Laduma September 2015

September 2015

LADUMA

ONE TEAM - ONE GOAL !

MESSAGE FROM THE MD Heading toward our peak sales period it is worth reviewing performance for the year so far. Sales volumes are level with last year although the sales mix has changed significantly. The sugar industry drought is as bad as expected and the related molasses supply issues have resulted in NCP Alcohols’ production being well down. However, supplies from Mauritius and Brazil have been good with the result that while sales of our own production are down by almost 20%, traded sales have increased 54%. As expected margins have suffered with the exceptionally high cost of imported raw material, but it is pleasing to see that other operating costs are being well controlled.

The impact of the low oil price on the economies of West Africa is clear to see and sales to that region have declined slightly following the phenomenal growth experienced over the past few years. East Africa did not suffer as badly, as their economies are not dependent on oil, but recent government interventions in Kenya intended to reduce levels of illegal

liquor production were initially poorly implemented and have impacted on all alcohol trade there. Indications are that a more targeted approach is now being developed and legitimate trade should recover quickly.

The change in supply and sales mix necessitated by the poor local sugar crop has brought new challenges and increased the complexity of our business, but at the same time has caused us to question some long-held assumptions and we are adapting accordingly. The initial findings of the project team tasked with developing alternate raw material and production options for NCP Alcohols are promising, and the team is on track to present its recommendations to the Board before year end.

In a difficult year it is worth reminding ourselves to focus on those aspects of the business we can control, get the basics right and support each other to perform to our maximum potential.

Wearing PPE is essential

Personal Protective Equipment (PPE) is there, as the name suggests, to protect our people and contractors on site. “But,” as Lorraine Mudaly, SHEQ Manager, says, “the trouble is that some people are not wearing all their PPE. “Yes, we understand that for example when working at a height it is a bit inconvenient to keep on clipping your harness on and off, and it can get in the way, but the alternative could be a lot more inconvenient ....

“And of course you are legally obliged to wear the correct PPE which we supply. If people continue to flaunt the requirement to wear PPE, they could end up being legally charged – and/or disciplined.”

NCP Alcohols wants all its staff and contractors to go home healthy at the end of their shift or day. You can help to make it happen by wearing the correct PPE.

Safety Representative Allan Pillay kitted out in the full set of Personal Protective Equipment necessary for him to work safely.

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lin Peter Star

PPE is there to prevent injury - Ashika Jithoo

Energy giants set to reduce CO2 emissions The bio-refinery Alco Bio Fuel (ABF) and the industrial gas suppliers Messer Benelux and IJsfabriek Strombeek are joining forces to reduce CO2 (carbon dioxide) emissions in Belgium.

Together they are investing 15 million euros in a brand-new carbon dioxide ´recovery unit´ at Alco Bio Fuel in the Port of Ghent. In about a year from now, this new unit should be operational and will recover and process no less than 100,000 tonnes of green CO2 each year.

This CO2 is released when ABF processes biomass into bioethanol. This biomass is organic material that produces (amongst other things) electricity and biofuel. After treatment in the new unit, the CO2 can be re-used in the food and drink industry, in water purification, for refrigerated transport or as a chemical source.

100,000 tons less CO2 emissions per year The new installation in the port will require a joint investment of 15 million euros. The installation recovers and purifies the CO2 gas released during the ethanol fermentation process and converts it into a liquid. Result: a reduction of CO2 emissions by 100,000 tonnes per year. To obtain the same

effect with, for example, solar panels compared to fossilfuel electricity production, you would need a surface area of 2 000 000 m² of solar panels. Not only does ABF thus reduce the CO2 footprint of bioethanol, the company can also significantly expand its product offering.

This is not the first initiative of Messer Benelux and IJsfabriek Strombeek in this field: five years ago the two gas companies invested in a ´recovery unit´ for CO2 on the grounds of Ineos in Zwijndrecht. There, too, 100,000 tons of CO2 are being recovered each year.

Carbon dioxide creates bubbles in soft drinks, is used in the purification of drinking water and constitutes an alternative for the aggressive acids that are used to neutralise waste water.

