December 2023
L A DUMA
Message from the MD 2023 is the year in which we really started to get a handle on the maize plant with production and efficiency records regularly broken. The focus on continual optimization is paying off and we will continue this focus throughout all functions of the business.
Sales for the first half of the year were tough with the global liquor industry suffering a decline in volumes following the exceptional demand during the Covid years. However, the establishment of new markets with 3 bulk vessels exported during the second half of the year significantly improved sales volumes and allowed the plant to really stretch its legs. The recent visit by all of our shareholders for the inauguration of the maize plant was a great success. For a number of them, this was their first sight of AlcoNCP and they left suitably impressed, not only by the plant itself, but also by the commitment, competence, and enthusiasm shown by all of the AlcoNCP staff. Their feedback made me extremely proud of our team. Peter Starling, Managing Director
Our goal for 2024 is to further improve operational efficiencies with stable, high levels of production. We have tested how high we can take daily production levels, focus will now be on consistent performance, limiting the variances and ensuring the daily averages are stable over extended periods. As we do this, we aim to make the operating procedures required to achieve these performance levels routine the “new normal”. Subject to market dynamics and prices we have developed markets and a combination of bulk vessels and breakbulk, including road tankers, Isotanks, and drums, to ensure sales and production should be evenly matched during 2024. To everyone who is part of the NCP family, thank you once again for your commitment to our purpose and values throughout 2023. May this holiday season bring you moments of peace, laughter, and cherished time with family and friends. Wishing you all a joyous festive season and a prosperous New Year.
Green Fever! While South Africans are still basking in the glory of the Springboks' triumphant win at the 2023 Rugby World Cup. We are delighted to share the time we took as a team to support our beloved South African Springbok Rugby team during this unforgettable (nail-biting at times) tournament. From 8 September to 27 October, our workplace buzzed with excitement as employees rallied behind the Bokke through the BOKKE FAN SELFIE Challenge. Looking back, each Friday during the Rugby World Cup our offices were filled with displays of green and gold and the unmistakable sense of unity that sports can bring.
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Cover: Charles-Albert Peers, Alcogroup SA Chief Executive Officer unveiling the Maize conversion plant on 23 November 2023.
PROJECTS DRIVING EFFICIENCY AND INNOVATION As we wrap up an eventful 2023, it's time to reflect on the incredible projects led by our dedicated projects team. Each project is a testament to our commitment to excellence, innovation, and sustainability.
FIVE NOTEWORTHY PROJECTS THAT SHAPED 2023 1. VSM - DDGS LOADING: STREAMLINING PROCESSES FOR SWIFT TURNAROUND In alignment with Lean Manufacturing principles, the Value Stream Mapping (VSM) of the DDGS Loading Process aimed to enhance efficiency and reduce wasteful activities. By optimizing the sampling, analysis, and documentation process flow, we successfully reduced DDGS loading time by a remarkable 48 minutes, from 2h13 minutes to 1h25 minutes. The success of this project sets the stage for the future implementation of VSM in Bulk Loading.
2. SYRUP PUMP UPGRADES: ENHANCING RELIABILITY AND SAVINGS Evolving from the initial 33% dry matter design target, the Syrup Pump Upgrades project achieved outstanding results, with syrup dry matter reaching an impressive 55-60%. Upgrading centrifugal pumps to positive displacement mono pumps not only improved reliability but also resulted in a monthly saving of approximately R300k in the Dryer plant, showcasing the impact of smart equipment enhancements.
3. ALCOHOL STORAGE EXPANSION: MEETING MARKET DEMANDS In September, we installed five new 170kl potable alcohol storage tanks, significantly increasing our overall storage capacity by over 1 million liters. This expansion ensures operational flexibility during market fluctuations, allowing us to maintain high production rates. The Fire Protection installation is underway, with full tank utilization expected from January 2024.
