make that efficient. We were also consulting in materials handling and systems design and selection,” says Gary, Managing Director.
PLAN, DESIGN, EXECUTE What makes ILS a standout company in the market of supply chain and logistics consultancy is the fact that they have vast experience of executing strategic plans. “We have different legs within the company. We have a strategic planning leg, which handles supply chain strategy. We have a design leg and we also have a division that executes supply chain management and that makes
us different to everyone else in the market. So after the planning phase, we actually design the infrastructure,” says Martin. Gary elaborates on this, telling us that the operational experience of staff at ILS is something which has resulted in the company having no firm competition. “In 1995, I looked at re-engineering ILS. Shoprite had just gone live with their first distribution centre (DC) which we designed. The week before the DC went live, the manager of the facility resigned and I decided to take two months away from ILS and run the facility until they could get someone else. “This was one of the best learning experiences for myself, suddenly I had got into operations. Although we didn’t get many things wrong, I realised there were many differences between the theoretical side and the practical side and after this our focus changed.” It was this operational experience with Shoprite that prompted Gary to structure the business in a way which
JUN 13 PAGE 23
sees a large emphasis placed on operations and execution “We have competition but there isn’t a company that competes with us head on. The likes of PWC, Accenture, Deloitte and McKinsey can all advise on strategy but the difference is, they cannot execute,” says Gary. Experience has been built up over the last quarter of a century and since its establishment in 1987, ILS has been advising major companies on expansion, growth, refitting and consolidation. “Here’s a perfect example; say Shoprite come to us and say ‘we don’t like how things are running, we want to change the way we are doing things, we are not getting goods on time to our stores’. We will then formulate a strategy to get goods into their stores, on time, in the right place and in the right way. “Once the strategy is developed, the client will say ‘how do we execute this?’ and with Shoprite the strategy was to run central warehouses so the execution was to build the warehouses so we built six warehouses. “Also, to execute the strategy, we’ve helped them to find the right software, the right infrastructure, the right equipment and the right people and we hold our hands to that process,” says Martin. The software designed to handle the Shoprite distribution was introduced by ILS and the company became involved with developing software to ensure that the strategic plans were upheld by a functional IT system. “We would write computer specifications with guidelines as to what the IT system would do. The customer would then get a big team in to write
PAGE 24 JUN 13
the system from scratch. In 89-90, I travelled a lot internationally and saw various off-the-shelf systems and eventually we installed our first WMS (Warehouse Management System) in South Africa which was very successful. “We then sat down with Shoprite and recommended a similar system after going around the world and investigating the best on offer and it was one of the most important single steps they took in moving themselves ahead of the game in South Africa,” says Gary. A vital part of ILS’s success is the ability to build close relationships with clients – good people are the key to good consultancy. “Our job involves building a strong relationship with clients” says Martin. “Our guys who are present at the start of a project are present all the way through to the end. “The service we offer is our intellectual property and that is what we sell. “Some of our people are fantastic communicators. We do need selling skills; we have to sell a design to a customer who may want to stay as he is.” Gary says that ILS can offer their clients an education in successful supply chain logistics and this involves effective communication between the company and the customer. “We engage in an education process with the client. One of our successes is that the customer takes the ownership of a project. We will act as an extension of our clients business and almost like a specialist logistics department.
Industrial Logistics Systems
Linde is proud to be associated with ILS and wish them continued growth & success
With our patented Hydrostatic Drive technology, Linde forklifts offer the best fuel consumption and lowest running costs. The unique two pedal system means that there is no clutch, no mechanical brake and no transmission. This, coupled with the indestructible drive train, equates to fewer breakable parts, which means longer service intervals and less downtime. In short the patented Linde Hydrostatic Drive technology will save you time and money.
Linde Material Handling
For more information on Linde dealerships, products and services contact us on Tel : +27 11 723 7000 or visit www.linde-mh.co.za
JUN 13 PAGE 25
IndusrtySA Editor, Joe Forshaw and ILS Managing Director, Gary Benatar
“I like to use an analogy from Jack Welch who said ‘whatever is a core competency of a business should stay in-house, whatever isn’t a core competency; outsource that activity to someone for whom it is a core competency’, and our core competencies are designing supply chains and infrastructure. Our client’s competency must be in the running of their supply chain and that is where the education process becomes effective.” ILS has worked with some of the country’s leading brand names and right now, retail is the industry in which ILS has been busiest. “We have worked with Shoprite, Clicks, Spar, Dischem, Distell, Massmart and other big names in retail, manufacturing and pharmaceutical from around the world,” says Martin. Gary also says that as the world has changed and the digital age has taken over, the company has built its relationships in different ways, taking advantage of advancements in technology. “We work with clients from all over, for example we were working in Australia. Because of this we invested heavily in infrastructure, things like video conferencing and a strong IT backbone.
PAGE 26 JUN 13
“This means we are able to communicate and do things remotely however, the issue of time differences is always a problem. “When we started ILS drawings were done on a drawing board and emails didn’t exist. Faxes had only just started becoming popular but life was still easy as the expectation of instant gratification and result from the customer was not there.”
GROWTH In the years since its inception, ILS has grown dramatically. After becoming recognised as an industry leader in South Africa, the company has developed its opportunities with international clients as Martin explains. “We have done a lot of work in Saudi Arabia and Dubai as well as work in Belgium, Australia and Africa. “Our international work is similar to our work in South Africa but overall every job is different.” In South Africa, growth for ILS is not necessarily about physical expansion, Martin explains growth would be to move into new industry sectors. “We have offices in Cape Town and Johannesburg and for now that is our lot, we don’t intend on building
Industrial Logistics Systems more offices, we think we can travel. We are growing by about a compound each year. We are in a niche market and we don’t want to move away from that. “We offer such a comprehensive service and it is so broad and so different to anyone else in the world that it is perhaps too broad and we cannot grow it further. What is growth for us is new types of industry. Retail is maybe our biggest, manufacturing second and pharmaceutical third but over time we will find a new niche and grow there. It could be government or something similar.” ILS’s knowledge of technology has allowed them to stay on top of the market in a climate that is always changing. In terms of supply chain management, the continent is seeing the deployment of the latest technology, thereby achieving a holistic approach to cost management and the freeing up of value. ILS has adopted certain world-class best practice benchmarks as the standards to which a facility should be measured. “We travel overseas at least four or five times a year to make sure we are up to date with the best practices in the world,” says Martin, “If we wanted to offer a client something different, we would actually travel with them and show off examples of new technology and best systems.”
Gary explains that because of ILS, logistics in South Africa is often where benchmarks are set for world class practice and people who visit are wowed by what has been achieved. “I can tell you now, we have and we are changing the face of logistics in South Africa. We have changed the way FMCG (Fast Moving Consumer Goods) work and we have stimulated the move towards centralised distribution.
“We formulate a strategy to get goods into their stores, on time, in the right place and in the right way” “When I used to travel overseas 20 years ago and see logistics achievements, I would say ‘I would love to do something like that’. Today, people come to South Africa with us and say ‘wow, that’s amazing’ so we are proud to say we are world class at what we are doing. “We’ve done a lot of stuff that is very innovative, firsts in South Africa and sometimes firsts for the world.”
JUN 13 PAGE 27
â€œOur business is people. We have a very young crew who are very dynamic and highly skilledâ€?
PAGE 28 JUN 13
Industrial Logistics Systems “OUR BUSINESS IS PEOPLE” ILS is a consultancy business. The work of the company involves their knowledge and expertise but they are not physically building bricks and mortar for clients. They have minimal assets but control expenditure of over R4 billion directly and over R4 billion indirectly every year and this means getting the right people involved is key. “We have around 30 people working here right now. We are a consultancy firm; we don’t physically build things or employ bricklayers etc. “Our business is people. We have a very young crew who are very dynamic and highly skilled. We train them up and use them to the nth degree. We drive them really hard and they love it. The great thing is, they are doing something different every day. Monday it’s Shoprite, Tuesday it’s Anglo American, Wednesday it’s Vodacom, Thursday it’s pharmaceuticals and it’s very exciting. “My one ambition is that my staff will say that they’re excited to come to work in the morning and we get that 95% of the time,” says Martin. ILS is not scared to invest in its employees and provide them with the best possible facilities so that they can achieve the best possible results. Gary explains that loyalty is rewarded with bonus schemes, incentivised
systems and ownership projects which see the longest serving employees gaining directorship and shareholding. “They are on the path to the next level of succession. “One of our cultures is to run our business like a family and this culture has been successful. The younger directors think like me as they have been with me for a long period of time. “We have great offices. I’ve spent a fortune on our offices. Our offices in the Waterfront in Cape Town look over the sea and our offices in Jo’Burg are spectacular. You spend 80% of your working day in the office so it has to be nice. “We sit down every day and have healthy, home cooked food in the office at no cost to the employees. This has been the culture for 26 years and it helps nurture and retain people.” Working with a highly skilled workforce has its drawbacks. A lot of time is invested in training and development of staff and with ILS being one of the country’s leaders in supply chain logistics, the training and knowledge received is second to none and this results in ILS employees becoming targets for the rest of the market. continues on page 32 >
Reliable security solutions
At Alpha Fencing, we are dedicated to providing quality products and service expertise that are consistent with the needs of our clients. We pride ourselves on a firm base of satisfied clients who have chosen Alpha Fencing as their security solutions expert. Tel: 011 744 3504/5 Fax: 011 744 3506 Email: email@example.com
JUN 13 PAGE 29
Your storage problems, solved Formrack (PTY) LTD is a wholly South African Owned company specialising in light and heavy duty racking systems, shelving systems, mezzanine floors and the designing of warehouses and stores or any area in need of efficient storage space. Managing Director, Yvan Mahieu, tells IndustrySA that the Randburg based company has the knowledge and experience to assist clients, large and small, with any storage needs that may arise. Q: When was the company established? The company was founded in 1994 by myself. After having previously worked in the industry, I felt there was a need for greater attention to detail and personal contact with the client. We have six permanent employees in our sales and design facility and we outsource for various other tasks. We work all over South Africa and sub-Saharan Africa. Q: Who are your major customers? We deal directly with clients and work with some very big blue-chip customers. In Zambia, weâ€™ve just completed very big projects for First Quantum Minerals and we also completed a new facility in Lusaka for Jaguar/Land Rover. We are at present in the process in the completion of a high rise racking installation for Metrofileâ€™s new state of the art G3 facility, which when complete will accommodate 1,000,000 archive storage boxes with an estimated weight of 15,000,000kgs. Q: What services do you offer? We design the racking that goes into the warehouses, we will then have it manufactured and install it and commission it. We offer a comprehensive after sales service. There is always damage to racking be it forklift or just wear and tear. PAGE 30 JUNE 13
We recently finished a project for a distribution company in Isando, Johannesburg and that was 30,000+ pallet positions. With Metrofile, we have done some very high racking installations, over 18m high with six cat-walk levels which they use for archive box retrievals. There is no job too big or too small. If you start off on a small project with a company, that can eventually grow with the client. Q: Which products are most popular? Pallet racking is the core of our market and mezzanine flooring is also quite big. With the price of land going up the way that it is, it makes sense for the client to utilise volume and go up, gaining more efficiency out of the basic footprint of the warehouse. We also offer small parts storage, office shelving, mobile shelving, drive in racking and push back racking. Q: What separates you from the competition? There are few companies that do what we do; it is a very competitive market. Our attention to detail and personal service differentiates us from the rest. Our response times are very quick although we do look at projects in detail. We are a streamlined and specialised company ensuring that we have our finger on the pulse at all times.
+27 (0)11 462 9061 Facsimile:
+27 (0)11 462 9041 Physical address:
50 Market Street, Johannesburg North, Randburg, Gauteng, South Africa eMail:
www.dexionformrack.co.za JUNE 13 PAGE 31
“Our biggest challenge is our staff,” says Martin. “All of our employees are graduate engineers and trying to attract and retain good engineers is difficult. Unfortunately the industry sees us as an ideal training ground for personnel and after we train people up, they will get poached. “The universities do not offer courses that are of any use to us. We hire graduate engineers with the basic skills and understanding and train them from scratch. We develop their knowledge of the supply chain from warehousing and distribution to infrastructure and anything else in the supply chain. “We can help engineers understand how to build infrastructure - physical infrastructure, IT infrastructure, equipment infrastructure and the skills that surround those areas. Strategy-wise they’ve all had a good education but executing that strategy is something else.” Gary elaborates, saying: “University is important as it gives the guys the ability to think and learn in the right way. The knowledge training will come from us. “We will start all of our young engineers in an operational capacity and this will help them greatly with design. They will then move to work on infrastructure where they will gain a lot of experience before eventually working on strategy. “There’s no one consulting in strategy without at least 12-20 years’ experience. You can’t be a consultant in strategy without unbelievable business acumen and business knowledge.”
