Laduma Q1 2012

1st Quarter 2012

LADUMA

Cogen – NCP now exporting electricity – page 3 B-BBEE – the pressure is on – page 5

ONE TEAM - ONE GOAL !

MESSAGE FROM THE MD The first quarter of the year has started better than last year with production volumes for the first two months up by 52% on 2011; improved planning and utilisation of imported raw material has resolved the production constraints that plagued the first half of 2011. In conjunction with this we are enjoying much improved supply consistency from our sources of traded alcohol both in India and Brazil and as a result have moved from the continual short position of 2011 to one where we are currently long on product and need to drive the sales efforts robustly.

The 2012/13 sugar cane crop forecast is not yet finalised, but forecasts from our main sources are erratic and indications are that supply could be well below the original estimates upon which the budget was based. If this becomes a reality, we will increase our imports to ensure maximum production, but the continual under-achievement on targeted South African cane recovery means that we must carefully consider our long-term supply assumptions and assess a broad range of alternative options.

A key area of focus during this year will be the development of internal structures required to fully support the growth targets of the business. NCP has traditionally operated with relatively integrated production and sales teams, and although we created separate operations and commercial divisions a few years ago I feel that we have yet to achieve the full benefit of this.

International sales, mainly to Africa, currently account for 66%

of our business and within five years this could rise to as much as 75% of total sales. In that scenario we expect that only 20 to 25% of these international sales will be sourced from the Umgeni factory. This growth in international business will be reliant on strong relationships with high quality alcohol supply partners, and increasingly complex logistics will be required to support distribution to the African markets.

To enable the best chance of success we must ensure that all of us in the organisation have a clear understanding of our primary responsibilities and that we have created clear unambiguous accountabilities to facilitate this.

Peter Starling

Tick that box Safety awareness is always reliant on constant visible communication and responsible behaviour, and this according to Lorraine Mudaly, Safety Health Environment and Quality Manager, is what keeps her and her colleagues on their toes.

Seen BELOW with the new OHSAS 18001 certification are, from left, Siphokazi Majozi, Preshina Pandarum-Moodley, Zinhle Mdadane, Carl Freyer, Lorraine Mudaly, Ace Govender and Gary Bregovits.

We constantly talk safety, at every opportunity. We address specific topics and we have started addressing our staff during communication sessions presented once a month by an executive committee member. The plant also boasts two new safety charts at the entrance which makes safety the numberone priority for staff and visitors.

According to Mudaly, serious incident numbers decrease remarkably when there is a constant flow of safety talk and “walk” whereby staff correct each other when their actions seem unsafe. Our longer serving staff have a responsibility to teach the new staff how serious we are about safe behaviour, says Mudaly.

NCP Alcohols recently received their OHSAS 18001 certification and was also successful with the HACCP surveillance audit that took place towards the end of February.

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SAFETY IS my RESPONSIBILITY

Front cover: Themba Nkonyeni, left, with Elaine Wilson (Marketing Manager NCP Alcohols) and Themba’s Granny, Nami Khandayo, at the Fulton School for the Deaf, near Durban. Full story on page 7.

Cogen: changing the skyline NCP Alcohols used coal-fired boilers for 140 years, from 1868 to 2008, but coal was about to be banished to history after the first discussion in 1996 to move to a cleaner power generating fuel.

The discussions that would start the beginning of the end for coal on site would not only reduce the environmental impact on the surrounding areas but also improve efficiencies and create additional energy savings.

It could be said that a new era dawned for NCP Alcohols on 23 February 2007 with the signing of a gas contract with a Sasol subsidiary, Spring Lights Gas. The excitement was great as this conversion from coal-fired boiler to gas would be the first of its kind in South Africa!

ments changed our systems to such an extend that by late 2009 the company embarked on the Cogeneration of Power (Cogen) Phase 1 project whereby we could export power to the local municipality. The turbine was “fully synchronization enabled” by 24 June 2011 and we were ready to export power on a continuous basis from January this year.

The power purchase agreement with eThekwini Municipality was signed on 7 February 2012 and we are exporting power continually, optimising the peak periods of 7 to 10 in the morning and 6 to 8 at night.

It took four years of planning from 2003 – 2007 and three specialist companies John Thompson, Alprets and Saacke, to design the changeover until Boiler 1 was commissioned in May 2008, followed closely in August 2008 with the commissioning of Boiler 3.

