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2013 ISSUE 13

Always Delivering Results Imperial Holdings recently released its financial results for the year ending 30 June 2013 and the figures impressed even during the tough economic conditions. Mohammed Akoojee tells IndustrySA about the group’s strategy for further growth.

John Burton-Race Popping up in SA

Grindrod Intermodal High performance, delivered

SA Metal Group From humble beginnings

Mazista Tiles Your first stop for tiling


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EDITOR’S PAGE

EDITORIAL EDITOR Joe Forshaw SUB EDITOR Lauren Grey WRITERS Colin Renton Tim Hands Roland Douglas Christian Jordan RESEARCH DIRECTOR Chris Bolderstone PROJECT MANAGERS Hal Hutchison James Clark Olivia Wilde Phil Bird 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 info@industrysa.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 issue thirteen... Growth is the key feature of this issue. It is one of the fundamental objectives of any business. Alongside survival and profit, growth is one of the things that entrepreneurs crave. The way that each business grows differs dramatically and growth for one business may mean a new facility but for another, growth may simply mean one new employee. This month we speak to businesses of varying size to understand how they are going about achieving growth. Mohammed Akoojee of Imperial Holdings, one of the country’s biggest organisations, explains that they achieve growth through acquisitions. Trevor Arran of Tronox Mineral Sands says that growth is achieved organically and George Georgiev of Grindrod Intermodal says that growth is best achieved across the borders in Africa. Wherever and however growth is achieved, once you start expanding you will never want to stop, after all we all know that progression equals progression. Away from business, we have seen growth over the past few years in the amount of ‘foodies’ in the country. A foodie is someone who is devoted to enjoying food and drink and you will find a large number of the country’s foodies at Delicious Festival in Johannesburg next month. Delicious Festival is South Africa’s first international food and music festival and we speak to celebrity chef, John Burton-Race and festival promoter Lloyd Cornwall to hear more about what to expect from this innovative event. If your company is growing or looking to expand then get in touch and we can help to tell the story of your success. We are all over social media but mainly on Facebook and Twitter (@industry_sa).

Joe Forshaw

editor@industrysa.com

© East Coast Promotions Ltd 2013

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CONTENTS

3 EDITOR’S PAGE Growth is the goal

6 NEWS All that’s happening in South Africa 10 EnTREPRENEUR A young man and his windmill

12 Innovation Robotic mining 14 Gadget Box For all you foodies 16 Destination Director The finest SA eateries 18 Delicious Festival International food and music in Johannesburg 20 John Burton-Race Popping up in SA

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52


CONTENTS

24 Imperial Holdings

76 pbt

Another set of great results

Business intelligence specialists

28 Auto Pedigree

80 Lasher Tools

Bringing you a great deal

Proudly South African tooling

36 Grindrod Intermodal

84 New Reclamation Group Recycling, on a whole new level

Expansion on the continent

44 Mazista Tiles

90 Cerebos

Growing through amalgamation

More than just seasoning

52 SA Metal Group

94 Haskins

A family business since 1919

Protecting your business from Mother Nature

60 The City of Lusaka Celebrating 100 years

70 Tronox Exciting times at Fairbreeze

98 Industry Recommended This month’s showcased organisations

COMPANY REPORTS

44

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NEWS All that’s happening in South Africa

Africa’s greenest hotel Hotel Verde, situated 400m from Cape Town International Airport, was opened in August and branded as Africa’s greenest hotel. Owned by South African hospitality group Bon Hotels, Hotel Verde says it aims to raise environmental awareness and help preserve the natural wetlands in the area around the airport. The hotel reportedly cost R175 million and has 145 rooms and although it is a sizeable structure, Bon Hotels claim that the technology used within the building bring its level of waste down to almost zero. “In keeping with our green philosophy, everything we do and everything we offer is about sustainability and protecting our environment - plasma screens throughout the hotel speak our green language encouraging our guests to follow suit and take what you learn or experience home with you,” Bon Hotels website explains. Hotel Verde was constructed with concrete slabs comprising recycled materials called cobiax void formers

- polypropylene hollow spheres that saved over 1000 tonnes of concrete. The hotel also uses geothermal pumps to aid ventilation and air conditioning, a ‘living wall’ made entirely from plants, photovoltaic panels, three wind turbines and a grey water recycling plant all introduced to boost efficiency and reduce operational costs. Water from the showers will be treated and then used in the toilets reducing water consumption by around 37%. The equipment in the gym will generate power when used, public areas such as corridors and lifts have motion sensors which trigger lights no electricity is wasted and there is even a jogging trail set in the wetlands around the hotel offering guests the opportunity to experience the fynbos and gardens. Hotel Verde has applied for green certification through the Leadership in Energy and Environmental Design (LEED) system in the USA and hopes to achieve this certification shortly.

© Hotel Verde - Bon Hotels

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NEWS

PetroSA to launch integrated energy centre in Eastern Cape State oil company, PetroSA has announced that it will build an integrated energy centre (IeC) in Qamata, a rural village in the Eastern Cape. An IeC is a one-stop-centre offering energy services to rural communities. It aims to provide access to affordable and quality energy services to impoverished rural communities. The idea comes from the Department of Energy and will follow on from successful projects such as the IeC in Mbizana. The Mbizana IeC houses an information centre, a convenience store, a car wash, an energy shop, ablution facilities and a fuels forecourt. It employs 15 people from the community of Mbizana. A sod-turning ceremony in August saw Eastern Cape MEC, Mlibo Qoboshiyane, and other dignitaries officially mark the start of the process at the site in Qamata.

The construction phase is planned to start in January 2014. When completed, it will sell petrol, diesel, paraffin, candles, and LPG, among other products. The Qamata IeC will lead to job creation in the area and also provide support to SMME’s in the energy sector, through the provision of wholesale products. The IeC will be owned and managed by a community co-operative that expects to plough back profits on development initiatives. It will serve communities resident within a 30km radius of the IeC. “There is a dire need for affordable and quality energy products in the proposed IeC location and the surrounding villages,” said Ms Nosizwe Nokwe-Macamo, PetroSA Group CEO. Sasol said this project was on schedule to start generating electricity as early as the second quarter of 2014.

H&M store to open in SA Swedish clothing retailer, H&M has signed a contract to open its first ever store in sub-Saharan Africa. The store, which is planned to open in early 2015, will be a full concept flagship store and will see the second-biggest clothing retailer in Europe open its doors to customers in South Africa. “We are very excited to announce the opening of an H&M store in South Africa,” said H&M CEO Karl-Johan Persson. “We see great potential for further expansion in this region. We look forward to bringing fashion and quality at the best price to the customers in South Africa.” Following the announcement, the Stockholm-listed company saw its share price rise to its highest in 11 months, and received a ratings upgrade from Barclays Plc. According to financial news agency Bloomberg, Barclays’ analysis indicated that H&M’s sales growth would accelerate in 2014 and could even outpace that of its main rival, Spain’s Inditex Group, which owns the Zara chain, in the coming decade. In a six-month report released by H&M in June, Persson said that the company had opened nearly 100 new stores in the second quarter, including its first store in the southern hemisphere, in Santiago, Chile. H&M joins a growing number of international retailers looking to capitalise on Africa’s fast-growing middle class and South Africa’s position as a financial and logistical

gateway to sub-Saharan Africa. Last year saw the opening of three Zara stores in South Africa - in Johannesburg, Cape Town and Durban - with US retailer Gap Inc following with two stores.

© H&M - Robert Lindholm Photo - Sasol

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NEWS All that’s happening in South Africa

BBC opens pan-Africa office British public broadcaster, the BBC is opening a new pan-African business unit in Johannesburg this month, which will produce a new flagship weekly TV programme, Africa Business Report. Peter Horrocks, director of BBC Global News announced the opening of its new unit at the Highway Africa Conference in Grahamstown on Sunday 1st September, and said the unit displayed the BBC’s continuing commitment to Africa. “Despite many problems, the continent is thriving. The new African Business Unit means we will step up our coverage of African business, bringing impartial, objective coverage to audiences across Africa and beyond.” Reporting on the announcement, the BBC’s media centre said the unit would contribute business news from Africa to a wide range of BBC outlets, including the broadcaster’s World Service radio and BBC World News’ daily World Business Report. The new weekly TV programme, Africa Business Report will be hosted by South African presenter, Lerato Mbele and

will start transmission on BBC World News TV in October. “With a weekly audience of 96-million people around the continent and a network of 150 reporters and producers in 46 countries, the BBC is uniquely positioned to tell the African story,” Horrocks said. The unit will commission business stories from across the continent, including key business hubs in west and east Africa. The BBC said the unit would be led by Adrienne Murray, supported by locally hired producers, and would use correspondents such as Tomi Oladipo in Lagos, Nigeria and newly appointed business reporter for east Africa Catherine, Byaruhanga. Africa Business Report will begin transmission on BBC World News on Friday, 4 October at 1840 GMT. It will be broadcast at the following times: Fridays 1840 GMT; Saturdays 1010 GMT and 2010 GMT; Sundays 0010 GMT. From 8 November, it will be broadcast at: Fridays 1940 GMT; Saturdays 1010 GMT and 1810 GMT; Sundays 0010 GMT.

Keaton Energy on the growth path South Africa’s Keaton Energy has made an offer to acquire Australian-listed Xceed Resources’ coal projects in Moabsvelden, Roodepoort and Bankfontein. The deal, worth approximately R183 million, is expected to significantly boost Keaton Energy’s annual Eskom-quality coal output, as well as offer the firm the opportunity to enter the export thermal coal market. “The acquisition is consistent with Keaton Energy’s strategy of strengthening its position of becoming a 5Mtpa [million tonnes per annum] producer,” Keaton CEO, Mandi Glad said in a statement. “The Xceed transaction reflects our strong belief in the South African coal industry and the growth of the group bodes well for Keaton’s continued delivery of records across mining, processing, sales and cash generation.” The Australian company is primarily involved in the exploration and development of thermal coal projects in South Africa, and will become a wholly owned subsidiary of Keaton Energy. Once the deal is concluded and the regulatory conditions fulfilled, Xceed will be unlisted from the Australian Securities Exchange. The Moabsvelden mines hosts a 65.3 million tonne

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thermal coal resource, a 44 million tonne run of mine open pit reserve and an approved mining right. The mine open pit has a 15 year lifespan and produces mostly Eskom coal, with a small fraction for export. It is also only three kilometres from Keaton’s existing Vanggatfontein Colliery. The second mine at Roodepoort hosts a 29.3 million tonne open-castable coal resource and the third at Bankfontein hosts a 13.7 million tonne, predominantly underground, coal resource. Keaton’s open-castable coal resource will increase by 100 million tonnes, as well as increase the run of mine coal reserve in the Vanggatfontein Colliery area by about 44 million tonnes. “This is an exciting opportunity to deliver real value to our shareholders through increased Eskom coal production at a time when the industry is abuzz with Eskom’s impending coal supply shortfall,” Glad said. “The transaction also provides Keaton with the opportunity to participate in the export thermal coal market for the first time. We are pleased that our major shareholder is aligned with our vision for the company, supports our growth strategy and advocates the development of the South African coal industry.”


NEWS

Gauteng to receive R11B solar panel investment Gauteng Infrastructure Development MEC, Qedani Mahlangu has announced plans to spend R11 billion installing solar panels on all of its state-owned buildings as part of the province’s integrated energy strategy. Speaking at a meeting of the SA Black Technical and Allied Careers Organisation in Johannesburg on Thursday, Mahlangu said there is approximately 8 million square metres of roof-top space available on government-owned buildings in the province. “Our calculations indicate that a mass roll-out of solar panels on government roof-tops will come at a cost of about R11.2-billion and lead to the generation of up to 300 MW of electricity.” The minister also announced “ambitious plans” to invest in natural gas infrastructure in the province, and said that both investments were in line with the integrated energy strategy that her department would initiate in the current financial year. Mahlangu added that natural gas infrastructure had the potential to benefit up to 2 million middleclass residents in Gauteng’s townships and suburbs, by way of natural gas reticulation for cooking and heating. “Gauteng has the most developed natural gas infrastructure in South Africa. This constitutes a

natural gas pipeline infrastructure connecting from the supply source in Mozambique through Secunda to Babelegi. “March 2014 will herald the end of [petrochemicals company] Sasol’s natural gas monopoly and the start of a natural gas industry regulated by Nersa [the National Energy Regulator of South Africa],” Mahlangu said. “It is at the back of these developments that our ambitious plans for natural gas are rooted.” Her department’s first project would be to replace the 77 coal-fired boilers in the province’s state hospitals with natural gas or diesel-fired boilers, with 21 boilers set to be replaced this year alone. Mahlangu also said that her department had entered into a partnership with state company iGas (the South African Gas Development Company) to conduct a feasibility study on the infrastructure required to supply natural gas to hospital boilers. “Our biggest showcase for the use of gas to meet hospital energy needs will be the tri-generation plant proposed for Chris Hani Baragwanath Hospital as a pilot project. In this regard, the consultation process with stakeholders, such as the Department of Health and Treasury, is at an advanced stage.”

SEP 13 PAGE 9


Entrepreneur

“I looked at my father and looked at those dry fields [in Malawi]. It was the future I couldn’t accept”

William’s

light bulb moment By Joe Forshaw William Kamkwamba is a Malawian inventor whose ideas have changed the fortunes of his family and his community. Aged just 14 he built his first electricity producing wind turbine and is now studying in the States to take his ingenuity to the next level.

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William Kamkwamba When you were 14 years old, what were you doing? Playing with friends, moaning about school, annoying your parents? The chances are, you were not building an innovative wind turbine which could produce usable electricity for your family home. However, that is exactly what William Kamkwamba was doing at his family’s farm in Masitala Village, Wimbe, two and half hours northeast of Malawi’s capital city, Lilongwe. After a successful primary school education, William started at Kanchokolo secondary school but he was forced to drop out after a desperate famine in 2001/02 as his family could not afford the fees. Instead of accepting a difficult fate, with no education or prospect, William headed to a small community lending library located at his former primary school and checked out books on energy including an American textbook called Using Energy, aimed at fifth grade students. From this book, he was inspired by a wind turbine depicted on the front cover. William set about building his own wind turbine and after an initial prototype, he constructed a five meter tall windmill made from a broken bicycle, tractor fan blade, old shock absorber and blue gum trees. The windmill powered four light bulbs, two radios and a mobile phone charger before William rebuilt the turbine to stand at 12 meters so it could catch more wind and he also added a car battery so power could be stored. After news of William’s project spread, visitors came from all over Malawi and all over Africa to see the turbine built from scrap by a young boy with no real education. One of the first to see the windmill was Dr Hartford Mchazime, the deputy director of the MTTA, the Malawian NGO responsible for the community library. He encouraged the media and other academics to look into William’s story and eventually the news reached Emeka Okafor, program director for TEDGlobal and Okafor searched for William with the view of having him talk at a TED conference for innovators and thinkers. After his presentation at the TED conference, William attracted a great deal of attention and many people came forward offering mentoring, financial assistance and funding for education. This lead to him re-entering high school at Madisi secondary school where he spent one term before moving to the African Bible College Christian Academy in Lilongwe. William studied English in the UK in 2008 before being offered an inaugural place at the newly formed African Leadership Academy near Johannesburg, an establishment whose mission is to educate the next generation with rigorous academics, ethical leadership training, entrepreneurship and design.

Obviously gifted with an entrepreneurial spirit and innovative nature, William has spoken at numerous highprofile events including the World Economic Forum Africa, the Aspen Ideas Festival and the International CES. He has been part of museum exhibits, written a book, been on the front page of many newspapers including the Wall Street Journal, been the subject of a documentary film and written and performed a play. In the future, William is keen to expand on his past work and use his knowledge and fame to help his family and other family’s from his village to farm sustainably. “The windmill design in the book had three blades,” William told the TED conference in 2007, “mine had four blades to generate more power. “I want to build another one to pump water and provide irrigation for the crops,” he said. In 2009 he told a TED conference: “I looked at my father and looked at those dry fields [in Malawi]. It was the future I couldn’t accept.” Since then, he has developed many ideas and built more windmills which pump water around the village; he has built solar panels which provide lighting for the six homes in his family compound, he constructed a windmill to pump drinking water from a deep water well and he developed an irrigation system in which a windmill pumps grey water over his family’s farm. William is currently an undergraduate in Environmental Studies and Engineering at the Dartmouth College in New Hampshire, USA. When he graduates in 2014 he hopes to return to Malawi and start an energy focussed business, installing solar panels in schools so that students can use computers and read at night. The young visionary has been on quite the journey in his 26 years and accomplished more than most would in a lifetime. He is another fine example of the talent that is waiting to be discovered in Southern Africa.