PAGE 32 JUN 13
PLATINUM AWARD WINNERS ILS has major projects underway right now and the company is helping big brands to expand and become more productive. “We will be continually working with Spar, Shoprite and Dischem in the near future because they are growing. There are also a host of other big names that we are fighting for. “We are doing a big job for Atlas Copco which is exciting. We have worked with ABB to combine all their divisions under one roof in South Africa and our design there has become a model for the whole world. The new facility in Long Meadow was our baby, we conceived it and used very different technology to anywhere else in the world and they love it, it’s gone down really well. “We laid out each and every production lane and how they should all integrate. Obviously, by putting 12 divisions under one roof you don’t want to duplicate, you want to share sources,” says Martin. The company has received recognition from peers for successful projects on numerous occasions and they are proud to hold a platinum LAA (Logistics Achiever Awards) medal, something of which there are only a few around. “We have three logistics achiever awards from the LAA. This is a multi–faceted organisation. All the associations get together and judge the best logistics achievement of the year. We have achieved three awards; gold, silver and platinum and there are not
SAPICS Annual Conference
2013-06-02 – 2013-06-04 | Sun City, South Africa | Stand A30
Creating reliable logistics systems is what we do. Countless satisfied customers show that KNAPP delivers turn-key solutions for a variety of warehouses. Trust in the alliance of industry knowledge and technological know-how.
pharma | cosmetics | office | retail | tobacco | audio & video | fashion KNAPP AG | Günter-Knapp-Strasse 5-7 | 8075 Hart bei Graz | Austria | Phone: +43 316 495 0 | firstname.lastname@example.org KNAPP LOGISTIC SOUTH AFRICA (PTY) LTD | Kosmosdal 0096 (Gauteng) | Phone: +27 72 2550 352 | email@example.com
many platinum awards around. “We are doing stuff here that we think is as good as anywhere in the world. Some large companies have operations in South Africa and in other locations and their operations in other parts of the world are disastrous compared to here,” says Martin. While recognition for great work is nice, Gary and Martin are not in business for awards and trophies. Martin suggests that repeat business and a strong portfolio mean most to the company. “We have built over 450 warehouses and we are seen as the benchmark in South Africa when it comes to building warehouses. That in itself is recognition enough. “We are working with Vodacom right now. We originally built a facility for them 12 years ago, now they have called us back to refresh it and this will last three months. “Our work with Shoprite has been on-going for 23 years. “Sometimes when a project is finished we will leave and never hear from the client again but other times we never stop hearing from them.”
CRITICAL FOR SUCCESS Attention to detail in the supply chain can spark positive results for a company and recognising where improvements can be made, where attention is needed, is one of ILS’s specialties. “Every company believes they are unique” says Martin, “in reality, with logistics, they all do the same things. They buy, they store, they distribute and yes, they all have slightly different styles but the process are not unique and if you can optimise those processes and take the guys out of their existing boundaries there is huge productivity to be gained. It’s a major component; supply chain management can make up 20% of the gross national product of a country.” ILS has the vision of being the leading provider of expertise in the field of supply chain logistics and right now in South Africa it is a challenge to find the sort of expertise and experience that ILS possess in any other company. Martin says that there is no such thing as a ‘typical’ project for ILS. Every job is different and that is what helps to separate the company from the chasing pack.
JUN 13 PAGE 33
company report “Our major competitor is an American company, they are bigger than us in terms of global footprint but locally they don’t do the work we do.” It is the ability of ILS to offer services from an operational base and from a solely independent viewpoint that Gary says are the most important to the company’s success. “The success of ILS relies on it being independent. It cannot be encumbered by a supplier. The company needs to be owned by the people that are passionate about the independent advice that they are giving.” Even the global recession could not stop the progress of ILS and although retail and manufacturing felt the pinch during the meltdown, ILS remained busy throughout. “We have not felt any effects from the slowdown at all, we have remained very healthy over the last few years,” says Martin. Being part of a ‘developing country’ means that there is going to be a lot of growth and expansion for organisations in South Africa and as the first world – third world gap closes, the commercial world is looking
EB : www.eiegroup.co.za
to all areas of the globe for ‘best practice’ inspiration. ILS will be one of the companies who shine bright in South Africa, and who would have thought it all started with an idea from a Wits University lecturer and one of his students.
the new Smooth
teL: +27 (0) 11 395 0600 | weB: www.eiegroup.co.za
Minimum waste. maximum Smooth.
Industrial Logistics Systems
JUN 13 PAGE 35
Maximising your property’s potential If you are looking for specialised services in the property sector, Broll should be your first port of call. Last month, Johannesburg, Cape Town and Durban were pinpointed as Africa’s next frontier of real estate growth. The three cities were among 20 in Africa described as catalysts for commercial property growth by retailers, corporates and investors. While there are many reasons for the growth in the property sector, one thing has always remained the same - effective property consulting, transactional management and property management is vital and choosing a good property company can have large-scale positive effects on business. The Broll Property Group is Africa´s leading commercial property services group and since its establishment in 1974, the company has bought together an unrivalled mix of technical expertise and global market knowledge with the sole purpose of maximising the potential of your property. Broll has worked with ILS on major property projects across SA and William Wakefield, Director Industrial Broking Division, explains more about the services that they have provided. “We represent corporate industrial tenants. We handle the legal and financial issues of the property deal and also the issues surrounding the location from a costing perspective; all the macro and micro issues from security to road network access to traffic flows. “The predominance of industrial requirements in South Africa at the moment is in warehousing and distribution sectors, mostly with larger retailers and logistics companies. These companies are clients of ours and we offer them unique and individualised property advice and consult to them on all property aspects. “We will be involved right from the initial planning phase to negotiating and finalising the leases and sale agreements.” As both Broll and ILS are working with national and international retail and logistics clients, a broad knowledge base and vast experience is required. The two companies both have this and their skills complement each other, with ILS focussing on supply chain logistics and Broll consulting on property market issues. “ILS will advise on industrial design, warehouse layout, racking systems, process flows etc. We handle more of the external envelope and macro property issues,” says
Wakefield. “They are industrial logistics specialists. They are involved in the design of process flow and industrial engineering aspects. Our focus is on the property aspects for the same clients. “We can handle macro site issues. For example; if a client comes to us and wants to set up a new distribution centre anywhere in the country, we would go about sourcing the location for them first, we would then arrange pricing, availability and distance from strategic points. “When the site is chosen, a process that ILS is often involved with, we will work with ILS to put together a facility of optimum size and shape.” Whilst Broll has worked on property deals for a range of clients, Wakefield describes a current project for Distell as a great example of how the company has worked with ILS to achieve results. “We are working on a project for one of the major retailers right now and we are handling all of the property issues and ILS is dealing with the logistics and engineering aspects. “We have worked hand-in-glove on this project, providing big space savings by consolidating three facilities into one. We provided a new facility at the same cost of their old, inefficient facilities. “We have been working alongside ILS for around 15 years. We work predominantly in South Africa but we are now working throughout Africa. We have a number of branches which have been established over the last ten years in areas such as Namibia, Ghana, Nigeria, Mauritius and Kenya.” Broll’s assets under management have now exceeded R60 billion and the company employs around 1200 people and Wakefield puts the success down to a strong history, saying: “We have a long history with commercial, industrial and retail property in South Africa. We are probably one of the longest standing companies in this sector. We operate in sub-Saharan Africa and we are the partner of CB Richard Ellis, the world’s largest provider of real estate services to the commercial, industrial, retail and investment markets.”
“We have a long history with commercial, industrial and retail property in South Africa. We are probably one of the longest standing companies in this sector”
Weâ€™ve got sub-saharan africa covered.
MaXiMising ProPertY PotentiaL
www.broll.co.za africaâ€™s leading multi-disciplinary property services provider Office Leasing | Industrial Leasing | Investment Broking | Valuation and Advisory Services | Retail Leasing and Consulting | Corporate Real Estate Services | Facilities Management | Project Management | Property Management | Shopping Centre Management | Broll-Online | Research | Asset Management
William Wakefield | 021 419 7373 | 082 807 0666 | firstname.lastname@example.org PART OF THE CBRE AFFILIATE NETWORK
“We want to be responsible citizens of SA” Editorial – Christian Jordan Production – Hal Hutchison
In this, the second part of our focus on road construction giant Haw and Inglis, we speak to HR Director Chrystal Poole, to find out about the initiatives in place to ensure that the large workforce performs to its full potential.
Last month, IndustrySA spoke to Haw and Inglis, one of the country’s leading road construction companies and we found out more about their day-to-day activities and major contracts underway right now. This month, we delve deeper to find out more about the people behind the business. With nearly 2000 employees, Haw and Inglis is a significant employer and effective management and development of such a vast workforce is challenging. The company has many initiatives in place to ensure that all of its people have access to training and development opportunities and HR Director, Chrystal Poole, tells IndustrySA that Haw and Inglis is now recognised as one of the top ten companies in the country for its Corporate Social Investment (CSI) activities. “The Sunday Times judged us on our spend in monetary value, into CSI. We were judged on our contribution to education, HIV and the community in South Africa.
PAGE 38 JUN 13
“There is legislation for a company like us that states that a percentage of our profit after tax has to be spent on CSI. “We don’t just do it because of legislation. As responsible citizens in South Africa we believe we need to focus our efforts on the problem areas in the country. Accordingly we plough a lot into our youth and education. We take it very seriously. We find out where the resources are needed and then we invest in those areas. Over the last few years it has been mainly in education, youth and HIV Aids.” This investment by Haw and Inglis is not just for personal gain. The company is very aware that their CSI and training schemes benefits the whole industry, which in turn benefits the whole economy. “We look at youth and education to benefit the whole construction industry, not just us as a company. We are working towards ensuring that there are enough engineers and civil technicians in South Africa to serve the entire industry,” says Chrystal.
Haw and Inglis
A LESSON FOR HEADMASTERS? One of the most recent initiatives set into action by the company involves education but this project has taken a slightly different approach. “We work a lot with schools” says Chrystal, “right now we are supporting an initiative to up-skill and upgrade Headmasters. We’ve always focussed on school children but at the end of the day if you do not also focus on the Head the impact of the initial investment is limited to the scholars we focus on. The investment into the Head will ultimately impact on all the scholars in the school. “We are sponsoring some Headmasters to up-skill them and ensure that they are the best Headmasters that they can be working towards having more and more schools of excellence. This project will give them a MBA style type course through the University of Cape Town, Graduate School of Business.” Haw and Inglis need schools to perform well, the industry requires young people with strong backgrounds
in maths and science, after all, the company is building and maintaining some of the biggest, most important roads in the country.
JUN 13 PAGE 39
company report “The program with the Headmasters started this year and will run throughout the whole year. It’s called the Principals Academy. Apart from the UCT GSB course components the programme use experienced respected individuals from education to support, guide and mentor the Head on the programme. We support this program so we can have some influence over the schools, it is accepted that functional schools have a competent Head so we reversed it and said let’s make sure we have a competent Head first, and then the school will become functional organically,” says Chrystal. The company also continues its support of schools and hopes that this will result in more students gaining access to tertiary education and engineering courses. While their work with educational institutes is mainly in the Cape Town area, CSI projects are rolled out nationwide and Haw and Inglis has registered a separate company to manage all of the issues surrounding its people and the wider community.
PHANDULWAZI Phandulwazi is the subsidiary responsible for handling all of Haw and Ingils training, development and upliftment activities. Established in 1996, Phandulwazi (Xhosa for ‘exploring the knowledge’) has proved invaluable in helping the road construction specialists to manage their giant workforce and unlock its potential. “Phandulwazi was established as a training company. It’s actually registered as a sister company to Haw and Inglis and through Phandulwazi we run all the training for the company, we run the HIV Aids program and we run the occupational health care program. “Student bursaries and recruitment also fall under Phandulwazi,” says Chrystal.
PAGE 40 JUN 13
Training and development at Haw and Inglis is not only available to new employees and young apprentices. There are schemes in place which cater for the development of every member of the team, from top to bottom. “Training is happening at all levels, from general worker or labourer, right through to management. We have generic training and management training where we identify young talent and try to form a career path for them,” says Chrystal.
MENTORING One of the most successful training schemes run by the company has been a mentorship program which sees select employees, identified for their management potential, paired up with an experienced member of the team who will transfer knowledge through regular meetings and guidance from the HR team. “We have a mentoring program for personnel who are exceeding in their trades” says Chrystal, “they are assigned a mentor who is usually a senior employee or contracts manager and they basically have a direct line and regular meetings with the mentor. We ensure all the formalities such as training and development needs and skills audits are arranged. The program is for development of foreman, civil technicians and engineers. “We don’t put everyone on the mentorship program; we only put in people who we believe we can fast-track to the top. We have a succession plan in place for most of our positions.” As mentioned above, the training and development programs devised by the company are designed to have a positive effect on the entire industry. While they do achieve this, they also add to the reputation of Haw and Inglis, a reputation which casts them as a preferred employer in the road construction industry.
FIVE strong brands For thE constructIon Industry – From a sInglE sourcE.
Road and MineRal Technologies
WiRTgen soUTh aFRica
Wirtgen South Africa (Pty) Ltd. 19 Buwbes Street, Sebenza, Edenvale Tel.: +27 (861) WIRTGEN · Fax: +27 (11) 452-4886 Email: email@example.com
“Training is happening at all levels, from general worker or labourer, right through to management”
Another one of the recent initiatives which has again added to the host of services offered to employees is a program called Money Matters. “We just started a program called Money Matters where we teach employees the basics about money management. We empower employees and teach them the fundamentals behind credit cards, buying homes, buying cars and all personal financial matters. “We believe that this will result in a more confident and productive workforce and we want to be a preferred employer. Our development goes from school level, right through,” says Chrystal. Essentially, the company can now have a direct effect on people’s lives, right the way through from early year’s school to long term career path. You could
PAGE 42 JUN 13
attend a school which has received sponsorship from Haw and Inglis and had its Headmaster trained as part of the company’s Principal Academy, then you could gain a bursary to study engineering at a university or university of technology through Haw and Inglis, you could then become employed by the company and have full training and mentoring given to you, seeing you fit into a management position while receiving practical lifestyle advice about your finances and a full health care program while raising your children in a school that may have been built by the company. After all this, you could eventually move to a retirement home that is supported by Haw and Inglis so it is clear that away from road building, the company is having a major effect on communities through its CSI and training initiatives.
