Laduma September 2023

L A D UMA

In this edition

ISCC ACCREDITATION pg3

MONDE GOLD AWARD pg4

COMRADES MARATHON HEROES pg6

NELSON MANDELA DAY pg8

Message from the MD

The various initiatives taken to develop new markets following the below expectation sales of the first half of the year are bearing fruit and August 2023 was a historic month for AlcoNCP with both production and sales volumes the highest in our history. This is an outstanding performance and a result of the exceptional effort and contribution of all at AlcoNCP. The sustained high production and sales performance is clearly filtering through to operational efficiency. Focus has always been on optimising production efficiency irrespective of the volumes produced, but the high production of August has also delivered the best-to-date conversion efficiencies.

I referred to the concept of continual optimisation not only applying to volume but to all aspects of the business in my last message of May 2023 and how “The way it’s always been done” should be the red flags we must question and challenge. Some initial activities and changes have been identified and are being implemented, as expected this is where effort and commitment is required by all of us. We understand the concept of efficiency as applied to plant operations and production, where it may be less obvious is in the team environment and on the personal level. The question to be asked is are we operating as efficiently as we could be, as individuals and collectively, are we just talking about opportunities for improvement or are we doing something about finding simpler and more efficient ways of getting things done?

The process of change, of undoing past habits and practices, of implementing new processes and procedures is always going to be uncomfortable, it will not necessarily go as smoothly as we would like. We should be cognisant of this and adapt as required taking account of the feedback received. The one thing we should not do is stop because it is hard, disruptive, and makes us feel vulnerable and uneasy. It is understandable that many may be tempted to cling to the past however it’s essential to recognise that change, despite its discomfort is a catalyst for personal and collective growth. Embracing change, despite its challenges is the key to unlocking our full potential and creating our optimum future. Consider our August performance, think back to when AlcoNCP was processing molasses and you’ll understand the progress that change delivers.

Cover: Celebrating the company’s good results after the recent Integrated Management Audit (IMS) and Food Safety System Certification (FSSC) audit , are members of our production team. From left to right, Simangele Ndlovu, process operator, Siphokazi Majozi, production coordinator, Namani Myende, field operator and Arthur Ndaba, shift manager.

AlcoNCP's Remarkable Journey to ISCC

Accreditation: A Tale of Collaboration and Commitment

Members of AlcoNCP’s procurement team, Rodgers Niranjan, Procurement Manager, and Sarisha Ramsunder, Production Planner spearheaded the recent remarkable accomplishment (achieved in record time) of the International Sustainability and Carbon Certification (ISCC).

Stephen Kitching, Operations Executive commended the team saying, “The scope of the audit included verification of sustainable maize production, storage and handling of maize, sustainable ethanol production, and logistics. Our carbon calculations are currently being verified by the auditors, and we expect a result better than the European average. This certification opens the door for AlcoNCP to export ethanol into the European market. I would like to extend a special thank you to the Alcogroup Green

Understanding ISCC and Its Significance

Sarisha explains ISCC and the significance of our achievement, “The acronym for International Sustainability and Carbon Certification, stands as a powerful testament to an organisation's dedication to sustainable practices, particularly concerning carbon emissions. This accolade carries profound weight in today's world, where the pursuit of carbon neutrality by 2030 has become a global imperative under mounting pressure from European markets and international stakeholders.”

Carbon Neutrality and AlcoNCP's Trailblazing Role

Carbon neutrality, the equilibrium between greenhouse gas emissions and removal, is a crucial milestone in the journey toward a sustainable future. The ISCC accreditation is no mere symbolism; it necessitates tangible reductions in carbon emissions. AlcoNCP has admirably achieved savings of 90.6% in comparison to comparable fossil fuels. This outcome was achieved with the aid of AlcoNCP’s carbon capture program, without which the emission savings would stand at 58%, highlighting AlcoNCP’s resolute dedication to sustainable operations.

Navigating the Complex Path to ISCC Accreditation

Both Rodgers and Sarisha agree that the involvement of the entire supply chain, from maize farmers to the processing plant, played a pivotal role in meeting ISCC's exacting standards. Farmers proactively embraced sustainable practices, adapting their methodologies to harmonise with our sustainability goals.

Future Outlook: ISCC's Ripple Effect

The ISCC accreditation is a monumental milestone for AlcoNCP and underscores that the pursuit of sustainability is not merely a responsibility but an opportunity for advancement, ingenuity, and positive impact.

Team who worked tirelessly in assisting AlcoNCP

AlcoNCP's High Purity

Extra Neutral Ethanol Wins Gold and High-Quality Trophies at World Quality Awards 2023

The excellent performance and focus of the operational and quality teams has resulted in the production of outstanding quality becoming routine.

AlcoNCP has been earning grand gold and/or gold awards consistently since 1961. It has been a remarkable effort to seamlessly continue delivering this extraordinary level of quality while switching the entire production process from molasses to maize at the same time as doubling production rates.

