Laduma May 2023

May 2023

L A DUMA

In this edition

CHEERIO MARK pg2 PLENTIFUL PROJECTS pg4 HOPE & HEALING pg7 SECURING SUSTAINABLE HABITATS pg8

Message from the MD While plant production performance increased steadily during 2022 with September being the first month we achieved above 250kl average daily production, in December a step change was realized with average production increasing a further 20% to slightly above 300kl per day. This level of performance was outstanding and fitting realization of the key drivers of volume, quality and efficiency.

As luck would have it this dramatic increase in production coincided with a decline in demand from our traditional markets, the lag in supply negotiations and deep-sea logistics has required us to operate at below this maximum realized capacity during H1 of 2023. Various initiatives to develop new markets are nearing completion and we expect to again be able to ramp up to run at high rates for the second half of the year.

Peter Starling, Managing Director

This reduction in short-term demand has highlighted that the key driver of volume cannot outweigh the efficiency and quality drivers which remain critical irrespective of the volume produced, focus now is on producing a specific daily production target at optimum efficiency. The mindset that continual optimization is not purely measured in volume produced but also through maximizing efficiency applies not only to production, but all aspect of the business.

This requires us to consider everything that we do and how it can be done simpler and more efficiently. “The way it’s always been done” is the red flag we must question and challenge, is this the most efficient and effective way? There are multiple areas and activities where improvements can be made, where we can reduce the inherent friction that exists and which requires excess effort to get something done.

There are numerous examples in the world around us where all the available energy is used talking about a problem leaving very little for doing anything about it. Determining which activities which could be improved and made simpler is not necessary the hard part, identifying the changes required and implemented them thoroughly is where effort and commitment will be required by all of us.

“The way it’s always been done” is the red flag we must question and challenge...”

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CHEERIO MARK! Mark Norton-Amor, the financial executive of AlcoNCP, has retired after 25 years of dedicated service to the company. Reflecting on his retirement, Mark expressed a sense of calmness and fulfillment, having reached the end point of his career. He acknowledged that it's the people he will miss the most, as accountants merely record what happens while the true driving force behind a business lies with the operations, supply chain, and sales teams. Mark witnessed significant events during his tenure, including the Alco Group’s acquisition of NCP Alcohols and the expansion of production capacity.

One crucial project that made a lasting impact on AlcoNCP was the conversion to maize and the adoption of energy-efficient technology, solidifying its position as the largest and most advanced plant in Africa. Mark emphasized the importance of thoughtful decision-making and seeking guidance from experienced mentors. He also recognised the value of building long-standing relationships with customers, suppliers, and colleagues.

In his retirement, Mark plans to join his wife in Scotland and embark on a new chapter AlcoNCP, he views it as a "cheerio" rather than a final goodbye, anticipating future encounters with colleagues and returning to South Africa annually.

Mark expressed his well wishes for the company's continued success and looks forward to witnessing the future results of ongoing projects and value-added endeavors.

Cover: Seen on the cover of Laduma is Leeandra Sarjoo, Project Technician, left, and Shalini Naidoo, Process Engineer, right after commissioning the yeast propagation plant. This plant is significant in that it one of the game changers in 2022 that contributed to achieving higher beer strength, shorter fermentation times and higher production volumes.

Collaborating for Skills Development: AlcoNCP and Durban Chemicals Cluster's Public-Private Partnership

AlcoNCP is a member of the Durban Chemicals Cluster (DCC). This cluster is a public-private partnership established between the Ethekwini Municipality and the chemicals industry in Durban and the surrounding areas. As part of its commitment to supporting the DCC's Skills Development and Transformation program, AlcoNCP hosted the DCC and its members for a two-day training program in April. The training focused on the development of team leaders in Lean Manufacturing and 6-S, which is a methodology used to optimise workplace organisation and efficiency. During the training, the participants had the opportunity to learn about Lean manufacturing principles, which focus on minimising waste and maximising efficiency in production processes. They also received training in the 6-S methodology, which emphasizes the importance of workplace organisation and cleanliness to achieve operational excellence.

The training was highly interactive, and the participants were able to engage with the AlcoNCP team and learn from their practical experiences in implementing Lean Manufacturing and 6-S. AlcoNCP's commitment to supporting the DCC's Skills Development and Transformation program demonstrates its dedication to promoting sustainable development in the chemical industry in South Africa.

