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Nampak Glass increases capacity in environmentally sustainable way

Nampak Glass increases capacity in environmentally sustainable way

6th November 2014

By: Creamer Media Reporter

  

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From Creamer Media in Johannesburg, this is the Real Economy Report. Through the addition of a third furnace at its Germiston-based manufacturing facility, glass manufacturer Nampak Glass will be meeting increased market demand in a more environmentally sustainable way. Leandi Kolver has the story.

Leandi Kolver:
Nampak has invested R2.1-billion in its new third furnace, which has increased the company’s manufacturing capacity by 56%. The addition of this furnace has also created 140 new long-term jobs, and 2 600 temporary jobs were created during the furnace’s peak construction period.

Nampak Glass CEO André de Ruyter discusses the reasons behind this investment and the plant’s environmental aspects.

Nampak Glass CEO André de Ruyter:
“Because of the fact that glass is predominately manufactured in three major colours – clear, green and amber – we always were constrained in terms of our ability to meet demand from the market by virtue of the fact that we only had two furnaces.

“So the third furnace gives us a huge increase, not only in capacity but also in efficiency in order to better meet market demand for product.”

“We have invested from the word go in making this plant as energy efficient as possible. One of the major cost components in running any glass facility is energy consumption, so we have found that with the third furnace we are, even without using the preheating technology, we are already 15% more efficient than our other furnaces. This is a huge cost competitive advantage that we will obtain from this third furnace.

“One we have commissioned our preheating facility where the raw material is preheated prior to being put in the furnace, this will, we anticipate, add another 12% to 15% energy cost saving advantage. So overall a really efficient and effective plant.

“In addition we have invested in an electrostatic precipitator and this will ensure that there is no dust that gets emitted into the atmosphere and that will make us fully compliant with the requirements of the Air Quality Act.

Leandi Kolver:
Speaking at the official opening of the third furnace Trade and Industry Minister Dr Rob Davies pointed out that his department also played a part in this investment through the Section 12I Tax Incentive.

Trade and Industry Minister Dr Rob Davies:
“This investment is, I think, testimony to the realities on the ground in South Africa – we are making progress, we can make further progress and there is a real possibility that these production volumes will come on stream as a result of these investments.

“Now, we as the DTI have played a role, as has already been mentioned, in facilitating this particular investment…”

“This particular investment is a brownfields investment and the project was approved for an investment allowance of R550-million, with an additional training allowance of R1.5-million.”

Shannon de Ryhove:
Total South Africa has partnered with Famous Brands and speciality grocer Thrupps to provide Total service station customers with a new convenience offering. Leandi Kolver tells us more.

Leandi Kolver:
Thrupps recently opened its first store at a Total forecourt, in Senderwood, Bedfordview, bringing speciality food and ingredients closer to the residents of the area.

Total South Africa sales and marketing GM Qetello Zeka and Thrupps owner Chris Keene explain Total’s and Thrupps’ thought processes behind this new offering.

Total South Africa sales and marketing GM Qetello Zeka:
“We were looking to differentiate. As you know convenience has become a necessity in our society and we want Total to be the service station of choice. We are still a fuel retailer but we wanted to make sure that we can have partners that are attractive enough to bring the customers to us.

“When Thrupps was laid on the table we didn’t even think twice. It is a respected brand, a speciality store. It seemed like the right thing to do.”

Thrupps owner Chris Keene:
“Ten years ago things changed, even 15 years ago they started changing, but as I said earlier there is a proliferation of supermarkets, of hypermarkets and of wholesalers becoming retailers and as we know there is an enormous amount of malls.

“At the end of the day Thrupps’ delivery system went very quiet 10 years ago, there is a lot of competition, and we started looking for furthering our name into the industry, and basically three years ago after looking at quite a few options with major retailers Famous Brands brought what was probably the most sensible offering, which was us joining forecourts.

Leandi Kolver:
Meanwhile, Famous Brands brought its logistics network to the table, allowing the partnership to access a wider network of consumers.

Famous Brands Food Services CEO Darren Hele elaborates on why Famous Brands decided to enter into the partnership with Thrupps and Total.

Famous Brands Food Services CEO Darren Hele:
“Some of the benefits for us obviously is that we are entering the retail space which is new for us and we are doing it in a very cautious and clinical way. But the main benefit for us is obviously that our existing brands, as in what you’ve seen here – Steers and Mugg & Bean – still form part of it. So from our perspective we are able to service a single market with multiple brands.”

Leandi Kolver:
While there is currently only one Thrupps store located at a Total service station, the partnership is optimistic about the concept’s future potential.

Zeka and Hele tell us more.

Qetello Zeka:
“We will definitely roll it out. We will choose the right areas, choose the right consumer and still keep the Bonjour brand for those areas where we don’t roll it out.”

 

Darren Hele:
“We are obviously all very optimistic about it but we also have to be realistic so I think one has to balance that, but this is very much a pilot site to be able to assess how the consumer reacts to it, what are the variables that go in to it, how well can we do it.

 

“But we have done all the science behind it so we are confident about that, and then there has been a view in the network that we could probably roll-out 50 of these across Total in the medium-term period. But again, it is going to be dependent on consumer reaction and consumer demand ultimately.”

Shannon de Ryhove:
Other news making headlines this week: Transnet Freight Rail confirms the purchase of second-hand Australian locomotives to plug its capacity gap; and Siemens demonstrates the Curiosity Mars Rover’s capabilities.

South Africa’s Transnet Freight Rail has confirmed that it’s purchased 34 second-hand diesel locomotive from rail company Aurizon, of Queensland, Australia, to augment its aging fleet ahead of the introduction of around 1 400 new locomotives by 2019.

Transnet CEO Brian Molefe

A working model of the Curiosity Mars Rover, which is the biggest robot to land on Mars, was officially unveiled for the first time in Africa by multinational electronics company Siemens at its Future of Manufacturing Conference in Boksburg.

Siemens communications and government affairs manager Keshin Govender

That’s Creamer Media’s Real Economy Report. Join us again next week for more news and insight into South Africa’s real economy.

Edited by Shannon de Ryhove
Contributing Editor

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