The Monde Selection International Quality Institute is renowned for its rigorous evaluation process, and this year was no exception. Over 3000 products hailing from nearly 90 countries were meticulously assessed and analysed based on tailored quality criteria for each category. The Spirits & Liqueurs jury, composed of globally recognised oenologists, master sommeliers, oenology professors, chemical engineers, and specialised press columnists, meticulously evaluated each product through a comprehensive organoleptic evaluation. The company’s committed and talented people and excellence, coupled with the meticulous craftsmanship that goes into every drop of our High Purity Extra Neutral Ethanol, has truly set us apart. This achievement is a reflection of the collective efforts of our dedicated team, whose passion and expertise have elevated AlcoNCP to international acclaim. Cheers to our continued success!

SGS Industry Partnership with AlcoNCP

The importance of collaboration between world-class companies.

As the producer of high-quality fermentation alcohol for the local and international markets, AlcoNCP takes pride in forming valued partnerships with other world-class leaders. The company is especially proud of its collaboration with SGS, one of the world’s leading testing, inspection, and certification companies. Laduma spoke to Sherlene Moodley, a quality technician at AlcoNCP, about the recent site visit from SGS. According to Moodley; AlcoNCP quality manager Ace Govender, presented vital nosing training sessions.

“This involved the training of new staff for the proper alignment of SGS staff with our staff, in order to adhere to the same set of standards; hence, both companies produce repeatable and unified results moving forward.”Moodley says the role SGS plays as an AlcoNCP service provider is very important. “They sample and test our Isotanks and tankers loaded at BTT, including off site storage tanks.

Celebrating our remarkable achievement are colleagues, Senzo Mtshali, quality technician and Ace Govender, quality manager (back) with Shalini Naidoo, process engineer and Kiara Premlall, production manager (front).

Unveiling the Power of 6S: A Path to Efficiency and Excellence at AlcoNCP

A new era of lean manufacturing is unfolding, and we have Colin Mkhize our Instrumentation Superintendent to drive one of Lean manufacturing’s principles of 6S where we are sculpting an environment of efficiency, safety, and excellence. “By sorting, straightening, shining, and sustaining, AlcoNCP is not just creating a workspace - it's cultivating a culture that reverberates across departments,” he says. But how does 6S translate into tangible benefits? According to Mkhize, the engineering department at AlcoNCP stands as a prime example. “With 6S, the mantra is clear: as you work, so shall you organise”, he says. The engineering team's journey with 6S is meticulously designed and weekly meetings provide a platform for status reviews, ensuring that the team stays on course. However, preparation was the cornerstone of success, with comprehensive 6S training provided prior to implementation.

Expanding Alcohol Storage and Exciting Developments

Additional Alcohol Storage on the Horizon AlcoNCP's commitment to meeting the demands of an ever-evolving market has led to the placement of orders for five colossal 170kl tanks. These tanks are poised to bolster alcohol storage capabilities, providing the company with the flexibility and resources required to navigate an ever-changing industry landscape. According to Kaylin Naidoo, process technician, the construction process is already in motion, with the first two tanks expected to be completed by the end of August 2023.

The Rise of a New Landscape: Bottom Distillery Demolition

In a move that speaks volumes about AlcoNCP's commitment to innovation, the decommissioning and demolition of the bottom distillery, rum plant, and vinegar plant have begun with gusto. Vessels 1, 2, and 3 have been expertly emptied and decommissioned, while motor cables, instrumentation, and lighting have been meticulously stripped from the plant. The rum plant, a repository of historical significance for AlcoNCP, presented a unique challenge. Within its walls lay equipment that has played a pivotal role in the company's journey. In recognition of this historical value. These preserved artifacts are set to become compelling focal points across the site, serving as a reminder of the company’s storied past and vibrant future. As process technician, Kaylin Naidoo points out, “Stay tuned for more updates as we give a new home to some of the old equipment.”

Morgan Murefu, engineering manager, and lean manufacturing project leader is seen here with Colin Mkhize, instrument superintendent who drives 6S, a lean manufacturing principle.

The Ethanol Technology Institute and Lallemand Biofuels & Distilled Spirits invited AlcoNCP’s production manager, Kiara Premlall as a keynote speaker during their Alcohol School Concise 2023 in Bangkok, Thailand between 17 – 21 July 2023. Kiara delivered her case study to an audience of industry leaders who converged to explore the forefront of ethanol technology on Transitioning Molasses to Starch on behalf of AlcoNCP on 20 July 2023, illuminating AlcoNCP’s path to innovation within the ethanol landscape. This Ethanol School offers a combination of solid background knowledge and the latest in innovation and design for both the fuel and distilled spirits industries.