Independent and anonymous Whistle Blowers programme implemented We are excited to announce the engagement of Whistle Blowers (Pty) Ltd to provide an independent anonymous reporting channel for suspicious or unethical activities,, effective from June 1, 2023. This initiative is a direct response to audit requirements and further strengthens our commitment to fostering transparency, accountability, and ethical practices within our organization.

The Whistle Blower programme will operate alongside our existing internal reporting mechanisms which are underscored by the company’s 36 human resources policies (on SharePoint) and our open-door management policy which allows employees to report anything suspicious to their managers or a HOD. These channels have served us well, but we recognise the importance of providing an external avenue for reporting unethical or suspicious behaviour. To ensure a seamless transition, comprehensive training on the Whistle Blower reporting system will be conducted throughout the first three weeks of June. We encourage all employees to participate in these training sessions to familiarise themselves with the various reporting channels available. The Whistle Blower programme offers multiple reporting options designed to accommodate different preferences and ensure anonymity.

You can report concerns in one of the following ways:

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Toll-Free Number: Email: WhatsApp Chatbot & Call Toll-Free Fax: Postal: SMS: Online: Mobile APP:

0800 111 602 alconcp@whistleblowing.co.za 031 308 4664 0800 212 689 FREEPOST KZN665, MUSGRAVE, 4062 33490 www.whistleblowing.co.za Available on the Google Play and Apple App stores

Rest assured that your identity will be protected, and strict measures are in place to prevent any form of retaliation against whistle-blowers. Every report received through the Whistle Blower programme will be treated with the utmost confidentiality, and thorough investigations will be conducted.

We believe that by implementing this programme, we are taking proactive steps towards maintaining a culture of integrity and upholding the highest ethical standards at AlcoNCP. LADUMA

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Driving AlcoNCP’s efficiency and reliability It doesn’t take much to get AlcoNCP project engineer Lumeshni Govender talking about the projects aimed at improving the company’s efficiency and reliability. Lumi, as she is affectionately known, passionately shares the latest insight on these projects.

Effluent Project (Picture a) A flocculation process is being introduced to ensure our effluent treatment plant is more robust to cope with normal and upset process conditions. This involves directing two high solids effluent streams, Col521 spent feints and acid condensate, to the new process.

The former evaporation plant nitric tank will be used as a pH correction and coagulant tank in which vigorous mixing will occur. The buffer tank will be repurposed as the flocculation tank for solids settling and supernatant overflow to the effluent plant.

The primary benefit of the project is suspended and settleable solids reduction, however, the added advantage of COD reduction has also been observed. Aeration trials are in the pipeline to further reduce COD which will help to decrease effluent costs.

Water Security Project (Picture b) In 2022, there were several incidents in which the municipality shut off the water supply to the site. The production and power plant became very resourceful during those incidents in preventing plant shutdown, but operating under those strained conditions was not sustainable for long periods. The current breakwater storage tank is only 23kl and does not provide adequate operating time to run isolated from the municipality. This led to the Water Security Project in which Molasses Tank 3 was identified for conversion to water storage. This tank will provide AlcoNCP with 3-4 days of water storage, a massive upgrade from the current 14min storage. Over the past 6 months, the molasses tank was emptied and cleaned. Later this year the change-over will be done in making this tank the new breakwater tank. Not only is it a big advantage for production, but it is also important for safety as this water will also be used as a backup for fire water on site.

Upgrades to pumps 420, 425, and 562 during the recent shutdown prioritised pump reliability.

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Water Saving Project (Picture c) During the February shutdown, a modification was done to reuse cooling water as seal water at evaps. This is currently saving AlcoNCP 3000l/h in water and effluent. It is anticipated additional water will be saved at the cooling towers once critical instrumentation is automated and added to the DCS. This will allow operators to better monitor and control the towers.

Reverse Osmosis Project Reverse Osmosis (RO) is also being explored whereby waste streams from the distillation process, called spent feints, would be fed to the RO plant and cleaned up to demineralised water quality. A sampling campaign was launched in February with detailed elemental analysis conducted on the waste streams. Based on the results, technology providers have designed a plant bespoke to AlcoNCP’s stream quality. The feasibility of the project is being evaluated.

