Laduma December 2013

December 2013

LADUMA

Volumes up – page 3 Master Chefs all – page 5 Excellence awards – page 6

Hamba Kahle Tata Madiba, May You Rest in Peace Nelson Mandela 1918 - 2013

MESSAGE FROM THE MD As the year draws to a close we can look back on one of NCP Alcohols’ more successful years.

While trading conditions have been tough in the domestic market and competition in Africa has remained strong, the improved local sugar crop and the weaker rand have allowed a recovery of margin, particularly in the export market. Sales volumes, while declining during the prolonged strike season, have shown good recovery in October and November and we have managed our stock holding and production better than in the recent past. Overall company performance has returned to levels last seen three years ago, prior to the major decline in the local sugar crop which constrained our raw material supply.

A number of strategic projects reached implementation stage during the year: the MidlandNCP joint venture was established in Ghana with the refurbished bulk storage facility being commissioned in October, the upgraded bottom distillery was commissioned in June resulting in a 10,000cbm increase in production capacity, an Operate and Manage Agreement for a future biofuel plant was concluded during the year and real benefit is being realised from the supply chain optimisation process. The combined Alcogroup focus on Africa with a common marketing approach being co-ordinated between NCP Alcohols, Alcodis and Alcotra has continued the growth realised in 2012 with sales volumes in Africa increasing

a further 16% this year.

The challenge we will face next year is to maintain this level of performance, it is unlikely we will experience a similar exchange rate variance and gas prices are increasing strongly as a result of NERSA’s approval of Sasol Gas’s Maximum Gas Price application. The size of the sugar cane crop will also be influential and we hope that it will at least achieve the levels of this season. Market conditions are expected to remain relatively constant with limited upward movement in prices. Increasing production capacity has come on line in a number of African countries recently and it remains to be seen whether the much anticipated Indian fuelblending programme will have any real influence on price or product availability

from that country.

The drive to remove cost from he business will continue as we search for further ways to create value, the supply chain initiatives will continue and structures to support our future O and M activities will be implemented during 2014.

I look forward to an exciting 2014, best wishes and happy holidays.

g

lin Peter Star

Ops Business Intelligence gets a lift Many advantages have accrued from the recently completed Alconet Ops Business Intelligence Rewrite Project. The project was driven by Zinhle Mdadane, Production Manager, who headed up a team of six, with assistance from Margie Pascoe and her team from Business Connexion.

Essentially, the project took the existing production software and rewrote it using later technology, and giving it a much better look and feel.

Explained Margie, “The previous application was storing a huge amount of information, which is now not necessary; this has resulted in cost savings. In addition, the new technology is better supported, faster and more user-friendly.

“Further, we have

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extracted information from Microsoft Dynamics AX, a production and financial application, and brought it into the new OPS BI system, giving a consolidated reporting view. Previously NCP Alcohols had to work in two places, so now the set-up is easier and faster – and mistakes are less likely.”

SAFETY is MY responsibility

Some of those involved were, from left, Zona van Schalkwyk, Gary Bregowitz, Louie Pillay, Margie Pascoe, Ace Govender, Logan Naicker, Zinhle Mdadane, Bilal Magid and Siphokazi Majozi; unable to be in the photograph were Kerwin Carpede and Vivek Bhagwan from Business Connexion, and Faizee Bodha from NCP Alcohols.

Cooking up a storm Front cover: Looking the part to perfection in our own NCP Alcohols Master Chef competition were Judy Somers, Lumeshni Govender and Vicky Singh. - See p 4 & 5.

Bottom distillery upgrade triggers production record A new production record for total alcohol was established in August: 192klaa/ day on average, which is a significant improvement on the previous best figure of 160 klaa/day.

Of course, the reason is the new bottom distillery which came on stream in July.

“But,” said Gary Bregovitz, Operations Manager, “it’s never quite that simple.

The increased volumes had to be sold too, as we have limited storage on- and offsite, and so congratulations should go to not only the production crew but to Sales as well since they were able to find buyers for the increased production.”

Zinhle Mdadane, Production Manager, spells out some of the other benefits from the new bottom distillery.

“It is now producing top quality ENPE

(extra neutral potable ethanol), and high purity extra neutral potable ethanol without having to slow down as previously. There have been energy savings too, due partly to the re-using of flash steam for preheating, and also to the new variable-speed drives which now allow the pump motors to run

more slowly and use less power at times.”

Safety bull’s eye

Marketing into Africa Volumes of potable alcohol sold into Africa this year have been encouraging, which reflects not only a shift in sales strategy but also a great performance from the people involved.

Sales into Africa are handled by Mark Immelman, National Sales Manager, who covers mainly Tanzania, Kenya, Uganda and Mozambique (as well as South Africa), and Franck Maubert, Export Manager, whose areas include mainly West and Central Africa, and the Indian Ocean Territories.

Explains Mark, “We have been more strategic in identifying key customers in specific countries, and we have been converting the relationships with these customers from what I call ‘shortterm opportunistic’ to ‘longer-term partnerships’.

“These strengthened relationships have resulted not only in increased sales, but it is pleasing to see that a steadier

Sma Mbonambi operates the bottom distiller from the control room under the watchful eye of Gopal Sooriah.

