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CHC Elastogran, a local producer and distributor of polyurethane (PU) basic products and systems in South Africa and Sub-Saharan Africa, has announced a change in name to Elastogran South Africa after strengthening its existing alignment with its majority shareholder Elastogran, a member of the BASF Group.

Headed by Managing Director, Andrew Bailey, Elastogran South Africa’s expertise in PU technologies is well recognised across the industry.

Explains Andrew Bailey: “The existing CHC Group shareholding remains intact as CHC is a very strong partner in our business. Our association with Elastogran gives us the ability to leverage superior technology opportunities that will benefit our local customers. Elastogran is known throughout Europe as the market and technology leader for PU systems and PU special elastomers.”

Says Dr Uwe Hartwig, Managing Director of Elastogran (Germany): “Coupled with outstanding technological capabilities, capacity and infrastructure, we set world-class industry standards; Elastogran has more than 40 years’ experience in the industry.”

In 2005, the CHC Group and the Elastogran Group first announced the merger of their PU businesses (CHC Urethane Products and Elastogran).

The change in name to Elastogran South Africa is a result of a natural progression that developed over two years since the joint venture was announced. The decision confirms Elastogran’s confidence in the South African market.

Elastogran’s competitive advantage lies in its ability to produce tailor-made PU solutions that meet customers’ needs and specifications. Advantages include sufficient stock levels in achieving an efficient supply chain to the end-user.

As a result of recent economic growth in the local manufacturing sectors including the automotive, appliance, furniture & bedding, footwear, construction and mining industries, many positive opportunities exist for South Africa and Sub-Saharan Africa to access world-class PU technologies and raw materials. Elastogran South Africa is gearing up its internal operations and infrastructure in meeting global best practice standards to maximize opportunities.

The recent implementation of a common IT standard business solution by Elastogran South Africa ensures constant improvement of flow and speed of information, ensuring cost savings and improved business practices. Elastogran South Africa’s SAP successful integration went live with its SAP R/3 project in April.

Concludes Andrew: “The benefits to local customers are tangible. By upgrading our internal operations and infrastructure, we are able to help our customers be more successful.”

Background:

The Elastogran Group, majority shareholder of Elastogran South Africa, is a member of the BASF Group and is a market and technology leader in PU systems. It develops, produces and distributes thermoplastic and cellular elastomers as highly refined specialty materials throughout Europe. It comprises twelve PU system houses.

Elastogran South Africa (previously CHC Elastogran) is responsible for the production and distribution of PU raw materials and systems in South Africa and Sub-Saharan Africa. Its broad expertise in PU technologies is well recognised across the industry.

The CHC Group (minority shareholder) is a leading manufacturer and distributor in the chemical, plastic, mining and construction industries.

CHC serves the industry through its operating companies: CH Chemicals, CHC Films, CHC Global, CHC Polymerworld, CHC Resources, CHC Amnion and Elastogran SA (CHC Elastogran).

Principals include Dow Chemical, Beijing Hengju, SABIC (General Electric), LG International, ExxonMobil and UPPC.

CHC Group's activities are coordinated from its Head Office in Gauteng with offices and warehouse facilities in Durban, Cape Town and Port Elizabeth; it also operates in East Africa (Kenya).

The CHC Group has an annual turnover in excess of 100 million US dollars and employs more than 230 people.

Contact person:
Andrew Bailey
Elastogran South Africa
Managing Director
Tel nr 011 876 6702
andrew.bailey@elastogran.co.za

Enthusiastic people are the ones who actually get things done in this world. Enthusiasm is what turns any idea into reality. And enthusiasm is linked closely with happiness (Roy Sheppard, 1998).

The CHC Group is in the Top 50 category of the 2006 Deloitte Best Company to Work For (BCTWF) survey - CHC came 34th.

“We entered the BCTWF survey in 2005, and came 67th. In 2006, we came 34th; this is a tremendous achievement considering we improved by nearly 100%. We are eager and motivated to improve our 2007 rating”, says Neil.

The CHC Group is working hard at making the company an employer of choice. CHC’S talent management strategy is focused on attracting the most dynamic achievers in the market.

The building of a supportive workplace environment is a vital component in achieving job satisfaction, an important research variable in the BCTWF survey.

“Showing employees recognition, appreciation and leadership are vital ingredients in building long-term employee relationships,” concludes Neil.

AT CHC WE VALUE THE ACHIEVEMENTS OF OUR STAFF, BUT WE ALSO KNOW THAT ACHIEVEMENT IS RELATED TO PERFORMANCE

“Our primary focus remains service excellence. That’s why we are continually trying to improve our performance levels," says Neil Hellmann, CEO of the CHC Group.

In a concerted effort to upgrade the already high standards of management and team performance in the company, the CHC Group was introduced to IPMSTM in September last year.
Integrated Performance Management System (IPMS) is a comprehensive set of people and business tools designed for employees to take ownership of their roles.

“For CHC the implementation of IPMS is a very positive step, because it empowers CHC employees to effectively take control of their own performance,” says Neil.

Through common policies, measurement and behaviours, activities and desirable outcomes are identified and executed by each individual. Meticulous planning, accurate task implementation and quicker turn-around time are some of the end results.