Degassing scrubber (Picture d) Degassing is very important for the distillery as it can affect product quality. Due to mash carryover in the degassing vapours from the beer column, degassing plate heat exchanger HTR515 would often experience blockages. As a solution, a degassing scrubber was installed and commissioned during the recent April shutdown. The degassed vapours now pass through the scrubber first where it is washed with alcohol, and then enters degassing heat exchanger HTR515. Positive results have already been observed since the project was commissioned as the desired degassing flow rates are now being maintained, indicating that the heat exchanger is staying clean.

Deaerator Loop Seal Water Recovery (Picture e) The deaerator is used to eliminate oxygen and heat the water that goes into the boiler. Before the shutdown, about 25 kilolitres of water per day were lost from the deaerator through the loop seal. However, during the shutdown, a change was made to redirect the excess water from the deaerator to the Ogden tank, which is then recycled back to the hotwell.

This modification allows for the recovery of approximately 25 kilolitres of water per day, which is heated to 85°C. As a result, it is estimated that this modification will result in annual savings of about R909,791.21 in terms of water, energy, and effluent.

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Teamwork lays the foundation for recent Shutdown “To produce alcohol cost-effectively, we need a reliable plant.”

This is the word from AlcoNCP engineering manager Morgan Murefu on how the super shutdown fitted into the broader strategy and vision for the company’s growth and development in the coming years.

“We don’t always get the opportunity to access the plant when all equipment is offline, so the time needs to be used wisely to address all the important work.”

According to Murefu, this shutdown has been the longest, lasting seven days.

“Previously most of our shutdowns have been in the region of five days, with the previous one driven by boiler three and maintenance works. The latest one however was affected somewhat by market conditions. We also didn’t work on weekends as we were trying to balance our costs by avoiding unnecessary overtime.”

The time frame for preparing for the shutdown was rather limited, says Murefu, as it was expected to occur much later in the year.

“Due to the market environment, the opportunity presented itself on short notice and this put pressure on everyone involved. We had to implement key steps to make sure it progressed on time. This included identifying jobs to be done, clarifying the scope with the various teams, preparing materials and resources needed, performing risk assessments and lockout procedures to ensure work is done safely, and scheduling the work to decide what will happen when.”

a The specific projects targeted during the shutdown were: 1. Replacing Boiler 3 and Superheater Tubes.

2. Modify turbine output control to improve reliability.

3. Three-yearly statutory inspection and testing of boilers.

4. Upgrading power factor correction equipment in the MCCs. 5. Install a steam separator to protect the turbine from wet steam damage. Murefu says no unexpected challenges or issues arose during the shutdown as all the appropriate safety protocols and measures were put in place to ensure workers’ well-being and the plant's integrity. He added AlcoNCP will now focus on other key priorities and initiatives as normal operations continue. “We are looking towards improving the reliability of the pumps, reviewing the stock holding in a structured way, and also improving the grid protection for the boiler house to avoid Metro-triggered plant trips.”It was wonderful teamwork from all the relevant departments that ensured the success of the super shutdown, says Murefu. “We didn't have much time, so it required everyone to spring into action. The engineering, production, and project teams all came together and we got organised to lay a good foundation. The whole team got involved and I really want to thank everyone for a good, super shutdown.”

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Class of

2023

Reaping the rewards of hard work AlcoNCP is extremely proud of our in-service training programme that for decades has provided students in various fields the opportunity to students to complete their studies and obtain their respective qualifications. Many of these students have gone on to become permanent employees with long-service records.

Laduma touched base with some students from the Class of 2023 to ask them about their time at AlcoNCP.

Bevan Govender - Quality Control Technician (Laboratory) “I completed my Bachelor of Applied Science in Biotechnology in 2022 at the Steve Biko campus of the Durban University of Technology. The work experience here at AlcoNCP has been fantastic and the two weeks’ rotation per section has enabled me to get to know the full workings of the plant.”

Keesha Singh - Chemical Engineering Intern (Projects Department) “I studied Chemical Engineering at the University of KwaZulu-Natal between 2018 and 2022, and even though it was challenging at the beginning, in the end I managed to complete my studies successfully. It has been an interesting experience at AlcoNCP and I’ve learned a lot from everyone in the projects department. Seeing how the different departments integrate to get the plant to work sustainability has been nice. I hope to be a part of companies that really drive sustainability and work towards greener solutions for the future.”