Moving Boiler 1 into the boiler house turned out to be a nightmare as the main roof support column had to be removed and, to make matters worse, calculations from three civil engineers indicated that it could not be done.

A solution was found in the end and with no more than millimetres to spare the new boiler was installed on Sunday, 17 February 2008.

A few months later the 46 metre high smoke stack for the coal-fired boilers (also used by staff as a food warmer) was removed, changing the skyline once again after 48 years.

The conversion proved to be even more efficient than was expected and the staff had much to learn as the gas boilers response was very quick, resulting in rapid response on the turbine alternator as well.

Now that we had highly responsive boilers, major improve-

Now that we are selling electricity to the municipality, our process controllers, like Ravi Govindsami seen here, are careful to do in-process cleaning only during off-peak hours.

Cogen phase 2 is the next step and once it is approved and implemented the company’s power exports could increase from 0,4 to 2,6 Mega Watt.

All these projects have been the catalyst for continuous energy improvements at NCP Alcohols involving all our staff. Due to the high cost of energy and above-average annual increases, energy improvements will remain a high priority at NCP Alcohols.

Opportunity 4 10

This year NCP is providing training for ten students from the Durban University of Technology, Mangosuthu University of Technology, and University of KZN. Seen with Preshina Pandarum-Moodley (Training Coordinator), middle row, second from left, are, front row from left, Thandeka Madonsela ( Analytical Chemistry), Alicia Chetty (Chemical Engineering), Priyanka Govender (Applied Chemistry) and Veruchka Kisten (Biotechnology); middle row, Dorain Donnelly (Instrumentation), Osborne Phiweyinkosi (Electrical Apprentice) and Manqoba Gumbi (Mechanical Apprentice); and back, Jacques Nel (Electrical Engineering), Prevaan Singh (Mechanical Engineering) and Gitesh Suruj (Analytical Chemistry).

ACCIDENTS HURT, SAFETY DOES NOT

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Molasses to be stored on site The construction of a molasses storage dam which will hold 14500 tons of molasses at NCP Alcohols is under way and expected to be commissioned during May this year.

According to Stephen Kitching, project manager, the dam is the result of converting three of our existing molasses tanks to CMS storage which will help the business deal with the seasonal demand for this product and make up the loss of tons of molasses storage during the CMS season. The dam also provides the company with a low-cost alternative for the storage of molasses.

According to Kitching who commissioned a similar project at the Umfolozi Sugar Mill on 15 March, the only constraint in building a lined dam is the land footprint required.

The size of the dam at NCP has been restricted by limited land availability to approximately 50 metres wide by 70 metres long.

Lined storage dams have been used for many years for the storage of water,

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We’re moving the earth to get our molasses storage dam ready by mid-May. but the rising costs for conventional tank construction have seen lined dams being used to store various products.

In recent years a number of lined dams with a floating roof cover have been constructed for molasses storage. The process involves the creation of a wellcompacted earth-walled dam. The base of this dam is then covered with a

MOBI FRIENDLY @ www.ncpalcohols.com Mobile surfing on our company website is now compatible with most mobile devices. A non-flash alternative was made available because quite a few of the mobile browsers including iPads were not able to read our webpage correctly. This is a full version of our site and not a mobi site and although the change will go almost unnoticed it will make a big difference for those who need to view our full site on their mobile devices.

TRAINING TOTALLY ROCKS!!!

Rakesh Moona, senior process controller at NCP Alcohols, RIGHT, displayed such enthusiasm for an opportunity to learn in a thank you letter to the company that we decided (with his permission) to publish his letter in Laduma as an inspiration to all of us to never take training and learning for granted.

“I would like to thank you for giving me the opportunity to act as a Shift Manager. It was good to be part of the team and I enjoyed working for the last few months being empowered. I would like to thank all the Shift Managers for accepting me as part of their team. I highly appreciate all the support and help they gave me when I needed it. In future and whenever you need me, I will always be there. Thank you, Rakesh.”

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BE SAFE, NOT SORRY

geosynthetic clay liner which provides a waterproof mat to protect an overlaying HDPE plastic liner. On top of this, a roof liner is attached. The roof liner consists of a series of weights and floats causing it to float on top of the molasses – forming a closed bladder. Rainwater that accumulates on top of the roof lining is collected in channels and pumped off using submersible pumps.

