Laduma December 2015

December 2015

LADUMA

ONE TEAM - ONE GOAL !

MESSAGE FROM THE MD The prime theme of 2015 has been the drought and its impact on the sugar and related industries. Newspaper articles are now proclaiming it as the worst drought in 23 years and at present there is little sign of respite moving into 2016.

The lack of local molasses due to the poor crop has resulted in increased rawmaterial costs and increased complexity of supply as we have imported molasses and bulk alcohol throughout the year to support our production requirements.

The commissioning of the Omnicane plant in Mauritius in 2014 was extremely timeous, with imports of their bulk alcohol to Durban sustaining our sales volumes.

Overall volumes have declined slightly on 2014 performance as the low oil price and general poor economic conditions have impacted on sales in South Africa and our African export markets. This has been offset to some extent by the rapidly declining rand, but with the limited local raw material

supply base we have been unable to realise the full benefit of this. US-dollar -based exports account for 60% of our sales volume and almost 70% of our net sales.

The project team’s findings on alternate raw material options will be presented to the Board in December and it is expected that detailed project development will take place during the first half of 2016. It is expected that the El Nino conditions will not let up in time for any significant improvement in the 2016 sugar crop, and therefore we expect next year’s operating conditions to remain difficult. I thus reiterate that we should focus on those aspects of the business we can control, get the basics right and support each other to perform to our maximum potential through these exceptional circumstances.

As always, enjoy the festive season.

If you are taking some time off, relax with your families and travel safely.

Thank you for your support and commitment during 2015, best wishes and happy holidays.

g

lin Peter Star

New Safety Committee The Safety Representatives on the new Safety Committee have been decided. They are Allan Pillay, Prudence Gabela, Nomfundo Ndwalane, Patrick Dladla, Rakesh Moona, Lucky Ntuli and Bala Padayachee. The chair is Lorraine Mudaly.

Lorraine Mudaly

Allan Pillay

Prudence Gabela

Nomfundo Ndwalane

Patrick Dladla

Rakesh Moona

Lucky Ntuli

Bala Padayachee

2

Lead the way, safety today

We honour long service been with the company for decades, so we must be doing a lot right. We asked this year’s award recipients: “How has it been for you at NCPA?”

Well done, loyal employees.

Nine employees were honoured for their collective 290 years of service to the company at a lunch hosted by senior management.

Managing Director Peter Starling recounted some of the unusual events that took place in the world at the time of their appointments dating back to 1975, to the great amusement of the group.

Raj Mothi with his 40-year certificate – and Peter Starling.

Our bank details unchanged Please note that fraudsters are sending out letters stating that NCP Alcohols’ banking details have changed.

This is not the case, and if you have received any such correspondence please contact NCP Alcohols at: 031 560 1111 or your Customer Services Controller.

On the cover

One of the Barrel Braai Master teams opted successfully to cook up some vegetarian dishes.

They are Ace Govender, Rodgers Niranjan, Vigna Naidoo, Chef Mpume Sello, and Lorraine Mudaly.

A high percentage of NCP Alcohols people have

• Raj Mothi, 40 years: NCP Alcohols is a very caring company, and over the years I have been promoted from Labourer to Transport Co-ordinator.

• Ashley Sathdav, 35 years: Working at NCP Alcohols is like having two families, one at home and one at work.

• Les Appalsamy, 35 years: Things have improved a lot since 2000.

•

Wilson Madlala, 35 years: It’s all been good; I started as a cleaner and have been rewarded with promotion.

Challenge accepted!

NCP Alcohols’ Employee Assistance Programme’s ‘BMI Big Loser’ competition drew to and end with the announcement of the five prize-winners.

•

Ranjith Naicker: Very good. No one troubles you when you do your work properly.

• Daniel Xaba, 35 years: I’ve been happy at NCP Alcohols, and I appreciate the support I’ve received from my colleagues and management.

We have had no short time, which I really appreciate.