Khethelo Msani - In-service trainee (Electrical Department) “I have an Electrical Engineering (power systems) qualification from the Mangosuthu University of Technology.I have been fortunate to have great mentors at AlcoNCP, people like Lucky Ntuli and Logan Arumugam. This is a big company from the private sector and I feel lucky to have this amazing experience and to learn so much about maintenance and repairs.”

Thulasizwe Dludla - Quality Control Student (Laboratory) “I studied Chemical Operations Level 3 at the Institute for Quality. It has been a wonderful and fantastic time at AlcoNCP, starting a new job and meeting new people who have made it really easy to settle in. I must say that Ace Govender (AlcoNCP quality manager) has been the best mentor and teacher I could have asked for. Growing up, I always wanted to be a better version of myself, I wanted to think outside of the box, solve problems and come up with solutions.”

Thuthukile Madonda - Quality Control Student (Laboratory) “I have a Bachelor of Science in Applied Chemistry from the University of KwaZulu-Natal.

My time at AlcoNCP has been very informative and it’s been a great learning experience to see in practice what I learned in class.

The best part of the day for me is in the mornings when everything is still fresh and when the most work gets done. My advice to learners is to work hard every day and not stop. Also, make sure you don’t forget what you learn in school, everything can be applied in the workplace, for example, the periodic table, I still use it today.”

Lindani Buthelezi - In-service trainee (Mechanical) “I studied Mechanical Engineering at the Mangosuthu University of Technology from 2020 to 2022.

It’s been great working here and I’ve gained a lot of experience in four months with fantastic encouragement from other workers and employees. It has also been great to see what I’ve learned during my studies put into practice.”

Mbatha Ntandoyenkosi - Quality Control Student (Laboratory) “I studied Analytical Chemistry at the Durban University of Technology for two years, and this is my in-service training.

I have learned a lot about the plant and its production here at AlcoNCP. Rashina Munsamy has been a great mentor and I’ve learned a lot from her. All I can tell young students is to just work hard for what you want.”

Thembinkosi Ndawonde – Mechanical Engineering Intern “I studied Mechanical Engineering at the University of KwaZulu-Natal in Durban for five years, it was challenging but interesting at the same time. It required a lot of hard work and a lot of research, and asking a lot of questions, but it was worth it.

Lance and Morgan have been my mentors here at AlcoNCP. It’s been an amazing experience working at such a company, learning about different systems and working with different people.”

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AlcoNCP making chemistry cool with UKZN students' site visit AlcoNCP has always provided opportunities for tertiary students to see chemistry in action “in the real world”. Most recently, 57 second-year students of the University of KwaZulu-Natal's Applied Chemistry program had the opportunity to visit the company’s production plant where they experienced it first-hand. AlcoNCP employees Senzo Mtshali and Leeandra Sarjoo were their gracious hosts. According to Professor Brenda Moodley, Associate Professor of Analytical and Applied Chemistry, College of Agriculture, Engineering & Science School of Chemistry and Physics, the aim of these visits was to demonstrate to the students the application of chemistry on an industrial scale. “The visit helps them to link what they learn in lectures with what they can see on the plant, providing a better understanding of the theoretical aspects and how chemical reactions can take place on a large scale. It also assists with the understanding of the kind of environment they may one day end up working in and also seeing the importance of developing the correct laboratory skills.”

There is definitely an opportunity for further collaboration between the university and AlcoNCP, says Moodley. “The School of Chemistry and Physics has a good track record in research, and we would be very keen to collaborate with AlcoNCP on projects that would benefit the company and at the same time train postgraduate students in developing research skills.

We have collaborations with many other industries, and we would very much like to build a collaborative relationship with AlcoNCP.”Laduma asked a few students to share their thoughts about the visit to AlcoNCP and what they gained from the experience. Iqbal Ceza: “Everything was new to me since it was my first experience on a plant. After the plant visit, I am inspired to keep on trying no matter how hard it is to be in this field, to progress to a higher level and obtain a Ph.D. Being at AlcoNCP made us almost feel like we are already working there. Thank you for the time to allow us to take a tour of your plant.”Farai Sibanda: “AlcoNCP gave us a real insight into what it is to work in the industry and what we should expect.