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INNOVATION

Anglo American

contributes to age of the robots By Joe Forshaw

Anglo American is working with the Carnegie Mellon University on robotic innovations that will hopefully make the mining industry a much safer place to operate. Safety in the mining industry is often bought into question and over the years much has been done to make mining a safe and sustainable occupation. However, even with all the advancements that have been made, there are still risks associated with mining but Anglo American, one of South Africa’s and the world’s largest mining companies, is now looking to take safety to the next level and minimise risks by using advanced robotic technology. In January, Anglo American announced a partnership with Carnegie Mellon University (CMU), based in Pittsburgh, USA to develop exploration robots capable of undertaking difficult mining operations in areas that are challenging and dangerous for humans. The research will hopefully allow for economic extraction of the hard to reach deposits that are isolated thanks to existing mine layouts and technology. One of the first prototypes to be developed is the ‘Profiler’ robot, a 60cm high, six wheel, remote control style vehicle which will be used to map perilous underground areas without the need to risk injury (or worse) to a human. Currently undergoing testing, it is reported that the Profiler could start work in Anglo’s Australian mines when it has been verified by both CMU and Anglo American’s technology department. David Bentley, Group Head of Technology for Anglo American, said that the agreement with CMU highlighted the company’s commitment to innovation, technology and safety. “Ultimately, automating the most difficult, costly, and dangerous mining activities will help create far more sustainable and safe working conditions for all

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underground operators working in the mining industry and will also increase the productivity and efficiency of Anglo American’s operations,” he said. “Anglo American strives to partner with others suppliers in advancing safety and technology within our own operations and in the general mining industry, and our collaboration with CMU’s robotics institute will notably advance our strategy in this regard. “Our approach to safety is outlined in the Anglo American Safety Way, a comprehensive framework of roles and responsibilities supported by a set of safety principles and mandatory safety standards. The Safety Way recognises that both people and systems are core elements to health and safety performance in a mining business.” CMU has stated that the partnership will not only be of benefit to the two organisations but also to the mining industry as a whole as the technology devised will spread and grow, continuing the drive towards innovation and safety. “We are thrilled that Anglo American selected CMU as its partner for developing innovative mining robotics. This agreement will undoubtedly break new ground in mining technology and improve productivity through innovations in processes and technologies,” said Tony Stentz, Director of CMU’s National Robotics Engineering Centre (NREC). Dimi Apostolopoulos, principal investigator and senior systems scientist at CMU’s NREC reiterated Stentz’s comments saying: “This agreement will break new ground in mining technology; we will apply robotics to underground mining tasks that are perilous and extremely


INNOVATION

challenging for humans. Our robotic solutions will improve productivity through innovations in processes and technologies.” Anglo American has signed a five year deal with CMU and hopes to develop numerous robotic solutions starting with the Profiler. Mine mapping, automated inspection equipment and robotic mining tools will all be tested as part of the agreement. The Profiler and other robotic mining equipment is becoming more and more important and this was highlighted in February when mining experts from around the world met in Australia to discuss the possibilities of using new technology to set up mining operations in outer space. It is likely that we will see more innovations from Anglo American in the near future as the company has pledged much investment into robotic technology saying that innovation and automation is part of the company’s long term business strategy. “Working with top robotics experts is essential to our technology and innovation programs” said Donovan Waller, head of automation and remote control technology

development at Anglo. “Our agreement with CMU will allow us to rapidly deploy new systems in our platinum mines and develop technologies that will shape our future operations.” In the long-run, having robots take more responsibility in the mining industry could result in people losing out on jobs but there is no doubt that the efficiency, cost and safety advancements that will be made will be invaluable, not just to Anglo American but to the entire industry.

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“This agreement will undoubtedly break new ground in mining technology and improve productivity through innovations in processes and technologies” SEP 13 PAGE 13


Gadget Box

Convenience in the kitchen By: Roland Douglas As with any area of the home, the kitchen has seen rapid advancements in technology over the years and cooking, food prep and food storage have all seen changes with convenience being the common goal. Some kitchen gadgets have now gone global, for example the George Foreman Grill, and because of the growing home-cooking industry we thought it was time that we looked at some of the current most extravagant kitchen gadgets on the market. The Bio Robot Refrigerator Probably the most high-tech of our selection, the Bio Robot Refrigerator is still a concept at the moment. Unveiled at the Electrolux Design Lab 2010 competition, this futuristic fridge comes from Russian, Yuriy Dmitriev. The design aims to take the way we store our fresh goods to a whole different level. In essence, the Bio Robot Refrigerator is a frame containing a biopolymer gel. Products are suspended in separate pods within the gel removing the need for shelves, drawers and even a door. The gel will cool each product to its optimum temperature through a process known as luminescence. This means the gel can absorb heat energy and radiate it in a range of different wavelengths using Bio-Nano robots. The surface tension of the gel means it can be mounted anywhere, even on the ceiling. It has no smell or stickiness allowing for real cleanliness. The main goal of the design was to improve efficiency and that has been achieved with a system which is four times smaller than a conventional fridge, uses virtually no energy and has no moving parts so operates silently. It is aiming to be on the market in 2050 but will need much development and advancement before then. Never the less, this is still a ground breaking concept and will definitely have a place in the kitchen of the future.

SousVide Supreme The SousVide Supreme is regularly described as one of the greatest cooking innovations of all time. It is basically a system which vacuum packs a food product and cooks it in a bath of water heated to a specific temperature for optimum taste and nutrition. None of the vitamins are lost as the food is sealed. Cooking temperatures are much less than conventional ovens but the food cooks for longer resulting in perfect food, every time. Sous Vide cooking has been used by chefs around the world for many years but the SousVide Supreme is helping to bring the idea into household kitchens. It is especially handy for cooking steak and has been featured in prominent TV shows PAGE 14 SEP 13

receiving praise for its brilliant tasting beef offerings. This product was commercialised by a US doctor looking for a healthier method of cooking. You can order one today for around R4500 but you will need a vacuum-packing system and bags for the food.


Gadget Box

LG Smart Refrigerator The LG Smart Refrigerator is a little more current than the previous fridge in this review. First showcased at the International Consumer Electronics Show in Las Vegas, 2012, this fridge combines sleek modern design with functionality and intuitive ‘smart’ features which make it the ideal gadget for the kitchen of 2013. The fridge is the largest in the LG range and its French-door design offer convenience and space. You get a space that totals 31 cubic feet, enough space for 50 gallons of milk! One of the Smart Refrigerators crowing features is the Blast Chiller, a drawer which can cool room temperature beverages in just a few minutes. Inside the fridge, there is an air monitoring system which measures just about everything from temperature to humidity and adjusts the atmosphere accordingly. This results in cleaner air, keeping food fresher for longer. If you are really into your tech you could connect your LG fridge to your LG phone and turn the whole thing into a complete food management system. You can set up so that you receive notifications of when food is going to expire and even suggested recipes for the ingredients you have in storage. LG are proving that kitchen tech is advancing just as quick as other areas of home tech.

Rob Higgs Corkscrew Wine is big business in South Africa and if you’re looking to impress your friends, you will have a few good bottles ready to go at any moment. If you want to impress them even further, you will have a striking bottle opener and they don’t come more striking than the Rob Higgs Corkscrew. Designed and built by British mechanical sculptor Rob Higgs, the original corkscrew was made from over 350 pieces of scrap metal and junkyard refuse. Newer versions have been cast in bronze and reassembled and now sell for well over R1.5 million. As well as its magnificent beauty, the corkscrew is functional and it can open a bottle of wine and pour you a glass with just the turning of a small wheel. Rob Higgs’ inventions, the corkscrew in particular, attract a lot of attention and are in high demand. Prince Albert of Monaco unveiled the invention and it has featured on many TV shows, in many magazines and papers and in many art and museum galleries. Truly a feat of creative genius, the Rob Higgs

corkscrew is definitely one of our top kitchen gadgets. In the states, the Flyboard is becoming very popular in regions with holiday resorts such as Florida and California and you may even see Justin Bieber testing his. Developer Franky Zapata claims the Flyboard is now “the reference in extreme and leisure sports.”

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DEstination director

Time to eat? Treat Yourself By Lauren Grey & Christian Jordan South Africa is blessed with numerous high quality eating establishments but no one could feasibly visit all of them. We have compiled a list of four of our favourites that will undoubtedly get the pulse racing if you are a good food fanatic.

The Pool Room, Oak Valley The atmosphere at the Pool Room is very special. Set in an exceptional location, deep in the Elgin Valley on the Oak Valley wine estate, the restaurant which opened in November 2012 has a unique menu which incorporates the estates famous Wagyu (Kobe) beef and acorn fed pork. Regular guests suggest that there is a ‘country’ feel about the place with fantastic views across the adjacent mountains and many of the ingredients sourced from the estate itself. The restaurant itself is, in fact, set in an old pool house and diners sit on a terrace around the restored pool and in the distinctive yet casual dining room with plenty of the estates brilliant wine ready to accompany their meal. When we spoke to the owner of the Oak Valley estate, Anthony Rawbone-Viljoen, back in April 2012, he told us that his son and Marketing Manager, Chris, was the spearhead behind the restaurant project. “My son is the driver behind this project. We are very excited about the restaurant, wine tasting facility, deli and charcuterie. During the recession a lot of other restaurants closed so there are now opportunities. We hope this will attract new customers and act as another outlet for our products,” he said. The Pool Room has been successful as it has got the basics right; great food, great wine and top service. It has to be on the radar for anyone who is visiting the Western Cape and looking for the best.

The Test Kitchen, Woodstock After the redevelopment of the Old Biscuit Mill in the Woodstock area, British-born chef, Luke Dale-Roberts

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knew it was the perfect location for his eclectic new restaurant, The Test Kitchen. Established in 2010, The Test Kitchen broke all finedining conventions with its creative, controversial cooking techniques and has gone on to win numerous awards including Eat Out’s prestigious Restaurant of the Year Award 2012.

Maybe the most distinct feature of The Test Kitchen is its retro warehouse space, giving it an almost industrial feel with brick walls, oak beams, ducts and pipes exposing the integrity and honesty of the building. As its name suggests, The Test Kitchen allows Luke the opportunity to experiment with flavours and ingredients for maximum innovation and creativity; transforming a fairly contemporary menu into an extraordinary dining experience.


destination director

To add to the honesty of the restaurant, the main kitchen is open-plan, allowing the chefs to engage with customers seated at the wooden bar that wraps around it. The unique space seats only 65, but helps to add to the lively atmosphere as guests are able to watch, hear and smell their dishes in preparation. Luke’s famous dishes can be tasted from one of four setmenus; three-course, five-course, gourmand and vegetarian.

Burrata, Woodstock The second of our featured restaurants from within the Old Biscuit Mill is Italian inspired Burrata, a brightly modern eatery offering interesting mains and handcrafted pizzas as well as a superb selection of wines. Burrata was opened in March 2012 by fine wine expert, Neil Grant and is led by South African head-chef, Annmarie Steenkamp. Although relatively new, Burrata has positioned itself as one of the country’s finest Italian restaurants and was awarded The Birra Moretti Best Emerging Italian Restaurant Award in 2012. What makes the restaurant so special is its dedication to the perfect pizza! Its high-tech pizza oven - imported from Naples - is able to reach 480° and cook a pizza in less than 90 seconds, creating the perfect crust. Whilst pizza is Burrata’s main focus, the supporting dishes don’t fall by the wayside and you will find head-chef Annmarie working with accuracy and refinement to create the restaurant’s more rustic dishes. Everything about Burrata’s design and ambiance is romantic; from its New York City décor, to its centre-piece

wood-burning oven that fills the space with a delicate smoky smell. The restaurant’s kitchen and extensive wine cellar are both in full view of customers who can expect a personal service in a relaxed and friendly atmosphere.

Jordan Restaurant, Stellenbosch Stellenbosch has become known as a region that excels when it comes to gourmet cuisine and the Jordan Restaurant is a perfect example of why. Set on the Jordan family wine estate, the restaurant is run by head-chef George Jardine and the food is consistently of a high standard. The open plan design of the place allows customers to see food being prepared by Jardine himself although it can be challenging to take your eyes away from the fantastic views over the vineyards that are presented through the floor-to-ceiling windows. Regularly featuring on the Eat Out top ten restaurant list, the Jordan Restaurant uses local ingredients to make exciting yet simple and enjoyable dishes. A real draw is the cheese room which is packed with South African cheeses from all over the country. The cheeses are sourced from smaller suppliers and are generally not available in major stores so there are some real treats to be had here. Combine the cheese with some of the top quality Jordan wine (Jordan Nine Yards Chardonnay, 2010 is a brilliant example) and then consider the surroundings and you will realise that this is a wonderful place to be; well-priced, relaxing and a definite for anyone visiting the Cape Winelands.

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SEP 13 PAGE 17


Delicious Festival

Johannesburg,

it’s time to get Delicious! By Joe Forshaw

On October 5th and 6th, the Blue Hills Equestrian Estate in Johannesburg will be transformed into a buzzing hive of activity as the Delicious International Food and Music Festival opens its gates, for the first time, to South African’s looking for a fresh, original, fun and tasty culinary experiences combined with dazzling musical displays and enjoyment for the whole family.

The event is being hosted by VWV Massive and will be headlined internationally renowned act by Jamiroquai. Lloyd Cornwall is one of the minds behind Delicious Festival and he recently spoke to IndustrySA to explain more about the premise behind the event. Where did the idea for a food and music festival come from? I’ve been working in South Africa for 16 years, putting on all different kinds of events, primarily dance music events and youth market events. At the end of last year my partner and I sold half of our business to the VWV Group, probably the biggest events business in South Africa. They did the World Cup opening ceremony at Soccer City, probably the most technically advanced show ever staged on the African continent so the VWV Group is a massive vehicle for crazy ideas. When we looked at the events we had put on over the last year we realised that we needed something that we were both passionate about and Delicious is born out of passion. I went to Neighbour Goods Market, an artisan, organic food market. It’s on a roof top in the centre of Johannesburg. There is a DJ and a host of food traders and there was an

PAGE 18 SEP 13


Delicious Festival interesting mix of people hanging out there and all of them were very cool so I thought of taking the combination of food and music to the next level. We came up with the idea of an all-day food and music festival with amazing array of food on offer. We are bringing in Ed Baines, Aldo Zilli and John Burton Race, all Michelin Star chefs from the UK and opening pop-up versions of their restaurants here in South Africa, along with 150 local artisan food traders. Guests will have the option of dining in a five star restaurant or kicking back on the field with their food, listening to Jamiroquai.

you come in VIP you eat in one of the pop-up restaurants and that is all backed up by a very cool name – Delicious – it says everything about the event. We intend to tour the Delicious brand and take it all over the world. How did you get Jamiroquai on board? I have been in this game for a long time and know a lot of people but this was not driven by my phonebook, it was driven by the sound that Jamiroquai create. Imagine yourself on a polo field with rolling green grass, an artisan food picnic and the sound of Jamiroquai – it just fits. All of the acts were chosen on how well their sound fits with the atmosphere that we are trying to create. It’s a very strong line-up.

How many people are you expecting? We are looking at 12,000 people per day and 500-600 staff members and volunteers. The VWV Group has a wealth of resources. We are focussing mainly on the Johannesburg market. The restaurants have proved popular with corporates looking to entertain. Some of the dining slots have been completely booked out by one business. The restaurants will be identical to those in London. We will recreate Randall and Aubin, we will recreate The John Burton Race Experience and all three chefs will be present on the floor. Delicious is authentic, we are not going to bring Randall and Aubin without Ed Baines.

.

Aldo Zilli

Jay Kay

Why did you choose these Ed, Aldo and John to cook at Delicious? We wanted something that you can’t get in South Africa. It’s different; there are not that many people in Johannesburg that have eaten at Randall and Aubin. We wanted to make it an international food and music festival; you can’t have an international band like Jamiroquai and no international food. There are local restaurants involved as well; Ocean Basket is doing free sushi all weekend! What does the future hold for Delicious? Delicious is pegged to be an annual event on the same venue for the next five years. We will grow Delicious, it can go anywhere that we want it to, next year we may have six Michelin Star chefs. We are also talking about taking Delicious to Auckland, New Zealand with RadioActive and we are also talking to the Mint Group in London about staging one on Clapham Common. We have a cool format with different grades of entry; if you come in general admission you eat from the market, if

SEP 13 PAGE 19


Delicious Festival

The finest international cuisine‌ By Joe Forshaw World renowned celebrity chef John Burton-Race will open a pop-up version of his London restaurant, The John Burton-Race Experience, at Delicious Festival in Johannesburg in October. IndustrySA recently spoke to Burton-Race about what he will be bringing to SA consumers during this innovative food and music festival.

