Laduma May 2016

May 2016

LADUMA

ONE TEAM - ONE GOAL !

MESSAGE FROM THE MD The 2015/16 South African sugar cane crop of 14.8 million tons was the lowest crop since the 1993/4 season and the initial estimate of the 2016/17 crop is further down to 14.1 million tons. The result is extremely limited local molasses availability and large increases in the molasses price.

To compensate for this we have imported large volumes of molasses during the first half of the year and will increase use of traded alcohol from July until the start of the next crop in 2017. Meteorological reports indicate that the El Nino weather pattern that caused the prolonged drought is coming to an end and rainfall should improve prior to the next crop. The inbound supply chain has been under pressure to cope with the large molasses and ethanol imports, but has managed well to co-ordinate storage and production to ensure that the vessels offloaded timeously on arrival.

The poor economic conditions started to impact on the African market in 2015 and has now severely limited the ability of a number of countries to trade – with limited foreign currency availability being the most obvious factor. Our sales to West African countries have declined dramatically this year as buyers cannot access US dollars

in order to make payment. The underlying demand remains, but until these countries can resolve their currency issues the potential to increase sales in some of our traditional growth markets will be limited. As a result of this and the increased availability of traded alcohol, the decision has been taken not to run the distillery at maximum capacity all year. This requires an adjustment in operating philosophy to ensure that we minimise fixed operating cost through planning all maintenance activities well in advance, thus keeping callouts and overtime to a minimum.

In 2012 we restructured the supply chain to achieve lower distribution costs through better use of planning, forecasting and scheduling tools. The financial targets of this exercise have been well achieved and distribution costs have been significantly reduced. With these tools in place it is now opportune to adjust the operating structures again to ensure that with these processes as the underlying backbone of the supply chain, we in addition ensure that the management of inbound and outbound activities is sufficiently integrated into Operations and Marketing respectively. These changes will be implemented during June.

There is no doubt this is going to be a tough year; we need to focus on controlling things where we have the greatest impact, making the necessary adjustments and not being distracted by the “noise” of external factors outside our control.

g

lin Peter Star

Gold awards for NCPA Forty-seven years of gold for NCP Alcohols’ quality potable alcohol.

The Monde Selection International Quality Institute has again acknowledged NCP Alcohols for products presented to the 2016 World Quality Selection.

The Grand Gold awards are for our ethanol 96.5 and light spirit 43%.

NCP Alcohols is well known for the quality of its potable alcohol, both locally and internationally, having being awarded a gold medal from the International Monde

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Nosing Panel members Mark Immelman (left) and Nomvula Dlamini during a previous ‘nose-off’ competition between Nosing Panel members.

On the cover

Selection since 1969.

Careful selection by our Alcohol Nosing Panel assures our customers of an excellent product – well done everyone!Forty-seven years of gold for NCP Alcohols’ quality potable alcohol. The Monde Selection International Quality Institute has

Safety rules are your best tools

again acknowledged NCP Alcohols for products presented to the 2016 World Quality Selection.

The Grand Gold awards are for our ethanol 96.5 and light spirit 43%.

NCP Alcohols is well known for the quality of its potable alcohol, both locally and internationally, having being awarded a gold medal from the International Monde Selection since 1969.

An In-Service Trainee, Sandile Msibi, has stepped up to the plate and is teaching extra maths to 18 matric learners from our neighbouring Sea Cow Lake Secondary School once a week. Says Sandile, “I could have done with some extra maths coaching when I was at school – this is my motivation for helping these learners.” On the cover are the learners with Sandile, front left, Lumeshni Govender, second from right, and Nash Bhugwandeen, a teacher at Sea Cow Lake Secondary School, right.

Water saving projects With drought and climate change being such hot topics at the moment, NCP Alcohols is taking steps to reduce its overall water use. Some of the projects are: Rainwater projects Investigations are under way to recover rainwater from the first flush tank at the bulk-loading bay and from the molasses dam. The idea is to simply pump the rainwater into the suction of the sand filter pumps to filter out the trace impurities and to use the rainwater as make-up for the various towers with larger evaporative losses. The saved water will be used elsewhere.

Condensate projects Various initiatives are under way to reduce municipal water consumption by reusing clean effluent streams. Flash process condensate from the evaporator plant that normally goes to effluent will now be used for chemical dilution. A larger buffer capacity for acid condensate storage will be created at the fermentation plant by converting Fermenter Vessel 6 into an acid condensate storage vessel. It is estimated that more than 3000kl of water on average per month will be saved. These modifications will provide bonus benefits of steam and effluent savings as well.

Alternative water sources Borehole NCP Alcohols’ contractors are conducting a geo-hydro study and will be sinking a borehole to establish water quality and yield.

River water extraction NCP Alcohols is investigating extracting water from the Umgeni River. The biggest challenge is the variation in water quality due to tidal effects (river water becomes salty) and upstream water quality which varies depending on rainfall.