The solid form of CO2 is dry ice, a well-known refrigerating and cleaning agent.

On the cover

Team NCP Alcohols revamped a science laboratory at a nearby school in honour of Madiba on Mandela Day in July. See pages 6 and 7 for the story and photographs.

New drum-filling machine brings benefits An ultra-sophisticated machine has been installed to fill 250-litre drums with ethanol. The Profill machine was installed on 7 April 2015 at the Logistics shed and delivers a productivity rate of 40 drums an hour.

Says Process Technician Lumeshni Govnder, “With a filling pump upgrade in progress, we will soon see greater productivities being delivered. And happily, the new drumming machine will save the company R640 000 per year thanks to the high level of filling accuracy, leak collection and recovery.”

In the near future, the drumming machine will be relocated to the empty drum storage shed to allow for the more efficient movement of drums and safer NCPA roadways for all.

Seen with the new filling machine are key project roleplayers Logan Naicker and Lumeshni Govender, with ace operator Kenny Pillay.

It’s safer to wear proper PPE - Zwe Mbhele

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The Life of an ‘Alcoholic’

Hartmut Nowak seen with his wife Marietjie Nowak, Peter Starling, Mark Norton-Amor and other close friends and colleagues.

Peter Starling and wife Gwyn hosted a ‘Sophisticated Affair’ on 8 July in honour of Hartmut Nowak, distinguished gentleman, colleague and friend, as he concluded 23 years of service to NCP Alcohols and Alcogroup.

Here, Hartmut reflects on his working life ....

My interest in alcohol dates back more than 60 years when I, as a young man, simply enjoyed the occasional beer or glass of wine.

I got more seriously involved when I came to South Africa in 1971, after working in the Far East for 10 years.

I asked Natal Cane By-Products (now Illovo) whether I could sell their ethanol to Singapore, Hong Kong, the Philippines and some other markets in the area. They agreed, and regular but relatively small business resulted over a number of years.

In early 1993 I got a call from Philippe Meeus. He asked whether I knew anything about ethanol and whether I had any contacts with SASOL. As I was already exporting various products for SASOL to the Far East, it was easy for me to add ethanol, which they until then produced only for local blending with petrol by the refineries.

I found out, however, that SASOL had been sitting on about 20 000mt of ethanol in Durban for a couple of years, which they were unable to sell for fuel blending as the product was off-spec and had a horrible smell. They gave me a good price, I believe it was $18c/litre, and Philippe decided to buy the entire stock for export to Brazil and blending with good quality Russian ethanol there.

Everything went according to plan but when the blend was sold at the petrol stations in Brazil, the smell turned out to be obnoxious! Newspapers were reporting that the ethanol from South Africa might be causing cancer. Obviously some people had been drinking the clean Russian ethanol bought from the petrol stations. Eventually the situation calmed down.

Later, when SASOL was able to supply good quality ethanol, we ended up selling regular shiploads to Brazil for a number of years, until Brazil managed to produce enough

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ethanol from sugar cane and imports were stopped.

Subsequently I developed exports in bulk to Europe for the ALCO Group on behalf of Royal Swazi Distillers, USA Distillers as well as NCP Alcohols. It was late 1999 during discussions with Peter Starling that we contemplated the possible purchase of NCP Alcohols by the ALCO Group from DOW Chemicals.

About nine months later the child was born, and the ALCO Group became the proud parent of what the Government Gazette mistakenly called “NCP ALCOHOLICS (PTY) LTD”.

The Group decided that I should become a Director and develop the export business, starting 2000. This was the beginning of my illustrious career involving travel to many countries in Africa and Asia on behalf of NCPA. A highlight was a visit to Yemen, where we still do regular business. I shall never forget the client picking me up from the airport in Sanaa dressed in a white dishdash and suitable headdress – with a huge traditional curved sword tucked into his belt; I thought it would perhaps be used to cut my throat if negotiations were unsuccessful.

From the airport it was a trip of about five hours over impressive mountains to reach the client’s office. The journey included the chewing of qat, a mild narcotic, which helped to cope with the hazardous road.