• Blessing Ncgobo, 35 years: Wonderful. I didn’t intend to stay that long, but I have been surrounded by good and helpful people, and could never leave.

• Isaac Mtungwa, 25 years: I enjoy working for NCP Alcohols for all these years.

The company gave me everything I have today. My home, my children’s education.

Everything is because of my work at NCP Alcohols. I love NCP Alcohols.

• Zinhle Mdadane, 15 years: NCP Alcohols has been a growth machine for me. I have grown from an in-service trainee to production operator to operations technician to production manager.

NCPA has also helped me finish my degree and groomed me to be the manager I am today.

I truly appreciate all the company has been for me.

Of the 25 or so employees that started the Body Mass Index (BMI) challenge in March this year, only 11 constantly participated over the eight months to October 2015.

The 11 lost a total of 33.3kg during the eight months.

The winners of the ‘BMI Big Loser’ competition were announced at the company’s Barrel Braai Master end-of-year staff function. They are: Lumeshni Govender, Carl Freyer, Judy Somers, Lumeshni Govender with the Gumbi Manqoba, and winner’s prize, and Peter Starling.

Lorraine Mudaly.

Safety in, we win

3

Six-month sustain COMPLIANCE

CORPORATE SOCIAL INVESTMENT

NCP Alcohols believes that people’s health, safety and the environment are our highest priorities. We know that we must be environmentally responsible and protect the health and safety of our employees, customers, suppliers and the public.

To achieve this we expect our employees to ensure that our products and operations comply with the most stringent laws, regulations and standards.

• The Kenville Primary School Feeding Scheme project provides one meal every Friday to 60 primary school learners at Kenville Primary School that are in need.

We provide the appropriate training to prevent adverse impacts that may be caused by any aspect of manufacture, supply or use of our products. We regularly audit internally and externally while continually improving our systems and undertake to recognise and respond to community concerns.

NCP Alcohols boasts a host of certifications namely, ISO 9001, ISO 14001, SANS 10330 (HACCP), OHSAS 18001, Halaal certification and Kosher certification.

OUR EMPLOYEES • Training NCP Alcohols strives to constantly increase the awareness and skills level of its employees, hence extensive training is conducted both internally and externally. Training completed in the last 6 months include Fire Training, SHEQ Induction Training, Forklift training, Incident Investigation training, OHSAct legal liability training, Hazardous Chemical Substance Training, Noise Induced Hearing Loss training, First Aid Training and Permit training.

Our In-service training programme offers students a year of onthe-job-training in the fields of Food Technology, Biochemistry, Chemical Engineering, biotechnology, Mechanical Engineering, Analytical chemistry, Microbiology, Electrical Engineering – Heavy Current, Electrical Engineering – Light Current Process and Instrumentation & Control. Total number of students on this programme is fourteen (14) of which two are apprentices in the mechanical and electrical fields.

• Clinic We have medical facilities on site which include a clinic sister and doctor. The clinic sister and the doctor manage the Occupational Health programme on site to ensure general wellness of employees. Total healthcare visits numbered 371 for Q1-2 2015 compared to 299 for the same period in 2014.

COMMUNICATION We believe in honest and constructive communication with and between staff and our stakeholders that promote and sustain the relationships we have with one another. Our communication mediums include monthly communication facilitator meetings, news boards, flashboards, e-notices, an intranet page, online and printed newsletters and a website.

4

Don’t learn safety by accident

• Two programmes have been addressing the physical wellness of employees: a body mass index ‘Big Loser’ competition, and the birth of the company’s own running club, the Leafy Leapers Athletics Club.

• The company sponsors a football team, NCP United Football Club (NUFC) with gear, transport and basic refreshments during their friendly matches.

• The company is a monthly sponsor of the Look Good Feel Better Foundation, alongside members of the Cosmetics Toiletries and Fragrances Association (CTFA), who run makeover workshops for female cancer patients at Durban’s Addington and Parklands Hospitals, and at Mkuhla House.