A water sampling programme has been put in place to establish trends in water quality which will form the basis of any further work conducted.

Cooling tower blowdown recycle The idea is to recycle cooling tower blowdowns which can be treated using reverse osmosis and this water can be recycled back into the boilers instead of using municipal water. The current volumes of the blowdowns can reduce boiler house water usage by almost 40% which is significant in both water and effluent, and the savings do show some potential.

Sandile Msibi points out the rainwater on top of the molasses dam’s cover membrane; the water will soon be pumped away and used on site.

Sandile Msibi, left, and Lumeshni Govender at the site of the Fermentation plant where an acid condensate storage vessel will be installed.

A view of the Umgeni River which can be seen running right next to NCP Alcohols. It may prove to be a useful resource.

Be safe, not sorry

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Highest risk areas identified The top four high-risk issues on site are Working at Heights, Hazardous Chemicals, Slips and Trips, and Fire.

SHEQ Manager Lorraine Mudaly tells us how to work more safely in these areas: WORKING AT HEIGHTS Be extra cautious at heights. When using a ladder, a second person should hold the ladder. When using scaffolding, make sure it has a ‘safe to work’ tag. On loading gantries or wherever you are using both hands, use a full safety harness.

HAZARDOUS CHEMICALS There are hazardous cleaning chemicals such as caustic lye, sulphuric acid and nitric acid on site. Be familiar with the hazards by reading the material safety data sheets. Learn what Personal Protective Equipment to wear; and how to handle and store the chemicals.

SLIPS AND TRIPS Watch out for uneven surfaces. Use the handrail on stairs. Be alert and aware of where you are placing your feet. Use the safe walkways between the yellow lines. Good housekeeping is essential. Clean up after a spill. Use the right safety shoes, and check that they have plenty of grip.

FIRE Flammable liquids, of which there are a lot on site, can have a major impact on safety. Hazards can also arise when dealing with hot work, sparks and when alcohol vapour is present. The answer is to always do a Risk Assessment before getting a Permit to Work. Stand-by fire-fighting equipment, along with someone trained in fire-fighting should be present.

Test for the presence of gas. Use canvas screens when cutting or welding.

Sodium hypochlorite is one of the many hazardous chemicals used on site.

On-site Fire Protection Officer Dave Kemp stands by while some hot work is carried out.

Fabian de Boer seen using a safety harness while working at a height.

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Safety is MY responsibility

Mind where you walk. A simple slip can lead to a hospital trip.

Extra SHEQ training for Production staff

Refresher training is being given to Operations staff in Risk Assessment, Job Observation and ISO procedures, as necessary. Says Production Manager Zinhle Mqadi, “It’s all about combatting and eliminating risk and SHEQ issues, including additional training in computer use, particularly the recording of data on the system.” Above, Zinhle leads a training session on job observation. In the team are Nomsa Mabaso, Osborne Mlaba, Musa Luthuli (in red) and Sma Ndlovu.

Work in workshop safer Training manuals are being written for all workshop machinery, and superintendents have been tasked to train everyone who uses workshop machinery.

Says Carl Freyer, Engineering Manager, “As not all maintenance

staff have done a trade test, in-house training will ensure all are competent to use grinders, drilling machines, jigsaws and similar machinery. Noone can use any machinery in the workshop without training. It’s all in the interest of increased safety.”

Clarrie Mngadi, Mechanical Artisan, working at a grindstone; Robbie Taylor, standing back, attends with a training manual.

This impressive installation was completed in only six hours and was captured from the AlcoGroup’s administrative offices during a project meeting.

Storage tanks delivered to GreenCO2 site

Construction of GreenCO2 at Alco Bio Fuel in Belgium is progressing well, being within timing and budget. As a reminder, ABF holds 50% of the JV GreenCO2, together with gas specialists Messer and Ijsfabriek. Start-up of the installation, with a total capacity of 100 000 tonne of purified/liquefied CO2, is foreseen for mid-year. ABF will sell 50% of produced quantity on the market (for use in soft drinks, food packaging and refrigerated transport), which is a new challenge, says Benoit Verbruggen, Chairman of the Executive Committee of AlcoBioFuel.

Four storage tanks were delivered to the construction site during February, one per barge. Each tank is 30 m high, has a diameter of 3,5 m, and weighs 68 tonne.

This exceptional operation, was captured by the Port of Ghent and posted on their website: http://www.havengent.be/fotoalbum/248/ fotogalerij-losoperatie-van-opslagtanks-voorhergebruik-van-co2-bij-alco-bio-fuel-in-gentsehaven---17-02-2016

Safety by choice, not chance

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NCPA sponsors wheels for Tylen NCP Alcohols is to sponsor the transport costs of Tylen Abrahams, a learner at the Fulton School for the Deaf.