PAGE 20 SEP 13


Delicious Festival What is the main reason for your participation at Delicious? What are you most looking forward to? I’ve visited lots of areas of Africa before but I’m really excited to see the food, geography and ingredients that South Africa has to offer. This experience will further broaden my understanding of the diversity of foods from around the world. What can festival goers expect from your pop-up restaurant? Will the food be the same as what is served up in London or will there be a South African twist? My unique approach to cooking has always been to develop recipes that make the very most of the best local produce and this will be to the fore at my pop-up restaurant. The real challenge for me is to get to know the local produce quickly and figure out a way to put the John Burton-Race twist to them! The menu will be designed specifically for the event and promises to be very exciting.

In a kitchen the head chef creates theatre and every action is choreographed and rehearsed in great detail. It’s not much different to what goes on during a concert. Both need high levels of creativity, energy and rhythm. Both should feed off each other! Is the work with Delicious a one-off for you in South Africa or do you think there could be opportunities for you in Africa or South Africa? We’ll just have to wait and see what happens. I love Africa and would cherish any opportunities to work there. Is there room in the busy festival calendar for food/music festivals to take off and become just as popular as other mainstream gatherings? Why not? It’s a great idea.

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What impact do you think festivals of this nature can have on people’s attitudes towards food and cooking? I think this combination is really good. It will help to broaden horizons as the festival goers will be energised by the atmosphere and this will help them push their culinary boundaries to possibly try something new. We often see lots of creative, local cooking at music festivals. Do you think having a festival specifically dedicated to food as well as music will further enhance the growing number of ‘foodies’ in the country? Yes. This will help to introduce people to a new experience and a better appreciation to the possibilities that good food has to offer. Bringing music fans to food and food fans to music is a great idea and a beautiful match – creativity is shown in both music and food so this festival will certainly allow the indulgence in two passions at the same time. Have you worked extensively in South Africa or with typical South African ingredients before? As a child I travelled extensively around the world. Having lived in Ruanda, Uganda, Zaire, the Ivory Coast, and Senegal I have first-hand knowledge of the impact varying ingredients has on the techniques needed to produce great local food. The comparison to what’s on offer in Europe and the USA is vastly different but at the end of the day, the customer still expects the same level of quality. It’s always a challenge but one that I thrive on. There will be world-renowned musical talent on show at Delicious, how important is the atmosphere that surrounds good food?

SEP 13 PAGE 21


COMPANY REPORT

Imperial displays

its dominance Editorial – Roland Douglas Production – Chris Bolderstone

In August, Imperial Holdings released its financial results for the year end June 30th 2013. Yet again the results showed impressive growth and, even in a challenging economic environment, the group is pushing to increase its reach and grow on what is already a formidable portfolio.

Revenue up 14%, operating profit up 8%, core EPS up 15% and final dividend up 16%, these are just a selection of the highlights from Imperial Holdings financials which were released in August. The group has been excelling in all areas and the latest results are a reflection of what has been a pretty good year for South Africa’s largest logistics provider and mobility group. To get a better idea of what the financial results actually mean in terms of operations, we spoke to Mohammed Akoojee, Executive responsible for Group Strategy and Investor Relations, and he explains that the results have been pleasing across the portfolio allowing for the group to continue seeking growth opportunities. “It was a really pleasing result considering the trading conditions that we operated under and I think it was a testament to the resilience of our business in

PAGE 24 SEP 13

terms of the portfolio effect coming through. What I mean by that is if you look at performance from a divisional point of view, nobody shot the lights out but everybody came to the party in terms of chipping in with a performance. Obviously there were star performers but it was pleasing that everyone could chip in resulting in a good result overall,” he says. “It was maybe slightly ahead of our expectations of six months ago, considering how the economic conditions in South Africa and Europe were looking.” The results will be the envy of many other companies and while there has been much activity in terms of expansion and acquisition, the balance sheet remains healthy and Akoojee states proudly that from here the group can continue looking for new opportunities. “The rise in dividends is again a testament to the good cash flow generation of the group” he says. “In


Imperial Holdings

“We are the largest third party logistics provider in terms of size but also in terms of service offering”

addition to paying out good dividends we were able to buy back shares of around R750million and still our balance sheet will be below our target gearing. “Despite increasing the dividend, doing share buybacks, growing the business through acquisitions and CAPEX, our balance sheet is still very strong and stands us in good stead for future opportunities.”

EXCELLING IN TOUGH TIMES It is well documented, not least by us, that the global economic slowdown has impacted heavily on business in SA but Imperial Holdings has managed to achieve continued growth despite the tough trading conditions. What made things especially difficult, adding to the challenges laid down by a slow economy, was unrest in labour markets as Akoojee explains: “We are not a small company” he says, “if you look at our revenue and profit trend, we’ve gone from a R2.7 billion to a

R6billion operating profit business over a period of four years so we have had good growth and naturally with that growth your base gets higher and your ability to grow at historic rates is not that easy. “This year was tough because of the labour issues and industrial action we faced in two key markets. In South Africa, we had a transport workers strike that affected our logistics business. We import and distribute Hyundai and Kia and in Korea they also faced industrial action so we had supply issues there. “The combination of tough conditions as well as industrial action made it a challenging year but to end up with the results that we did is very pleasing.” Logistics is a key area of growth for Imperial and on the African continent, the group’s portfolio has been bolstered by a number of significant acquisitions over the past three years. Because of this, African Logistics has seen significant growth, the full effects of which are

SEP 13 PAGE 25


COMPANY REPORT yet to be realised. “In terms of star performers, we have to look at our Africa Logistics business which includes SA, and that had an excellent second half. Operating profit there was up 31%,” says Akoojee. “The first half was distorted by the transport workers strike but the second half showed a very good performance and that was driven by management actions in terms of rationalising the business to be more competitive in a tough South African market. Our economy is not growing that fast so we did take actions like combining businesses and making them more scalable and better cost competitors and this helped our margins; we should see the full benefit of this in 2014.” Logistics in SA was strengthened by noteworthy new contracts and as the economy began to settle, volumes in Imperial’s customer base became more predictable which has allowed for better planning and Akoojee says that this helped the SA business to grow organically. “In the rest of Africa, north of SA, the operating profit in that business was up 45% and that was a function of very good growth in underlying economies, a focus on our strategy of targeting the consumer

with our distribution capabilities in SADC as well as the acquisition of RTT Medical which allows us to do pharmaceutical distribution in markets in East and West Africa. “This whole plan of growing our capabilities in Africa is really starting to bear fruit now. This business made a revenue of R500 million in 2010 and this year made a revenue of R5 billion,” says Akoojee. Substantial acquisitions that have helped to boost business in Africa include the aforementioned deal with RTT Medical (now Imperial Health Sciences), Namibian distribution specialist CIC Holdings and, more recently, MDS of Nigeria. “We bought a 49% shareholding in MDS, which gives us a very good platform to distribute FMCG, pharma, and telecoms products in that market,” says Akoojee. The acquisition of CIC was an important one for Imperial as it opened up opportunities to offer more than just transportation services in the SADC region. There was a demand in the market for selling, warehousing, distribution and a host of related activities and CIC was able to offer this combined with

Imperial Toyota sponsors at Dakar Rally

PAGE 26 SEP 13


27634_More Biz, Less Us 106x145.indd 1

strong local knowledge. “We previously had a transport business that would only transport goods from SA into SADC and we wanted to build a network in Africa where we could handle consumer distribution in those fast growing economies so we bought CIC in 2010,” says Akoojee. “Overnight this gave us access to about 25 distribution points across SADC and that was a game changing acquisition for us as we didn’t have physical distribution capabilities in those economies, we were just truckers of goods from SA into those markets. “In places like Namibia, Mozambique, Botswana, Zambia and Malawi, we would actually sell products into those markets so we would own stock. Our tag line for our service offering in Africa is ‘Get Me There’, ‘Sell my product’, ‘Grow my Brand’ and that is what we do. There is big demand from SA companies and multinationals who ask us to get their products into these economies on the transport side but they will also ask us to sell their product and grow their brand and that’s where CIC comes in. We have an intricate understanding of the markets in those regions; the route of products to market is very different in Africa to that in South Africa or more formal economies. continues on page 30...

2013/08/26 3:43 PM

SEP 13 PAGE 27


COMPANY REPORT

Auto Pedigree is the largest independent second hand vehicle dealer in the country and proudly part of the Imperial Group. Auto Pedigree is well known in the used car industry for offering customers quality low kilometre, vehicles backed up by a range of financial products and services .With 70 branches countrywide built on 30 years of business experience, the company has securely positioned itself as a preferred supplier for used vehicles, typically targeting the LSM 7-9 market with medium sized popular brands such as VW, Toyota, Kia, Nissan, Ford, Chevrolet and Hyundai. “The Auto Pedigree brand is credible, trustworthy, and will always ensure that customers have a variety of popular models available to them,” explains CEO, Corne Venter. Auto Pedigree’s vehicles are largely ex-fleet vehicles acquired from rental companies within the Imperial Group. Although vehicles are generally in good condition when received, they are still sent to central reconditioning centres to support the company’s promise to customers of, “quality used vehicles.” Venter says that being part of the Imperial Group adds value to the business and its customers providing reassurance that the business is a sustainable one, “Imperial is a critical partner particularly as far as high level guidance, funding, source of stock and certain corporate services are concerned.”

CUSTOMER-CENTRED Responding to ever-changing consumer demand plays a key role in the evolution of the Auto Pedigree brand. In order to keep on top of buying patterns, trends and increase customer satisfaction, the company has a four pronged approach; focussing on branch location, look and feel, employee interaction, vehicle quality and overall customer experience. At Auto Pedigree, the experience of buying a car starts as soon as a customer enters the showroom. The company has revitalised its corporate identity to reflect a fresh new look. All branches are un-cluttered, stocked with a wide variety of quality used vehicles and boast well educated and knowledgeable salespersons “Responding to the aspirational nature of the target market saw a program of refurbishment of the internal and external look and feel of branches countrywide with a service ethos to match,” says Venter. “The ability of the business to get back in touch with the needs of its typical customer enhances the whole purchase experience and offers customers a great overall deal. This rates highly amongst the recent achievements of the business.”


Auto Pedigree INNOVATION Auto Pedigree’s ethos of making customers feel valued and empowered is important to the success of the business. In order to continuously reach its high levels of customer satisfaction, the company constantly finds new ways to improve and streamline its services. “To remain successful, the business will continue to implement strategies ensuring the target market remains aware of the Auto Pedigree brand and the value offered,” explains Venter. “New business Innovations will always be closely aligned with Auto Pedigree’s core objective and will always bear relevance to our core product. Current innovations include streamlining the sales process to a point where customers will select, buy and drive the vehicle of their choice, all in one day, from a single location. “Further opportunities on the digital side include developments that will see customers view, select apply for finance and arrange for delivery of their chosen vehicle from the comfort and convenience of their favourite device.”

Auto Pedigree… because you deserve a great deal!

Call 0860 11 11 33 www.autopedigree.co.za

SEP 13 PAGE 29


COMPANY REPORT ...continued from page 27 “CIC has the capabilities to operate in the informal markets very effectively.” Akoojee explains that logistics in Africa is definitely a growing market, having more than tripled in terms of contribution over the last three years. Because of this, it is hard to ignore and will receive attention through new capital, locations and acquisitions. The business in SA, which makes up the core part of the Africa Logistics operation, is now using its sheer scale and comprehensive service offering to win new business. “We are the leading third party logistics provider in terms of size but also in terms of service offering. “We have become more cost competitive as our clients feel the pressure of the slower growth economy and because of this and our scale we feel we are in very good shape to benefit from any growth in the SA market. The trend to outsourcing by companies will be a further growth driver,” says Akoojee.

GROWING WITH CUSTOMERS Clearly, Imperial, like many companies based in SA, are seeing the benefits of growth into Africa and their entrance to the various African markets has been off the back of positive relationships that already exist in SA. “The other opportunity for us to grow in Africa is with our customers,” says Akoojee. “This is how the MDS acquisition came about. Our customer, Tiger Brands, bought a stake in a Nigerian food company and they had a logistics operation in place and were looking for a strategic partner. Tiger Brands involved us so

PAGE 30 SEP 13

we were introduced to MDS by our customer. As they grow in Nigeria we will follow them and try and do a lot more for them. “Growth like this is less risky as you have a base already and you can use that base to go and find more opportunities.” Imperial is also looking for growth around other trade corridors in Africa; like Mozambique and Namibia. Activity here has been on the up and Akoojee feels that Imperial’s capability could offer services in this regards. “There is a lot of infrastructure development happening around the East and West coast of Africa in terms of getting goods through those ports instead of through SA so there is a lot of activity happening around the Beira corridor and Walvis Bay port. More and more goods are going to be coming through here instead of through Durban so we are looking to bolster our transport businesses in these areas,” he says. It is through these three methods; focussing on the consumer with CIC and RTT, following customers to new markets and building representation in the developing trade and transport corridors, that Imperial will continue its African push, in line with its goal of continued growth.

BUILDING THE FUTURE At Imperial Holdings, the focus on building economic prosperity is backed up by maintaining a sustainable environment. One of the important ways to grow sustainably, especially when looking for organic growth,


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COMPANY REPORT

Staff of Tempest Car Hire

is through building a loyal and skilled workforce. This is something that has been happening throughout the Imperial portfolio for some time. The ITTA (Imperial Technical Training Academy) is now producing over 1400 artisans every year and regarded as a benchmark in the automotive industry. This obviously provides a competitive advantage for Imperial and also contributes to the wider economy. “We fully understand that in South Africa there is a lack of skills and this is really a global issue,” explains Akoojee. “Through this project, ourselves and government are trying to focus on technical training as a means to create a strong pipeline of skills. It is certainly an area that will gain momentum and something that we take seriously. “If you look at our motor business, we need mechanics and technical people to come through. We have to develop these ourselves as they are not coming through the normal channels. It is something which we are investing in and is proving successful.”

STRATEGIC BRANDING When it comes to building the brand as well as growing operations, the group has a successful marketing campaign underway which was rolled out in April this year. Akoojee explains that the marketing materials are aimed at making people aware of the reach of Imperial and uniting employees across the group under one banner. “Imperial never had a face or persona and the general public didn’t know Imperial,” he says. “People never knew about the services we offer and how important we

PAGE 32 SEP 13

were to the SA economy in terms of being a logistics provider and mobility group. “The marketing push was about positioning Imperial as a leader in the transport sector and creating a brand persona for imperial. “Being such a large diversified group, it helps to get people to rally around one thing. Strategically, we use the cash generated in the motor business to invest in our logistics business but if you work in motor you may never see someone who works in logistics and the marketing campaign helps to make people feel part of a group. “We move a lot of goods in SA, we have 5500 trucks and we work for every industry from food to construction to steel to agriculture and so on. The adverts impress how big we are in terms of people’s lives.”

INTERNATIONAL OPERATIONS The Imperial brand started out as a Chrysler dealership in Johannesburg in 1948 and has since experienced exponential growth which sees it operate across Africa, Australia and Europe. When it comes to European operations, Imperial operates mainly out of Germany but is always on the lookout for growth opportunities. The group managed to avoid the effects of the financial crash in Europe and is now looking to follow its German customers, in the same way it followed Tiger Brands in Africa, into their new markets. “Our international logistics business is also a good area for strategic growth and that is because of how we


Lusaka Centenary

SEP 13 PAGE 33


COMPANY REPORT operate in Germany,” says Akoojee. “We have specific niches in the German economy, we are in Europe but our main business is in Germany. “We do inland shipping and contract logistics in the automotive and steel industry as well as the chemical industry. We are very tied in with German manufacturing, industry and export and that is a big part of Germany. Fortunately for us, despite what’s going on in Europe, we’ve come through this period of economic crisis there virtually unscathed. “A lot of our customers in Germany are now looking to markets in Eastern Europe, Russia, China and South America for manufacturing as markets are emerging there. We are also following customers and growing with them there so that we can take on new markets.” In line with the trend seen across the group, the international logistics business has an impressive set of figures, growing from a R300 million to a R750 million operating profit business over the last five years.