4. DEHYDRATION PLANT OVERHAUL - ENSURING HIGH-QUALITY OUTPUT The Dehydration Plant underwent crucial upgrades, including the replacement of contaminated zeolites. Achieving neutral dehydrated alcohol and the successful export of DNA to Europe in November marked a significant milestone. With the plant running at capacity and meeting nosing specifications, we permanently decommissioned the old aerosol plant, streamlining our operations.
5. BEER FEED PUMP ENHANCEMENT - BOOSTING EFFICIENCY AND ENERGY The feed rate to the distillery is governed by PMP420; which feeds beer to the beer column, and PMP510 which extracts whole stillage from the beer column. During high feed rates to the distillery, the beer preheater (HTR525) would need to be bypassed as the beer feed pump could not overcome the pressure drop across the heat exchanger; thus, additional steam was required to compensate for the lower beer temperature. The size of the beer feed pump and the motor on PMP510 were increased to compensate for the increased pressure drop across the heat exchanger and improve the extraction of whole stillage from the beer column. This project resulted in energy savings and increased the production rate of the plant. (Continued on page 6.)
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Inauguration of the Maize plant with Alco shareholders
A Triumph of Innovation: Unveiling the AlcoNCP Maize Conversion Plant In his address to shareholders and Alco employees, Peter Starling, managing director of AlcoNCP said that the 23rd of November marked a historic moment in the annals of the company. “As we gather with immense pride and anticipation to inaugurate the AlcoNCP Maize Conversion plant, this state-of-the-art facility stands as a testament to our unwavering commitment to excellence, collaboration, and the pursuit of innovation.” Peter extended a warm welcome to the company’s shareholders and colleagues from Belgium who honored AlcoNCP with their presence. He commended them for their unwavering support and partnership which has been instrumental in bringing us to this moment of celebration. Peter rightfully pointed out, that the AlcoNCP plant is now a welcoming ‘home’ for many of the colleagues from Belgium who frequent our site. He also congratulated the company’s employees for their exceptional welcome reception to the visitors which reflects the true spirit of AlcoNCP and the warmth of South Africa. Peter invited guests to take a moment to reflect on the journey that led to this significant milestone of inaugurating the Maize project. He also reminded everyone that, “In 2004, the plant witnessed a remarkable expansion inaugurated by none other than the Prince of Belgium, now the King of Belgium which set the stage for the achievements we now celebrate. In his inaugural address the Chairman of Alcogroup SA Chief Executive Officer, Charles-Albert Peers noted a deep sense of pride and gratitude to the employees for their tireless dedication and hard work, who not only contributed to building the plant but have operated it with staggering successes.
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“AlcoNCP is more than just a facility; it is an integral part of our group's history,” he said. “Cast your minds back to the year 2000 when Peter Starlingand I negotiated the purchase of AlcoNCP from DOW. I vividly recall the three pivotal questions posed by the Seller. "Will you keep the existing people?" I answered, "Yes." "Will you increase the plant capacity?" Again, my response was, "Yes." And finally, "Will you stay in the country for a long time?" Once more, my answer was an affirmative "Yes." Little did I know then the extraordinary journey that awaited us. The subsequent expansion in 2004, doubling our capacity, marked the beginning of an unstoppable growth trajectory. AlcoNCP has not only influenced our entire group but has become a cornerstone of it. Our production plants seamlessly share knowledge, learnings, and technologies, uniting us as a cohesive team. Today, AlcoNCP proudly stands as the largest producer of ethanol in Africa within our group, a remarkable achievement born out of overcoming challenges with resilience and determination. My heartfelt congratulations go to Peter Starling and Stephen Kitching for their vision and determination in propelling the maize project forward, a crucial investment ensuring your company's survival. Despite initial hurdles, every member of the AlcoNCP family embraced the challenge of the Maize Conversion Project, turning it into a resounding success. I extend my deepest gratitude to the group’s engineers who dedicated their time to contribute to this project. Your exceptional work has not gone unnoticed. As shareholders, we stand united to support you. Our sincere appreciation goes out to each one of you for the magnificent job done. Today, as we collectively express our gratitude, we say, Thank you very much."