JIT is a plant hire company supplying the following equipment for rental: Tracked Excavators Wheeled Excavators Wheel loaders
Tipper trucks Water tankers ADTâ€™s
Rollers Dozers Graders
We also supply new, used and rebuilt equipment and we provide transport of earthmoving equipment. The new equipment we supply is the AMMANN compaction equipment range of which we are the dealers for the FREE STATE, NORTHERN CAPE and LESOTHO in SOUTH AFRICA We also supply new hydraulic excavator attachment equipment from RAMFOS. RAMFOS manufactures hydraulic hammers, hydraulic shears and hydraulic pulverisers for the complete range of excavators (1 to 70 ton excavators). JIT was established in 1999 as a plant hire and mining company with the goals of becoming one of the best providers of quality rental equipment in the country. Over the years we have acquired two products of which we distribute namelyAMMANN COMPACTION EQUIPMENT AND RAMFOS HYDRAULIC ATTACHMENTS .
Plot 24, Ribblesdale, Bloemfontein Tel: +27 (0)51 4331249 Email: firstname.lastname@example.org
company report CAN YOU WORK FOR H&I? Even with all the training and development in the world, you still need to have certain qualities in order to be suitable for a job with Haw and Inglis. One of the key attributes is a good set of communication skills. “We look for personal attributes such as someone driven, someone who likes to work in the outdoors, someone with willingness to work away in rural areas and, importantly, you must be able to communicate well,” says Chrystal. “It doesn’t matter what your role is, you need to be able to communicate on all levels.” With Haw and Inglis, you could work in any area of South Africa. The company originated in Cape Town but now operates all over the country. Take a look at last month’s article to find out more about projects underway right now. “Right now, we employ 1850 people all over the country,” says Chrystal. “Our head office is in Cape Town but we have a footprint right across the country.” Even during the tough climate that has a grip on the global economy, where many companies have opted to streamline and cutback on costs, Haw and Inglis have refused to compromise on their commitment to training and development. “Within our company, we have continued regardless of the downturn in the industry. Training has always been a priority so it has not been impacted.” Even though training, development, and the focus on people has not been affected, it is still a costly investment for the company and while there is assistance from the state, more help would be appreciated. “The government allow companies to claim back a percentage of their tax SARS based on the training they carry out but it is not nearly enough to cover the whole cost of a training program so they could do more,” says Chrystal. “The CETA (Construction Education and Training Authority) are moving towards assisting companies with learnerships, bursaries and things like this so there is a move in the right direction.”
HIBBET After investing heavily in the workforce, it is important for the goals of the company to be aligned with the vision of the employees. It is often reported that a company will spend large amounts of money training and upskilling employees only for them to leave for a competitor. At Haw and Inglis, there is an ownership initiative
PAGE 44 JUN 13
in place which rewards employees for loyalty and also contributes to the goals of BBBEE. “HIBBET is the Haw and Inglis Broad Based Empowerment Trust” explains Chrystal. “We have given shares, around 20%, to employees who have served the company for two years or more. Employees get dividends each year and those pay-outs are directly based on profits.” HIBBET was set up in 2006 and changed the ownership structure of the company with 15.6% of the shares being given to the trust at no cost to the employees. HIBBET is now the company’s biggest shareholder and the trust is an example of an industry leading initiative that is broadening the ownership base as contemplated by the BBBEE Act.
Haw and Inglis THE FUTURE So what is there left to do in terms of CSI and training and development? Haw and Inglis offer a full complement of services to employees but in the future the company will look at empowering other businesses as well as individuals. “We have an enterprise development program with seven companies on board who do sub-contract work for us. We assist them with the financial side of the business, recruitment, bursaries and training,” says Chrystal. This is again an example of the work that the company is doing to enhance the whole industry. “We are training to ensure that we have enough skilled engineers in these companies. We have assigned senior employees to help assist with the development of these businesses and therefore helping the entire industry to grow,” says Chrystal. It is clear that although concrete and asphalt are the materials behind the success of Haw and Inglis, the people remain the most important driver of what is one of southern Africa’s leading construction firms.
Last month, Haw and Inglis MD, Adrian Robinson said: “We have fantastic employees and a wonderful relationship with everyone… our employees are a critical part of our success,” and this month it has been made clear that this statement is very true.
Haw & Inglis
We’re very proud of the relationship we’ve built
Lancashire Manufacturing celebrates 8O years of the Envoy brand Editorial – Joe Forshaw Production – Hal Hutchison
One of the country’s oldest clothing manufacturers celebrates its 80th birthday this year and MD Marc Swiel tells IndustrySA about what has made the company successful since 1933.
Manufacturing in South Africa has grown significantly over the past few decades and various sectors of the industry have received support which has allowed them to grow into competitors in international markets. Take automotive or metals; both industries have seen major growth and now provide a large contribution to the country’s GDP. The same can be said for ICT and electronics, chemicals, agriprocessing and textiles, clothing and footwear. Since 1994, over US$1 billion has been spent on upgrading and modernising South Africa’s textile, clothing and footwear industry, making it increasingly efficient and quality focussed. Exports account for R1.4 billion for apparel and R2.5 billion for textiles, mostly to the US and European markets. Exports to the US increased by a dramatic 62%
PAGE 46 JUN 13
in 2001, driven primarily by the benefits offered under the Africa Growth and Opportunity Act (AGOA) which provides for duty-free imports of apparel produced in South Africa. In the local market, demand is changing and falling in line with that of developed nations and the textile and clothing industry has grown accordingly to offer the full range of services, from natural and synthetic fibre production to non-wovens, spinning, weaving, tufting, knitting, dyeing and finishing. The South African textile industry also benefits from competitive labour costs and a close proximity to a wealth of natural fibre raw materials. The government is fully behind the growth of the manufacturing industry because it has great potential for job creation, economic development and the stimulation of other industries such as service and technology. One company that has been specialising in South
Lancashire Manufacturing Company
Africa’s clothing manufacturing sector since 1933 is Lancashire Manufacturing Company, a Cape Town company which this year celebrates its 80th anniversary. “I think we are the oldest clothing manufacturer in South Africa, certainly in Cape Town. Not just in school and security wear, in the entire clothing industry,” says Managing Director, Mark Swiel. “The company has a long legacy. My grandfather went from Lithuania to Lancashire, England, the hub of the textile industry at the time, and then migrated to South Africa where my father was born and he and his brothers joined the business.”
EXPANDING THE RANGE Since the company was founded in 1933, children’s clothing has always been the focus but as trends have changed, the business has adapted to ensure it stays up to date with what the market demands.
“We started in 1933 making juvenile clothing, anything for children. At that time, kids used to wear suits and we used to make the jackets and trousers. We also used to make what we called safari suits with shirts and shorts to match. That slowly changed and the uniform became more standard with trousers, shirts and a blazer so in the 1970s we decided to specialise in school wear and forget about suits. “We have expanded our range to incorporate blazers and trousers for security uniforms and potentially any kind of military and police uniform. It is a very similar product to what we are producing for the school wear market so we believe we will be very competitive at producing this kind of article,” says Swiel. In the early days of operation, the company made a name for itself in the local market and this resulted in orders coming in from around the world, especially the UK and one of the biggest retailers of the time.
JUN 13 PAGE 47
“At that time we supplied John Lewis in the UK. We would make all of their school blazers and trousers but when South Africa had sanctions we lost that business,” says Swiel. “In 1980, we went to a school wear show in the UK and we gained wholesale customers” adds Swiel. “There is no more manufacturing left in the UK and our customers were looking for specialised school wear with different badges on different blazers made from different fabrics. They also wanted someone flexible who could do small and large orders, anything from 24 to 10,000 units. “China wasn’t great at producing smaller runs so they tried with us and we steadily built the business up over the years.” In South Africa today, a lot of the large-scale retailers have turned to the East for their textile needs, mainly because of the drastically low prices that can be gained in that region. For Lancashire Manufacturing, this has meant placing more of an emphasis on the export market.
PAGE 48 JUN 13
“Today, about 60% of our product is exported and 40% goes to the local market” says Swiel. “We used to supply the multiples in South Africa but a lot of them have now gone to the East, Bangladesh and India, to get a cheaper deal. We still supply blazers for some of the big chains but we focus on providing the best quality, using the best materials and being very reliable. In school wear, if you don’t deliver on time your product will be wasted as when the children are back at school they no longer need a uniform.” Swiel suggest that this focus on quality and reliability has gained the company a reputation as the best school wear supplier in the world.
FAR-REACHING SUPPLY Even with a large amount of product being exported, the Envoy brand produced by Lancashire Manufacturing is well recognised in South Africa and stocked across a vast range of outlets.
Lancashire Manufacturing Company “We supply over 400 retailer and school shops. In total we supply 1000s of schools. “Our speciality is blazers, trousers, shorts, skirts, sports shorts and we also do a few tunics and dresses. “We have a massive plant in Diep River, Cape Town. We employ around 400 people in total,” says Swiel. The company is very keen to remain the industry leaders in the production of school wear but expansion is always a possibility and while the obvious movement into other fashion areas does not interest Swiel, he says that production of commercial uniforms could provide an opportunity. “There is always an opportunity to expand. We have made various garments for the hotel industry. We don’t want to focus on high-fashion. We could make any sort of corporate uniform.”
HIGHLY TECHNICAL ENVIRONMENT Manufacturing, especially of clothing and textiles, has changed over the years and will continue to change and evolve all the time. Technological advancements have helped Lancashire Manufacturing to be flexible and churn out orders, large and small, with quality and precision.
TE X X
A Division of Seardel Group Trading (Pty) Ltd Tel: (023) 347 0814 Fax: (023) 347 6117 Email: email@example.com
Hextex has been a proud preferred supplier to Lancashire for many a year and the relationship is one of mutual respect and integrity. We wish the team continued success and longevity
“We use CAD systems so all our patterns, designs and markers are done by a computer. Nothing is done by hand anymore, everything is computerised. We are in the process of putting in electronic cutters as well. All our fabric is laid up with automatic spreaders so there is very little manual intervention. “We have very sophisticated fusing equipment to ensure there are no issues because of temperature changes. “In our sewing machines rooms, all of our machines have underbid trimmers, we upgraded our technology recently so everything is state-of-the-art. “We have automatic jet pocket, PW machines. They are very expensive and ensure that all pockets on trousers and blazers are consistent. “We have state-of-the-art sleeve setters and button hole machines and we also have a needle detector which ensures there are no broken needles in anything for child safety,” says Swiel.
PAGE 50 JUN 13
ECONOMIC PRESSURE? The economic slowdown, as we have discussed in great depth at IndustrySA, has had differing effects on businesses across the country. Lancashire Manufacturing is yet to feel the pressure because of the nature of their product and also, their ability to adapt their lines to meet demand as Swiel explains: “We weren’t that adversely affected by the downturn as school wear is required by all schools. Luxury and fashion items felt the effects more. A blazer is a necessity and a compulsory item for the child. “In the local market, some of the big companies have looked to the East for trousers during the tough times in order to try and save but we managed to offset that by increasing our volumes in the export market and changing our focus from trousers to blazers. “It’s always tempting to buy materials at a lower price but we’ve always felt that it’s better to have continuity with quality and colour. We have dealt with the same fabric
Protective Range technically engineered fabrics
GELVENOR would like to congratulate Lancashire on their 80th anniversary. GELVENOR TEXTILES (Pty) Ltd was established in 1965 as weaver, dyer and finisher of synthetic and man-made continuous filament yarn fabrics. Today, GELVENOR TEXTILES engineers fabric solutions of distinction. Our range of polymer based woven products includes inter alia apparel fabrics, specialised sport and outdoor fabrics, ballistic and inherently flame retardant textiles, aeronautical textiles, print and coat base cloths, multifil filtration media and speciality reinforcing grids and scrim industrial cloths, for companies who pride themselves on quality and value.
Cnr Anderson & Morewood Roads Hammersdale, Kwazulu Natal South Africa, 3700
t: +27(0) 31 736 8000
suppliers for over 50 years and that has allowed us to build up a consistent and reliable supply chain which is always beneficial. “We can offer a better replenishment service than our competitors in the East, we can do smaller runs and we can offer quicker turnaround times and these are very important aspects.” The fact that Lancashire Manufacturing has grown and grown for the last 80 years and successfully navigated various different economic and political problems, shows that management has been planning their strategy very effectively and this looks set to continue as there is a succession plan in place. “I hope my children will be involved one day. We have a great senior management team. Our production manager has been with us for over 15 years, our logistics manager has been with us for ten years. “There is a succession plan for the future. If the business moves out of the family then we have plans for that but we hope that we will be involved for as long as possible,” says Swiel. Along with the focus on quality, long-standing
Gelvenor is committed to the ongoing process of finding solutions to our customers’ needs, exploring new opportunities for product innovation and continued growth and development in the markets
management and state-of-the-art equipment, Swiel concludes by telling us that relationships with partners in the industry are also vital and being able to rely on suppliers has helped Lancashire Manufacturing to keep the competitive edge. “We do support Proudly South African companies wherever possible and today, 98% of our fabrics are procured locally from suppliers in South Africa. Our trimmings are all provided by South African companies, we are very pro-South Africa and all of our garments have the Proudly South African label in. “We are very focussed on being eco-friendly wherever possible. A lot of our success comes from us having very reliable suppliers locally and we never compromise our raw material base for price.”