SAFER storage Storing product on site has become much safer after a firedeluge system and foam pourers for the storage tanks was commissioned during February. In the event of a fire the new foam system will be able to flood the bunded areas around the alcohol storage tanks in a matter of minutes. This is mainly due to the foam cutting off the oxygen supply to the fire, extinguishing the flames which will also protect adjacent tanks and property from fire damage.

Looking relieved after the commissioning are project members Blessed Luthuli, Dave Kemp, Bheki Bulose, Kelvin Timm and Dale Potgieter.

BEE info session held for suppliers e

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Seen below are NCP staff joined by some of their suppliers and the presenters from AQRate.

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The impact of the new BEE targets for year 6-10 which started on 9 February 2012 for Employment Equity (EE) and Preferential Procurement (PP) is substantial, and large businesses can lose up to 13.41 points, generally resulting in a two-level drop.

“These new targets have increased the pressure on all generic scorecard companies – and we are not excluded,” says Rodgers Niranjan, Procurement Manager for NCP Alcohols. According to Niranjan the company has new measures

in place to ensure that all its suppliers have a valid BEE certificate with a rating that meets the company’s procurement standards. Niranjan further confirmed the company’s commitment towards the transformation process at a BEE information session held in conjunction with AQRate KZN for suppliers, on 8 March 2012.

“We are just shy of our level 4 score which will give our customers a 100% procurement claim; business from

Brigitte Brun (AQRate) ... hand those BEE certificates in.

suppliers that will assist us in achieving that score has thus become a prerequisite”, says Niranjan.

New codes are expected and are in the process of being gazetted.

The core change expected is a more equitable breakdown for Management, Employment Equity and Skills Development. Enterprise Development is expected to become more “hands on”, requiring greater participation with the beneficiary.

SAFETY BY CHOICE, NOT BY CHANCE

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It’s good to be ALIVE The stories on this page show that we have to be vigilant all the time. We cannot be too careful. It is critically important to act safely 24/7 – not just while at work but off-site too – and to watch what other drivers are doing. Yes, NCP cares about you, and yes, your medical aid will be there for you, but the effects of an accident can be far reaching …

ROBBIE ...

KNOCKED DOWN

Robbie Taylor was riding home on his Harley-Davidson 1200 Sportster. He was jammed in the traffic along North Coast Road. Edging forward in the right-hand lane, a gap suddenly opened in the two lanes to his left, and a car shot out and crashed into him very hard. Robbie fell under the bike, and got badly burned by the hot exhaust pipe. Somehow he found the strength to get up and lift the bike.

Looking down, he realized his ankle had been broken on both sides and his foot was facing towards the back. He was actually standing on his leg bone which was sticking out – a scary feeling. Now, feeling some pain, he calmly sat down and someone called an ambulance. The ambulance eventually got through the traffic and the assistant, shocked that Robbie was not screaming in pain, gave him morphine.

At the hospital, a surgeon fitted stainless-

steel plates and screws. Says Robbie, “When I came round after the op, the first thing I did was look under the sheets to see if I had lost my foot. I had plaster and crutches, and went home after six days in hospital, but I had to have a second op and I was off work for three months, and I was immobile for six months. Being able to drive again was a great joy.

“Now, nearly two years later, I am slowly doing up the bike and am looking forward to a quiet Sunday ride with the Harley

NATHI ... KNOCKED DOWN

Nathi Zikhale gives thanks every day that he is all in one piece after being knocked down by a minibus taxi.

He was in Richards Bay for the weekend last July when he had a puncture and pulled off the road. He was calling a friend on his cell phone when suddenly he was hit by the taxi. He broke his right leg in two places and his left leg in one place; he also broke a rib which pushed on his liver, causing him to have to stay in ICU for 14 days – flat on his back. And then, when he came out of hospital, he spent three months in a wheel chair.

Says Nathi, “My right leg is not quite there, but I am improving.

I am sure it was just the power of God that saved me, and for that I give thanks. On 1 January, rather than go to the beach, I spent time in prayer giving thanks. I also would like to thank my colleagues for the support they showed during my days of suffering; May God bless them all.”