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SIX BIG PROJECTS TO LOOK FORWARD TO IN 2024 (Continued from page 3.)
1. WATER SECURITY The conversion of Molasses Tank 3 to process water storage is underway, providing 3 - 4 days of water storage in case of municipal water supply loss. Final tie-ins and changeover are anticipated for the February shutdown, whereafter the project will be fully commissioned. This significant increase in water storage capacity will reduce business risk and enhance plant uptime.
2. SOLAR POWER INSTALLATION Our commitment to sustainability will be further realised with the installation of solar panels. This initiative will not only reduce our carbon footprint but also contribute to lower gas engine maintenance costs. The success of the pilot-scale solar PV system at the DDGS warehouse sets the stage for a full-scale installation.
3. FERMENTATION DEBOTTLENECKING With the plant running at 140% of its design capacity, the fermentation plant has been found to be the bottleneck. In 2024, a project to install a new 1200kl beer well will be initiated. This will allow the current beer well to be used as a finishing fermenter providing a small increase in distillery feed rate. Once the beer well is installed, the next project to install a 1000kl fermenter will be kicked off. The new fermenter will provide a step-change increase in production, increasing fermentation capacity by 20% and enabling the distillery to reach 350klAA per day sustainably.
4. DEMOLITION OF RUM, VINEGAR & BOTTOM DISTILLERY The demolition of the historic 188-year-old rum and vinegar building was kicked off in 2023 and will be completed in 2024, creating space for future development. To preserve AlcoNCP’s heritage, the original copper pot stills from the rum plant have been refurbished and displayed on site. The building demolition will be completed in 2024 after the February shutdown when utilities will be rerouted allowing the bottom distillery to be demolished as well. The demolition of these buildings and redundant plants will create space for future development such as the CO2 plant.
5. SCW670 AUTOMATION Advanced automation and control will improve the Dryer plant by automating the DDGS screw (SCW670) flap, reducing downtime during plant upsets and ensuring a more efficient operation. Automating this flap will significantly reduce the likelihood of DDGS line blockages which cause dryer plant shutdown and upset in tank levels risking production.
6. FLOUR MEASUREMENT Following suit of our Ghent and Rotterdam counterparts, ABF and AER, AlcoNCP will have radiometric flour mass flow measurement installed at milling and a density meter at mashing. These new instruments will enable Production to run consistently at controlled, stable, and optimised dry matters maximizing fermentation throughput and yeast usage. 6
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EMERGENCY PREPAREDNESS: ANNUAL DRILL SUCCESS
A Snapshot of Excellence: Drill in Action We've captured some compelling moments from the drill, showcasing the on-site actions of our emergency response teams. These images not only highlight the diligence of our teams but also serve as a visual reminder of the critical nature of emergency preparedness.
The recent annual emergency drill was conducted in collaboration with the eThekwini Municipality’s fire department on November 14, 2023. This annual exercise is a crucial component of our commitment to ensuring the safety and well-being of all our employees, visitors, and assets. The drill provided an opportunity for our emergency response teams, including firefighters, first aiders, floor marshals, and the crisis management team, to showcase their dedication, expertise, and seamless coordination in executing their roles. Their swift and effective response during the drill demonstrated the importance of training and preparedness in ensuring the safety of everyone on our premises. AlcoNCP's Ongoing Commitment to Fire Safety. Our collaboration with the local fire department underscores our commitment to maintaining the highest standards of fire safety and emergency preparedness. Testing our emergency response plan and equipment in partnership with experienced professionals ensures that we are well-equipped to handle any situation that may arise.
EMBRACING NEW HORIZONS In the tapestry of AlcoNCP's history, two stalwarts, Kelvin Timm and Selby Zungu, have woven threads of dedication, loyalty, and expertise for a combined 64 years.