“Nothing is done by hand anymore, everything is computerised” JUN 13 PAGE 51
The mobile clinic
that is ‘built for Africa’ Editorial – Roland Douglas Production – John Cliff
IndustrySA speaks to Cabworld Marketing Director, Mpho Mahanyele to find out more about the company’s expansion plans and the fantastic work that has been going on recently with the development of a mobile clinic to serve rural areas.
Being able to be mobile is becoming more and more important for businesses. For some companies, transportation forms the core of their activities. Having the right transportation and the correct vehicles is vital to their operations. Take the police or the ambulance services for example - without the correct transportation components, the functioning of these departments would become almost redundant. What makes things a little more difficult, especially for companies that operate a fleet of vehicles, is that each vehicle will perform a dedicated task and each has a different use. This means that sometimes vehicles will have to be adapted or rebuild. In a situation like this you need an experienced vehicle
PAGE 52 JUN 13
body manufacturer and one of the industry leaders in this field, is Cabworld. Cabworld has a wealth of experience in steel canopy building and vehicle body manufacturing. Working with large-scale organisations including government departments, parastatals, private and public businesses and individuals, Cabworld has built up a reputation which has seen the business expand exponentially. Mpho Mahanyele chair’s the Board of Directors, handles all of the company’s marketing activities and she recently told IndustrySA about a very innovative project that Cabworld has been working on that could have the ability to help rural communities with healthcare problems. “We have been working on a vehicle with Istrodent
and Samsung where solar energy is used to run a mobile clinic. We have converted a truck to contain three medical disciplines – dental, audio and ophthalmology. To date, this has been one of the most innovative products we have developed and manufactured. “We divide the truck into three compartments and each compartment has its own entrance and examination area. People can actually get new spectacles on the same day of their examination, which renders this a highly practical service for rural and underserviced areas.” The truck forms part of Samsung’s ‘Built for Africa’ campaign and can be labelled as Africa’s first solar powered mobile healthcare centre which can also be powered by a generator or an ordinary 220V power source. Samsung has also hinted that it could introduce a similar truck capable
of handling ultra-sound scans and for the delivery of babies. The truck has reportedly cost Samsung around US$250,000 and will help the more remote areas of Africa to have access to effective health care services and in manufacturing the body, Cabworld had to consider various conditions in which the unit would operate. “The design and development of the unit consisted of Cabworld employees, the medical equipment supplier and the customer concentrating meticulously on functionality, ergonomic lay-out and SABS standards.”
THRIVING BUSINESS Cabworld’s core business involves specialised vehicles, custom built conversions and custom build canopy
JUN 13 PAGE 53
PAGE 54 JUN 13
CABWORLD products for African markets. The expertise of the company makes it possible for Cabworld to cater for any new development in the motor industry and this flexibility has helped them going from strength to strength during the past decade. “We started the business after buying the assets of a liquidated company at an auction 12 years ago and were fortunate to acquire the skills and know-how that belonged to the previous company. “Cabworld’s core activity has been more or less the same as the previous company, but we have since widened the product range on offer significantly. Where we used to only do specific canopies, we have since extended to bus building, mobile banks, mobile clinics, ambulances, army and mortuary vehicles, to name a few. In some cases we also adapt the vehicles suspensions, in collaboration with the OEM’s, to make it more suitable for the conditions it operates in. “Our current turnover is R64 million per annum and employ 148 dedicated people,” says Ms Mahanyele. Even with the global economy going through tough times, Cabworld has managed to achieve continued growth by following an ambitious strategic plan lead by a dedicated management team. “We will definitely expand physically with more factories, etc.” says Ms Mahanyele. “Our products are backed by an after sales service that includes training in the operation and maintenance of specialized conversions. After sales service and support is one of the most important components of our business.” The company also offers an industry standard warranty to back and ensure good quality products.
GROWTH Cabworld has many prominent customers based in South Africa and in several other African countries. “Eskom, the Department of Health and also the Police are some of our key customers. Requests would be submitted to OEMs (Original Equipment Manufacturers) and they will subcontract projects to us as the bodybuilders.” Proven successful projects for companies that operate on such a large scale has helped Cabworld to stay on top of the competition – something which is increasing all the time.” “There are a many of companies in South Africa that have mushroomed into the industry, but I think being different comes with the quality element. You need to have experts - it’s not just about offering a lower price, it’s about a combination of many factors which results in a quality and durable products,” says Ms Mahanyele. “Companies in Europe would for instance task us to build and deliver products into Africa - a situation not experienced by many body builders in SA.” continues on page 58 >
JUN 13 PAGE 55
Mobile Climate Solutions Roofmounted / Under Bench / Stationary
Mobile Power Solutions Generators / Battery Care / Charging Converters / Automatic Chargers Sine Wave Inverters / Inverters / Voltage Converters
Dometic WAECO â€“ your partner for mobile technology If special vehicle construction and equipment is your business â€“ we are your partner. Talk to us for all mobile technology requirements you may have! Dometic and WAECO products have proven their worth in all kinds of special-purpose vehicles, including rescue and municipal vehicles, construction and agricultural machinery,
forestry trucks, refrigerated vehicles as well as in police and fire service fleets. Our expertise ranges from customised air conditioning systems through mobile refrigeration and power supply solutions to a vast and varied range of mobile kitchen appliances. As an international player we provide on-site support for your projects.
MOBILE SOLUTIONS Mobile Comfort Solutions Reverse Camera & Monitor Systems / Awnings / Windows
Fridges / Hobs / Basins / Toilets
Cedric Gindra Marketing & Sales Manager
+27 (82) 772 1842
firstname.lastname@example.org Leanne Cornforth Sales Representative
+27 (71) 889 0989
company report Fortunately for Cabworld, the slowdown in the global economic climate has not been as hard hitting as for similar companies in SA. “We were slightly affected by the tsunami in Japan,” says Ms Mahanyele. “It meant that we were seeing fewer vehicles come through from that part of the world. “Apart from that, we are amazed at how well we’ve done despite the economic conditions in the country.” The company’s success has been substantial enough to allow for the consideration of further expansion, not just in Africa, but globally. “In the future we will definitely look at global expansion. We have relationships with international companies that are funding projects in Africa. Until the day that Cabworld does venture into international markets, the company will keep up its activities in Africa with repeat business being the major objective. “We have long standing and well established relationship with many African countries. We’ve delivered products to Angola, Mozambique, Namibia, Swaziland, Lesotho, Zambia, Malawi, Zimbabwe, Uganda, Rwanda, Tanzania, The Seychelles, Madagascar and Mauritius. We are looking at firming up those relationships in order to ensure a strong market presence in Africa and not just South Africa. “We don’t just want to get the odd order, we want continued business to compliment our penetrative
PAGE 58 JUN 13
marketing strategy - looking to gain business from governments across Africa,” says Ms Mahanyele. Achieving continued business in Africa will contribute to what is a successful and growing business and the company’s reputation of delivering quality service and value for money. She concluded by saying that the company continued moving in the right direction and positive relationships is the main driver behind the progress. “When we started this business it had a turnover of R12 million in the first year of operation and the fact that we are now doing R64 million per annum shows that we must have been doing something right and I think it’s the way we have built ethical relationships since launching the company.”
“In the future we will definitely look at global expansion. We have relationships with international companies that are funding projects in Africa”
JUN 13 PAGE 59
Acquisitions give SGS a fully integrated service portfolio Editorial – Joe Forshaw Production – Hal Hutchison SGS is thriving in Africa and the company is currently going through an exciting period following the acquisition of the Time Mining Group. Vice President Minerals Africa, Derick Govender, gives IndustrySA an insight into what is driving the success of the company.
When a product is manufactured, it is not simply then just sold straight on to an end consumer. In 2013, all products, for all markets, undergo various tests and trials to ensure they are fit-for-purpose. When it comes to inspection, testing, verification and certification, one company operating globally has made a name for itself by offering best-in-class services. That company is SGS and in South Africa they offer a full range of services to a host of different industries, an important one being the exploration and mining industry. In April, SGS acquired the Johannesburg-based Time Mining Group with a view to expanding the service offering of its Minerals Services line of business. SGS Vice President Minerals Africa, Derick Govender, recently told IndustrySA more about the acquisition and the fantastic services offered by this group. “It’s an extremely exciting time; we are currently busy handling the integration of SGS Time Mining, which brings a new service line to SGS offerings. SGS Time
PAGE 60 JUN 13
Mining specializes in mid-tier mining projects, they provide project management, design, development and operation of small scale projects and we feel that this really compliments the current SGS portfolio. “In Africa, we are the leading provider of minerals services and one of the reasons for that is that we provide integrated services to the major mining houses, such Anglo American Platinum, Newmont Gold, African Barrick AngloGold, Harmony, Goldfields, Sibanye Gold, and now, with SGS Time Mining, new services like project management, design and engineering.”
PIT TO PORT The work of SGS in the exploration and mining industry goes back many years and the integration of SGS Time Mining is just one of the important milestones in an impressive history. “SGS Minerals Services has been active in South Africa for many years” says Govender, “but major growth came
in 2002 when SGS acquired Lakefield Research Limited. Lakefield Research was a Canadian company with subsidiaries in South Africa, South America and Australia and focussed on providing laboratory and metallurgical services to the exploration and mining industry. In South Africa, the main office was located in Booysens, Johannesburg. This is where the SGS South Africa head office is located now.” “The mining industry is one of SGS’s target markets, however; it is not only minerals services that we provide to the mining industry. We also provide certification of systems and processes, environmental testing and oil, gas and chemical testing for heavy machinery so that we can forecast and pre-empt the maintenance schedule for equipment. “We also offer industrial services to the mining industry where we support our customers in implementing effective scheduling, budgeting, site safety and logistics, plus assist in sourcing quality materials and
personnel. We conduct studies in construction feasibility, risk assessment and management. Our services ensure quality in global supply chains by performing chemical and physical testing of materials. SGS can work with mining companies from the very early stages of a mining project, right through to the building of a plant and export of final product material. This sort of service is invaluable for mining organisations, providing much sought after components such as skilled labour, quality and safety. “In the minerals sector, we provide a host of integrated services which are a competitive advantage for clients. We call it a ‘pit to port’ service. At the early stage, with exploration, we are involved as we can undertake analysis of samples. Thereafter SGS can provide metallurgical services to give an understanding of the extraction requirements of the commodity and then we will provide industrial services to understand the requirements of constructing a new plant. This is a leading edge approach
JUN 13 PAGE 61
to exploration services and SGS is unique in that we have it in the exploration services market. It provides significant value to our clients and is available only at SGS labs globally. “With SGS Time Mining we can now provide design and engineering services to assist with front-end economic assessments and engineering studies that leverage the technical skills and plant experience of our process engineers. “Finally, in base metals, such as copper, iron and manganese, we also provide final commercial services. When a commodity is loaded onto vessels to be shipped off; we do the sampling, inspection and certification thus we are really providing an end-to-end service and all the processes in between,” says Govender.
10 BUSINESS LINES Minerals Services are just one of the business lines for SGS. Globally, SGS has ten different business lines including Government and Institution Services, Minerals Services, Environmental Services, Consumer Testing Services, System and Services Certification,
PAGE 62 JUN 13
Agricultural Services, Industrial Services, Oil, Gas and Chemical Services, Automotive Services and Life Science Services. Govender says that eight of the ten business lines are offered in South Africa with Government and Institution Services and Minerals Services forming the core activities. In different parts of the world, the services offered by SGS vary according to dominant industry sectors. “The exploration and mining industry forms a big part of SGS’s business, especially in Africa and South Africa but our activities are not limited and it depends where you are in the world. Consumer Testing Services are huge on the Asian continent with the testing of manufactured products,” says Govender. The service offerings from SGS are so far-reaching that clients can use the company as a fully integrated solution for their inspection, testing, verification and certification needs from start to finish on a project. “We offer an integrated service portfolio from project development right across the entire stream,” says Govender. “We are able to improve efficiency, set-up
Together to the top with PANalytical
Partnership with PANalytical offers you around the clock support and access to cutting-edge technology for the challenge of today and tomorrow. • Unique identiﬁcation of unknown materials with XRF and XRD testing • Unique application methodologies to assist compliance with international norms and regulations • Performance Testing Program - independent checks on your analytical performance
PANalytical (Pty) Ltd 363 Oak Avenue, Ferndale, 2194
The Analytical X-ray Company
T +27 (0) 11 577 0880 F +27 (0) 11 577 0882 email@example.com www.panalytical.com
and successfully operate facilities in remote locations and add overall value for our clients via our integrated service portfolio and this is what gives us a leading competitive edge in the market. “We have a strong base of technical expertise and equipment resources that we can draw on to provide the services a client needs globally.”
