A combined saving of R13-million, between July 2011 and June 2012, by all participating suppliers has been achieved as a result of the National Cleaner Production Centre of South Africa (NCPC-SA) and Automotive Industry Development Centre (AIDC) partnership, says NCPC-SA automotive sector project manager Thembi Kodisang.

She notes that, through resource efficiency and cleaner production (RECP) audits, an additional 800 000 kWh of potential electricity savings has been identified at automotive manufacturing plants in the Eastern and Western Cape. With the assistance of the AIDC, the NCPC-SA will be increasing its efforts to assist Gauteng automotive companies in the coming year.

The NCPC-SA has, in the past two years, intensified its efforts to assist the automotive component manufacturing industry to promote more resource efficient practices with a strong focus on energy efficiency.

Kodisang tells Engineering News that the NCPC-SA has been championing the implementation of the RECP programme within the automotive component manufacturing industry since 2011.

She explains that the programme assists companies in identifying opportunities that could lower production costs through reducing energy, water and materials use, and improving waste management.

The NCPC-SA service offering includes RECP assessments, which comprise energy, water and material usage analysis at selected companies. The assessments are all subsidised and are conducted at little or no cost to the participating companies.

The assessments gauge the levels of consumption, identifying opportunities for reduction of electricity and water use, and assess the company or plant’s waste generation profile and identify opportunities to reduce waste. The assessments are aimed at assisting companies to increase production efficiency, improve the productive use of natural resources and ultimately increase industry competitiveness.

Further, the RECP assessments analyse the company’s environment management practices and identify ways of reducing its impacts on the environment.

Kodisang says, against the backdrop of rising costs and reduced energy security, efficient energy use by the automotive component industry has become particularly critical.

Wheel component manufacturers, such as alloy-wheel manufacturer Borbet South Africa, and manufacturer and distributor of steel wheels, Magnetto Wheels, have taken part in the RECP assessments.

Other automotive component manufacturers that have taken part in the RECP programme include automotive lighting manufacturer Lumotech, automotive coatings systems marketer and manufacturer Freeworld Automotive Coatings, manufacturer of ride control products and systems Tenneco Ride Control, seat component and catalytic converter manufacturer CRH Africa Automotive, as well as automotive cast iron and aluminium power train component manufacturer Autocast Port Elizabeth.

Other participants include engine component manufacturer Halberg Guss Aluminium South Africa, automotive castings manufacturer Atlantis Foundries, steel wires manufacturer Natstan Wire, manufacturer and distributor of batteries Willard Batteries and automotive engineering firm Onvlee Engineering, as well as metal pressing manufacturer Precision Press.

In an intensified focus on energy, the NCPC-SA has also been facilitating the implementation of energy efficiency measures through its Industrial Energy Efficiency Project (IEE Project).

“Through the promotion and implementation of energy management systems (EnMS) and the energy systems optimisation (ESO), the energy use patterns of South African industries are improved, including those of the automotive component manufacturing industry,” she asserts.

Kodisang explains that the IEE Project is a collaborative initiative between the South African government through the Department of Trade and Industry (DTI), the Department of Energy, the United Nations Industrial Development Organisation (Unido), the Swiss State Secretariat for Economic Affairs and the UK Department for International Development.

The IEE improvement project is jointly implemented by the NCPC-SA and Unido.

“The NCPC-SA also partners with the AIDC to support companies in implementing the interventions identified in the assessments,” says Kodisang, who adds that the IEE Project also offers training to develop industries’ capacity to implement energy management systems in line with ISO 50001.

The EnMS and ESO training courses are offered in Gauteng, KwaZulu-Natal and Western Cape at technical user and expert level, creating the skills required to improve a company’s energy efficiency, says Kodisang.

“These training courses offer companies tools needed to implement a comprehensive energy management programme in their plants and to optimise the efficiency levels of their compressed-air, fan, motor, pump and steam systems in the case of ESO training,” she explains.

Benefits of Going Green

“The direct benefits for the automotive industry are numerous and include companies gaining competitive advantages through cost reduction owing to improved energy efficiencies, job retention and creation, new market opportunities, as well as improved overall financial operations,” states Kodisang.

However, she stresses that the benefits of the automotive component manufacturing industry going green are not limited to the industry.

The NCPC-SA runs an internship programme which equips unemployed engineering graduates with RECP skills and then places them in participating companies where they monitor energy, water and material use, as well as waste management, while being mentored by industry experts.

“The aims of the programme include addressing the critical issue of the skills gap, which exists within companies; developing previously disadvantaged graduates by exposing them to RECP technologies and applications, and increasing their chances of gaining permanent employment; heightening awareness around environmental practices within participating companies, with a specific emphasis on water, energy and material management; as well as exposing the students to industrial practices and cultures,” explains Kodisang.

Incentives to Go Green

Kodisang explains that in many cases, the implementation of the interventions identified by the RECP assessments is hampered by a number of factors, including the lack of capital by companies to implement the necessary changes at their plants. To mitigate these challenges, government has introduced a range of incentive schemes.

The incentive schemes are available to the automotive component industry through the DTI, the IDC and State-owned power utility Eskom.

The DTI’s Automotive Production Development Programme (APDP) includes an incentive aimed specifically at original-equipment manufacturers (OEMs) and component suppliers.

Further, the Automotive Investment Scheme, a taxable cash grant paid over three years, is, according to the DTI, designed to develop the automotive sector through investment in technologically advanced automotive production and new and/or replacement models and components. This will increase plant production volumes, sustain employment and strengthen the automotive value chain.

In 2010, the DTI introduced the Section 12I tax allowance incentive, which, according to the DTI, is a tax allowance for investment in assets and training aimed at upgrading technology, including innovative processes, cleaner production and energy efficiency.

“The NCPC-SA would like to see more automotive component manufacturers taking advantage of the programmes to assist in developing sustainable green manufacturing industries. We would also like to see companies use the various incentive schemes to support South African manufacturing industries. I hope more automotive component and local manufacturers get in contact with the NCPC-SA so that we can help them help themselves,” Kodisang concludes.