They gave us an opportunity to talk to highly experienced people who work in the same field we aspire to work in. AlcoNCP gave us an amazing industrial trip. Our hosts were experienced employees who could explain all processes that take place at the plant site so clearly.” Sanele Duma: “AlcoNCP allows students to come and visit the site to give them a preview of the kind of work and setting they'll be experiencing as chemistry students in the future. I want to express my gratitude to the company for letting my classmates and me tour an industry. Being from a rural area, I was greatly exposed to a science world I was unaware even existed.”

Hope and Healing: The Importance of Funding Cancer Patient Support Programs The Look Good Feel Better Foundation is the only global non-profit organisation that provides support to men and women undergoing cancer treatment. Their workshops and programs aim to help cancer patients regain their confidence and self-esteem during what is likely the most challenging time of their lives.

However, without industry partners like AlcoNCP, the Look Good Feel Better Foundation would not be able to continue offering their workshops in hospitals for cancer patients.

It is through the membership and support of individuals and companies like AlcoNCP that the foundation is able to reach more patients, provide more resources, and make a real difference in their lives.

AlcoNCP's contributions, along with those of other partners, have allowed the foundation to continue its vital work, even during challenging times. Their membership fees have helped keep the foundation's doors open, ensuring that they can make a positive impact on the lives of countless patients and their families.

In essence, Look Good Feel Better relies on the generosity and commitment of its partners to provide the support and resources needed to help cancer patients regain their confidence and self-esteem. Without industry partners like AlcoNCP, the foundation would not be able to continue offering their workshops and programs to those who need them the most.

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Adopt-A-River Partnership: Turning over a new leaf The Adopt-A-River Eco Solutions project, sponsored by AlcoNCP, is a testament to the success of employing local community members to tackle environmental and water-related issues in their own backyard. The Fish Eagle team, the fourth dedicated river team in the Adopt-A-River family, has been working tirelessly to rehabilitate the river banks of the Umgeni River and to ensure that the area remains safe, secure, and sustainable for generations to come.According to Janet Simpkins, the director of Adopt-A-River Eco Solutions, the Fish Eagle team has been instrumental in the project's success, with their daily presence being a deterrent for unwanted behaviour.

“The team have worked tirelessly to remove alien invasive species from the river banks. They are opening up a trail to the green space in the hopes we can one day connect these beautiful green open areas. In addition, the team is responsible for waste management and sewerage monitoring, as well as monitoring and reporting illegal dumping activities.”Despite the challenges they face, such as the speed at which the alien species take hold and the scourge of illegal dumping, the Fish Eagle team has made significant progress in their work over the past six months and is slowly winning the battle, says Simpkins. With the financial and logistical support from AlcoNCP even more so.

“Having corporates on board is paramount to the success of the project. No sponsor no team. The financial contribution towards job creation and the environment has resulted in the success of the team's work and of the greater Adopt-A-River initiative as we aim to improve rivers and beach stretches section by section.”

According to Simpkins reaching the key goals and objectives of phase two for the Fish Eagles team and the Adopt-A-River Eco Solutions project will be made possible with the continued support of AlcoNCP. “This includes sectioning off areas and designing grasslands, butterfly and bee gardens as well as planting more trees along the banks. The roadside will also see some love with indigenous beauty set to improve and soften the outside of the property.”

The project has also had a personal impact on the Fish Eagle team members, helping them to develop new skills and a sense of civic responsibility, says Simpkins. The team focuses on taking knowledge gained at work home and sharing it with their community, promoting sustainable practices like recycling and responsible waste disposal.

They have also taken part in voluntary skills development activities through their affiliation with Grace Church, with sewing, business, and computer skills among the areas of focus.

Simpkins says the Adopt-A-River Eco Solutions project and the Fish Eagle team hope to leave a legacy of sustainable and thriving natural habitats along the Umgeni River.

“Our ultimate goal is nurturing a safe and beautiful green space everyone can enjoy. Being able to walk, cycle or picnic during lunch break in the knowledge that the environment is thriving around you. If we can create this one space as an example we are sure to spread this far and wide.”

EGG - Cellent Teamwork!

Logan Naicker, the egg-stremely enthusiastic Site Logistics Manager, and Nomsa Mabaso, the eggs-traordinary Shift Manager, team up for a cracking good time during AlcoNCP's Easter Egg handout! These dynamic duo are egg-static about spreading the festive cheer and making everyone 'hoppy' with their egg-cellent teamwork!

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Published by AlcoNCP (Pty) Ltd - www.alconcp.com