UNDERSTANDING SIZE When looking at the Imperial Holdings group from the outside, it is easy to forget just how big the group actually is. There are hundreds of brands represented in one way or another by Imperial and on the motor side of things, the business operates in a unique way both vertically and horizontally integrated and after a car is sold, Imperial will be someway involved in that cars life right until it is old. “We sell a lot of cars through the group, we own many dealerships,” says Akoojee. “We sell 65,000 used cars each year. We are also very active in the parts business which is big in SA. “Our business in the motor space is more than just selling cars. “One in six cars sold in South Africa is sold by Imperial. We sell around120,000 new cars each year in SA and the market is about 650,000. We have more than 200 new car dealerships, a dedicated used car dealership through our rental business. We are a powerful motor group and it’s a unique model. Other companies are not as integrated as we are. “Our motor business, you have to get your mind around it, it is a unique business in how we have positions across the entire value chain of a car. From the time a car is bought right through to when it is old and out of warranty, we touch it throughout its life.” This success in the motor trade has acted as a catalyst for the groups success in the financial services sector so much so that financial services is now recognised as one of the key pillars in the groups portfolio. In the last year

PAGE 34 SEP 13

alone financial services achieved an operating profit growth of 22%. The growth was driven by the strong annuity income streams that flow from the service and maintenance plans, vehicle financing alliances and a growing range of value added financial products sold within this division. “When a car is sold, that is the trigger for a number of other things that come with it in terms of financial services and other value added products,” explains Akoojee. “As Imperial we are taking part in this in some way or another either with banks, for finance, our directly, with maintenance plans. “Our financial services business has grown to nearly R1 billion operating profit business on the back of our motor business.” Evidently, success equals success for Imperial and good performance in the motor business has led to expansion with the group now seeing substantial contribution from the distribution of industrial equipment. “We’ve also moved into industrial distribution and added that into the group as well,” says Akoojee. “We understand importing and distribution of cars very well and we saw an opportunity to import and distribute industrial equipment, forklifts, reaching equipment, cherry pickers etc. That is also now a significant contributor to the group.” It seems that the growth of Imperial is almost unstoppable. The delivery of such a solid set of results, even with the tough trading conditions, demonstrate that this is a group with a clear ambition and a concise strategy in place to achieve that ambition. As the portfolio continues to grow, Akoojee concludes that the focus will remain on taking up opportunities in logistics. “We are always looking for new opportunities to enhance our motor chain but the focus is on logistics as that is where there are big opportunities in terms of size.”

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COMPANY REPORT

High performance

Delivered Editorial – Roland Douglas Production – Chris Bolderstone Grindrod Intermodal is the Grindrod Group’s landside logistics operation. Drawing on years of industry experience and knowledge, the company is looking to expand further into Africa to bolster its already impressive portfolio of successful projects. IndustrySA speaks to CCO, George Georgiev, to understand more about what makes the company a success.

When IndustrySA spoke recently to George Georgiev, Chief Commercial Officer for Grindrod Intermodal, it was clear straight away that he has his eye set firmly on the future and the sustainable development and growth of the company. Grindrod Intermodal (GIM), a division of Grindrod South Africa (Pty) Ltd, is one of the country’s leading landside logistics organisations. The company provides a complete service in the movement of containerised cargo, from receiving the cargo, to storage, packing and onward distribution by road and rail to final destination. Georgiev immediately made it clear that the company is proud of its investments and happy with its strategy and although there are always challenges facing a company of the size of GIM, there are plans in place to overcome the difficulties and drive on towards a PAGE 36 SEP 13

prosperous future. “From our perspective, we are not shy when it comes to investing in infrastructure; we believe that it is very important,” he says. “As Grindrod, we have identified that investment in infrastructure is one of the ways to fight the recession. In the long term, the infrastructure is one of the areas where we can keep costs down. The Grindrod group has and will continue to invest a lot in infrastructure. The group has invested heavily in coal terminals in Maputo; we are talking billions of Rand. At Grindrod Intermodal, we are spending about R350 million on infrastructure in this year alone. “We have started building two new facilities for ourselves. Both are very expensive facilities, one is in Johannesburg and one is in Maputo. Around two years ago, we spent R60 million on a warehouse in Durban and


Grindrod Intermodal

we have a plan to spend another R20 million in the next three to six months in Port Elizabeth.” The country has a modern, well developed transport set-up by international standards and the air and rail networks are the biggest and most developed on the continent. This allows for the effective transport of goods via a number of different methods. Being a landside logistics focussed company, the business of GIM is intrinsically linked to the South African road and rail network and one of the major issues in this area is the price of fuel.

FUELLING UP In July and August, the cost of fuel increased again and South Africans across the country were left complaining about the sharp jump which, of course, drives up the price index across the board, from food to travel.

Considering their line of work, GIM are obviously hugely affected by the fluctuations in fuel prices and Georgiev says that it is likely prices will only go one way but the company does have strategies to compensate for such occurrences. “We are in the business of moving freight,” he says, “we mainly work on rail and road and, of course, these modes of transport are affected by the fuel crisis especially road transport which has been hit quite badly. “Obviously it makes a big difference; when the cost of fuel is expensive, the cost of transport is expensive. This puts logistics operators under pressure because naturally customers are reluctant to pay any increases. “The fuel price is continuously increasing and in South Africa this is going to be an on-going trend because of the rising price of resources, especially crude oil. The price is Pieter de Beer quite stable now but we place a lot of dependency on fuel SEP 13 PAGE 37


COMPANY REPORT and the price is only going to go one way. “We can adjust our fuel surcharges each month to compensate for the fuel price increases but this means higher prices for our customers and unfortunately there is nothing else you can do to offset those price increases.”

ECONOMIC CHALLENGES To achieve the sort of growth seen by GIM since its establishment, you have to overcome difficult times and away from rising fuel prices, the economy is also a cause for concern for the logistics specialists. “The recession bought reduced consumption in all areas so volumes of cargo have generally slowed down slightly and there has been less product to move,” says Georgiev. “That affects logistics providers and cargo holders. In terms of freight costs, I personally believe that because of the pressures on cost, the cost of logistics is going down. “If you take cost per freight ton, per ton or per unit, the costs are going down and this is related to many issues. People cannot afford to buy expensive goods; all logistics providers and cargo holders’ work in collaboration to reduce costs and because of this, costs have been falling for quite some time. “Overall, because of the economic situation and the

high demand for reduced costs from customers, the supply chain has become very lean and is getting leaner by the month. This means that holistically, freight costs are going down.” If what Georgiev suggests is true and costs are falling as companies look to become more streamlined and costeffective, there is concern to be had; a sustained reduction in prices beyond a certain level would obviously not be healthy for GIM but the company does make every effort to keep prices at a reasonable rate so that customers can operate sustainably. “The cost of the supply chain” says GIM CFO Stuart Bromley “contributes significantly to the final selling price of the product. By offering a one-stop supply chain service we enable our clients to reduce their own administration and procurement inefficiencies by reducing supplier numbers, invoicing and payments.” According to Georgiev, this ‘one-stop supply chain service’ is something that separates GIM from the competition and cements their position as one of the industry leaders. “I think that we are one of the leaders in the industry because of the services that we offer” he says. “We are not in the business of clearing and forwarding; we are in the business of landside logistics. In the market for

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www.powerhousesecurity.co.za landside logistics, there are not too many companies that can offer under one roof depot, warehousing, transport and sales and leasing. There are even fewer that can offer these services as a core business in all of the major South African hubs. “There are plenty of people that say they do warehousing and transport but they will sub-contract that business to someone else. For us, this is our core business. We run warehouses, we run transport companies, we run depot companies, we do sales and leasing and nothing is sub-contracted; everything is in house.”

FOUR DIVISIONS GIMs operations fall, mainly, under four divisions (Depot, Warehousing, Transport and Sales and Leasing) and involve a comprehensive intermodal service. The actual definition of intermodal freight transport is: The transportation of freight in an intermodal container or vehicle, using multiple modes of transportation, without any handling of the freight itself when changing modes. Transporting goods in this way improves security, reduces damage and loss, and allows freight to be transported faster. Of GIMs four divisions, transport is currently the busiest and success in each of the four divisions helps to iron out any fluctuations that there may be SEP 13 PAGE 39


COMPANY REPORT

in the transport sector. Of course, all of the divisions complement each other and Georgiev explains that recently a drive with the warehousing sector has very much contributed to the company’s success. “Transport and warehousing are the most active and probably currently the biggest of our four divisions,” he says. “Our success currently is very much related to the fact that we have the four different legs. A couple of years ago we took the decision to concentrate our work around our warehousing capabilities and alongside warehousing offer depot services and transport services. That contributed a lot to our success because in logistics you always have ups and downs. When you have four different divisions, you can smooth out the fluctuations and that is very helpful.”

INDUSTRY LEADER There is significant competition for GIM across all of the sectors in which they operate. This is evident in the history of the company which, in 2007, saw the amalgamation of various complementary companies from the Grindrod Group. Cross Country Containers, CMC Grindrod, Grindrod J&J Logistics and Unitainer, all industry leaders in their own right, were consolidated

PAGE 40 SEP 13


Grindrod Intermodal under the name Grindrod Intermodal, with the backing of the Grindrod Group, to offer a fully integrated service to the containerised freight industry in South Africa. Considering the current size of the operation in terms of activity, Georgiev suggests that GIM is one of the industry frontrunners, saying: “Given the number of tonnages we do on an annual basis and the numbers of containers we move around, we are definitely one of the leaders in the industry. “We are probably the second biggest user of intermodal freight rail services in South Africa.” As mentioned above, intermodal transport is all about using different methods to move cargo and rail is extremely important for GIM, especially when it comes to moving goods from ports. Georgiev says that a great relationship with Transnet Freight Rail has made operating on the rail lines a lot easier. “It is not a secret that South African rail has had its ups and downs over the last couple of years and of course you have to deal with the issues when they come. We have a very good relationship with Transnet Freight Rail, we meet on a regular basis and they understand our strategies and we work together in many instances to make the transition for our customers smooth.”

The success of the company looks only set to continue as GIM aggressively seeks opportunities to grow its infrastructure and is now seeing the fruits of its past developments.

“You cannot underestimate the potential of Africa” “The coal terminal in Maputo is very much operational and very successful,” says Georgiev. “The Port of Maputo is receiving investment to increase capacity so that will become an increasingly successful operation. Our development in Durban was very successful and has been profitable from day one. We are working on another project right now which will be finished in April 2014 and we expect that to be a big success. “Naturally, you can’t put R250-300 million on the ground and not be certain that you will succeed.” Now with over 500,000m² of infrastructure across the nation, over R150 million worth of assets and a team of over 700 employees, including key account managers, GIM is in arguably its strongest position ever.

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COMPANY REPORT This, says Georgiev, is demonstrated in the company’s share price at group level which is now supported more than ever by landside activity. “If you look at the share price a year ago and you look now, you will see a big difference. Four or five years ago, 90% of Grindrod’s revenue was coming from shipping. If you look at the earnings today, shipping represents only 30-40% and the balance comes from freight services and landside operations. That represents the shift that was made a couple of years ago in terms of where Grindrod was going. Investment in infrastructure also contributed a lot to the bottom line.” As stated at the beginning of this article, Georgiev and GIM are always looking to the future and planning the next step in the growth of this logistics giant. For now, the future lies in Southern Africa with a particular focus on South Africa and Mozambique. “Our strategy is one of expansion and Africa has been a focus for some time now. We have intermodal developments in Maputo, we are looking at Beira and have discussions on-going about developments there, Zambia has potential and we already have some operations in Zimbabwe so I would say we are doing quite well with our plans in Africa. You cannot underestimate the potential of Africa,” concludes Georgiev.

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Crusader Logistics concentrates onIntermodal palletised cargo Grindrod including full load boxed cargo and has a fleet of super-link taut-liners as well as 15.2m semi insulated pantec trailers. Our main routes are between all major centres in South Africa including Gaborone in Botswana. We run a 24 hour a day operation with a full in-house vehicle monitoring team, following the vehicles movements around the country. All vehicles have the latest in vehicle monitoring and tracking equipment including incident activation cameras installed by Drivecam Communications. Crusader Logistics has its own fleet maintenance teams in Durban, Johannesburg and Cape Town. Physical Address:

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stuart@crusaderlogistics.co.za Driving success in all areas of logistics In Johannesburg in May, Grindrod Intermodal Business Systems was presented with the award for ‘Best Sector-specific Mobility Implementation’ at the 2013 International Enterprise Mobility Awards. The award was given as a result of the successful development and implementation of the ‘PalmTrac’ initiative. In mid-2011, Grindrod Intermodal (GIM) interrogated its container repair estimation process and identified a number of areas for improvement. The result was PalmTrac, a ‘Container Status Verification’ and ‘Damage and Repair Estimate Creation’ software application, designed for use on a Motorola MC55 handheld device using the Windows Mobile 6.5 operating system and SQLCE database. PalmTrac allows for the querying of container statuses and the capturing/amendment of container repair estimates (with the added ability to capture photographs), regardless of weather conditions, or in the event of loss of wireless connectivity.

One of the device’s key features is the installation of SOTI MobiControl device management software allowing for remote control so that an administrator can troubleshoot from a separate location. There are huge benefits for technology like this including, increased staff productivity – reduced workloads due to reduced duplicate capture of estimates, increased accuracy of estimates, quick repair turnaround of containers, and photographs of damage are available on client request. This award was not the only success that GIM has received in the first half of 2013. Transnet Freight Rail (TFR) awarded GIM CEO Jan Nair with a certificate after the company railed Intermodal’s 700,000th container. It went from Eastcon terminal to Kings Rest, and was discharged at Durban’s Pier 1 to Singapore on MOL’s mv Symphony. The certificate expressed TFR’s appreciation for GIM for their partnership over the years and to top off the celebration, the container received a 50% discount!

SEP 13 PAGE 43


COMPANY REPORT

For all of your tiling needs Editorial: Lauren Grey Production: Hal Hutchison

As the world’s global economy slowly begins to recover, Michael Tully, Managing Director at South African stone, tile and tiling specialist Mazista, speaks candidly to IndustrySA about the effects of the financial crisis and how an amalgamation contributed to the continuing success of his business.

Since its inception in 1927, South African stone and tile specialist, Mazista has evolved as a business to enable it to service new markets and accommodate changing consumer demand. Originally opened as a slate quarry in the North West Province, the company started business by manufacturing slate roof tiles as Managing Director, Michael Tully explains. “To begin with, slate roof tiles were the only product of our manufacturing, but as the market moved on, so did the business. In the 70’s we imported cutting and planning machines from Italy for square flooring tiles and billiard table slabs; we don’t make the billiard tables anymore but the floor tiles we do.” As the South African tile market developed, Mazista expanded its product range and soon acquired interest from further afield, “Originally we supplied only locally to the South African market, but in the early 80’s we began exporting both roofing and flooring materials, initially to Australia, and gradually to 14 different countries worldwide by the 90’s.”

SERVICES Mazista’s original business in the manufacturing of PAGE 44 SEP 13

roof tiles is now extremely small in comparison to its flooring and cladding division, as Tully explains, “The most significant part of the business is now flooring and cladding, for example natural stone like sandstone and slate and to a larger extent granite, marble and limestone. Granite in particular is popular in the larger, commercial jobs. “We also do a lot of heavy stone cladding, for example rock cladding that is applied to feature walls which we have installed in a variety of different shopping centres. It’s quite popular and fashionable to have a rough, rock faced wall at the moment.” The company has come a long way from its humble beginnings as a slate quarry and its product range now targets four specific markets; commercial applications, exports, home furnishing and installations. Its commercial division supplies products for commercial contracts and customers, as well as offering an installation service for those who require it. Supported by a board of directors with a combined total of 75 years at the company, the commercial division is well structured to provide the design and specification needs for a project as well as technical support, product


Mazista

knowledge and advice. Recent partnerships within its commercial division include: Standard Bank in Rosebank Absa Towers West, Nedbank Sandton head office and the One and Only hotel in the Victoria and Albert Waterfront in Capetown.

IMPORTING In order to fully appreciate the quality of products required by architects, designers, contractors and developers, 80% of Mazista’s business is now solely focussed on importing and its original quarry is no longer a direct part of the business. “The quarry on which the business was founded is no longer ours, it is now independently owned and even though we still have a small quarry ourselves this is a small part of our business as we primarily procure slate from various other quarry’s including ones we used to own ourselves ” explains Tully. Importing products enables the company to source the highest quality material required for the customers, and products can come from as far afield as China, India, Brazil, Turkey, Italy and Spain. A fabrication shop has long been established which

primarily handles natural stone slab work for counters, vanities, stair cases among other things and to provide added value to our tiles in terms of cutting, Polishing, calibrating, and bullnosing as well as the manufacture of mosaics and decorative listellos. Customers can therefore expect expert advice and assistance in the choice of products as well as answers to questions they may have concerning features unique to natural tiles such as surface texture, thickness variation and colour range. Mazista is well placed to handle a full enquiry from tile or stone specification to importation, supply, installation as well as granite or marble slab supply, manufacture and installation.

ECONOMIC PRESSURES As it has already been noted, Mazista has grown and developed as a business to incorporate new markets and products into its portfolio of services. However, Tully admits that the company took a surprising knockback after the global economic slowdown engulfed many of its stores. “Before the economic crash we opened a bunch of retail stores because there were areas where we believed

SEP 13 PAGE 45


COMPANY REPORT we weren’t getting our fair share of market. We opened a total of 12 stores, but shortly thereafter the global financial crisis hit and really put a lot of pressure on the business” he explains. “Due to the fact that we had expanded so aggressively and the market had shrunk because of the credit crunch, these stores were no longer viable.” Over a five year period, the company went from opening a total of 12 new stores across South Africa, to having to shut the vast majority of them down, and not only did its local business shrink, but its international ventures became much more challenging. “With regards to our export division, part of the problem was trying to compete against the Chinese and Indians, which is difficult even when the world isn’t in a state of financial trouble. Due to our location here in South Africa, we are further away from primary markets such as Australia, and this affects our price and logistics” explains Tully. “Luckily, our underlying business was strong enough to survive and we are slowly starting to feel our business

picking back up even though the market still isn’t as stable as it once was.”