The donation by NCP Alcohols is part of the school’s Adopt-A-Child Campaign.

NCP Alcohols is proud to be a regular sponsor of the school.

Happy 15th Birthday NCP Alcohols

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It’s 15 years since the company came to be called NCP Alcohols, and on Monday 1 February 2016 all staff got together to celebrate the occasion, as you can see in the photographs on this page. Although the company, as it is known now, is a mere teenager the plant has actually been in operation since 1868.

Don’t learn safety by accident

Site visits bring benefits Sharing vinegar best practice

Robin HieBerich

The vinegar production team were able to spend some time with the Heinrich Frings team from Germany during their recent visit to NCP Alcohols.

Said Secondary Production Manager Siphokazi Majozi, ‘Our team was able to learn more about the vinegar process and received updates on new developments that could help us improve our system – particularly the filtration system.’

Robin HieBerich is part of Sales in Vinegar Engineering at Heinrich Frings (our vinegar specialists) and contributed a great deal in assisting NCP Alcohols in process improvements. He made some interesting filtrating proposals that could improve the throughput by using module filtration; each module can filter 10kls a day on automation.

Module filtration has the added benefit that no bentonite is used, which then reduces the existing environmental sludge issues in the vinegar process.

Other newer technologies were also presented during the visit such as the Condenser and Scrubber Recovery Units which have a 98% efficiency, coupled with V1200 Acetator DCS control.

NCP Alcohols proud to host Chemical Cluster visits NCP Alcohols has recently hosted two workshops for the Durban Chemical Cluster (DCC) as part of its Operational Excellence Programme.

On 12 May, the workshop was on the topical subject of ‘Carbon Tax and Energy Strategy’. Carl Freyer and Judy Somers gave a presentation on electrical savings at NCP Alcohols since 2002, and the positive results that have resulted in recent years. They

Some of the group that did a site tour in February.

On the May site tour were, front from left, Carl Freyer (NCPA), Vaneshree Moodley, Zanele Ncgobo, Leo Maistry, Gabriel Chetty, Adhil Goga, Magart Mackenzie and John White; and back, Yudhistra Penceliah, Anwar Fareed and Judy Somers. then took the delegates on a site tour.

Urban Earth gave an update on the implications of the new carbon tax laws which will be implemented on 1 January 2017.

Dr Susanna Godehart of The Durban Energy Office, who is responsible for climate change mitigation in Durban, spoke about renewable energy, energy efficiency and greenhouse gas reduction. She also shared the municipality’s overarching energy strategy.

And in February NCP Alcohols’ Siphokazi Majozi hosted a site tour focusing on Lean practices. The visit was aimed at demonstrating worldclass practices such as Lean on smaller business enterprises.

Overall, the delegates were impressed with the NCP Alcohols site and initiatives.

Said Judy Somers, electrical superintendent, who co-ordinated the visits, “We at NCP Alcohols have enjoyed hosting these workshops, and we look forward to more events and close co-operation with the DCC.”

Don’t be a fool, use the proper tool

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r u o y y o j n E T N E M E R I RET

Brian Ngobese

after a cently retired re s ol oh cl A P ures at NC n them.

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Frasier Vezi

Logan Naicker, left, says farewell to Ranjith Umrao during a Tune Me session in early May 2016.

HOW TO ADD YEARS TO YOUR LIFE, AND LIFE TO YOUR YEARS Here are some wise words from André van der Westhuizen, seen at right, who is enjoying the benefits of his fitness programme, while also excelling on the world stage. He says: “Find some form of exercise(s) that you enjoy doing.

“I am not sure who coined the phrase ‘years to your life and life to your years’, but this was one of the reasons that I started doing Crossfit and embracing a low-carb high-fat diet.

“Crossfit is an effective way to get fit. Anyone can do it. It is a fitness programme that combines a wide variety of functional movements into a timed or scored workout. We do pull-ups, squats, push-ups, weightlifting, gymnastics, running, rowing, and a host of other movements.

“I enjoy high-intensity workouts because they are varied and give you bang for your workout buck. We hardly ever do the same routine twice in one week and each workout will usually last between 45 minutes and an hour. This is done in a group with a coach. I enjoy the encouragement from the friends I have made at Crossfit.

Like many people that do Crossfit I have become obsessed with it.

I entered the Crossfit open for the masters 60+ scaled competition and was placed 11th in the world out of ±800 competitors.

“I think being obsessed with Crossfit or any other form of exercise is a good thing. I am fitter and more healthy now at 60 years old than when I was in my 30s. I have lost 9 kg and I am more flexible and mobile. I was pre-diabetic, but I have been off diabetic medication for over a year.

“So if you want to add years to your life and life to your years, find an exercise regime that you love doing and watch the calorie intake. It is never too late to start.”

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It’s COOL to work safely

Published by NCP Alcohols (Pty) Ltd www.ncpalcohols.com