A story of two colleagues, perseverance, and community

The Comrades Marathon, a grueling 90-kilometer ultramarathon in South Africa, is not just a race; it's a testament to the human spirit, determination, and camaraderie. In a recent interview, Lucky Ntuli and Ashraf Moosa shared their remarkable achievements and insights from their Comrades Marathon experiences. Lucky Ntuli, a seasoned Comrades runner with seven runs under his belt, shared his perspective on the race and its challenges. Lucky's commitment to the record is a testament to perseverance required to conquer the Comrades Marathon. Ashraf Moosa, a first-time Comrades runner, emphasised the emotional and awe-inspiring moments at the start of the race. The unity of purpose among the runners, coupled with the national anthem and the rooster crowing, created a

unique and memorable atmosphere. Ashraf's description of the camaraderie and the shared goal of finishing the race highlighted the sense of community that defines the Comrades Marathon. When it comes to training for the Comrades Marathon, both Lucky and Ashraf emphasised the importance of setting goals and gradually increasing mileage.

Lucky suggested breaking down the training into manageable segments, gradually building up to longer distances. Ashraf highlighted the vibrant running community in Durban, which provides opportunities for runners of all levels to join together and train. Lucky Ntuli and Ashraf Moosa's achievements at the Comrades Marathon serve as an inspiration to runners throughout the Alco Group.

Lucky Ntuli, electrical superintendent and 7 - time Comrades Marathon runner

Ashraf Moosa, financial accountant and 1st time Comrades Marathon runner.

Alco bans Tik Tok and gives guidelines for ChatGPT

Let us start with ChatGPT: everybody has heard or read about the conversational robot of OpenAI, which became over the last few months the symbol of the Artificial Intelligence boom. We will not expand on all threats and opportunities abundantly commented on in the media recently, but our editorial team has tested it for you with a simple question. Furthermore, the Alco Legal department has precise instructions about its use and more… Our question to ChatGPT was :

What is the future of bioethanol in Europe at the horizon of 2030? In about 10 lines

The future of bioethanol in Europe at the horizon of 2030 is expected to be promising. The European Union has set ambitious renewable energy targets, aiming for at least 14% renewable energy in transport by 2030. Bioethanol, as a renewable fuel produced from biomass, is likely to play a significant role in achieving these targets. With advancements in technology and increasing investments in research and development, bioethanol production is expected to become more efficient and sustainable. The focus will likely be on advanced bioethanol production processes, such as lignocellulosic conversion, which can utilize non-food biomass sources. However, challenges related to feedstock availability, land use competition, and environmental impacts will need to be addressed to ensure the sustainable growth of bioethanol in Europe. Government policies and incentives will play a crucial role in driving the adoption and production of bioethanol as a viable alternative to fossil fuels.

But… CAUTION must be exercised…

What do we observe? The quality of the answer is good, the style is perfect, and the information is generally correct and relevant. It is somewhat superficial, though. We raised the same question, asking about 20 lines, and the content of the answer was obviously more impressive. None of the texts addressed more recent developments, though, such as the expected sales ban of internal combustion engine cars as of 2030. Let us shift to the observations and instructions of our Legal department.

ChatGPT themselves warn on their welcome page: While we have safeguards in place, the system may occasionally generate incorrect or misleading information and produce offensive or biased content. Here are some limitations:

- May occasionally generate incorrect information

- May occasionally produce harmful instructions or biased content

- Limited knowledge of the world and events after 2021

In terms of data collection, Chat GPT recognises also: Conversations may be reviewed by our AI trainers to improve our systems. Please do not share any sensitive information in your conversations.

DO NOT input any of the following:

- Trade secrets / sensitive commercial info (prices, company names, innovative concepts, etc.)

- Information protected by a Non-Disclosure Agreement (breach of NDA)

- Information protected by Intellectual Property (e.g., patents)

It would be a breach of your confidentiality agreement with ALCO!

So DO anonymize, respect confidentiality and avoid the use of exact sentences. This is also valid for Google Translate, Deepl, and the like.

Last but not least, let us talk about another popular app, TikTok! For all the security reasons widely commented on by experts lately, Alco decided, like more and more companies, governments, and institutions, that TikTok should not be installed on any work device or personal device used for work. Please respect this instruction and uninstall TikTok as the case may be.

AlcoNCP Honors Nelson Mandela's Legacy Through Acts of Kindness and Unity

On July 18, 2023, AlcoNCP, gathered at Lakehaven Youth and Child Care Centre, Durban to pay tribute to the legacy of Nelson Mandela. In commemoration of Mandela Day, South Africans from all walks of life dedicate 67 minutes to giving back to their communities – a minute for each year that Nelson Mandela devoted to the struggle for his country's freedom.

AlcoNCP embraced this noble tradition by partnering with the Lakehaven Youth and Child Care

Workplace Experience With Dad

Robert Nyirenda, materials controller seen here with son, Sandile Nyirenda, a grade 11 learner, while doing job shadowing in our IT and Electrical departments as part of a project during the recent school holidays.

Celebrating Mandela Day with Lakehaven Youth and Child Care Centre AlcoNCP donated kitchenware and a fresh coat of paint to each of their four kitchens.