AMALGAMATION Mazista’s success throughout the global financial crisis cannot only be attributed to its strong underlying business ethic, but also to its amalgamation with Durban Tiling Services as well as its trading arm, Duratile. Established in 1968, Durban Tiling is KwaZulu-Natal’s biggest floor tiling contractors and has successfully been involved in tiling and plastering in the greater Durban and KwaZulu Natal area. Over the years Durban Tiling has built up its tiling team and now boasts a company with over 50 quality tilers, who can carry out any type of installation timeously and to the required standard. The partnership has allowed Mazista to vastly expand its product range and list of services as well as enter new markets not previously explored, as Tully explains. “During the economic slowdown we found ourselves in two places; our primary market, the domestic and

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COMPANY REPORT home building industry had seriously slowed down, and because we are a niche, natural stone trader we service the top end of the market, which put even more strain on the business.” With strengths in sourcing, logistics, stocking and of course natural stone, Mazista welcomed the strengths of Durban Tiling and Duratile which are the sourcing and stocking of high quality porcelain and ceramic tiles, large flooring contracts, technical skills relating to contracts, quantity surveying services, supervision and tiling. As a result of the amalgamation, Mazista is expanding the tile contracts arm of the business in order to service its clients more fully with the help of its partners, particularly in the Gauteng and Western Cape areas.

PAGE 48 SEP 13

“The idea is to grow our product base by incorporating ceramics and porcelains, and to also grow our market by being a commercial tiler,” says Tully. In order to manage the three companies successfully, Mazista now has a holding company that owns all three businesses, and all partners involved in each of these businesses have shares in the holding company. Mazista is now a one-stop-shop that can satisfy all the needs of a customer; from sourcing local and imported tiles and stone, having strategic relationships with our adhesive supplier to installation and after sales service, which Tully says is “a huge benefit for customers.” “The customer can now choose their tile or natural stone, which we will source locally or import, we supply


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AUG 13 PAGE 49


COMPANY REPORT

only the best quality adhesive, then we will do the tiling, so there’s nowhere else that the customer needs to go.� On commercial jobs specifically, Mazista offer a ten year guarantee backed up by its adhesives supplier, TAL. With a variety of high-profile projects on the way, Mazista -backed by partners, Durban Tiling and Duratile- plans to continue producing high quality products and offering customers a one-stop-shop for their tiling needs.

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PAGE 50 SEP 13


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Gail, since 1812 reinventing its history. From its foundation, Gail has constructed a history of success, mixing tradition, quality, innovation, design and sustainability, endorsed by its products and technical solutions. It is an international industry and one of the leaders in high-performance extruded products, with technical expertise and unique systems for distinguished projects. Gail is synonymous of products for Industries , Façades and Swimming Pools, in special the sport ones, and complements its portfolio with pieces for use in ramps, sidewalks, skirting and areas with special requirements.

Industrial Collection Industrial Collection has been developed to support different aggressive agents, typical of an intense utilization routine. The products are innovative, durable and their production is based on sustainable ethics. Gail is guaranteed and obtained by the specification of the full package solution (coating + special parts and finishing + settling products, grouting and cleaning): • The Gail Industrial Collection, anti acid ceramics is the technical solution that incorporates guarantees of resistance, safety, hygiene, low maintenance and economy. • Its exclusive Conic claws underscore the company’s competence in high-performance products • Very low Absorption of Water ( below 1% ) performs a higher quality product. Brazil Gail Ceramics Ltd. E-mail – export@gail.com.br Phone: + 55 11 2423-2642

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COMPANY REPORT

From humble

beginnings… Editorial – Roland Douglas Production – Hal Hutchison

SA Metal Group is one of the largest scrap metal companies in South Africa. With a national footprint and state-of-the-art technology in all of its yards, the company is always looking for opportunities to expand its operations. MD and third generation family owner, Graham Barnett, tells IndustrySA about how the company has managed its success.

Is your company making money from its scrap metal? No? Well it should be. Everyone can utilise the value in their scrap, whether it is an individual picking metal cans from the side of the road, a family selling their old car or a company demolishing their warehouse, there is a lot of money in the scrap metal trade. At times it is almost unbelievable that companies and individuals do not take more care to unlock the value in their scrap metal because there are now many ways to dispose of scrap metal safely and profitably. One company who knows more about the scrap metal industry than anyone is SA Metal Group. Interestingly, SA Metal Group is the largest and oldest scrap metal business in South Africa, with some of the biggest and most advanced machinery on the continent but the company, at its heart, is a family business with a profound story. Managing Director, Graham Barnett, recently told IndustrySA more about the company’s growth from humble beginnings and how the business is poised to enter its fourth generation of Barnett family ownership. “SA Metal Group (previously SA Metal and PAGE 52 SEP 13

Machinery Company)” says Barnett “was started in Cape Town in 1919 by my grandfather, Wolfe Barnett, an emigrant from the UK. His father had pushed a wheelbarrow around London in the 1890s collecting scrap. The family immigrated to South Africa in about 1900. “At first the main business was buying up used machinery and breaking it up for spares” he says. “Scrap was a by-product and was exported to the UK packed in 44-gal drums on the decks of steamships. As spare parts became more readily available in ‘the colonies’ the machine business dried up and scrap metal became the main focus. In 1946, my father joined the company and eventually took over the helm. My brother and I joined in the early 1980s. My son entered the business last year being the fourth generation of the family. “My brother looks after all the operational aspects of the business and I look after all of the administration and trading but we very much run the business together. My son is in charge of the Gauteng operations but very much being guided by his father and uncle. We obviously don’t do it all ourselves, we have a large team that reports to us.”


SA Metal Group

“It all goes to the East; India, China, Taiwan, Malaysia, Indonesia, they all require incessant quantities of scrap metal, the prices go up and down but there is always a market”

94 YEARS OF OPERATION SA Metal has been in operation for the best part of a century and next year the company will celebrate 95 years of successful operations but Barnett says that the real party will come in six years’ time when SA Metal turns 100 years old. “We will definitely be marking the occasion of 95 years with a suitable celebration. This will be a rehearsal for the really big bash in 2019 when we celebrate our centenary. There are very few companies which make it to 100 years and we are possibly the only family-owned business in South Africa to remain in the founding family for 100 years.” Since the company’s establishment in 1919, activities and services have diversified and developed but scrap metal has remained the core focus. Barnett explains the process through which all scrap metal must go through before the company can sell it on to customers around the world. “Our main business is scrap metal trading and processing and what that means is that we are buying scrap metal from wherever it arises; from a small dealer, to a large dealer, to a factory, to a parastatal, to a demolition firm, from all these sources we gather in scrap. “All of it has to be processed to a form where it can go

into a furnace. A scrap car for example, cannot go straight into a furnace as it has rubber tyres and glass etc. What a steelworks wants is not a car but pieces of steel with no attachments. We would process a car by putting it through our shredder which separates the car into small pieces and separates steel from all the other materials. All the steel then goes to a steelworks and the rest goes to our sophisticated sifting plant which picks out non-ferrous fragments from dirt. The non-ferrous then goes to consumers of these metals while the dirt goes to a landfill site. “The general idea is that everything is processed into a form where it can go into a furnace in bulk quantities without different materials being mixed together. “It’s the same for copper. A foundry wants to receive one type of copper, without any attachments, with no dirt, in the right size pieces, in bulk quantities and usually on credit terms.” SA Metal does not deal exclusively in steel or any other type of metal. The company is expert in the processing of all forms of ferrous and non-ferrous metals including steel, iron, aluminium, copper, zinc, lead, nickel, brass, tin, bronze, etc. So where does all the scrap metal come from? And where

SEP 13 PAGE 53


COMPANY REPORT does it go? SA Metal has fully equipped yards all over the country where individuals and businesses can drop off their scrap and for bigger, industrial sized pieces of scrap, the company has a fleet of vehicles which can collect materials and transport them to the appropriate facility. Processed metal is then sold on to local consumers such as steel mills and foundries. The surplus not required by domestic consumers is exported to foreign markets. “We collect scrap metal in a lot of places and a lot of people will deliver scrap metal to one of our many yards,” says Barnett. “In factories for example, we will place skips, bins and containers and collect them when they are full. Often we get calls from industries of various kinds who have old machines that they want to get rid of but they don’t have on-going generation of scrap. In this case we will send trucks with cranes to collect the scrap. We also buy from smaller scrap dealers and collect from them or have them deliver to us. “We supply integrated steelworks, who have a relatively small demand for scrap (iron ore being their main source of iron units), as well as mini-mills who use scrap almost exclusively. A small amount also goes to domestic foundries. The balance, after domestic demand has been satisfied, is exported. “It all goes to the East; India, China, Taiwan, Malaysia, Indonesia, they all require incessant quantities of scrap

PAGE 54 SEP 13

metal, the prices go up and down but there is always a market.” From afar, the idea behind the business seems pretty simple; buy low, process, and sell high. Of course, in reality, the processes involved are much more complicated and the amount of people and technology involved signify the complexity of SA Metal’s operations. Furthermore, there is a very competitive scrap metal sector all fighting to secure the limited amount of scrap metal arising in the economy. Therefore SA Metal’s buying prices always have to be razor sharp. The company’s steel shredding plant in Cape Town produces shredded steel scrap at a rate of up to 120 tons per hour, reducing auto bodies, home appliances and other steel structures into fist-sized clean fragments of steel. At the facilities in Epping and Germiston, two 1000 ton Lindemann shears, the largest in Africa, cut seamlessly through heavy steel items such as beams and girders with a third 1000 ton shear soon to be operational in Pretoria. The maintenance of these super machines is just another issue for the SA Metal team to navigate. Barnett lists ‘purchasing the best quality equipment and maintaining it to excellent standards’ as one of the keys to the company’s success and he also states that staying up to date with state-of-the-art technology has been important to the company’s growth. “Our roll-out of new collection yards in the Western


Lusaka Centenary

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COMPANY REPORT

Cape has been very successful,” he says. “All our yards are state-of-the art with concrete surfaces and excellent computer systems and communications. “The commissioning of our steel rolling mill in 2011 was one of the company’s most significant achievements. The mill is performing well and production is increasing at a steady rate. Quality has been well received by the market and we intend on increasing our range of products in the coming years.”

SA STEELWORKS SA Steelworks is the manufacturing division of the SA Metal Group and produces steel billet, reinforcing bar and round bar in straight lengths and coils. All of the production comes from completely recycled scrap metal and is certified by the South African Bureau of Standards (SABS). The goal of SA Metal is to expand the operations at SA Steelworks over the next few years, maximising revenue from both the export and local markets. “We intend to double the melting capacity of our steelworks in order to convert all steel scrap arising in the Cape Town area into billets for the export market or steel bars for the domestic market,” says Barnett. “We also intend upping our copper melting capacity. We have new yards coming on stream and we are planning further

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yards over the coming years. “We see good potential in the mine rehabilitation business and will be adding more heavy equipment of this type. Our waste removal business is also doing well and will be expanded as demand for our services increases.” Clearly, expansion is one of the hot topics for Barnett and his colleagues but while there are many opportunities to expand in different ways, for now the company will stick to the South African market and focus on developing its footprint in existing regions. “Our next focus is going to be continuing our growth in South Africa. At the moment there is nothing planned for outside Gauteng or the Western Cape,” he says. Currently, with around 1200 employees across the country, the business is most active in the Cape Town region but with successful facilities in Johannesburg and Pretoria. As well as having the best quality equipment in use at all of its locations, SA Metal has a resilient commitment to its employees. When asked what makes the company successful, Barnett replies: “A family atmosphere and loyalty of our staff, employing high quality personnel and close attention to health and safety of our staff and of anyone who enters our premises.” Clearly, there is an emphasis placed on employee


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COMPANY REPORT wellbeing and Barnett reiterates a point that we have heard on many occasions – happy staff equals happy company. “We certainly do have a commitment to our employees” he says. “We have a comprehensive medical facility on site with a full time doctor and trained nursing staff. We have a lot of training programs in place and lots of other forms of commitment like active safety committees, rigorous procedures for dealing with accidents etc. The general idea is that if we look after our staff, they’ll look after the business.”

ECONOMIC CHALLENGES As with all businesses, in all industries, the current economic climate has not been conducive to good business for some time and in the case of scrap metal, economic activity is a dictator for the industry’s performance. Barnett suggests that the sluggish economy has had an impact on the business and he is hoping that the promised infrastructure spend from the government will provide a needed boost. “The scrap industry is very dependent on economic activity” he says, “and this has been declining in South Africa since the onset of the great recession. 2013 has been a challenging year with slow economic activity. The government has been promising massive infrastructure spending and we are hoping that this will soon be translated into activity. “There are always opportunities to be found but they are fewer and further between in a slow economy. “It’s difficult to know where new infrastructure spending starts and where it ends. I think most people would agree that we are still waiting for spending to kick off. We deal with all the rebar cutters and benders. They are the ones who are affected by government infrastructure programs and they’re all complaining that they’re still waiting for the happy day when all this spending starts. “As far as the scrap business is concerned, the World Cup was not too much of a big deal. There was some demand for rebar for building the stadiums but it wasn’t such a big deal. The current talks relate to much more expensive infrastructure which will hopefully translate into much more widespread economic activity.” Results of a Platts Survey released in April showed that the demand for steel is still relatively slow, not just in South Africa but around the world. The report suggested that the South African steel sector relies on a vibrant domestic construction industry, something

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which has been lacking since 2010. The survey also suggested that opportunities on the African continent are where many South African construction firms have targeted to make up for reduced local demand. Most importantly, the survey found that confidence was lacking, across all sectors, but the governments promised R4 trillion in strategic infrastructure spending over the next 15 years would stimulate confidence, as soon as the major construction firms begin to see spending come through. Barnett says that SA Metal is always monitoring market trends and when the time is right, the company will continue on its path of expansion. “We are always receiving signals as to how buoyant things are; the volume of scrap coming in is a good signal. At the moment, the volume is lower than it was last year and that was lower than the year before but we will react to the amount of scrap that we can procure. If we see we need more equipment or there is an opportunity to open another yard, then that is what we do.” The behaviour of the economy is cyclical and thus, with time, confidence and activity will return to the market and when the government’s spending plans filter through, there should be plenty more opportunities arising for the SA Metal Group. Until then, the diverse portfolio of services and the widespread strategic footprint of the company will all help to contribute towards its growth. “Our success comes from honesty and integrity in all our dealings and hard work and a passion for our business,” says Barnett. Who would have thought that all of the success would stem from one man and his wheelbarrow, wandering around London collecting scrap more than a century ago? A remarkable story that looks set to continue for many years to come.

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COMPANY REPORT

100 years and counting for the city of Lusaka Editorial – Joe Forshaw Production – Chris Bolderstone There have only been three major national celebrations in Zambia’s recent history; when UNIP stepped down, when the PF took over from the MMD and when the country claimed the 2012 African Cup of Nations. This year there is another reason for everyone to celebrate, that being the centenary celebrations of the capital city of Lusaka. IndustrySA speaks with the Mayor of Lusaka, Daniel Chisenga, to understand more about the current developments in Lusaka that will hopefully help it shine for another 100 years.