RESPONSE TO FINANCIAL SITUATION While the global economic slowdown still has a strong grip on certain world markets, South Africa has seen varying effects with various businesses often reporting drastically different stories since the global financial crisis in 2008. SGS operates globally, in many different industries and this has meant that it has been impossible to completely avoid the tough economic conditions, but Govender explains that where some activities have slowed, others have gained pace. “Overall, some of our businesses are less active compared to 12 months ago, but some are continuing to increase”. “For example, the energy minerals business, where we provide on-site laboratory services and exploration services for coal producers, has seven on-site facilities and two major commercial labs which process coal samples. Since 2011, their business has grown significantly”
PAGE 64 JUN 13
SGS has ensured it is well prepared for any fluctuations in demand for its services by building close relationships with customers and suppliers. This allows the company to keep its ear to the ground and plan effectively. Despite the tough conditions, SGS’s Minerals Services business is still busy with new on-site projects on the horizon and they are currently busy with 3 new on-site lab builds in Africa. “In West Africa alone, we’ve got two new laboratories that are in the build phase in Ghana and the Ivory Coast.”
THE FUTURE With developments in West Africa providing excitement for SGS, Govender says that these will not be the only developments for the future. Wherever there are opportunities for more business, SGS will investigate and add to their already far-reaching African operations. “It’s very difficult to look into that crystal ball at this time but if you look at the way SGS Minerals Services has grown in South Africa since 2002, it’s been substantial. We are now operating over 50 different locations in Africa, from on-site labs to full commercial labs as well as sampling and inspection services. We are always exploring new opportunities.” “We work closely with our clients to see how we can improve their processes and efficiencies and add value to their output.”
sgs “In Africa, we are operating in almost every country. We are not going to rest on our laurels, where we believe there are opportunities; we will be going in and looking to develop those opportunities.”
PEOPLE DEVELOPMENT SGS is always looking to train, develop and up-skill their massive workforce in Africa. There is emphasis placed on people development and Govender says that the opening of a new training academy in Ghana last year is a testament to SGS’s drive towards organic growth of its people. “Personnel development is massive and is one of our primary operational pillars. “In March 2012, we opened a minerals training academy in Ghana. The objective was to select students from local tertiary institutions and train them in the various aspects of the minerals industry via practical training at the SGS laboratories and theoretical training at the SGS Ghana training centre. “It started very successfully in 2012, when we took on the first cohort of 16 and we are now ready for the second cohort. The academy was opened by Chris Kirk, our CEO, Fred Herren, our COO-Africa, and myself. SGS’s commitment to sustainable development through our people goes right to the top. You cannot have a growing business without the expertise of your valued staff. Your business is only as strong as the people you have.”
role in the transfer of technology to the metallurgical facility in Johannesburg. We constantly have staff coming through from Canada to assist with training and equipment, so it’s a big part of our professional expertise network. This award reflects our combined success as a group,” says Govender. The work of SGS, which sometimes goes unnoticed by end-consumers, is vitally important to so many industries and makes a big difference to many aspects of life as the company’s website details: “From the energy that powers our cars and homes, to the food on our plates and the clothes on our backs, we provide solutions that really make a difference.”
“Your business is only as strong as the people you have”
CERTIFIED QUALITY In the arena of inspection, testing, verification and certification, the most important element of business has to be quality, after all, if you’re not operating to the highest quality standards then how can you ensure quality for others? “The quality of your work is what defines your business” says Govender. “It is key that we operate at or above standards in all of our laboratories. Our laboratories in Johannesburg, South Africa and Mwanza, Tanzania have a selection of tests successfully audited to the ISO/IEC 17025 requirements. “The base metals testing available at our laboratory in Kalulushi, Zambia now conforms to the ISO/IEC 17025 standard. SGS Time Mining has three laboratories that conform to ISO/IEC 17025 requirements for specific registered tests and is actively pursuing an audit for a fourth. There is a constant drive within SGS to ensure all operations are functioning at the highest level of quality standards” “Our facility in Lakefield, Canada recently received an award for excellence. This facility is one of the premier metallurgical testing facilities globally and plays a vital
JUN 13 PAGE 65
SA’s industry Editorial: Lauren Grey Production: Tonnie Geddes The key to successfully servicing South African industry is learning to ride the “dips and waves” says Francois Smith of AngloV3 Crane Hire. IndustrySA speaks to the Operations Director to find out how the company stays ahead of its competition.
Established over 34 years ago, AngloV3 Crane Hire has grown from a small family owned business to a successful lifting company with ten branches spread across Gauteng, Free State, Western Cape, Eastern Cape and KZN, with its head office in Midrand. In October 2008, AngloV3’s true potential was noticed by Investec Principal Investment who acquired a majority shareholding in the company. In 2012, Investec then facilitated a transaction whereby Concord Cranes Ltd became the holding company of AngloV3 and Elcon Crane Hire. “Like AngloV3, Elcon Crane hire started as a family business operating in Durban. Investec acquired the shares in Elcon Crane Hire, just like they acquired the shares in AngloV3; now we are working together
PAGE 66 MAY 13
but keeping the brands separate,” explains AngloV3 Operations Director, Francois Smith.
SERVICING THE INDUSTRY AngloV3 specialise in the hire of hydraulic mobile cranes, specialised transport, rigging and CAD-based rigging studies; as a proudly South African company, it is the company’s mission to offer the right crane to clients across South Africa at a competitive rate. AngloV3’s current fleet of hydraulic mobile cranes comprises of rough terrain cranes, truck cranes and all terrain cranes; with over 100 cranes in its fleet, AngloV3 is confident that it will have the right crane for its client’s specific needs. The company’s fleet has a capacity range from 8T550T’s and is committed to an on-going program of fleet
AngloV3 Crane Hire
renewal in order to serve its clients with modern cranes and the latest in safety and mobile crane technology. During 2012, AngloV3 added 12 new mobile cranes and a truck tractor and trailer to its fleet, which included 1 x 200T Liebherr, 3 x 55T Liebherr’s, 4 x 35T Liebherr’s, 2 x Sany 35T Rough Terrain cranes, 1 Volvo Truck tractor, 1 x 35T truck crane and a 40T knuckle boom crane. AngloV3’s fleet of specialised transport vehicles consist of 16 units; the company own, operate and maintain several lowbed horse and trailer combinations. Within the lowbed fleet, AngloV3 have step deck, semi-extendable, super-link and lowbed trailers in order to cater for most of its client’s transport needs. Finally, AngloV3 provide detailed 3D CAD-based rigging studies that will have accurate placement on site and safe crane movement as the ultimate objective.
CAD drawing will indicate danger zones, existing structures and other obstacles that require consideration during the planning phase; AngloV3 do a site visit to obtain accurate dimensions and to obtain 1st hand knowledge of site conditions.
“We’ve got a vast presence in South Africa, with ten different branches which help us to ride through dips and waves” JUN 13 PAGE 67
As one of Southern Africa’s leading Construction and Engineering Underwriting Managers, we offer cover for the following classes of insurance: • Contractors All Risks (CAR) • Erection All Risks (EAR) • Plant All Risks (PAR) • Public Liability (PL) Insurance • Electronic Equipment (EEI) • Machinery Breakdown (MB) • Business Interruption (BI) • Deterioration of Stock (DOS)
TRUSTED ENGINEERING INSURANCE
For more information contact us Johannesburg; Unit 29, Consort House, Waterford Office Park, Fourways, 2055, Tel: +27 11 658 1156 Durban; Suite 9, 62 Old Main Road, Kloof, 3610, Tel: +27 31 818 0209 Cape Town; Shop A1, Office 4, Westlake Square, 1 Westlake Drive, Tokai, 7945, Tel: +27 21 030 0054 Consort Technical Underwriting Managers (Pty) Ltd is an Authorised Financial Service Provider. FSP No. 2273
C037 Consort advert.indd 1
COMPETITION AngloV3’s services are highly sought after in the mining and petro-chemical sectors but evidently, the company is fully equipped to service almost any industry in South Africa requiring crane hire and lifting services. Francois Smith says that the company’s exposure and ability to service almost any sector helps it to ride the “dips and waves” associated with different industries and keep ahead of competition. “We’ve got a vast presence in South Africa, with ten different branches which help us to ride through dips and waves,” he explains, “dips meaning if you’ve got strikes in the mining sector, then we have exposure to the petrochemical sector where the business will subsidise the rest, and vice-versa; if the petro-chemical sector falls down then we’ve got exposure to the mining areas. “We’ve also got exposure to Richards Bay and the coastal areas, we’ve got exposure to inland areas and we’ve got the mines, so I think what benefits us is being able to operate in various sectors of industry and the cycles in the sectors can support each other.”
ECONOMIC CHALLENGES AngloV3’s vast exposure to different industries has also helped it to avoid shrinkage as a result of the economic
PAGE 68 MAY 13
2013/05/31 11:09 AM
slowdown, “we’ve seen a slower growth, but we haven’t seen shrinkage yet” says Smith. He also explains that whilst the global credit crunch has slowed down the amount of expansion projects happening across South Africa, AngloV3 are active in the maintenance and refurbishment market, so work never dries up.
AngloV3 Crane Hire “Company’s always have to do maintenance and refurbishments, and we can defy a lot of work in that area. So you generally find that if the expansion projects dry up, the guys tend to spend more money on maintaining what they have.”
EXPANSION With the launch of its new website, AngloV3 is ready to expand both into Africa and potentially into new markets, “we haven’t made it public yet because the company registration still has to come through,” explains Smith, “but we are looking to register a new company somewhere on the African continent.” “There are also opportunities being looked at in the Western Cape; you will see our representation there is not very good, but that’s where Investec comes in with its deep pockets, Investec will be doing the acquisitions and we will manage the crane businesses.” Potential new markets for the company include alternative energy; Smith explains that although they are happy to tender for such jobs, it’s not the main focus, “Like all the other crane companies, if the opportunity arises we will tender for the job” he explains. “If we don’t get it its fine, but to retain that market you
really need big cranes, we’ve got those cranes and we’ve got enough of them. So if the opportunity arises we’ll take it, but we’re not going to restructure our business just to do that.” Smith says that although wind farms are ‘new for everybody in South Africa’, AngloV3 are fully equipped to take on a new challenge, “there are a couple of small wind farms in the Western Cape but wind force is a new thing and there’s nobody with experience here. It’ll be new to us to lift a wind turbine but we’re in the same boat as everybody else.”
“We haven’t made it public yet because the company registration still has to come through … but we are looking to register a new company somewhere on the African continent”
SAIA: Knowledge, advocacy, excellence Editorial: Lauren Grey Production: Ben Martel President of the KwaZulu Natal Institute of Architects, Kevin Bingham, says that the architectural industry in South Africa is going through a huge transformation and requires a ‘re-think of both education and practice’. IndustrySA looks at the function of the SAIA and considers how it benefits the industry.
The South African Institute of Architects (SAIA) is a voluntary association of affiliated and regional institutes, committed to maintaining the highest standards of professionalism, integrity and competence within the industry. Established in 1996, membership is open to all architects with the only prerequisite being a recognised academic qualification, a minimum of 24 months practical experience and an examination in professional practice. Members of the Institute, registered as professional architects, are educated and trained to provide leadership, critical judgment, specialist knowledge, skills and aptitude, for the design and development of the built environment. Kevin Bingham, President of the KwaZulu-Natal Institute of Architects and committee member at SAIA, explains that regional presidents serve on the SAIA National Board, “with the emphasis on the word voluntary, the Institutes represent their
PAGE 70 JUN 13
memberships with a unified voice in directing policymaking and ensuring on-going excellence in the field, to improve the quality of our environment.” Members who voluntarily enrol with the Institute are required to uphold and subscribe to the objectives of the Institute, and within the built environment, strive to improve the standards of health and safety for the protection and welfare of all members of society and to enhance with their professional skills, the natural environment to the benefit of all.
TRANSFORMING THE INDUSTRY As with most industries across world, architecture has felt the devastating effects of the economic slowdown, with some major –and minor- projects needing to be put on hold until further funding is found.
However, Bingham says that South Africa’s architecture industry has managed to avoid the slowdown and continues to thrive even in challenging times, “The economic slowdown
South African Institute of Architects
had a major effect on the architectural industry worldwide, however I believe that South Africa has been lucky thus far in not feeling the full punch of the global slump.” Whilst the economic slowdown may not have had a direct effect on SA’s architecture industry, Bingham explains that other factors affecting the industry are causing it to go through a huge transformation. “The architecture industry is going through a transformation that is requiring a re-think of both education and practice,” he explains, “the field of architectural practice is vast and requires the architect to have a detailed knowledge of all aspects of construction, including an understanding of the fields of expertise of the other consultants in the professional team.” Aside from design and planning skills, architects are also required to have technical, problem-solving, managerial, communication, co-ordination and
entrepreneurial abilities, which Bingham believes will result in a more streamlined industry, with architects specialising in different areas. “New regulations are making it increasingly time-consuming and onerous for architects and it is foreseen that architects will move towards various specialisations within the architectural landscape.”
ARCHITECTURE AS A CAREER Another fundamental purpose of the SAIA is to encourage young people to choose a career in architecture, with candidate membership open to those currently studying towards becoming a professional architect. Whilst education in architecture evolves continuously to meet the changing demands of the profession and of society, SAIA works with a range of education-related initiatives to ensure members are able to develop their profession throughout their careers.
JUN 13 PAGE 71
“New regulations are making it increasingly time-consuming and onerous for architects and it is foreseen that architects will move towards various specialisations within the architectural landscape” DURBAN 2014
SAIA says that to be a successful architect a person must possess the following skills: imagination, the ability to organise ideas and communicate them to others, creativity, problem solving skills and finally, an interest in human behaviour, our habitat and the natural environment. “Research has shown that there is little correlation between excelling at certain school subjects and doing well as architects,” explains Bingham, “with the exception of languages.” “What is essential is a propensity for hard work over long hours and a creative mind. Studying Art at school level is often an advantage in assisting in creativity.”