Meanwhile, a successful export business was developing and in the last eight years, it grew beyond NCPA’s export availability. The opportunity thus arose to trade in ethanol and purchase support volume from various African distilleries. As, however, availability was limited and unreliable, we started looking overseas.

In a first attempt to secure new sources, Elmarie Tack and I travelled to China and visited half a dozen distilleries – only to find out that the quality did not nearly match NCPA’s. At that time, however, a new source opened up when Indian suppliers came onto the market – some of them with good quality and competitive pricing. Annual visits to India followed and valuable relationships were formed.

Nevertheless, the business climate has become extremely competitive over the last year and it seems the time has come for me to let the younger generation give it a bash.

So the circle is closing and I am going back to where I started: enjoying the occasional beer or glass of wine.

• Franck Maubert and Rodgers Niranjan have taken over Hartmut’s various portfolios.

All the money NCPA spends on safety is to keep us safe - Errol Murran

Bigger expo stand draws the students NCP Alcohols had a big stand at the World of Work careers expo held at the Durban University of Technology in August – and more than 700 applications were received from students.

Said Lumeshni Govender, “This year the WOW was bustling with potential new recruits looking for in-serve, apprenticeships, bursaries and employment. Students and graduates showed a lot of interest in our in-serve vacancies and NCPA as a possible future employer. Over 1000 new profiles were created on NCPA’s career site.

“NCPA’s stand truly had the WOW factor – it was bigger and better than previous years! We had a laptop available to assist students with their online registrations and we had a ‘movie theatre’ in which we showed short clips of NCPA’s process, and interviews with employees.”

Afterwards MD Peter Starling wrote, “Hi Lumeshni and all others involved, Thank you for once again representing NCPA so well at WOW; having enthusiastic people involved in the process of projecting the image of NCPA to potential talent is the best possible way to attract interest. While on the one hand there are many job seekers out there we need to make sure we create interest amongst the cream of the crop, and their impression of NCPA’s culture is critical in doing so.

Lumeshni and Petro, you have really taken this initiative and turned it into something special for NCPA; this is a prime example of how attitude and ownership achieve outstanding results, thank you.”

Riolyn & Senzo pass Chemical Operations exams Congratulations to Riolyn Moodley, left, and Senzo Makhanya who recently passed their Chemical Operations Controllers Level 4 exams.

Said Siphokazi Majozi, “This is a win-win, because we have produced two competent people who now have marketable skills; Riolyn has received a permanent appointment and is working in the Boiler House at NCP Alcohols.”

That’s the way ... Kerusha Pillay, Lumeshni Govender, Ivanya Gengan on the right interact with students Geraldine Dzinoreva, Colen Mokoena and Laura Murigagumbo at the bigger and better NCPA stand.

You protect yourself when you wear PPE - Lucky Ntuli

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T

here’s nothing quite like a challenge to motivate Team NCP Alcohols and so, with Mandela Day coming up, NCPA took on the revamping of a science laboratory at neighbouring Sea Cow Lake Secondary School.

Bala Padayachee, whose hobby is doing built-in cupboards, took the lead. A week before the big day, he and a group of dedicated students pulled out the old cupboard units, installed new ones that Bala had made up over a weekend, and did some painting and electrical work. On 15 July, a large group of NCPA people descended on the lab, and within about 67 minutes transformed the place with their paintbrushes and rollers.

The photographs on these pages tell the story of the day.

The last word goes to the students and others who did the preparatory work. Bala called them The Design Team; they are: Ivanya Gengan, Jacqueline Chetty, Kerusha Pillay, Denton Marimuthoo, Siyabonga Nhlapho, Brendan Pillay, Neloshen Naidoo, Judica Somers, Lumeshni Govender, Tanner Wareham and Claire Duncan-Brown. Later they wrote to Bala as follows: ‘We want you to know that what you have done for Sea Cow Lake Secondary is just phenomenal ... in our hearts, we know that without you none of this was possible ... you guided this entire project to the success it was ...you put up with our moods and frustrations, and still helped us ...it wasn’t an easy task, but with your lightness and positive demeanour, you always kept us focused... the school, the kids... Their lives already look brighter because of you ... so thank you thank you thank you... we love you and hope all of your efforts return tenfold to you ... hugs and smiles ... your awesome sauce Design Team!’