There have been numerous milestones in the history of Lusaka, Zambia’s capital and biggest city. The story of the city goes back a long way but perhaps the most notable developments of modern times began in 1905 when railway arrived to Lusaka from Victoria Falls. At the time, Zambia was part of Northern Rhodesia and Lusaka was a small village located at Manda Hill and named after its headman, Lusaaka. After the establishment of railway in the region, settlers began to arrive and the area developed dramatically with shops, farms, schools, hotels, social clubs, churches and maize mills being built. Because of its central location, Lusaka replaced Livingstone as the capital of the British colony of Northern Rhodesia in 1935. The milestone being celebrated throughout this year came in 1913 when the British South Africa Company, the administrative power in the region at the time, gazetted Lusaka as a local authority under a Village Management Board. After this important landmark, Lusaka’s development continued and hospitals, banks, markets, post offices and further infrastructure was established. After the federation of Northern and Southern PAGE 60 SEP 13

Rhodesia in 1953, Lusaka became one of the centres behind the independence movement which eventually led to the formation of the Republic of Zambia in 1964. So, considering the deep history behind the city and its remarkable growth over the last 100 years, you would imagine that there is a lot planned to ensure that this growth continues. Lusaka’s Mayor, Daniel Chisenga, tells IndustrySA that in this year of celebration there is a lot of work going on to develop the city and take it one step closer to the council’s goal of improving the quality of life for all those who live, work, visit or conduct business in the city of Lusaka. “We have been working so hard as a city to bring development and improve infrastructure so that we can make Lusaka one of the best destinations in Africa,” he says. “We have a number of projects on-going right now and all contribute towards the development of the city.” Growth of the city is vital as the population is constantly increasing. With the new opportunities presenting themselves all the time in Lusaka, migration from more rural areas to the capital city is now a regular


Lusaka Centenary

© Marek Patzer

occurrence and with more people comes more demand for public services as Mayor Chisenga explains: “Over the years, Lusaka has grown from a population of 500,000 to 5.1 million and this has proved a big challenge in terms of service delivery and traffic congestion. “The two major projects that we are building for the city are the L400 and the ring road projects. We will be upgrading some roads from two lanes to four lanes and improving gravel roads to meet bituminous standards. “With the ring road, we have started construction and will soon begin the second phase. The road will open up new routes for traffic flow, easing congestion and linking the Southern and Western parts of the city.” It is estimated that the new ring road will add 14.6 km of road to the Lusaka network at a cost of around KR160 million. “In some communities, we have the Pave Zambia 2000 project. This is another project in which we are going to pave some of the roads and the equipment has already arrived in the city,” says Mayor Chisenga. “We have stored the equipment at suitable sites around the city and the work will be carried out by people from the communities creating hundreds of jobs.

“These are the major projects that are underway. We are also going to put street lights on all of the roads along with drainage systems so there is a lot of work to be excited about.”

FURTHER DEVELOPMENT It is not just roads that have received the attention of the government in Lusaka, investors have been found to develop and upgrade many areas of society from housing to shopping malls. Naturally, this is good for business confidence as Mayor Chisenga explains: “We are building new malls and some of the existing malls are being upgraded to be more modern. Previously, people would have to travel to the centre for shopping; now shopping will be easier across the city and we think that this will also help business.” In line with the aforementioned increasing population, the demand for living space in Lusaka has risen dramatically over the years and Mayor Chisenga says that investment in housing is continuing to rise. “We have a lot of housing projects in all areas of the city” he says. “There has been a lot of investment in housing. Lusaka is the heart of the country, it’s the capital

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COMPANY REPORT city, it’s the administration city, it’s the commercial centre so the demand for housing is very, very high. We have investors coming in to construct apartments and offices and still the demand remains strong. The market is so big with these kinds of spaces.” Another exciting development that will come to fruition over the next few years will be the construction of a new airport. Widely viewed as one of the city’s, and the country’s, most historically important developments, the existing airport, Kenneth Kaunda International, will not close as Mayor Chisenga explains: “The airport has been an extremely important historical infrastructural development. The government has decided to construct a new airport and the land has already been identified. It will be a modern airport and the contractor has already been on site. “The existing airport maybe turned into a domestic airport. The new airport is a real treat for the city and we hope that the construction will be finished in good time.” The combinations of new, modern developments with longstanding, seasoned buildings allow the city to grow and stimulate commerce whilst all the time maintaining its heritage. “We are happy with our historic infrastructure; structures that have stood the test of time” says Mayor Chisenga “we have the University of Zambia, the Supreme Court of Zambia and the National Assembly of

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Zambia where parliament sits. “We have new hotels, for example the Radisson and Protea. The Chinese have built hotels, five star hotels. There has been an increase in the number of guest houses, there are a lot being built, and we believe that this is good for business.”

CELEBRATIONS All of the developments discussed above would not have come about without the historic milestones which have given Lusaka the reputation as one of the most important cities in Southern Africa. Obviously, one of the most important moments in the city’s past came 100 years ago when Lusaka was officially recognised as an authority and there have been celebrations of that occasion throughout the whole of 2013. “The centenary celebrations were scheduled from July 1st through until August 31st,” explains Mayor Chisenga. “The main grand events took place on the 31st of July in Lusaka. Some of the activities included museum exhibitions, a marathon, a garden tea party, various festivals in the local communities and there were dignitaries from all over the world who came to witness the events.” The festivities were welcomed by all and the Mayor considers the celebrations to be on a par with the only three major national celebrations of the past; the first

© Marek Patzer


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COMPANY REPORT which came in 1991, when UNIP, who had been in government for 27 years, stepped down. The second celebration was when the PF took over from the MMD, who had been in power for 20 years. The third celebration was the recent triumph at the African Cup of Nations. The celebrations were officially opened by President Michael Sata and although initially deferred, the festivities have been widely regarded as a success. Some people have suggested that the celebrations were widely supported because they were not politically motivated. Sata was joined at the opening of the centenary celebrations by the first President Kenneth Kaunda and Chieftainess Nkomeshya of the Soli people. All three

guests, along with Mayor Chisenga paid tribute to the Lusaka 100 years committee who played a leading role in the organisation of activities. Mayor Chisenga also reiterated the point made by Sata at the event when he said that the growth of the city cannot stop here. “I would like to see a city that can continue to grow, can address the issues of traffic and waste management and a city whose streets are safe,” Chisenga explains. “With the population continuing to grow, we need to expand our boundaries and see the city capture more and more development. “We want to modernise and upgrade communities and if this means partnering with the private sector to build infrastructure, then we will do it.”

© Marek Patzer

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Lusaka Centenary

Pieter de Beer

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COMPANY REPORT

ŠPAGE Marek Patzer 66 SEP 13

Mayor of Lusaka, Daniel Chisenga


Lusaka Centenary However, the burgeoning population always remains a concern for the Mayor and the council and even with the city expanding, the strain on services continues to increase. It will take a big effort from both the private and public sector to ensure the Lusaka’s on-going sustainable development and ensure the city continues to be known as a friendly destination. “The role of the mayor has changed because of the increase in population. The increasing amounts of people now place a big demand on the city’s services and there is also a large amount of visitors coming in so the pressure is ginormous” says Mayor Chisenga. “We are trying to remain a friendly city, we want visitors to feel that they can move from shopping mall to

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hotel room without concern and we want them to feel protected and in this regard the role of the Mayor has remained the same,” he concludes.

All images courtesy of Marek Patzer and the Parenthesis Group

© Marek Patzer

Lusaka City 100 years on … Wow!! We are delighted to congratulate the City of Lusaka on turning a century old. Major developments under different political regimes have been achieved. An additional important one was the setting up of the Lusaka Stock Exchange Limited (LuSE) in 1993. It was established with preparatory technical assistance from the International Finance Corporation and the World Bank. The Exchange was officially opened on 21 February 1994 by the Late President, His Excellency Dr F T J Chiluba. The first couple of years of operations were funded by the United Nations Development Fund and the Government of Zambia as a project on financial and capital market development under the multi component private sector development program. The exchange has made great strides since inception and demonstrated the possibilities of raising long term cheaper capital through the issue of shares and bonds to the investing public. The exchange has 22 listed companies from the following sectors: manufacturing, oil marketing, retail trading, hospitality, banking, real estate, investments, energy and mining. A number of companies have successfully raised capital on the exchange and recently in Quarter 3 of 2013, approval was granted to African Development Bank to raise funds not exceeding ZMW2.7 billion in a Medium Term Note Programme. The International Finance Corporation (IFC) was also granted approval to raise funds on the LuSE not exceeding ZMW2.5 billion under its Pan-African Domestic Medium-Term Note Programme. Under the Programme, the IFC, subject to compliance with all relevant laws, regulations and directives, may from time to time issue Notes primarily to domestic investors in various African jurisdictions. The current jurisdictions are: Botswana, Ghana, Kenya, Namibia, Mozambique, Rwanda, South Africa, Uganda and Zambia.

3rd Floor, Exchange Building Farmers House Central Park Cairo Road. P. O. Box 34523 Lusaka, Zambia

E-mail: info@luse.co.zm Website: www.luse.co.zm Follow us on Twitter and Like us on Facebook

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COMPANY REPORT

Growth is the priority for Tronox Editorial – Christian Jordan Production – Phil Bird The second phase of construction at the Tronox Fairbreeze mine is imminent and when the new mine is up and running both the company and the local community look set to benefit. Despite a recent period of industry-wide weakness, the company appears poised for growth and success on the wings of its vertically integrated business model.

Tronox, one of the world’s leading chemical companies involved in the titanium products industry, was celebrating last year after the deal which saw it acquire Exxaro’s mineral sands business was closed. The deal has reinforced the position of Tronox at the top of the industry and the company is now recognised as the largest fully integrated producer of titanium ore and titanium dioxide. Over the past 18 months, Tronox has been embracing new challenges and targets which have been laid down to achieve growth. There has been much activity in Southern Africa, from the announcement of a new mine to on-going community projects and the continued success of the vertically integrated business model, and this activity looks set to benefit the communities surrounding the Tronox operations as new jobs are created. Tronox’s Mineral Sands division mines, processes and upgrades titanium ore at its three global operating locations, which include KZN Sands and Namakwa Sands in South Africa as well as its Northern Operations in Western Australia. PAGE 70 SEP 13

“The mineral sands side of the business works together with our Pigment division to capitalize on the many strategic advantages of having an integrated model,” says David Silverman, Communications Manager for Tronox. “What makes us unique is that we are not just a mineral sands company or a pigment company. We’re a value-creating company that’s able to harness strength wherever it surfaces along the value chain and mitigate some of the risk stemming from cyclical factors.” “The Namakawa mine is still running and is not near the end of its life however, the Hillendale mine (KZN), which has produced the ilmenite that feeds the smelters at KZN, is currently reaching the end of its life. “Meanwhile, we have a new mine called Fairbreeze which is going to be replacing it. We anticipate that Fairbreeze will be up and running by the end of 2015. “We already have two of the three major permits required here. The third one is the water-use permit which we have been expecting for the last few quarters. It’s a two-part license that includes both water use and the associated pipeline.” The water use license is vital for the project and


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covers construction of infrastructure, such as the fines residue dams, and the actual operation of the mine. Trevor Arran, President of Mineral Sands at Tronox says of the new mine: “The idea is to bring it on-stream as a replacement mine. It has been a long process simply because legislation and regulation has changed in South Africa, both mining and environmental.”

NEW TRONOX One of the key elements to the success of Tronox in recent times has been the vertically integrated model by which it now operates. Since combining mineral sands operations with Exxaro in 2012, creating an integrated mine-toprocessing-to-pigment producer, Tronox has seen multiple benefits in terms of costs and operations. “Our operation in Western Australia represents the largest fully integrated titanium dioxide (Ti02) and mineral sands site in the world,” says Silverman. “Prior to Tronox taking full control last year in the EMS acquisition, it was a joint venture that we shared with Exxaro. Through this arrangement we built a strong relationship with our partner and gained a first-hand perspective of the strategic benefits of vertical integration. The desire to implement that model

and on a global scale was the driving force behind the acquisition in 2012. Exxaro is our largest shareholder and we maintain a great relationship.” Arran says that since the deal concluded time has been spent building relationships. “We’ve spent a lot of time embedding a one culture, one value system and that has been successful but it is always on-going.” The transaction entailed the combination of Exxaro’s mineral sands operations with the operations of Tronox under a new Australian holding company, New Tronox, in exchange for about 38.5% of the shares in the new company. The establishment of New Tronox would also see Exxaro disposing of its Namakwa Sands and KZN Sands mines and smelters, as well as its 50% stake in the Tiwest joint venture, in Australia. Arran says that not a great deal has changed since the deal closed and that focus has remained on strong performance in weaker markets. “We had a very good business model in place,” he says, “we have well trained and respected staff and we have retained all of those people. The challenge was to keep

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COMPANY REPORT the momentum after the deal when markets in places like China were coming off their highs.” The new Fairbreeze mine, which will be located near Mtunzini in KZN, was being planned long before the deal between Exxaro and Tronox came to the fore. In fact, Fairbreeze was being discussed as early as 1998 but was put off as a result of economic considerations. Activity almost commenced in 2008 but the global economic crash intervened and Fairbreeze was again put on hold. After recover in 2010, Exxaro decided the project was again feasible and activity began. “We have completed first phase civil construction work at Fairbreeze. We’ve done some work with piling and civils and we’re just waiting for the water use license. When that license is granted, that will trigger phase two of construction and the full scale construction,” says Arran. Obviously Tronox is keen to have Fairbreeze up and running as soon as possible but with KZN Sands coming to the end of its life this year and the new mine not active until the end of 2015 the company reiterates that there will be no slowdown in production. “We are often asked how we are going to feed the smelters if the new mine isn’t online until the end of 2015. The answer is we have a large stock pile of ilmenite at

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Namakawa Sands that we will use. We also have ilmenite from our mine in Australia so that’s not going to be a problem,” says Silverman. However, moving bulk quantities of minerals from one site to another presents logistical challenges but the people at Tronox have managed the situations without any problems as Arran explains: “This has been a new challenge for us and I must say, the team has done an excellent job bearing in mind you’re bringing between 20,000 and 40,000 tons at a time. That in itself provides a number of logistic and transport related challenges.”

RESPONSIBLE OPERATIONS Tronox has approximately 3500 employees across operations in many countries including South Africa, Australia, USA and the Netherlands. Naturally, with such a vast workforce, the company places a large emphasis on acting as a responsible corporate citizen. “We believe that a strong corporate sustainability platform and achieving excellent daily operating results are two sides of the same coin. We are investing in initiatives all over the world that make us more efficient while reducing our environmental footprint,” explains Silverman, citing as an example the recirculation of


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www.thompsonwelding.com carbon monoxide gas at KZN Sands, which Tronox projects will cut methane gas consumption at the site by 50%. “Essentially, if you want to remain competitive and have a license to operate for several years into the future, one of the best ways to do that is to become a force for positive change and a catalyst for good in the community. That is a strategy we are embarking on.” The Fairbreeze mine will be a driver of employment in the region and Tronox hope that this will drive economic growth throughout the area. “It will create jobs in an area where more employment is particularly needed,” says Silverman. “They are good jobs and it’s not just the direct mining, it’s the follow on. When people take a job there they spend money in the local community and it creates a wealth effect that is shared broadly.” Arran reiterates this point stating that unemployment in the area is a longstanding problem, sometimes reaching figures as high as 45%. “This can mean four out of ten people are unemployed and with the multiplier effect, which can be between eight and ten, meaning every job supports another eight to ten people, the 1000 direct jobs and 1000 indirect jobs that we create become extremely important. “The on-going sustainability of this project is

tremendously important for the local community,” says Arran. As for the Hillendale mine, Arran says that a number of people will stay on to assist with the rehabilitation which could go on until 2018 and then staff will move over to Fairbreeze. “The remaining employees will be reassigned and redeployed in the construction teams and then redeployed when the new mine is up and running. “At this stage, no one will lose their job. We are very keen to retain the expertise that we have built up over the last 13 years,” explains Arran. To ensure that the activities of the business remain transparent, Tronox is now reporting on its corporate social investment (CSI) and proudly displays results from its practices as Silverman explains: “We want all of our stakeholders – from our customers to our communities to our investors – to see the commitment we have made to sustainability. This is the first year we have come into compliance with GRI (Global Reporting Initiative) so there are a number of different issues on which we have reported. We are showing what we’ve done to combat greenhouse gas and waste, to conserve water and energy and to create economic value throughout our communities.” One of the major issues which has faced the mining

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COMPANY REPORT industry in South Africa in recent times has been the unrest and strikes arising from poor conditions and pay. This is something that Tronox has managed to avoid and new agreements with the relevant unions mean that the company can expect stability from its human resources. “Our team in South Africa has worked diligently to cultivate warm relations with the unions, and we recently renewed our labour agreements. We are vigilant of some of the issues arising elsewhere in the country while always trying to make sure relations are good,” says Silverman.

PRODUCTS Tronox is a global leader in the production and marketing of mineral sands, titanium dioxide pigment and electrolytic products. Using the vertically integrated model, the company produces materials for its own production. Right now, Tronox is long of titanium ore meaning that they are mining more than their pigment production requires. This is advantageous as the surplus can be sold on for profit. “We’re in the titanium dioxide business and we are the largest vertically integrated company in that industry,” explains Silverman. “What that means is, we sell titanium dioxide (Ti0₂) pigment around the world, that is the downstream business, but we also produce titanium ore which is the feedstock for titanium dioxide. “The bulk of the titanium ore that we sell” he explains “goes toward pigments but there are also other industries that we sell into. For the most part, we are selling to pigment producers and a lot of the time we sell to ourselves. “During the second quarter, our pigment business bought 100% of its titanium ore from our mineral sands business. We are long of ore by over 225,000 tons so that is an idea of how much we can theoretically sell on to third parties.” Of course, Tronox has more than one product and the sale of minerals such as Zircon results in a welcome contribution to business. “We produce nearly 200,000 metric tons of zircon in South Africa and also a lot of pig iron and both of these are saleable products. Zircon has had a nice little recovery in the last couple of quarters. That has been a nice tailwind for us as it’s really high-margin. “The zircon and pig iron is all being sold to third parties,” says Silverman. The company also has a strategic advantage thanks to the ability to produce and sell both titanium slag and synthetic rutile. Even the other top names in the industry do not currently deal in both markets. “This gives us real flexibility,” says Silverman. PAGE 74 SEP 13

The combined product streams allow for some protection from fluctuating markets. In the last year, the market for synthetic rutile has been slow so Tronox has used it internally and focussed on the sale of titanium slag where the market has been stronger.