PAGE 72 JUN 13
As a whole, South African industry is becoming more and more attractive to foreign investors and the country has been praised for opening a gateway to the rest of the continent. Next year, on the twentieth anniversary of South Africa’s re-birth, the country will again be celebrated on an international platform for its contribution to world architecture, as it prepares to host the International Union of Architects (UIA) triennial Congress. UIA is an international non-governmental organization that represents over a million architects in 124 countries, and the 2014 congress, ‘Architecture Otherware’ will explore other ways of creating a better future, which is to be explored in several, carefully selected, themes and sub-themes that acknowledge the role of architecture as thought leadership. UIA 2014 will explore space, place and associated meaning whilst acknowledging architecture as a major force that may be harnessed towards a better life for all. Previous host cities include Tokyo, Chicago, Beijing and London to name a few, and Durban will be celebrated for how it functions as a city, how it excels at low-tech solutions and integrating the third economy in urban solutions.
Specialist insurance services Editorial: Lauren Grey Production: Chris Bolderstone
South Africa’s short-term insurance sector is under increasing pressure from economic, environmental and regulatory influences; IndustrySA speaks to Paul Carragher, Managing Director at Compass Insurance to find out how the business adapts to a constantly changing market.
Compass Insurance has established itself as one of South Africa’s most well received and unique short-term insurance companies; offering unrivalled customer services to clients throughout South Africa. Compass Insurance is a niche South African Short-Term Insurer, operating exclusively through Underwriting Management Agencies (UMAs). Compass Insurance focuses on providing innovative and relevant products and services to individuals and businesses with specialist insurance needs through its UMAs. “What makes Compass special,” explains Managing Director, Paul Carragher, “is that we offer the best platform in the market through which to underwrite specialist insurance solutions. This means we can offer the specialist products and services required to underwrite specialist risks.”
individuals and businesses. “We operate as a partnership,” says Carragher “we go into business with a UMA with a long term vision, and together we have the specialist skills and expertise that are able to underwrite specialist risks in the market.” The Compass business model is based on cooperation between connected spheres of expertise and Compass respects the specialist knowledge of each partner in the model, and facilitates the symbiotic relationship that is critical to the success of the business and all its partners. Compass’ unique business model not only enables it to offer niche insurance products and services to the market, but it allows the UMAs the freedom to run their own companies as creatively, innovatively and proactively as they wish, yet at the same time they can rely on Compass’ internal guidelines, control, support and expertise to make sure that a mutual business strategy is achieved.
SPECIALIST RISK SOLUTIONS Compass’ business model of operating exclusively through UMAs enables the company to offer a value added proposition to the market through customised, innovative and cost effective insurance solutions to
PAGE 74 JUN 13
CHALLENGES South Africa’s short-term insurance sector is under increasing pressure from economic, environmental and regulatory challenges.
Carragher says “Premium growth will be under pressure due to inflationary increases on the economy, and the continuing competitiveness in the insurance market. Consumers will have to contend with increased fuel prices, imminent urban tolls, electricity and other utility increases, which adversely impacts on their spending power.” “Regulation remains top of mind in the Insurance Industry, and the associated costs incurred by insurers in dealing with regulatory and reporting changes continues to increase.” Aside from the challenging regulatory landscape, South Africa’s short-term insurance industry also suffered ‘catastrophic losses’ last year. “Last year was a difficult year for the entire industry; it was a year of catastrophic losses, especially in South Africa where we had huge floods in January, hail storms in October/November and the St Francis fires in November. So unfortunately, from a results and industry point of view, it was a very hard and difficult year,” explains Carragher. “What this has done is put questions around underwriting specific risks, and making sure that the risks are underwritten properly, and also looking at
whether the pricing is correct in the market. So the market is potentially going to harden.” Other challenges that we are currently facing include amongst others, the weakening of the Rand, which will have a significant impact on the motor business, specifically on the cost of imported motor parts, labour related issues and the widening of the Trade Deficit will keep the Rand on the back foot, falling mining production, and Labour costs will continue to increase due to emerging pressures.
INDUSTRY RECOGNITION Whilst the insurance industry has become increasingly competitive in recent years, specifically the personal lines market, especially motor business and the new direct writers entering the market, the specialist insurance knowledge, skills and expertise offered by those operating in the insurance sector has ensured that Compass remain relevant and has also influenced other general insurers. “There has been a trend in the market where other insurers are adopting a UMA model,” Carragher explains “so we definitely have something that is making people consider whether this is a model that could work for them.”
JUN 13 PAGE 75
company report However, Compass remains South Africa’s only short-term insurer that exclusively operates through Underwriting Managers. In order to build and strengthen relationships year-on-year, Compass hold an annual awards ceremony for its partners. The event, ‘Morning of the Stars’ celebrates the best Underwriting Management Agencies within the Compass stable and enables Compass to not only measure the ongoing success of its UMA partners but to also recognise their success. Compass has also received recognition from within the industry for its unique business model; stealing two top awards three years running, “The Financial Intermediaries Association of Southern Africa have an annual awards function where they recognise the best underwriting agency in the market, and for the past three years, 2010, 2011 and 2012, we have had two of
PAGE 76 JUN 13
the top three underwriting agencies in the country” says Carragher.
“What makes Compass special is that we deal exclusively with Underwriting Management Agencies. This means we can offer the specialist services required to underwrite specialist risks”
FUTURE PLANS Whilst the insurance industry in South Africa is facing challenges, Compass Insurance continues to succeed and adapt to its changing market place. “We are always looking for new opportunities to grow our business” says Carragher.
“Last year was a difficult year for the entire industry; it was a year of catastrophic losses, especially in South Africa…”
JUN 13 PAGE 77
SAâ€™s packaging industry
Editorial: Lauren Grey Production: Hal Hutchison As a result of the global economy crisis, industries worldwide have had to adapt to a changing business environment in order to survive. This month, IndustrySA explores South Africaâ€™s packaging sector and finds out how local manufacturer of packaging products, Seyfert Corrugated beat the economic downturn.
PAGE 78 JUN 13
Seyfert Corrugated As with many industries worldwide, South Africa’s packaging sector is currently recovering from the economic crisis of the past decade; but the industry is coming back stronger than ever before as it learns to adapt to the changing economic environment. South Africa’s packaging industry generates approximately R43 billion in revenue each year, making up 1.5% of the country’s GDP, and whilst plastic remains the most popular and economical packaging of choice, the more traditional method of packaging by way of paper and board is still very popular.
CHALLENGES Plastic packaging contributes around R20 billion in revenue each year and paper packaging R12 billion
a year, with the balance made up by glass and metal packaging. However, the imminent threat facing traditional paper and board manufacturers has yet to cause alarm, and has instead helped to strengthen the industry; local manufacturer of corrugated card packaging, Seyfert Corrugated has acknowledged the possible future challenges facing the paper packaging industry and adapted its business in order to offer a more efficient service. The Western Cape manufacturer focuses on the supply of corrugated cartons and boards to the fruit and agricultural sector, and prides itself on the quality of its product, customer service and response times. “We pride ourselves in providing customers with
JUN 13 PAGE 79
a good quality product, excellent service and are able to deliver products to our clients to ensure that their products reach them in time, every time!â€?
INNOVATION Innovation in the packaging industry has become very important in order for companies to compete in the marketplace; those that are able to add value by cutting the cost of transporting products and the cost of packaging itself, or those that offer new ways of marketing products have a distinct advantage. Packaging companies are therefore constantly finding new ways of re-designing their products to reduce weight whilst maintaining its strength and durability. In order to stay on top of its competition, Seyfert Corrugated offer its clients a range of different choices
PAGE 80 JUN 13
when it comes to their packaging needs; boxes can be made to order for those clients that require different sizes, and packaging can also be personalised to suit a customerâ€™s needs. Seyfert Corrugated is the local arm of international packaging company, Seyfert GmbH, a family owned business represented in Germany, France and South Africa. Seyfert GmbH aims to fill niches in the packaging sector by offering a diverse range of corrugated board packaging solutions; offering customers a choice of callipers between 1.5mm and 12mm, with single, double and triple wall qualities. Other services offered by the international packaging
manufacturer include printing, logistics, displayerecting and heavy-duty packaging for hazardous or dangerous goods such as chemicals.
THE FUTURE OF PACKAGING South Africa’s packaging sector is a significant employer and a huge benefit to the country in terms of economic growth due to packaging materials being produced and manufactured locally from local materials. Packaging also has a critical role to play across the entire food chain in establishing food security; in developed countries such as the UK, only 3% of the produce grown and produced in the field is lost between the point of production and the point of consumption, whereas in developing countries product waste can reach as high as 40% as a result of inadequate packaging materials and poor infrastructure. In establishing a more effective packaging sector, each different type of packaging has a role to play by filling a different need in the market, and one type of packaging cannot be considered as consistently better than another. However, each manufacturer -whether that be of paper and board, plastic, glass or metal- has a unique
“We pride ourselves in providing customers with a good quality product, excellent service and are able to deliver products to our clients to ensure that their products reach them in time, every time.” responsibility to ensure they are offering customers innovative ways to package their products. For Seyfert Corrugated this is a realistic goal, as it constantly offers innovation and value to its clients in order to meet their packaging demands; the local manufacturing company has also acquired new premises in order to increase its production value.
PRINTING INK SPECIALISTS
IN PARTNERSHIP WITH SEYFERT CORRUGATED EAGLE INK SYSTEMS (CAPE)(PTY)LTD A SUBSIDIARY OF EAGLE INK HOLDING (PTY)LTD 53 Viben Avenue, Brackenfell 7560 P.O. Box 1088,BRACKENFELL 7561 Tel: (021) 982-4500/1/2/3/4 Fax:(021) 982-4505 Email: firstname.lastname@example.org
A golden year for Fair Cape Dairies Editorial – Tim Hands Production – Tonnie Geddes
Shortly after learning of Fair Cape Dairies’ absolute dominance in this year’s Qualité Awards, in which the manufacturer received no less than 13 first prizes, sales and marketing director Louis Loubser tells IndustrySA what this success means for the business going forward, and how Fair Cape is using this influence to improve lives throughout the country.
For Fair Cape Dairies, the 2012 Qualité Awards produced what Louis Loubser, the company’s director of sales and marketing, has rightly labelled an “unprecedented success.” Fair Cape collected a total of 18 awards across the various categories recognised by the 63 dairy experts comprising the judging panel, defeating the competition with a dominance previously unheard of. To heighten the mood of celebration in the Fair Cape camp, this tasting team was also bolstered for the first time by assistance from food editors from well-known consumer magazines and celebrity chefs, a further nod not only to the quality of the produce Fair Cape is churning out, but moreover to the utmost credibility of the awards themselves. These are no token prizes, but recognition from some of the most respected professionals in the business, and showcase the strength in depth of Fair Cape’s product line. Not limited to any one speciality category, the manufacturers saw its work rewarded across the full range of its produce, with Fair Cape’s finest favoured milks, desserts, and its range of yoghurt, notching up
PAGE 82 JUN 13
prize-winning positions on its way to achieving this new benchmark in industry recognition. These awards are a tangible representation of the advances Fair Cape Dairies has made over this past year, with one notable expansion having come in the reach of its distribution. “Our footprint has significantly increased this year” states Loubser; “and what we’ve found is that there’s a lot of demand for the products, because they are different to what is available generally in the market, so we’re working hard to ensure that we keep ahead of the competition.” This progress now sees Fair Cape distributing nationally, with its ever-increasing reputation and popularity allowing it access to different and bigger groups of stores, while, as Loubser puts it, “rolling out nationally,” the Fair Cape range of products. An ever growing range, it is set to include by the end of the year a number of new additions, among them a chocolate chip six-pack of yoghurt and a fine-sounding chocolate and white chocolate mousse, all set to further Fair Cape’s stamp across the nation. Fair Cape currently operates around the four “pillars” central to its operations: Cow Comfort, Carbon Footprint,
Fair Cape Dairies
Low Pollution Production and a decrease of the usage of chemical fertilizer. One further significant aspect in Fair Cape’s expansion plans is due to be implemented this Autumn, and concerns the addition of a social welfare arm to its operations. “We’re going to be partnering with a number big charities; We’re developing long term relationships with those organisations, so that we can really begin to help the various animals and people who need it.” This pioneering work has in fact already been set in motion, notably in the development of products in partnership with Rape Crisis and CANSA. Offering vital services, not only for victims of rape, but also in order that family members, partners and friends of the survivor can come to terms with the effects of the crime, Rape Crisis works to make reality its vision of a South African criminal justice system ‘that empowers and supports rape survivors in all of its interventions.’ Louis Loubser describes the extent of Fair Cape’s partnership with the charity; “With Rape Crisis, we’ve developed a product specifically for them. It is a six-pack with a black cup, with the Rape Crisis sticker, where 20% of the profits from that product will be donated to this charity.”