Mark Immelman, left, and Franck Maubert ... selling is their forté. order book has made our production planning easier; the net result is a more efficient operation.”

Says Franck, “Now that MidlandNCP in Ghana is up and running and serving as a platform for us, I am looking forward to exploring opportunities in the surrounding countries, especially Nigeria which has a huge market. We have made some inroads into Angola where the Alcogroup has taken up the bulk supply and we supply alcohol in drums. I continue to be excited about other African markets like the Democratic Republic of Congo, Sierra Leone and Liberia to name a few, and also re-establishing links with countries we have dealt with in the past.”

NCP Alcohols’ staff and permanent contractors achieved another safety target recently when they clocked up 370 000 injury-free hours in the year to November 2013.

Said Lorraine Mudaly, SHEQ Manager, “Congratulations to all involved.

To mark the achievement, we handed out drawstring bags to all staff and fixed-term contractors, but we need to be constantly vigilant and so next year the safety targets will be even higher.”

Lorraine Mudaly and Lucky Ntuli.

Be safe, not sorry

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MASTER

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Safety first, to last

CHEFS ALL

Every year, the irrepressible spirit that is so prevalent at NCP Alcohols takes life at an event and manifests in a way that is fun, uniting and uplifting; in a way that reminds everyone why NCP Alcohols is such a great place to work; and above all in a way that highlights and celebrates NCP Alcohols’ culture of professionalism through diversity.

In 2013, the day fell on 31 October, when seven teams competed for the title of NCP Alcohols Master Chef. South Africa’s own Master Chef, Deena Naidoo, was chief judge, assisted by Pume Sello and Andre ‘Mnandi’ van der Westhuizen. Turns out, everyone was a Master Chef, and the winning team was led by Nomvula Mgwaba.

Safety rules are your best tools

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Excellence Awards NCP Alcohols has a structured annual award system to recognise and appreciate individual and/or team excellence within the company.

The criteria include positive attitude, willingness to go the extra mile, and excellence in several categories: performance, dedication, innovation and quality of work. Awards were presented to the people shown on this page by Managing Director Peter Starling at a function on 6 December. Warm congratulations to the worthy recipients.

Zeph Mhlongo

Lumeshni Govender

Judy Somers

Louie Pillay

Rodgers Niranjan

Stephen Kitching

Shon Roopnarain

Petro Vorster

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Safety by choice, not chance

Bottom Distillery Upgrade Project Team, with Carl Freyer, Engineering Manager.

s d r a w a e c i v r e S g n Lo

anaging as hosted by M A luncheon w October Starling on 25 Director Peter ise and honour 2013 to recogn 15 years had completed employees who pany during ice to the com or more in serv ers and by their manag 2013. Joined alwarts mmittee, the st Peter the executive co ternoon while af d le fil nfu a enjoyed enings in time to happ took them back ar in ye ld during the ith NCP around the wor s their career w d te ar st ey th which of longimpressive list n, 30 years Alcohols. The ng 2013 is: der Westhuize ri n du va ds re ar nd A aw service

Gopal Sooria,

30 years

Alfred Ngema,

30 years

5 years

, 25 years

Zeph Mhlongo

Sue Stewart, 2

ne, 30 years

Wilfred Nguba

, 30 years

Rakesh Moona

, 25 years

Bongani Nkosi

ge Seen on this pa ts en pi ci re are the 0 3 d an of 25with year awards, ector ir D g in Manag Peter Starling. i, with Clarrie Mngad ice, 25 years’ serv be at to le ab was un the luncheon.

e, 25 years

Themba Gumed

ee, 25 years

Bala Padayach

Safety at home, safety at work

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Putting their best foot forward

Thirty-seven NCP Alcohols people ran or walked 5 km in the interests of promoting health, well-being and team spirit at the KPMG Business Relay in November.

Here’s the proof ... it really was a lot of fun for all.

ACTION at NCPA on HIV/AIDS Day

On HIV/AIDS Day, Lindy Zungu, marketing assistant and Thandeka Mbatha, SHEQ development trainee, performed a role-play during Tune Me, the company’s interactive communication session between the executive committee and employees. The play demonstrated the dangers of risky behaviour and the challenges the youth face in fighting the HIV/Aids battle. The play was concluded with the reading of the following poem by Zungu:

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HIV A door carelessly open, when passion and lust met and when no protection was on It comes in unseen to sit. When in man’s life it lives, there’s no hope of its leave- As the sun can’t part from the sky, So shall it stay. Many will surely die From it ‘cause there’s no way Through which they will be saved. HIV respect no man alive or dead; Rich or poor; Owner of one million dollars or one cent. Always waiting at the door Ready to come when a man and a woman is spent. Money prevents it not; Fame prevents it not Neither do drugs But ABSTINENCE! It does not show on the face But it destroys the body bit by bit. You and I must rise And fight this monster till it rises not!

Posted by: Medemaku Ceylomeh Lawrence on: http://www.voicesofyouth.org/en/posts/ poem-on-hiv

Stop, Think, Recycle

Voluntary Testing and Counselling (VCT) was performed at NCP Alcohols by eThekwini Municipal Health Department personnel on 4 December 2013 as part of the company’s annual HIV/Aids Day commemorations. VCT is encouraged for all employees, visitors and contractors in order to create a greater awareness around the global drive to get to ZERO new infections by 2015.