MESSAGE FROM THE MD Following the strong start to the year in quarter 1, volumes to the international market slumped during quarter 2 as a result of slowing demand in Africa and aggressive price cutting by Indian suppliers into the region. In India a combination of a good sugar crop, weak Rupee and delayed mandatory fuelblending programme supported strong direct competition via numerous traders from Indian producers who historically have been somewhat removed from the African market. The export market is however showing signs of recovery during quarter 3 and local demand has remained strong throughout the year. Fixed costs have been well contained during the year and must remain under constant focus as a key component of the margin recovery programme that is required to mitigate the dramatic increase in raw material cost experienced over the past two years as a result of the continued poor local molasses supply and high level of imports. The benefits of the AX ERP system are finally starting to be seen with the rapid detailed analysis of recent business activities highlighting areas for improvement and raising questions about some long-held assumptions. The continued use of the powerful analytical capabilities of this system will enable us to further fine-tune our business processes and activities for optimised performance.
The increasingly complex nature of our supply chain and the logistics required to supply the African market were identified as areas with significant potential for improvement through better planning and more focused allocation of resources. The implementation of initiatives to support this will commence during quarter 4 2012, with the financial benefits expected to be realised over a three-year period commencing next year.
Peter Starling
Excitement at distillery upgrade The upgrade of the distillery in the potable section is NCP Alcohols’ largest and most complicated project since the distillery expansion in 2005. The project is being managed in-house by Stephen Kitching, Process Engineer, and commissioning is planned to take place during May 2013. The upgrade will see the existing five small potable columns replaced with one large 73-tray column, and the demeth column replaced with a brand new topping column. The recovery column will be scrapped and the feed will be diverted to the recovery column at the top distillery, which will have a new, larger re-boiler fitted to handle the higher throughput. The wash column which was replaced in 2006 will remain as is. The new potable section will consist of three columns and will be re-instrumented and operated from the central control room. Some of the benefits of the project include reduced complexity, making the distillery easier to operate. The plant’s capacity is also expected to increase from 54 to 84 kl AA per day. The taller columns, combined with a twin re-boiler on the topping column, are expected to produce Extra Neutral Potable quality as the standard.
Stephen Kitching, Process Engineer and Project Manager, with Zwe Mbele, Operations Controller, Old Distillery, at the “bottom distillery”.
So far, all major mechanical items have been designed, tendered and orders placed; delivery is expected in the first week of December. Said Stephen, “This project is being led and managed by the company for the company, and the amount of teamwork and enthusiasm from the project team so far has been overwhelming, especially the initial procurement.” The high-calibre team is working together with one common goal: to commission during May 2013.
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