Fair Cape Dairies’ awareness of its social responsibility does not end there, however, and Loubser goes on to detail yet more of the ways in which the manufacturer is developing those vital partnerships with the charities above. “We’re developing a Save the Rhino pack, which will be launched in August, where 50c from the sale of each pack will go toward supporting the work of the WWF. In October, for Breast Cancer, we’re taking our normal green Fair Cape milk bottle and we’re turning it pink, and then a percentage of that will go to the Cancer Association.” Clearly, Fair Cape’s care and innovation is not limited to solely the pursuit of dominance within its field; it seems that wherever possible it is determined to apply its expertise, and considerable influence, to helping improve the lives of those most in need. This is again evidenced when Loubser describes Fair Cape’s promotion with the Little Fighters Cancer Trust, timed to coincide with Mandela Day. “They look after everything to do with childhood cancer, so we’ll be developing a product whose profits will go to them. In July, for the 67 minutes of good associated with Mandela Day we’ll be getting schools to bring products to Fair Cape, as well as Fair Cape staff and the company itself, and then distributing that to
PAGE 84 JUN 13
Little Fighters.” In line with its commitment to actively helping such organisations as these to be able to continue with their valuable, often unseen work, Fair Cape is also highly aware of its responsibility to ensuring that its operations are continually reviewed and developed, in order that they impact to the lowest degree possible on the environment. Almost daily, the question of sustainability looms ever larger in the collective conscious and Loubser makes clear that it is one Fair Cape is well equipped to answer. “We have big plans for the second half of this year to totally transform our operation in terms of its eco-friendliness. We will make a big announcement within the next few months.” Indicative once more of Fair Cape’s desire to keep pushing those boundaries traditionally surrounding the manufacture of this produce, it has even had the latest results of its carbon footprint report peer-reviewed by another company, “We are the first dairy in Africa to print our carbon footprint on our milk bottles. We had the study peer reviewed just so that we were sure that the carbon footprint that we were printing on the bottles was something that was legitimate – no mistakes were made or
High performance dairy packaging • Injection moulding • Thermoforming • IML
THE AD SHOP 2570
Astrapak are proud packaging partners to Fair Cape.
MARCOM PLASTICS +27 12 541 2784 THERMOPAC +27 21 592 1100 • PLASTFORM +27 21 763 0400 • www.astrapak.co.za
FairCape Directors - Loubser brothers
short cuts were taken.” The dedication to its craft extends to all corners of the operations Fair Cape undertakes; not limited to focussing purely on developing an all-conquering product line, what sets it apart is the desire to spread this influence across South Africa, to use the superiority it has been afforded through its tireless work to make possible the changes which are so difficult to realise.
“Our footprint has just gotten a huge amount bigger” JUN 13 PAGE 85
and growth at FeedPro Editorial: Joe Forshaw Production: Tonnie Geddes
FeedPro has expanded its activities to incorporate the dog food market in its product portfolio. CEO, Gert de Bruin, says that unique products and their availability in the market is what distinguishes the company from the competition.
It was in the 1930s that the animal feed industry really took off in South Africa. Following extremely tough economic conditions, a more scientific approach to the development of suitable animal feed was adopted and new, modern feeding systems were developed. New feed mills began to pop up, mostly near rail lines, and the by-products of other industries became popular parts of the feed mix for agricultural animals. Wheaten bran, groundnut, offal and brewers grain were all used and often, feed mills would sprout up in locations close to sources of these ingredients. Over the years, the amount of animal feed produced has grown dramatically; rising from 3.9 million tons in 97/98 to around 10.7 million tons today. The value of this amount of feed is calculated at over R22 billion per year
PAGE 86 JUN 13
and the industry body, the Animal Feed Manufacturers Association (AFMA), has been monitoring the sector since 1945. Last month, IndustrySA spoke to Patrick Addis who sits on the board of AFMA and acts as COO of De Heus and he told us that the feed market in South Africa is fairly mature and innovation is always welcome. This month, we take a look at the business of FeedPro, a subsidiary of Agriculture giant Profert, and look at what they are doing to innovate and grow the industry. “The main business of FeePro Animal Nutrition is producing animal feed,” says Gert de Bruin, FeedPro CEO in an interview for profert.co.za. “In addition to the animal feed branch, FeedPro in Vryburg also owns granular facilities and a lick mixing plant. Our series also includes concentrated products and supplement feed
“We’re also intent on making unique products that make it comfortable and acceptable for the farmer in his particular situation”
products such as licks in the veld and other conditions.” The company’s strategy is to serve its clients directly and build close relationships. “FeedPro serves its markets one-to-one, with small and bulk deliveries to farms and businesses. We also serve the market through trading networks, mainly with our products in bags where former agri-cooperative businesses and private depot businesses act as our distribution channels. “Where these channels are not available, FeedPro uses its own depots and we believe that the availability of our product is one of our success factors,” says de Bruin.
SERVING MANS BEST FRIEND At the end of 2011, FeedPro introduced a new facility – a dog food factory in Vryburg. The factory is equipped with a unique extruder from CFAM Technologies with which
dog food, cat food, fish food and even potato chips can be manufactured. “The dog food factory has the capability to manufacture specialist products. We produce dog food for Lionel’s Vet, formerly Companion, a Profert affiliate. We also do contractual production for several prominent dog food manufacturers,” says de Bruin. The extruder from CFAM Technologies is reported to have cost R2.3 million and was built at the Potchefstroom Campus of the North-West University. Many have praised FeedPro for going local with the development of the extruder, claiming that to import a similar product could have cost as much as R12 million. The new factory is the only one of its kind in the South African dog food market and the extruder makes the equipment unique.
JUN 13 PAGE 87
company report All raw materials are handled with great care and then carefully unpacked, mixed and lastly milled according to approved formulas. The extraction for mixing is done electronically to minimise any human errors. The cooking process takes place in ten seconds and products are exposed to temperatures of 80 - 180˚C in different sections of the extruder. The dog food is cooked at 120 - 130˚C and pellets are then put through a drying, spraying and cooling phase, after which they are then packaged. The size of the pellets that are manufactured determines how long the drying process takes. As soon as the pellets are ready to be packaged, they are sealed in packaging material and are ready for distribution following a strict inspection process which ensures quality and quantity standards are met.
BEING SPECIFIC FeedPro is intent on growing and building on its strong and diverse product portfolio and a method that has allowed the company to build further relationships has
PAGE 88 JUN 13
been developing unique products with specific end-users in mind. “What makes FeedPro feeds unique and what distinguishes us from so many other feed factories is that we have an old plant that has been upgraded and we’re in the Mecca of cattle farming; so dairy, cattle, sheep and game form the core of our market. “We’re also intent on making unique products that make it comfortable and acceptable for the farmer in his particular situation,” says de Bruin. This is where the close relationship between customer and supplier becomes invaluable and de Bruin suggests that FeedPro’s marketing team make communication easy for both parties. “FeedPro has a very good marketing team. We have a team of senior technical assistants who are qualified to make feed recommendations to customers for specific production levels of various animals. “In addition to this we also have agents deployed in various areas to serve customers on farms and in business branches.”
FeedPro GROWTH FeedPro is owned by Profert Holdings who have, over the past 15 years, invested in many mergers, acquisitions and partnership agreements. Profert now holds interests in 19 organisations and, through vertical integration, is now looking to unlock value in the food production value chain. FeedPro, as part of this mission, is also looking for growth. The company has set out its ambition to grow further in South Africa and sub-Saharan Africa and expand on the already sterling reputation and trademark. “We work with experts around the country for interaction of all facets of animal feed and species specialisation to ensure that we keep up to date with all technological developments. This allows us to ensure that all our advice and information is current, fresh and to the point,” says de Bruin. He concludes by saying: “I believe FeedPro’s future is promising. We’re now positioned to serve the market effectively and substantially. We plan to double our plant’s tonnage within the next 12 to 18 months.”
Experts on the design and manufacturing of specialized machinery including:
Twin Screw food extruders Precision feeder screws Reverse engineering Precision CNC machining
Danie Vorster email@example.com Tel: +27 18 294 7173 Fax: +27 86 547 0698
Mining new depths Editorial – Tim Hands Production – Hal Hutchison For Continental Coal, the only prospects brighter than its three currently burgeoning mines are the wealth of new developments it has ready for exploration in the imminent future. Don Turvey details the many aspects of its operations, and how the company is looking to build on its current success through the new projects on which it is currently focussing.
Continental Coal Limited (Conti Coal) is a South African producer of thermal coal, with advanced projects located throughout the major coal fields in South Africa. Currently focussing operations on three mines, Vlarkvarfontein, Ferreira and Penumbra, the company will commence development of a fourth mine imminently, with the addition of Dewittekrans set to help Continental achieve a ROM production rate of 10Mtpa by the end of 2015. Of its three mines currently in operation, last year proved a particularly profitable year for Continental Coal’s Vlarkvarfontein site, an operation which commenced back in 2010, providing around 1.4 million tonnes of thermal coal to be directed at the export and domestic markets. Neither is this the result of a prohibitively expensive operation for the producer; Don Turvey, Conti Coal CEO, dubs the site a “very productive and, also, low cost set up. The mine has a life spanning ten years already, and we’re still on track with that to be in there until around 2020.” Turvey recognises in turn the importance of the Vlarkvarfontein mine in terms of the company’s
PAGE 90 JUN 13
progression, unequivocal in his estimation of its stature. “From a value point of view, that’s where we do the biggest volumes.” Clearly, the leader in the Conti Coal trio of mines, Vlarkvarfontein, is nonetheless backed up by vital operations in the producer’s two accompanying sites, Ferreira and Penumbra. The former is, similarly, an opencast mine, although differs from the more valuable site in the manner in which its coal is mined. Turvey details what these differing modes of operation entail: “At Vlarkvarfontein we mine two seams, the number two seam and the number four seam, and at Ferreira we mine three seams, the B Lower seam, the C Upper, and the C Lower seam. It’s a different coal region, which explains the different seam names, and is a high separation mine – of about eight to one.” This is a high quality coal, which then follows an intricate path from extraction to exportation. “The high quality product is then taken to our coal processing facility, the Delta Plant, which is about three kilometres away from the mine and is where we process the coal. We then have a siding which is capable of taking the
jumbo trains, right next to the coal processing facility, which makes it that much easier to load and transport ready for export.” The latter of these two supporting mines, Penumbra, is a project whose construction was started in September 2011, and where production of coal began in December 2012. “We finished the shaft, and we were ready to produce coal and in February we took down the second continuous mining section.” As Turvey explains, this is one operation where Conti Coal is entirely self-reliant; “We don’t use contractors at Penumbra – it is all owner-operated, meaning we bought the machines, and it is all a product of our own machines and people. The project is almost complete; we still need to do the up-cast intervention shaft and then we’ll be completely there with it.” That said, this is not a region in which the company is lagging with its work: “we are already operating there. We managed to secure funding from ABSA there, they were key in getting the project going. We’ve gone way beyond the original figure of 50,000 tonnes per month there and now we’re looking at a target rate of about
63,000 tonnes each month. “Our build up has been slower than anticipated, due to a couple of key hiccups along the way – roof conditions, namely, and also methane that we’ve picked up in some parts of the seam, although we can now press on in pursuit of these target figures.”
JUN 13 PAGE 91
The coal that Continental extracts and processes can be found in use in operations across the world, although a major arm of its business is the distribution it has throughout South Africa. “Some of our coal goes to Richard’s Bay and directly to the international markets” says Turvey, “and while EDF takes away some of our coal, we are also serving to other major parties in South Africa. Most of the coal both from ourselves and South Africa in general goes into the East.” The company deals in significant numbers in all of its areas of operation: “Alongside the ever-growing target figure at the Penumbra site, at Vlarkvarfontein Turvey sets out a ‘budget’ figure of, “around 110,000 tonnes, but we regularly exceed that, often up to 130,000 tonnes per month.” The more diminutive returns of Ferreira still equate to a figure of roughly 47,000 tonnes per month, “sometimes as much as 55,000 tonnes each month.” The procedure for developing a site through from greenfield status to a fully-fledged productional facility is not a quick task, as Turvey points out: “With the infrastructure that needs to be set up each time, in some cases this can take three years and in others it can be as long as five years. There are also many variables which can prolong this – regulatory approvals, getting access to the areas, for example, but that is the general range.” Among the company’s numerous current development
PAGE 92 JUN13
projects, all of which sit at different levels of approval, it is the Dewittekrans site that is arguably nearest completion, with the possibility of mining within the next three to six months. Vlakplaats, by contrast, “is still very early phase exploration, so that will take quite some time to see if it is economical and so on, so there is still some work to do here” says Turvey, although exploration and pre-feasibility is nonetheless underway here too. Turvey succinctly rounds up how these diverse areas of exploration and development continue to set Conti Coal apart from others in the field and look set to ensure a bright future for the company. “I think when you look at any coal mining company, obviously you get what we call ‘one project companies’ – they have one project and that’s all that they focus on. “With a company like us who has at any time multiple projects in progress, that gives you a continual pipeline, and therefore as these projects become more mature it creates a great opportunity to bring them into operation.” Ever aware of Conti Coal’s wider social responsibility, Turvey describes what he labels the company’s ‘social license to operate.’ “Working within your community is absolutely key to ensuring the sustainability of your operation,” states Turvey, and typical of this is the company’s job creation project at Vlarkvarfontein; a Lavender Farm, which uses many hectares of land
Providing Environmental and Social Solutions for the Coal Industry across Southern Africa
DIGBY WELLS ENVIRONMENTAL
DIGBY WELLS COAL CLIENTS FROM JUNIOR TO TIER 1 – WE UNDERSTAND OUR CLIENT’S NEEDS: • CONTINENTAL COAL – Penumbra Coal Mine • ANGLO AMERICAN THERMAL COAL – Biodiversity Action / Management Plans • BHP BILLITON – Various ESIAs • EXXARO – Thabametsi • CIC ENERGY CORP. – Mmamabula Project • NORTHERN COAL – Jaglust, Mimosa Colliery • RESOURCE GENERATION – Boikarabelo Project • UNIVERSAL COAL – Kangala, Brakfontein, Roodekop: ESIAs, IWULA and NEMWA • XSTRATA COAL SOUTH AFRICA – Various ESIAs, Specialist Services, Annual Closure Update • AND MANY MORE ... Tel: +27 11 789 9495 • Fax: +27 11 789 9498 Email: firstname.lastname@example.org • www.digbywells.com Johannesburg • Pretoria • Bamako • London • Accra • Dakar • Perth
to improve water supply and power supply, which although in the early stages of development, will, “ultimately create a sustainable agricultural venture which will create opportunities for the local community, way beyond the existence of the mine. We are constantly looking to create a pool of potential training, educational and recruitment opportunities.”