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Mande School l

PPE is there to reduce our exposure to hazards when engineering controls are not efficient at reducing the risks - Ivanya Gengan

ela Day 2015 lab revamped

Wearing gloves in the laboratory protects us from corrosive chemicals - Nozipho Luvuno

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Zinhle Mdadane, left, and Bongani Nkosi at the new heat exchanger.

Aerosol system gets revamp Our ageing aerosol system has given us excellent quality alcohol over the years, but it was time we enhanced the system with some energy-efficient means to place it on a par with the rest of the plant.

We recently equipped the aerosol column with a plate and frame heat exchanger that serves two purposes – it cools the product, and preheats the feed.

This not only solved our product pump net positive suction head challenges, but also allows us to reduce our steam usage through energy recovery, and to save at least R30 000 per year.

Bottom distillery: steam usage optimised Greater understanding and closer attention paid to the operation of the bottom distillery recovery column has allowed us to optimise the steam usage.

The column would typically consume steam at 1000 – 1400 kg/hour.

Process monitoring and optimisation has allowed us to reduce the steam flow to 800 kg/ hour.

Vicky Singh and Siphamandla Buthelezi with the upgraded plant at the bottom distillery.

A reduction in steam of 600 kg/ hour will generate savings of >R1.1 million per year.

Vicky Singh and Siphamandla Buthelezi with the upgraded plant at the bottom distillery.

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PPE is there to keep yourself and others safe - Jacqueline Chetty

Marketing product out of Mauritius A joint venture between NCP Alcohols’ holding company, Alcogroup, and Omnicane, a Mauritius-based distillery, has recently provided NCPA with a first-time opportunity to market alcohol directly out of Mauritius to Diageo.

In order for Diageo to award NCPA the opportunity to supply alcohol out of this distillery, certain initial processes needed to be completed.

Through numerous visits to the distillery Lorraine Mudaly, SHEQ Manager, provided Omnicane with the expertise and guidance to improve their plant systems in preparation for an audit that was held in July.

Ultimately, the distillery was audited and, with the new im-plemented systems and the improvements in the quality of the alcohol, the distillery was expected to be Diageo “approved� by the end of August.

Lorraine Mudaly and Mark Immelman, back row second and third left, seen at the Omnicane plant in Mauritius with local personnel.

Training boosts those EE skills

The Training and Employment Equity (TEC) Committee and Management recently attended a training session on the amendments to the Employment Equity Act, keeping them up to date on the legislative changes. Seen at the session are, from left, Carl Freyer, Christine Naidoo (Facilitator from Labour Net), Matthews Dubazane, Lumeshni Govender, Ace Govender, Siphokazi Majozi, Fanelwa Lingani, Lorraine Mudaly and Lindelwa Zungu.

PPE is to be used on site, but ensure it is used correctly - Kelvin Timm

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Logan Govender, left, and his daughter Caitlin.

Showing gratitude for all the support Grade 6 learner Caitlin Govender is an achiever, both academically and in sport. She was the top pupil at the Chatsworth Edu-Fair 2015 with a string of firsts, she took gold in a maths amesa which involved 55 schools, and she has a host of swimming awards to her name.

And she knows where she is going: to medical school, and later to specialise as a paediatrician.

And not far behind giving support are her proud parents, Logan Govender, Utilities Controller, and his wife Michelle. Says Logan, “Yes, Caitlin is our number one priority and life on that level is great, but we have had challenges.

“Soon after I joined NCP Alcohols in 2008, I got a serious dose of swine flu and for a while it was actually touch and go. But through it all, through all the sick leave even though I was new, NCPA were most supportive and stuck with me. I wish to place on record that we are extremely grateful to NCPA and to Gary Bregovits in particular who, on occasion, has been like a father to me. Also to Peter Starling for being there for us all.”

A proud moment

Karicksha Moona, daughter of Rakesh and Usha Moona, recently graduated with a Bachelor of Commerce degree at the University of KwaZulu-Natal. She is seen here with her brother Kavish – and her proud Dad and Mum. We wish her success in the future.