• As part of the company’s celebrations of International Mandela Day, the Sea Cow Lake Secondary School’s science laboratory received a total make-over. In addition, weekly science and mathematics classes are presented by three in-service trainee students at NCP Alcohols to the school’s grade 12 learners.

ENVIRONMENT, HEALTH AND SAFETY Hazard Identification and Risk Assessments Hazard Identification and Risk assessments form the basis of our Safety, Health, Environment and Food Safety (SHE & FS) management system. Risks associated with all work on premises are evaluated to determine whether or not they are acceptable. Hazards are also identified from job observations, audits and general inspections.

To reduce risks the following hierarchy of control is chosen: Elimination, Substitution, Engineering, Administration and PPE. •Safety Objectives To achieve zero fatalities and reduce permanently disabling injuries by identifying and controlling extreme potential risk situations.

Target: To achieve 0 fatalities and 0 DIFR by January 2016.

To maintain legal compliance with regards to safety.

Target: To address legal compliance issues highlighted internally and through legal audits by December 2015.

To manage static safety risks on site.

Target: Develop action plans and budget to address high safety risks by December 2015.

nability overview Three-year trend in Safety

14

2014 (Q1-2)

10

8 5

3 0

12

2013 (Q1-2)

9 6

16

2015 (Q1-2)

15 12

HEALTH

2

Safety Near-Misses

3

2

Safety Injuries

Total

The employees manage their own Soccer and Athletics Clubs with the support from the company. NCP Alcohols Football Club was established in 2009 and plays ‘friendly’ matches at least every quarter. The company’s athletics club, the Leafy Leapers are affiliated to the KwaZulu-Natal Athletics federation and employee members are sponsored for their participation in four (4) events per year.

ENERGY AND CARBON FOOTPRINT

•Environmental Objectives Maintain environmental legal compliance. The first target is to develop an environmental management plan for effluent quality compliance by the end of 2015; and the second is to classify all waste on site and create Safety Data Sheets for the various waste streams by June 2016 Minimise environmental impacts (Pollution Control) in three areas, water, land and air. The main targets are to reduce stormwater contamination to achieve storm water discharge specifications - December 2015; to develop a strategy for waste reduction on site by September 2015. Quantify the amount of waste being removed from site currently and determine associated costs- 100%; and to maintain air emissions to below legal specification – 2015 Resource Conservation covers three targets: water, power energy and steam energy and the main targets are to; • Reduce site water usage to <9.9kL per klAA by December 2015; • Reduce electrical energy by 120kW by December 2015; and • Reduce steam usage by 150kg/hr by December 2015.

WASTE • General waste has decreased, indicating employees are recycling and reusing waste.

• Paper recycling has decreased, indicating people are using scrap paper for extra notes, double sided photocopying, etc.

• Cardboard recycling has increased, as has plastic.

Qtr 1-2 (2014)

General waste (m3) 12 Paper recycled (No. of bins) 22 Cardboard (1-ton bag) 7 Plastic (1-ton bag) 7 Glass (1-ton bag) 1 Aluminium cans (1-ton bag) 2 Sludge (kg) 76 380 Hazardous waste (L) 1 115 Hazardous waste (kg) 850

At NCP Alcohols we are passionate about living a healthy lifestyle. Currently we have a BMI biggest loser challenge where each month the person that loses the most weight wins a gift voucher. We also conduct safety talks on a monthly basis based on various topics, one being wealth awareness.

This encourages our employees to live a healthy lifestyle.

Qtr 1-2 (2015) 7 18 9 11 1 1 87 280 1 225 178

NCP Alcohols is committed to reduce and/or eradicate harmful environmental factors such as: Land Pollution No littering is allowed on site and waste bins are provided in all the areas of the plant. Specially marked bins are provided for the recycling of cans and paper. Cardboard is also collected for recycling. Process areas around the plant are bunded for the containment of spillages for recovery. All process effluent is directed to the effluent treatment plant and thereafter it is led into the municipal sewer system.