“Working within your community is absolutely key to ensuring the sustainability of your operation”
JUN 13 PAGE 93
Celebrating 50 years on top Editorial: Lauren Grey Production: Hal Hutchison
South Africa’s fabric and textile industry has, for some time, been threatened by cheap imports and changing business dynamics, but as one of the country’s most successful textile mills prepares to celebrate its 50th birthday, IndustrySA explores how it has “restructured and repositioned” its business to take advantage of changing demands.
Local manufacturer of decorative and industrial fabrics, Svenmill, has been operational from its Cape Town textile mill for 50 years and continues to succeed in a market threatened by cheap imports and increasing customer demand. The wholly South African company specialises in woven and warp knitted fabric and has repositioned its business to offer a service to Government and Parastatals in order to stay ahead of future threats facing the industry. The company’s factory in Parow Industria houses 250 staff members; some of whom have been with the company for more than 30 years’, whilst others are representatives of second and third generation family members who developed their skills within the business.
QUALITY FABRICS Svenmill’s woven and warp knitted fabrics are manufactured for a variety of end uses including home furnishing, apparel and industrial fabrics. The company ensures a quality product of the highest
PAGE 94 JUN 13
standard is produced through its woven jacquard and dobby systems, warp knitted tricot, weft insertion, raschel and jacquard technologies. Guided by its in-house design team, Svenmill’s varied technologies enable it to supply a wide range of quality decorative home furnishing, curtaining, lining and upholstery fabrics in fibre compositions including cotton, polyester, linen and acrylic. Its Cut, Make and Trim (CMT) division has capabilities of making a broad range of products from readymade curtains to tablecloths, catering for both independent retail outlets as well as for chain store requirements. Svenmill currently supplies the local and export markets; its decorative fabrics are marketed around the world at international retailers, wholesalers and boutiques. The company has also manufactured fabrics for the refurbishment of SARS, Eskom and SAA offices as well as many hotels within the Protea Hotel and Sun International Hotel Groups. The Technical and Industrial Fabrics division supplies
fabric to the protective clothing, mosquito netting, flag, banner and gazebo, filtration and structural and outdoor fabric areas.
Government and Parastatals through tendering and a personal service delivery of its various books, ranges and collections.
FUTURE CHALLENGES Despite being in one of the toughest industries; with cheap fabric imports being the first immediate threat to business, Svenmill has set aside the time and budget to invest in its future security and business legacy. In order to survive the changing business dynamics of the textile industry, the company states in its business profile that it has started to “innovate, restructure and reposition”. “We have begun and will continue to innovate, restructure and reposition the business for improved effectiveness and to take advantage of changing demands for quality products and services, and the dwindling number of suppliers to the industry we serve.” So far in its mission to restructure and reposition the business, Svenmill has started to offer a service to
JUN 13 PAGE 95
PROFUSE INTERLININGS (PTY) LIMITED A level 3 BEE Company PROFUSE started trading in June 1991 as an importer and distributor of Quality “A” grade Non Woven, Woven and Knitted interlinings. We have established a reputation for quality and service and offer full technical backup and product training to all users of our products. PROFUSE is pro-active in introducing new products into South Africa which are compatible with new modern fabrics. All new products are fully tested and approved overseas before introduction into South Africa.
PROFUSE can be contacted at the following numbers :Contact
Telephone Fax eMail
011-402-0222 011-402-5918 email@example.com
031-305-8299 086-731-7070 firstname.lastname@example.org
021-534-1795 021-534-2200 email@example.com
SUSTAINABLE BUSINESS As part of Svenmill’s plan to innovate the business, it has embarked on a waste reduction programme to achieve a zero ecological footprint; one of the first and most forward-thinking commitments in the country. The company’s waste reduction programme began in 2010 with the intention of not only leaving behind a business legacy but to invest in the company’s future security by ensuring success through new opportunities in the green economy, “…planet, people
PAGE 96 JUN 13
and profit remains our key focus.” Staff training is an integral part of Svenmill’s waste reduction programme, and the company has partnered with Living Wealth, sustainable business practice specialists who have trained all staff to the standards necessary to ensure waste and damage are reduced with positive second order benefits in the areas of lower costs and improved marketing opportunities. Svenmill also has its own Eco Committee who meet regularly to discuss current and future projects as well as reduction of KPI’s.
SVENMILL SOCIAL RESPONSIBILITY Another integral part to the business is Svenmill’s commitment to social responsibility; ensuring that its staff are properly looked after in order to get the highest levels of workmanship. The company is involved in a number of socially inspired activities such as housing and short term financial assistance for distressed staff, subsidised eye, hearing, and cholesterol and blood pressure tests administered by a full-time, in-house nurse and regular training and scholarships for staff. All of these activities, and more, ensure that Svenmill stay on top of both local and international competition whilst remaining one of South Africa’s most successful textile mills.
“We have begun and will continue to innovate, restructure and reposition the business for improved effectiveness”
B E R R Y G L O B A L
D O N A L D S ON
F R E I G H T
L O G I S T I C S
Like Svenmill, B&D was established half a century ago. B&D has built solidly on its decades of proficient operations to where it now enjoys an enviable reputation as one of the country’s leading logistics companies providing the full spectrum of freight solutions. For importers and exporters such as Svenmill, who are faced with the complexities of getting their cargo from origin to destination, B&D has the essential know-how to deliver efficiency and cost-effectiveness that are vital for our clients to achieve maximum profitability. B&D has five branches nationally as well as a branch in Hong Kong. Our workforce of over 250, our own fleet of distribution vehicles, along with our company-accredited contractors form the framework of our diversified end-to-end operations, which are geared towards maximum efficiency and expediency. We are proud to have helped Svenmill in their continued success over the years and are delighted to share this milestone with them.
Tel: +27 21 464 8000
This is the latest installment of our Industry Recommended directory, a list of companies across a range of industry sectors over SA.
company specialising in road construction
South African producer of animal feed; a
underwriting managers +27 11 745 8333 www.compass.co.za
division of the Profert Group +27 53 927 5406
WIRTGEN SOUTH AFRICA
A division of global company, Wirtgen Group; WirtgenSA provide a broad range of
services in all areas of road construction
The South African Institute of Architects;
+27 11 452 18 38
a voluntary association of affiliated and
LANDMARK UNDERWRITING AGENCY
Independent insurance underwriting company that specialises in agricultural insurance +27 51 430 3371 www.landmark-ua.za.net
regional institutes, established in 1996
+27 11 782 1315
FAIR CAPE DAIRIES
Family owned dairy farming operation with an innovative range of eco-friendly milk +27 21 972 1973 www.faircape.com
BERRY & DONALDSON
agrilime A quality supplier of natural limestone for both feed grade limestone as well as
Global freight logistics provider with branches in Cape Town, Johannesburg and Durban; the company represents the interests of importers and exporters in their dealings with carriers and other
agricultural limestone applications. +27 14 536 9901
service providers as well as in all Customs
BABCOCK INTERNATIONAL GROUP
Leading supplier of engineering support services to the energy, process, mining and construction industries and the exclusive regional distributor for many leading international brands and products in southern Africa + 27 11 462 9041 www.babcock.co.za
+27 21 464 8000
FGG Architects was established in Durban in 1960 and with a vast portfolio of work the firm has made a substantial contribution to South African architecture over the past 50 years +27 31 208 2272 www.fggarchitects.co.za
www.berrydon.co.za CONSORT TECHNICAL UNDERWRITERS Consort has over 100 years of collective Engineering Insurance experience and has become a well-respected source for brokers both locally and internationally when seeking sound, quality underwriting for this highly specialised class of
Specialist vehicle body builders
DIGBY WELLS ENVIRONMENTAL
+27 11 658 1156
+27 12 546 6510 www.cabworld.co.za
COMMERCIAL PROPERTY MANAGEMENT BROLL PROPERTY GROUP Serving some of South Africa’s largest listed property portfolios, Broll has earned a formidable reputation for delivering quality, effectiveness and value +27 11 441 4000
South African company with international expertise in providing Environmental and Social services to South African and International clients, with the focus predominantly on the Mineral Resources and Energy sectors in Africa +27 11 789 9495 www.digbywells.com
INSPECTION & VERIFICATION SGS Provider of inspection, verification, testing and certification services +27 11 680 3466 www.sgs.co.za
INK MANUFACTURERS EAGLE INK SYSTEMS The largest privately owned ink manufacturer
in Africa and one the largest on the
Haw & Inglis
South Africa’s only short-term insurer dealing exclusively with
+27 21 982 4500
Haw & Inglis is a Cape based construction
PAGE 98 FEB 98 JUN 13
INDUSTRY RECOMMENDED legal
Nolands is made up of four connected companies specialising in audit, forensics, advisory and tax; each company has its own personality, location and history + 27 21 658 6600 www.nolands.co.za
Supplier of school wear whose brand, Envoy, has been the Industry benchmark in School Uniform Manufacturing in South Africa for 80 years +27 21 705 3804 www.lancashire.co.za
One of the top two suppliers for analytical
ANGLOV3 CRANE HIRE
Providing a comprehensive service in the design and manufacturing of extruder equipment and processing plants parts, as well as components; this service includes the manufacturing of components for the plastics, foods and powder paint industries +27 18 294 7173 www.cfam.co.za
Small business located in the East Rand
X-ray instrumentation, applications and services, with its own X-ray tube production in the Netherlands +27 11 577 0880 www.panalytical.com
Crane hire company specialising in the hire of hydraulic mobile cranes, specialised transport, rigging and CAD-based rigging studies +27 11 805 8071 www.anglov3.co.za LINDE MATERIAL HANDLING Forklife hire; from hand pallet jacks through to 52 tonne container forklifts and
geared towards providing reliable security solutions for the corporate, industrial and domestic market +27 11 744 3504 www.alphafencingcc.co.za
STORAGE SOLUTIONS FORMRACK Specialises in light and heavy duty racking systems, shelving systems, mezzanine floors
specialised warehousing equipment
and the designing of warehouses and stores
+27 11 723 7000
or any area in need of efficient storage
Thermal coal producer with a portfolio of
projects located in South Africaâ€™s major
+27 11 462 9061
coal fields including three operating
Specialises in the planning, design and
mines; the Penumbra, Ferreira and
manufacturing of integrated dock loading
Vlakvarkfontein Coal Mines
solutions for cold storage, warehousing
+27 11 881 1420
and distribution applications throughout
Leading global producer of high technology
industrial, technical and specialised fabrics,
+27 11 900 3909
engineered for performance and reliability
+27 31 736 8000
Manufacturer of a wide range of
EQSTRA INDUSTRIAL EQUIPMENT
corrugated packaging products that are
A division of Eqstra Holdings; the Industrial Equipment division provides distribution, leasing, rental and value-added services for industrial, materials handling and agricultural equipment in South Africa, various other African countries, the UK and Ireland +27 11 966 2000 www.eqstra.co.za
made to order
+27 21 535 2670
Local manufacturer of decorative and
industrial fabrics, celebrating 50 years in the
BARLOWORLD MARINE Leading supplier of CatÂŽ Diesel and gas generators, industrial and marine engines, Diesel engines and allied Cat components +27 11 303 2000 DOMETIC
Worldwide supplier of high quality and
SUPPLY CHAIN LOGISTICS
+43 316 495 2501
innovate products to the RV and Marine
industries, product range include awnings,
Industrial logistics systems is an
climate control systems, windows, doors
internationally recognised provider of
and sanitation systems
supply chain and logistics consultancy
+27 11 450 49 78
+27 21 816 2000
+27 21 937 8600
Manufacturers and distributors of an
extensive range of rigid and flexible plastic packaging products
+27 11 615 8011
Producers of 100% wool fabrics and also
blends of wool with polyester, viscose, silk, linen, mohair and cashmere +27 23 347 0814
Local dealers of AMMANN compaction
equipment & suppliers of rental equipment
excavators, rollers & tipper trucks
All-in-one solution provider of customized
+27 51 433 1249
intralogistics systems from development to planning to installation, including complete after-care service
For more information about how your company can be recognised for excellence across many areas please get in touch.
JUN 13 PAGE 99
EASY CHOICE FOR TOUGH JOBS. Tough work on a tight schedule. With reliable, high-performance Cat速 marine engines, maximum uptime is given - along with power, fuel economy, and emissions compliance. Plus, Barloworld Power supports you with expert service and genuine parts anytime you need it, offering easy finance solutions. The choice is clear. Visit us today and discover how easy it is to enjoy Cat power for years to come. For more information call Barloworld Power on 021 959 8200 or visit www.barloworldpower.com, or email firstname.lastname@example.org
Scan here to go to website