THE FUTURE In the coming years, the aim for Tronox is further growth. With ambitious targets in place and healthy predictions for the titanium ore market, Silverman concludes that the company will be a leading producer in the industry. “One of our priorities is growth. We have set a target to double our profit by 2017 and we will go about that through a mix of organic growth, acquisitions and operational excellence. On the inorganic side, for example, we believe our long position in ore combined with our existing stock pile of ilmenite holds tremendous strategic value as the feedstock market is expected to remain tight over the medium and longer-term. With our own competitively priced source of feedstock, we think we can improve the economics of a potential pigmentproducing acquisition while increasing our scale.” Arran states that the company is looking at numerous other sites during its push for continued growth including areas around the Fairbreeze mine such as Port Durnford. He also suggests that the immediate focus is with Fairbreeze and getting that mine up and running. “We firmly believe that this is a long life mine that we have been so desirous of for a long time. We believe it has a life of at least 20 years so the focus will be to spend time understanding the geology. “Mineral sands mining is different to that of coal or other resources. With those you get an understanding of the geology fairly quickly with drilling etc. “Mineral sands can often be spread apart and the only opportunity you get to confirm what you think you know is when you mine it and reconcile your understanding of the reserves and the resources.” With the hot prospects of Fairbreeze now starting to become a reality, times are exciting for Tronox and it seems as though nothing will stop the growth of this industry leader.

.

“One of our priorities is growth. We have set a target to double our profit by 2017 and we will go about that through a mix of organic growth, acquisitions and operational excellence”


Tronox Work being done at Hillendale as part of land rehabilitation to harvest sugar cane on top of what was formerly being mined. After Tronox mines an area, they work to restore the land to its natural form.

SEP 13 PAGE 75


COMPANY REPORT

Business intelligence specialists Editorial – Lauren Grey Production – Hal Hutchison

Information technology group, Prescient Business Technologies (PBT), has been providing clients with business intelligence and analytics for 15 years, but the company’s recent acquisitions have put it in a stronger market position than ever before, CIO Martin Rennhackkamp explains…

PBT Group started trading in the early 1990’s as The Data Base Approach, a company which expanded and matured rapidly throughout the IT market, but after attracting the attention of Pierre de Wet, Kosie Steyn, and the late Stephen Scheibe in 1998, the trio bought into the company and it was re-branded. However, original owners Cor Winckler and Martin Rennhackkamp remained focused on achieving their vision to be the preferred business intelligence and information management service provider, and PBT has since gone on to service some of the largest national and international clients. “If an organisation thinks of data warehousing, business intelligence or business analytics, the first name they must associate with that should be PBT Group,” explains CIO Martin Rennhackkamp. PBT has a host of specialist companies in its group that offer expert services to clients requiring data analysis and information management, but each company operates under the same ethos, as Rennhackkamp explains. “We never storm into a client and simply ram a

PAGE 76 SEP 13

methodology or a solution or a design down their throat. We always listen carefully to their requirements, offer our best-practice and experienced advice, and then work out an approach that would work with their setup and culture, which we are comfortable with that it is not risky or detrimental to them in the long run. Such a collaborative partnership goes a long way towards success.” PBT’s quality promise can be measured by the longstanding relationships it has with returning clients, such as Telkom SA and Old Mutual, “we have been dealing with the Telematics section of Telkom since the days we were The Data Base Approach. In fact, we are still dealing with the same people in Telkom to this day. This has become a remarkably long and very steady relationship! “We have also been dealing with Old Mutual since the pre-PBT days. The people in Old Mutual have since moved around, but some of our really top key consultants are still working on the account, in what is now the modern day equivalent of the same division. This is also a very long, steady and mutually beneficial relationship.”


PBT Group

ACQUISITIONS In order to keep ahead of the market and its competitors, PBT have recently acquired three sister companies which has allowed the group to strengthen its market position and offer a wider variety of expertise. “We have acquired Cyberpro Consulting (Microsoft specialists), BI-Blue Consulting (SAP silver partners – BI specialists), and TBIS (Advanced IBM business partner – also BI specialists) as sister companies, all within in the Prescient Group,” says Rennhackkamp. “Traditionally, PBT Group only offered vendor-neutral solution implementation services, but now with these acquisitions, together with our own internal strong Oracle competency, we can offer total solutions for all the bestof-brand toolsets in the data warehousing and business intelligence space. That puts us is a very strong market position.”

INTERNSHIP PROGRAMME PBT’s success over the years can be widely attributed to its excellent workforce, and the company puts a huge emphasis on training tomorrow’s specialists with its

internship programme, as Rennhackkamp explains. “Every year we take a carefully selected small group of talented young university or Technicon leavers, from previously disadvantaged backgrounds, and we put them through an intense training programme, run by Liz Grant in our PBT Academy. “They are trained on best-practice BI methodologies, they are trained and often certified on best-of-breed BI toolsets, and most importantly, they get exposure to real-life case studies, real-live work situations, and then they end off with supervised on-the-job training to solidify all their learning’s in a real work environment, at a client, working on a real project.” The company has been running this programme for a number of years, and Rennhackkamp is proud to acknowledge the achievements of its graduates, some of whom have left the company and made names for themselves within the industry. “We are so excited about this programme, as it really delivers very high quality BI consultants… some of the initial interns have already left the company, but we all keep in contact through a social media group. In fact,

SEP 13 PAGE 77


COMPANY REPORT we recently had a 10-years PBT internship reunion function.”

FUTURE PLANS Going forward, PBT is busy growing its business within real-time and in-memory analytics, which Rennhackkamp says will ‘enable the client to analyse its data and come to new meaningful insights much faster.’ The company also intends to deal more with big data, “As organisations mature their thinking about big data, i.e. large volumes of unstructured data, we will also gain more and more activity in that space. “We are already involved in a very exciting big data initiative at one of our key clients in South Africa. Some others have also started dabbling with sentiment analysis, which is the most popular application of big data analytics in the consumer-facing industries.” In addition to its South African offices in Cape Town and Johannesburg and its Australian office situated in Melbourne, Rennhackkamp says that the company is also looking towards African growth in the future,

Martin Rennhackkamp PAGE 78 SEP 13

although very cautiously. “Further expansion into Africa is in our plans, but you have to tackle growth in Africa very cautiously. It takes a lot of time to build the necessary relationships first, and to build up the resource capability to be able deal with long running projects on the continent. Ours is not the style of business, nor does continental Africa have the appetite or culture, for quick in-and-out business.”

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“We always listen carefully to their requirements, offer our best-practice and experienced advice, and then work out an approach that would work with their setup and culture”


Imperial Holdings

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COMPANY REPORT

A tool for every occasion Editorial – Tim Hands Production – Chris Bolderstone

For over 77 years, Lasher Tools has striven to maintain its goal of tough, reliable tools guaranteed. During this time it has seen its product range swell and even move into the field of exports, with 15% of its production now found oversees.

It is the humble shovel that is the real symbol both of Lasher Tools’ history and its continuing presence in the South African market, with the first of its kind having been manufactured by the African Shovel Company and released onto the public seventy-seven years ago. The company now so well known as Lasher Tools has spent the years since this first appearance in the household market not only refining and perfecting the craft of shovel making, but also expanding its skills into a vast range of other tools. Founded in 1928 by Blane & Co. Ltd, a firm of mining engineers, African Shovel began its operations in a factory based in Barlow Street, Germiston. The shovels which gave rise to the company name were soon followed by a host of other tools central to the functioning of the work force of the time, such items as picks, spades, forks;

PAGE 80 SEP 13

anything and everything to aid the work of gardeners, miners and manual workers across the country. From the 1930’s payroll of 64 men mainly from Sheffield, England, has emerged a workforce today comprising over 600 personnel who come together to produce the tough, reliable tools for which the company is now famed. Lasher’s policy of sourcing local materials whenever possible is a facet the company has been able to maintain from its very beginnings to the present day, and played an important part in its survival of the trying times caused by the Second World War and the resulting problems with supply. This in fact proved to be one of the firm’s most productive periods, seeing it construct a second factory in what is now known as Sigma Road, Industries West, Germiston, previously and Aerodrome Road. The company was given its distinctive moniker in 1971,


Lasher Tools

following the Norton Group taking a controlling interest in African Shovel Co, and becoming a wholly owned subsidiary of Norton in 1973. The new company name was borrowed from that given to the task of removing rock and rubble with shovels, with the Scottish miners who came to South Africa at the turn of the last century also known as Lashers. Lasher Tools finds itself today in a somewhat enviable position. Its current manufacturing facilities are sufficient to provide for the whole of the South African market, meaning it can cater individually for the entire populace and its construction needs. These home markets are firmly established, not only in mining, building and construction, but equally right through agriculture and forestry and the DIY sector. However, so well equipped is Lasher to fulfil the demands of the home markets, it is also able to generate sufficient volumes to ensure that exports are now

a viable option for the company. These exports have been a crucial element in enabling the business to continue to grow over the past 25 years, to the extent that, today, some 15% of production goes overseas. As a result of this successful foray into the business of exporting its goods, Lasher supplies to businesses and individuals in the UK, Europe, the Americas, the Pacific Islands, New Zealand, Australia, Africa and Indian Ocean Islands. Clearly, this aspect of the business is no mere side-line to its operations in South Africa, with Lasher dedicating a fully equipped department to the effective running of this side of its dealings. It was in 1989 that Lasher Tools became officially the largest manufacturer of non-mechanical tools in Africa, following its buyout by long-time competitor and biggest rival, Ussher Inventions. The joining together of these two forces and the weight of their collective experience

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COMPANY REPORT

SABS 657 PART 1, SABS 657 PART 3 SANS 62 PART 1, SABS 719 We manufacture from Cold Rolled and Hot Rolled coil in grades from Commercial Quality up to API5L-X42. Size range from 15.88mm to 273mm round, 12.7mm to 150mm squares and 32mm x 19mm to 200mm x 100mm rectangle Thickness range 0.8mm to 8.0mm

Contact: Andy Smith Tel: (011) 398 2705 Fax: (011) 974 6326 Cell: 082 467 8317

andy@barnestubing.co.za

can only have helped the Lasher name rise to the top of this highly competitive field, with Ussher itself having been founded and in operation since 1913, and manufacturers of the first South African wheelbarrow in 1922. Today, there are three main aspects to its production at the Wadeville, Germiston plant, with these principal parts being forgings, pressings and finishing. The picks and mattocks so central to both industry, and those many gardeners throughout the country, are fashioned from red hot raw billets of steel are fashioned in the forging shop. Sheet steel is the main ingredient in the pressing stage from which shovels, spades and wheelbarrows are all sheared and pressed, before the final stage in the finishing shop. Here all the different components of Lasher Tools’ stock items, numbering more than 1200 at present, are put together, and finalised with finishes of either bitumen, lacquer or power coating. Despite its evident wealth of product choice, the shovel has not lost its place to this day at the forefront of Lasher’s collective thinking. Always striving to develop and innovate this most traditional of tools, it

PAGE 82 SEP 13

is a constant surprise to the everyday consumer when confronted with the sheer range of options available to perform the task. “There are far more shapes and sizes than most people would imagine,” states Lasher, and this is certainly an accurate estimation. Most are familiar with the more common variants - round-nose and square-mouth blades have had a place in most homes for nearly a century now. There are however a number of more ‘specialised’ tools, which, similar to Lasher’s commitment to stocking only products appropriate to a certain area, are specific to certain sectors of industry. In this way, there are types for firing steam locomotives, cleaning ash from industrial boilers, solid socket shovels, and pit pan shovels. For the perfect gift for any construction or gardening enthusiast, Lasher even stocks a range of chrome plated ceremonial spades, while specialised products are also made for customers, with close attention being paid to client relations for ultimate satisfaction and making this bastion of hard work and manual labour an even more fitting product. To the future then, and Lasher looks to further strive towards achieving its ultimate vision, of servicing Africa


LASHER TOOLS and the world with a branded range of quality hand tools. 2012 saw the company crowned winners of the PACSA Trophy for the Best Recycled Product of 2012, while its new Ecobarrow continuing this commitment to its ‘green’ responsibilities. The result of low environmental impact manufacturing, this latest addition is not only rust and corrosion resistant and easy to clean, but also fully recyclable, yet still possessing an impact-resistant pan in no danger of denting or buckling. Alongside its all all-encompassing tool range, and an ever-present commitment to minimising its impact on the environment, Lasher also feels it imperative to associate itself with those who protect the natural heritage. A proudly South African company, it has chosen to partner itself with SANParks Honorary Rangers and back the anti-poaching work it performs. Lasher has just delivered the first cheque of just over R260,000 and is now fully committed to this cause, as it continues to manufacture tough, reliable tools and facilitate the building of roads, erection of buildings, growing of gardens and mining of mines across South Africa and the world.

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COMPANY REPORT

Above the ground mining Editorial: Lauren Grey Production: Chris Bolderstone For many of us, recycling has become a part of our daily routine; from separating our paper and plastics to re-using shopping bags, but on a larger scale, materials are increasingly being recycled and sold back to large corporations in the manufacturing of their goods. IndustrySA finds out more…

As a global community, we are becoming more and more aware of the impact our daily lives are having on the planet and recycling initiatives have become increasingly popular both at home and in the workplace. Recycling is a simple and efficient way of helping to conserve the world’s natural resources, but it goes much further than saving space in landfill sites; it conserves energy, reduces air and water pollution and reduces greenhouse gas emissions more than any other solid waste management option. Leading the way in the industrial waste management sector is The New Reclamation Group (Reclam), a South African company established in 1998 with a mission to become the country’s frontrunner in the metal processing industry.

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The company has origins dating back to 1970, but the business really took off between 1998 and 2000 when it acquired 14 businesses involved in the production of recycled ferrous and non-ferrous metal products in South Africa and Mozambique.

THE RECYCLING PROCESS Since its inception, Reclam has evolved rapidly and expanded its operations to include the processing of rubber, glass, paper, cardboard and plastics, with over 70 collecting and processing facilities strategically located across Southern Africa. Reclam’s operations involve the collection, sorting and processing of recyclable materials according to end-user specifications. The final products are then used as input materials for industrial manufacturing. Typically, the


The New Reclamation Group

group delivers in excess of one and a half million tons of recycled products a year. The recycling process begins with locating recyclable raw material which is usually facilitated through delivery by Reclam’s suppliers directly, or by collection and transportation by Reclam to one of its collection, processing and production sites. The company has 700 purpose built vehicles and more than 6000 specialised containers for the storing and transportation of recyclable material, such as hooklift bins, lockable non-ferrous bins and cardboard compactors. Bins are also placed at client sites for easy and efficient collection. Upon arrival at the site, recyclable raw material is weighed, graded, separated, fragmented and turned into numerous recycled products. The end product is then sold back, typically to the same customer base as that

of mines; the only difference being that its raw material is a secondary or recycled material relative to ‘virgin’ material which is beneficiated from an ore. The company’s process is therefore often referred to as ‘above the ground mining’.

ECONOMIC PRESSURES Although Reclam has the facilities to process all kinds of waste material such as paper, card and glass, the main product of its processing is ferrous and non-ferrous raw materials for which demand has increased since the company’s establishment. Ferrous metals are utilised in global steel production and have become increasingly popular over the years because it is cost effective and produces lower emissions, but the industry was not protected from the effects of the financial crisis which saw demand slow for a period of time. SEP 13 PAGE 85


COMPANY REPORT Growth in supply has also been limited by labour issues, natural disasters, a decline in asset quality, increasing capital and operating costs. However, Reclam is positive that with improving economic conditions, healthy demand for raw materials in steel production will again resume.

raw materials located in South Africa and neighbouring countries. The company buys a significant portion of its recyclable raw materials from hundreds of scrap metal merchants, based on long standing relationships across South Africa. Similarly, its geographic coverage, product range and capacity to handle a wide variety of recyclable raw materials gives the company a competitive advantage.