Selby Zungu: A 28-Year Legacy of Loyalty
Kelvin Timm: A 36-Year of Dedication
Selby Zungu, held the position of Field Operator, and retired at the end of November 2023 after an impressive 28-year career at AlcoNCP. Loyalty flows deep in the veins of the Zungu family, with Selby being one of three brothers to contribute their skills and dedication to our company. His brothers, Hezekiah Zungu and Jerry Zungu, also left an enduring legacy at AlcoNCP. Jerry, worked from 1972 to 2000, and Hezekiah, from 1984 to 2019. His thoughtful approach to the transition reflects the same dedication and planning that characterised his career. As we bid farewell to Selby, we extend our heartfelt thanks for his years of hard work and commitment to AlcoNCP.
Kelvin Timm, our former Fire Officer, bid farewell to his role at the end of August, concluding a great 36-year career with AlcoNCP. Kelvin chose the Fire station for his heartfelt farewell function on 1 September. During the function, colleagues and work associates gathered to honour his dedication, hard work, and countless contributions to our company. Kelvin's journey with AlcoNCP has been nothing short of inspiring. His commitment, passion, and expertise have left a deep mark on our team and the company as a whole. While we will undoubtedly feel the absence of Kelvin's presence, we are equally excited to witness him enter this new phase of life called retirement.
by expressed retirement plans, Sel When asked about his his mind ar cle to y ida hol g lon life. a desire to take a nice, his of r pte cha t the nex before embarking on
In his retirement, Kelvin plans to indulge in his true passions. Fish ing, spending quality moments with family and friends, and engaging in community activities that are close to his heart will now take center stage. As he embarks on this new chap ter, we extend our deepest gratitud e for his years of service and wish him a retirement filled with joy and fulfi llment.
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UNLEASHING THE FORCE FOR POSITIVE CHANGE AlcoNCP's commitment to making a meaningful impact in the community was highlighted during a recent partnership with the Child Welfare Durban District during the company’s Women’s Day celebrations on 10 August. Ladies were invited to join in the 2023 celebration of the 2023 Women’s Day-themed, Empowered Women, Empowered Communities with two guest speakers from the Child Welfare Durban District and a special poem reading by Sneh the Poet. Informal discussions with Child Welfare social workers became a dynamic platform for the ladies at AlcoNCP to explore ways in which they could contribute to positive change with community outreach initiatives and mentorship. It left behind not just a memory but a call to action. The women of AlcoNCP were charged with recognising their strength in their communities and how they could become a force for positive change.
CELEBRATING NATURE A fresh approach to celebrate South Africa’s Heritage Day on October 27, unfolded with the planting of Aloes, wetland plants, and five trees in the site’s Eastern yard. The significance of Heritage Day which is held annually lies in the celebration of South Africa's diverse cultural heritage. This year, the AlcoNCP family took a unique approach to commemorate this day, by contributing to the legacy of our natural surroundings. It was an acknowledgment that our company’s heritage is deeply entwined with the environment in which we operate. Five species of wetland plants were added to the water reticulation pond at the maize plant while six Aloes were planted on the slopes of the Easter yard’s border. Employees later joined the celebrations to plant five trees, three Coral trees, and two Copper-stem Corkwood behind the DDGS warehouse. A healthy competition soon ensued with departments showing off their planting skills and naming their newly adopted trees rather creatively.
“Small actions, when multiplied, can create a significant impact. The hive of digging and planting unique partnership between Alco unfolded thanks to a NCP, Adop Fish Eagle team, and Jane Troughto t-A-River, the n from KZN Conservancies.
The Women's Day celebration at AlcoNCP was not just an event; it was a milestone in the ongo ing journey of empowerment and community build ing and a belief that small actions, when multiplied, can create a significant impact.
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Published by AlcoNCP (Pty) Ltd - www.alconcp.com