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Smart, Alert, Focused, Educated = SAFE

Robbie Taylor seen before the accident, on his bike delivering toys for the needy, as part of the ECR Toy Story campaign. crew. I’ve ridden a bike all my life, but now it is time to sell it.”

Although Robbie was covered by his medical aid, and NCP were “very understanding” he says he still suffered financial loss … and is still not fully recovered from the accident.

NCP supporting deaf learner

Front from left, Simphiwe Litiba, Amanda Mthembu, Boitumelo Kolla, and back, Ms JM Ramawtar - Deputy Principal, Mawethu Mgoboza, Miss S Maharaj - Computer Applications Technology Educator, and Reneil Raghoonanan.

Computers donated to neighbour school Schools in the Sea Cow Lake area, where NCP operates, are part of the company’s social development programmes.

This year Andre van der Westhuizen, business development executive, donated used hardware to the school consisting of three servers, four laptops, a DVD writer and a PC tower to the school. Perched high on a hill close to the plant, the high school is home to 1200 learners and 43 teachers each day.

According to Deputy Principal Jayshree Ramawtar, the learners excel in their learning thanks to a team of dedicated, no-nonsense teachers. The school had a 90% matric pass rate in 2011.

We’ve adopted Themba Nkonyeni, a final-year learner at Fulton School for the Deaf as part of their Adopt-a-child Programme to support less fortunate children. This programme funds all his schooling, hostel fees, hearing-aid equipment and pocket money until the end of 2012. Themba was born deaf and cannot lip-read but his warm smile and a crash course (from him) in signing helped when NCP staff paid the school a visit to meet the young man.

After meeting his gutsy grandmother in 2011 at a deaf concert paying tribute to former president Nelson Mandela, it was easy to select Themba who displays the same characteristics as his Gogo (Zulu pet name for grandmother) who supports Themba and a few family members on her wages as a domestic worker.

Just According to his principal, Beryl Campbell, after Themba is a determined and dedicated NCP young man with good leadership skills.

Alcohols Themba, who is also captain of the pledged their soccer team, will finish his last support to Themba, year at school with a trade disaster struck the which will help him family when their home secure work as an was completely destroyed in apprentice. a fire during December 2011, robbing them of all their worldly possessions. NCP’s pledge to support Themba was a great relief to Gogo Nami who would otherwise not be able to afford Themba’s school fees.

Young dancers looking ‘STICK’ All the youth projects by the FlatFoot Dance Company which NCP Alcohols co-sponsors in Umlazi and KwaMashu, started on 30 January this year and have been described as a success.

Project dancers have reported an influx of new learners and Laduma recently captured a visit by NCP Alcohols staff to the Siyakhula Project held at the KwaMashu sports hall. Everyone can visit these workshops – the dancers and children love an audience!

WEEKLY SCHEDULE • In KwaMashu, dance project SIYAKHULA takes place on Mondays and Wednesdays, 16:00 -18:00 at the KwaMashu Sports Hall.

• The Umlazi projects DUDLU NTOMBI and HHESHE NSIZWA take place on Tuesdays and Thursdays, 15:0017:00 at the M Section Community Hall.

For more information regarding this project, e-mail us on info@ncpalcohols.com.

Six, seven, eight … jump!

Seen warming up before the dance workshop are Tshediso Kabulu (Flatfoot), Prudence Gabela (NCP Alcohols), Jabu Siphika (Flatfoot) and Sifiso Khumalo (Flatfoot).

SAFETY AT HOME, SAFETY AT WORK

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Sandwiches for 60 in 6 easy steps

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RIGHT: Every Friday, Mpume Sello, manager of the canteen at NCP, left, and Sthembile Mthembu, comme chef, make cheese-and-tomato sandwiches for 60 needy schoolchildren that NCP Alcohols supports at Kenville Primary School.

Mpume loads the sandwiches into her bakkie at NCP, RIGHT, and takes them to the school, BELOW.

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Mrs R Saikoolal rings the bell for break time.

ABOVE CENTRE: Seen receiving the sandwiches from Mpume Sello on behalf of the children at Kenville Primary School are Mr KV Kassie, Principal, Mrs R Saikoolal, Deputy Principal, left, and Mrs R Sarup, a teacher.

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RIGHT: For some, this is the only meal of the day.

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SAFETY RULES ARE YOUR BEST TOOLS