SOURCING SUPPLY As has already been noted, Reclam has the facilities to recycle a variety of different materials, but the main product of its processing is ferrous and non-ferrous raw materials, for which it is the largest supplier in SubSaharan Africa These raw materials include steel, iron and other by products from industrial manufacturers in the steel industry, and obsolete materials such as cars, appliances, machinery and equipment. The company’s ability to purchase a wide variety of recyclable ferrous raw materials, ranging from small to extremely large, as well as to accept deliveries at numerous collection points in relatively close proximity to suppliers, make Reclam the preferred customer in many instances. The strong relationships Reclam has developed with suppliers over the past 20 to 30 years positions it well to increase its access to the wide supply of recyclable

ADDITIONAL SERVICES Aside from the processing of ferrous and non-ferrous metals, paper, glass and plastic, Reclam also offers additional services in the processing of E-waste, demolition services and waste management, adding to its already extensive portfolio and allowing it to be a onestop recycling shop. Rapid changes in technology and our ‘throw-away’ lifestyle has resulted in an ever increasing surplus of electronic waste, or E-waste, which can be extremely hazardous when not dealt with accordingly. E-waste comprises of discarded computers and office equipment, entertainment devices, cell phones, television sets and household equipment, etc, of which a mere 1520% is recycled, with the rest being left for landfill and incinerators which releases a negative carbon footprint into the atmosphere.

P.O. Box 2682 Northriding 2162 Email: info@esquareeng.com JOHANNESBURG No 95 First Road Farmall, Kya Sands, 1747 Tel: (011) 875 9906/7/8 Fax: (011) 875 9906

MIDDELBURG Office No 3 No 23 Bhimy Damanc Street Middelburg, 1055 Tel: (013) 243 2893 Fax. (086) 510 0748

Company Reg. No. 2010/011389/07

KLERKSDORP No. 14 GF Westend Building Leask Street, Klerksdorp, 2570 Tel: (018) 462 2884/2990 Fax. (018) 462 2884

Vat Registration No. 4060249952

E-Square Engineering (Pty) Ltd is an Engineering firm which has been offering its valued Clients engineering solutions and adaptable technologies in the following fields of Engineering for the past 10 years:

Civil Engineering • Water and waste water collection, treatment, storage and distribution systems • Roads infrastructure and stormwater management • Waste and Landfill sites management

Structural Engineering

Electrical Engineering

Project Management

• Commercial and Industrial structures

• Power transmission and distribution solutions

• Project and development management

• Residential and Public Facilities structures

• Telecommunications

• Project programming and financial packaging

• Bridges

• Building services

E-Square Engineering’s ethos is to provide solutions which unlock potential within its Stakeholders. PAGE 86 SEP 13

Solutions Unlocking Potential


The New Reclamation Group

“Close networking with environmental consultants help us in identifying and reducing any operational environmental footprints�

SEP 13 PAGE 87


COMPANY REPORT However, in its mission to create a more sustainable future, Reclam plays an active role in the recycling of E-waste, which has limited but different uses. For example its metallic and non-metallic elements, when correctly recycled, can be safely re-used and remanufactured. In addition to its recycling, processing and marketing facilities, Reclam also offer services in waste management solutions, including the removal of non-toxic waste. This division aims to advise companies on the correct procedures and recycling of waste materials, as well as involvement with law enforcement agencies to dispose of illegal and redundant arms and stolen vehicles that they confiscate or recover. Furthermore, Reclam provides demolition services, either directly or in partnership with demolition experts to remove obsolete or surplus buildings, plant, steel and concrete structures. Reclam then utilise the waste materials produced from demolition as an additional source of raw materials.

LEADING BY EXAMPLE As the leading producer of recycled ferrous and non ferrous metal products in Southern Africa based on revenue and sales volumes, Reclam consider it a duty to

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reduce its operations’ impact on the environment and lead by example in the waste management and recyclables industry. In a statement on its website, the company says that through “close networking with environmental consultants” it is able to identify and reduce its operational environmental footprint, and that the safety and welfare of its employees is paramount. “HIV/Aids and smoking policies are in place in our operations to ensure a working relationship of non-discrimination, empathy and awareness amongst all. We believe in winning with people, therefore the empowering of employees at every level in the organization takes place to enhance health, safety and environmental awareness and participation.”

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“Close networking with environmental consultants help us in identifying and reducing any operational environmental footprints”


Lusaka Centenary

Pieter de Beer

AUG 13 PAGE 89


COMPANY REPORT

It’s all about quality and safety at Cerebos Editorial: Lauren Grey Production: Chris Bolderstone Salt is one of the world’s most widely used natural ingredients, with food preservation and seasoning being its most commonly used functions. This month, IndustrySA speaks to John Drinkwater, Managing Director at South Africa’s leading salt supplier, to find out how demand for the product has changed over the past ten years and why food safety is so important in the industry.

Throughout history, salt has played many significant roles; flavouring, preservation and antiseptic being the most common, but it is believed that the versatile product has approximately 14,000 different uses. Most products found at home, in the work place and in the environment around us are produced from salt or use raw salt as an ingredient in their manufacturing processes. For example, in the production of textiles and dying, pharmaceuticals, metal processing and rubber manufacturing to separate rubber from latex. The list is endless. The biggest use of salt however, is in the chemical industry for the production of chlorine, and the products of this industry have a number of important uses; chlorine is used to purify water and as a disinfectant, it is also used in paper production, antiseptics and insecticides, amongst many other consumer products.

CUSTOMER DEMAND As you can imagine, worldwide demand for salt is enormous, and one of South Africa’s main suppliers of salt is Cerebos, a local company established in the PAGE 90 SEP 13

country during the 1940’s. Cerebos supplies salt to both industry and retail, with retail being its biggest market; the company’s industrial business is focused on the supply of premium quality salt to the food manufacturing sector whilst its retail division strives to deliver consumers with an array of value added convenience products. “Retail is by far our biggest market,” explains John Drinkwater, Cerebos Managing Director, “however, we have a diverse customer base in the industrial market too. “For example we supply food companies such as Clover, Parmalat, Unilever and Nestle with salt to be used in their cheeses, butters, soups and many other products. These companies require a very high purity salt because they can’t afford to have impurities in their products.” Cerebos’ ethos lies in quality and food safety, which Drinkwater says separates them from the competition, “What separates us from our competitors is the quality of our product; our salt is pure, free-flowing and food-safe. “Over the last ten years the profile of salt has increased as consumers have become more aware of food safety issues. Salt is a very interesting product because not


CEREBOS

only is it ‘mined’ from the sea but it is also a food and a chemical. “Food safety and quality is a driving force behind our business, and over the last four years we have invested a lot of money on a new plant which enables us to produce a premium, free flowing, food-safe product.” Although salt is Cerebos’ core focus, the company’s product offerings stretch way beyond traditional table salt to a variety of different salt-based products such as dishwasher salt, gravy and seasoning. “Our core competency is the salt industry and salt manufacturing but we are also involved in flavour enhancing, of which we have many different products.

QUALITY PRODUCT Four years ago, Cerebos invested a huge amount of money into a new manufacturing plant in the Coega IDZ, Port Elizabeth, which has enabled it to produce pure vacuum dried (PVD) salt for retail and industry. “The plant has now been running for four years,” says Drinkwater, “we have invested in new technology which allows us to produce vacuum dried salt, which is of a better quality and is produced in a food safe environment.

“PVD is extremely clean and the free-flow characteristics are superior, the crystal size and distribution of crystals is also very similar.” PVD Salt is used universally throughout the food industry and for other applications where a pure food grade salt is required; PVD salt is also a better carrier for fortification with iodine as required by Health Regulations, due to its uniform size and crystal structure eliminating unacceptable variability. The R85-million relocation meant that Cerebos could increase its production to between 30,000-35,000 tonnes per year of premium grade table salt, based on 7500 operating hours per annum, which was vital for the company as it was previously not able to meet customer demand for the product. The capacity of the new plant also enabled Cerebos to enhance the quality of its premium grade products with PVD salt, thereby guaranteeing maximum food safety to consumers and users. The investment was made possible through a strategic partnership with the Development Bank of Southern Africa (DBSA) and Khumo Bathong Strategic Investments, a Black Economic Empowerment partner.

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COMPANY REPORT

SCOIAL UPLIFTMENT As part of its BEE campaign, the social upliftment of all Cerebos employees and previously disadvantaged individuals in the Eastern and Western Cape is also a key focus of the business. The company encourages an innovative culture and behaves like a family loyally supporting their employees and its strong brands. The working environment is dynamic and empowered and each Cerebos employee is nurtured and given the opportunity to make a difference. “We have between 230 – 250 employees, but what puts us ahead of the competition in terms of experience and competency is that we have qualified, senior staff such as chemical engineers and mechanical engineers,” says Drinkwater. “These engineers work in-house and have years of experience within the industry and the business itself. We also have strong relationships with our customers, both retail and industrial which is built on trust and fairness. These relationships have stood us in good stead through tough times.” However, Cerebos is dedicated to the well-being and education of its staff, and Drinkwater says that there are always opportunities to start at the bottom and work your way to the top. PAGE 92 SEP 13

“We have to have experienced staff, but that doesn’t mean that you can’t come into the business at an entry level; depending on what your experience is, we can train in-house as well, allowing our employees to work their way up.” Supporting its employees and ensuring they use the utmost of their potential is crucial for the business as it moves forward into its next venture.

FUTURE PLANS As an international brand boasting superior quality, it is no surprise to learn that Cerebos intends to utilise its success in the South Africa market and expand further into the African continent. “You will find Cerebos products in all areas of South Africa; in all retail outlets and food chains,” says Drinkwater “growth into the African region is therefore a key opportunity for us.” Getting a firm grip on the continent has, for some companies, been a challenging and daunting task, however the Cerebos brand is already recognised in Southern African regions and neighbouring countries, as Drinkwater explains. “We do supply some of the Southern African region and our bordering neighbours already, particularly in the


CEREBOS

retail market, so we are definitely looking to capitalise on that and expand our footprint further.” Aside from physical expansion, Drinkwater says that Cerebos is also looking to grow its product range, “We would also like to focus on leveraging the Cerebos brand; we would like to expand our product range in the food market. This however, is a long term goal for the company as it plans to take the time to carefully select which products it would like to introduce, “this is something we will implement slowly because whichever products we choose will need to live up to the Cerebos quality promise. So this is something we will not rush into; we will pick our products carefully.”

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“We have invested in new technology which allows us to produce vacuum dried salt, which is of a better quality and is produced in a food safe environment” SEP 13 PAGE 93


COMPANY REPORT

Reliable, innovative hardware for Botswana Editorial – Tim Hands Production – Chris Bolderstone

For more than a century now, the family-run business of Haskins has been providing customers throughout Botswana with the very best in machinery, tools and hardware, never straying from its policy of using only the highest-quality materials in its lasting, wide-ranging product portfolio.

With more than 110 years of experience behind its operations, J.Haskins and Sons are perfectly placed to both sell and deliver the very best in building materials, steel, hardware, tools and machinery throughout Botswana. Its products are aimed at the entire populace, be it DIY enthusiasts, builders or contractors, and the company’s emphasis on quality ensures that whatever the situation, it has the tools to get the job done. Now boasting branches in Francistown, Gaborone, Palapye and Kasane, the vast range of its products, from bricks and windows to power tools and camping accessories, is now more widely available than ever, and could surely not have been envisaged when Bristol-born James Haskins arrived at Tati from England in July 1897 and began to build his dynasty. Beginning life in the then Bechuanaland Protectorate,

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fast forward four generations and Haskins now finds itself ingrained in Botswanan life - “as native to the country as Chobe bush-buck and tsamma melon,” as the company itself puts it. Enjoying nearly as widespread a coverage as the aforementioned antelope, and almost as vital to daily life as the native African ancestral variety of watermelon, Haskins today remains a family business providing a comprehensive service to its loyal customer base. The image of the company in its very beginnings depict this family atmosphere perfectly, such as in the scene showing James Haskins and his nephew Tom on a stock taking trip, or equally the original humble store building in 1912, all combining to illustrate just how far the company has grown in its lifetime (for historic images visit www.haskins.co.bw). Among these fascinating images of the family history aspect of the business, it


Haskins

is also interesting to compare the processes behind its operations a comparatively short time ago, and the extent to which these too have been modernised. The evolution of the process of river crossing, today such an easy task to accomplish, illustrates this perfectly, while the cap cart and six mules used all the way up until 1926 again serve as reminders of the sheer scale of development within not only Haskins, but the industry as a whole. While Haskins’ comprehensive range of high quality building materials and hardware products is stocked in its branches across Botswana, this stock is thoughtfully catered to the specific area served by each store. In this way, its patrons are able to save valuable time during each visit by only being offered products and materials which will be suitable to them and the tasks at hand, rather than the traditional experience of having to trawl through a vast array of diverse products, endlessly searching for the

one required, and usually required quickly. As well of the strength of the brand in Botswana, given that it was one of the first companies in the area and has served generations of loyal customers, what also helps to set Haskins apart from the field is the competitive pricing of its high-quality goods, and its insistence on maintaining good levels of stock at all times. This is of course crucial in keeping on board its customer base, and the confidence of the populace in the service it provides. As well as a focus on constantly stocking the appropriate levels of the products with which its customers are now so familiar, Haskins is also very much concerned with, as Gaborone Branch General Manager Andrew Field puts it, “staying ahead of the game and keeping an eye on the market,� often finding niches in the market with this approach to constantly looking at new and improved products.

SEP 13 PAGE 95


COMPANY REPORT Haskins was even able to manage the global economic downturn with impressive aplomb, not merely maintaining its performance but in fact maintaining inflationary growth year-on-year. One of the main aspects in achieving such rare and widely uncommon financial success is Haskins’ insistence on sticking to the high quality materials on which it has built its reputation in the country, when many would, almost inevitably, turn to cheaper products in an attempt to cut costs wherever possible. This, however, is not what Botswana has come to expect from one of its nascent companies, and while these significantly cheaper alternatives are readily available to import, the drop in quality which comes with their usage does not, for Haskins, make them a viable option. There is a vast range of issues and pitfalls that employing these goods can present, and in avoiding the temptation to take this cheaper route Haskins has been able to keep up not only the standard of product that the populace has come to expect, but also the confidence of the consumer so vital to building a lasting dynasty such as this. This is a policy that has paid dividends over the course of these last few trying years, despite initial difficulties when the possibility of low-cost imports began to emerge. “We suffered a bit in the beginning when these cheaper products were emerging but we decided to stick with trusted brands”, explains Field, also highlighting the preferences of its savvy customers; “the market soon realised cheap can also be very expensive and now, consumers would rather buy quality.” This preferential habit of only buying once at a possibly slightly higher cost is particularly true of some of its most common products, as Field explains: “Prime examples of this are galvanised wire products and taps. Inferior wire products are not properly galvanised and cheaper alloys are used in taps so that within two or three months they corrode.” Perhaps equally as important in building a lasting business and supplying customers with the highest quality goods is looking after them if ever things should go wrong, and being prepared to accommodate them in every way possible in order to ensure that their shopping experience keeps them coming back throughout a lifetime. As Field puts it, “When it comes to warranties and returns we are a lot more accommodating than our opposition. We place emphasis on backing up our products because we are focused on long-term business – we are not in it for the quick sale.” With its all-encompassing selection of time highest

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quality products, and an after sales service which sets it apart from its competitors, Haskins teams these with the expertise among its many staff throughout its four stores. Again, this is all part of gaining consumer confidence and therefore building a loyal, contented customer base, with the collective knowledge and experience only serving to create a more satisfying, beneficial experience for those Haskins serves across the country. To this end, employees are trained both through learning on the job - vital to their knowledge of specific tools and their operation - and in the key areas of customer service, supervisory techniques, quotation and quantity surveying, leaving them equipped to deal with any of the various situations presented to them on a daily basis. It is no wonder, then, that Haskins continues to enjoy growth each year, both financially and in its burgeoning customer base. With an ever-growing range of innovative, high-quality products backed up by a dedicated staff compliment and an unfailing policy of warranties and returns to reassure even the most sceptical consumer, for this most Botswanan of companies the future looks set to bring yet more success in a history already swelling with greatness.

.


Haskins

In every industry there is a leader

Complete brochures of our extensive range of Doors and Sliding Doors, Windows and Folding Sliding Doors is available on request

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www.soliddoors.co.za E-mail: Info@soliddoors.co.za SEP 13 PAGE 97


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This is the latest installment of our Industry Recommended directory, a list of companies across a range of industry sectors over SA.

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DOORS SOLID DOORS A premier door manufacturer, supplying a vast range of timber related building products throughout SA, the rest of Africa & Europe +27 11 234 1901 www.soliddoors.co.za FINANCIAL SERVICES RBS KATZ BRESKAL One of the largest independent insurance brokerages in the country +27 21 443 4400 www.rbs.co.za GOVERNMENT LUSAKA CITY COUNCIL Celebrating 100 years of services to the City of Lusaka www.lcc.gov.zm IT PRESCIENT BUSINESS TECHNOLOGIES Provider of business intelligence and information management services to large national & international clients +27 21 700 3600 www.prescient.co.za

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+27 31 468 1534 www.tropicplastic.co.za

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Sep13 issue