Focus: correct cabling Housekeeping means cleaning up scrap and debris, putting it in containers, and making sure the containers are emptied regularly. It also means proper storage of materials and equipment. Effective housekeeping and storage prevent accidents and injuries.

How can we prevent accidents and injuries?

Let’s focus on items running across walkways like electrical cables and hoses which can and do cause countless falls in all types of work settings. The tendency is for someone’s foot to become entangled in the cord, not only causing them to trip, but often bringing expensive equipment like computers crashing to the floor next to the injured employee.

Cord strips can prevent tripping as long as the strip itself is lying flat or is secured to the floor. For carpeted surfaces, a Velcro strip can be used to secure the cord tightly to the carpet.

Or, lay a rug or piece of carpet over the cable.

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Someone could entangle their foot this pile of cables, right, under a table and trip when getting up.

Housekeeping Tips:

1. Clean up as work proceeds.

2. Keep equipment and the areas around equipment free of scrap and debris.

3. Keep stairways, ramps, and other travel areas clear.

4. Store material so that it won’t roll or slide.

PPE protects you from oil spills, chemicals and getting burned - Andile Dlamini

A part of the garden at Sea Cow Lake Secondary School was replanted in commemoration of Mandela Day by Umvubu Services, under the supervision of Sarah Stott.

Seen on a return visit to the garden are, from left, Muzi Mbele, Basil Vezi and Langalinye Ngcobo.

Exceptional work rewarded At a recent Tune Me session, NCP Alcohols thanked each of the Mandela Day volunteers that worked relentlessly in advance of the actual Mandela Day to prepare Sea Cow Lake Secondary School’s science laboratory. Each one was awarded a Mandela Day ‘Hero Medal’ for their excellent team spirit and dedication to the company.

Mandela Day ‘Hero Medals’ went to Bala, Ivanya, Denton, Kerusha, Siyabonga, Brendan, Neloshen, Jackie, Judy and Lumeshni. Prudence, Rodgers and Ace were also awarded medals for their support as managers and for procuring the labour and goods.

Lying on a CV is a DISMISSIBLE offence Qualification fraud has taken South Africa by storm. From 2009 to 2014, lies on Curriculum Vitaes increased by 200%.

But what many cheaters do not know is that this is a dismissible offence, and employees found to have lied on their résumés stand to lose their jobs.

To ensure NCP Alcohols only takes on honest and reliable individuals, the company makes use of a reputable agency to verify all qualifications and the authenticity of documents submitted with job applications.

If that does not discourage job seekers from lying, the South African Fraud Prevention Service recently warned persons committing CV fraud that they could face jail should employers choose to prosecute.

The Prevention Service’s Carol Mcloughlin emphasised lying on the document is a criminal offence and perpetrators could end up with criminal records.

Last year, 1751 cases of employee fraud were listed on the unit’s fraud database.

PPE protects you from anything that can happen - Aubrey Mbeje

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Tune Me Allan Pillay is congratulated by André van der Westhuizen on losing 3,2 kg in weight during July as part of the company’s Big Loser weight management and healthy lifestyle programme. Those who lose the most weight during the month receive a small prize to encourage them to persevere with their healthy weight loss and exercise regime. Each month the biggest loser stand to win. The final weigh-in for participants in the BMI Big Loser competition is Monday 26 October and Wednesday 28 October 2015.

the two One of day cakes th 60th bir presented e r e that w irthday ‘b to the ne t the Tu boys’ a n. sio Me ses

120 years

between them Two members of EXCO recently celebrated their 60th birthdays: Gary Bregovits’s birthday was on 4 August and André van der Westhuizen’s was on 1 September.

Their birthdays were celebrated as a surprise at the end of the recent Tune Me session, and each received a cake in the shape of a ‘60’, and a thoughtful gift.

Gary Bregovits, left, and André van der Westhuizen with their gifts.

MD Peter Starling feeds into the monthly Tune Me staff meeting held at the end of August.

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PPE keeps you fully protected when unusual events occur - Carl Freyer Published by NCP Alcohols (Pty) Ltd www.ncpalcohols.com