Water Pollution All spillages must be reported so that we can prevent water pollution. It is imperative that spillages are minimized or timeously cleaned up in an appropriate manner.

Air Pollution We have changed from Coal Boilers and now utilise Gas Boilers in our plant. CO2 gas from our Fermentation plant is sold to a gas company and is eventually utilised in the beverage industry.

Preservation of Resources We pride ourselves in saving the environment! So please conserve resources, especially water.

PROCUREMENT AND SUPPLY CHAIN NCP Alcohols seeks to ensure that the products it procures for its production of Ethanol are sourced from suppliers that are sustainable and environmentally responsible.

We ensure safe disposal of all our waste through recycling and disposal suppliers who are evaluated from time to time, and we also undertake audits on suppliers to ensure compliance.

Be aware, take care

5

Bonding round the barrel braai By tradition each year, NCP Alcohols celebrates the year’s achievements in some novel and fun fashion. And this year’s festivities took the form of a ‘Barrel Braai Master’ competition, with seven teams competing. The eventual winner, by a narrow margin, was the company’s student team, calling themselves ‘Lord of the Braais’. The judges were our own Sarah Stott who is something of a food connoisseur and Executive Chef Khutso Masethe from My Gourmet catering services. At the end of it all, the seven barrel braais, each worth R2200, were given away by a lucky draw to staff members.

6

A spill, a trip, a hopital trip

s r e l l a b t o o f r u O . . . d u o r p s u did NCP Alcohols United Football Club (NUFC) took on Phoenix Aluminium at the extremely windy Moses Mabhida People’s Park grounds late on 20 November. The stunning pitch must have lifted the team’s spirits, for they were ahead at half time, but eventually lost 3-2.

Said team captain and organiser Mzo Jama, “But hey, we had a good time and what an experience playing on that field! Hopefully it’s not the last time.”

Above right: Colleagues and friends came out in support.

Right: NUFC, the team.

Below: NUFC in full cry at People’s Park.

Don’t be a drip, change that washer Water is a scarce and valuable resource. Doubly so, during a drought.

So it makes good sense to save water both at home and at work. We can all start with fixing leaking taps or valves.

Here’s how you do it, according to Siya Nhlapho, Mechanical Student:

1

3

6

Put a new washer on; replace nut.

7

The mechanism looks like this inside.

4 Screw mechanism back into tap tightly.

Switch off your water mains. Switch on the tap. Some water will run out.

2

8 Use a spanner to unscrew the nut.

5

Remove the worn washer.

Leaving the tap in place, use a spanner to unscrew the tap mechanism.

Switch tap off and switch mains on.

Accidents hurt, safety doesn’t

7

Doing it . . .

H S E D for VI

hours at the 270 km in 2,5 d re ve co es raise funds employe ember to help ov NCP Alcohols N 4 1 on anisation. ss Relay non-profit org v a d KPMG Busine th Sa h es er Services for the Vid av, a Custom d th for treatment Sa y le sh son of A Videsh is the CP Alcohols.

N t gkinâ&#x20AC;&#x2122;s Controller a fighting Hod n ee b s ha e. After youngster than a decad e or The brave m r fo , er also type of canc radiation and y, p ra he Lymphoma, a ot em longer tments with ch at he could no th ld countless trea to s a w new but nsplant, he ts. Recently a en tm a stem cell tra ea tr l na ded, the conventio was recommen SA U e go for any of th om fr Vedotin treatment Brentuximab of es cl very expensive cy 2 1 ÂąR1,6 elieve that drug will cost e Th and doctors b . on si is esh in rem could put Vid e were nine million. e relay; ther th in e d te a ip rtic g teams of thre Sixty staff pa nd five walkin a , le p eo p e of fiv running teams ct info@ people. onate, conta d to or n Videsh on formatio llow or Like For more in Fo o ls a n ca m. You ncpalcohols.co Facebook.

8

Safety begins with teamwork

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