“The focus is on doing the right things right,” explains Kevin Burley, CHC Group Talent Manager, “IPMS is aimed at improving overall organisational efficiency."

The CHC process started with the Executive team attending a condensed IPMS Executive Workshop, followed by two Manager workshops. The purpose of the workshops was to introduce the entire management team to IPMS tools and methodology. IPMS also train managers on how to become IPMS coaches.

After the workshops, staff groups in Johannesburg, Durban and Cape Town attended weekly sessions for five weeks, where they were taught how to implement the IPMS tools.
According to Kevin, the impact of the training was noticeable from week one.

“Delegates became more aware of their jobs; interaction with fellow colleagues and team leaders improved which resulted in the implementation of their personal improvement plans,” he commented.

CHC employees were put to the challenge as Performance Improvement Plans (PIPs) had to be executed ensuring that strategic goals were met. Individuals implemented what they were taught with the support of their coaches and managers.

During the month of February, employees successfully presented their PIPs to senior management and IPMS staff, highlighting how CHC has benefited from the process.

Concludes Neil: “CHC is committed to performance management. The successful roll out and implementation of IPMS is just the start of more initiatives to help us achieve an improvement in the service levels we offer our customers.”

Architectural glazing is a crucial building design element as it emphasizes aesthetic value, weight reduction, energy conservation, safety/security and environmental quality.

For centuries, glass has been the primary material of choice for architectural glazing, dating back as far as 1 500 B.C. Most recent notable advances in glass properties include heat, annealing treatments and e-coatings.

In meeting the dynamic and extensive glazing needs of architects and contractors, GE Plastics - Specialty Film and Sheet offers a wide range of versatile materials that combine the aesthetic appeal of glass with value-added performance.

Results include valuable product solutions and glazing applications to a wide variety of industries. This is according to John MacKenzie, CHC Polymerworld Consultant for Structured Products.
Says John: “GE product solutions are founded on a portfolio of leading edge materials backed by advanced global technical support, offering architects and contractors a number of material choices, including an array of polymers, each exhibiting different properties and attributes.”

One such product solution is GE Plastics LEXAN®, a highly versatile polycarbonate sheet characterised by optical quality and virtually unbreakable strength. These specialty sheet products are built to last and are easy-to-install, making possible internal and external architectural application to conservatories, commercial greenhouses, swimming pools, industrial buildings, offices and sport stadiums. Explains John: “LEXAN® is a top choice product due to its versatile glazing solutions in support of building and construction design standards.

“These technically advanced solid and multi-wall sheet products contain highly specialised properties maintaining an excellent balance of low weight and high stiffness, naturally ‘crystal clear’ trans-potency and subsequent design freedom.”

Many GE products are covered by a minimum 10-year limited warranty against excessive yellowing, loss of light transmission and loss of strength due to weathering.

CHC Polymerword is an authorised distributor for GE Plastics - Specialty Film and Sheet in South Africa.

For more information on versatile glazing solutions, please contact John MacKenzie at +27 11 876 6600.

CHANGE CREATES OPPORTUNITIES AND THIS PRINCIPLE HAS BEEN THE CORNERSTONE OF CHC’S PHENOMENAL GROWTH.

“Throughout CHC’s history, change has been the catalyst for ongoing improvements in the company. We are a dynamic organisation, guided by an ever-changing environment that presents successful opportunities impacting positively on our products, services and people.

“CHC employees collectively find reasons for things to happen – it comes down to resourcefulness,” says Neil Hellmann, the CHC Group CEO.

The CHC Group has formed two holding companies in leveraging further growth opportunities - nationally and internationally.

Explains Amanda Dippenaar, Financial Manager, CHC corporate and international affairs: “These exciting developments are aligned with our vision in meeting the needs of our principals and customers. The changes in overall structure were prompted by our commitment to Broad Based Black Economic Empowerment (B-BBEE). Plans and structures are currently being put in place to facilitate representative shareholding within an urgent, but realistic time frame.”

Nationally, the CHC Group includes CH Chemicals, CHC Films, CHC Global, CHC Polymerworld, CHC Resources, CHC Amnion and CHC Properties.

The CHC Group’s international interests are CHC East Coast, CHC West Coast, CHC Group Australia, CHC Group New Zealand as well as a newly established export division trading as a division of CHC.

CHC’s vision is to be an outstanding manufacturer and distributor of chemical, plastic, mining and construction products, driven by enthusiastic and dynamic people, with the utmost integrity, providing exceptional service to meet the needs of our Principals and Customers.

CHC Executive Team:

Neil Hellmann
CHC Group Chief Executive Officer

Reshaan Laljith
Managing Director CH Chemicals and CHC Global

Matthew Stacey
Managing Director CHC International and CHC Films

Chris Masuku
Managing Director CHC Resources

Vassie Naidoo
Managing Director CHC Amnion

Amanda Dippenaar
Financial Manager, CHC corporate and international affairs

Baxter Wareing
Financial Manager CHC Group

Kevin Burley
CHC Group Talent Manager

(Andrew Bailey, Managing Director CHC Elastogran - Joint Venture)

The CHC Group, guided by the People IDEA, attracts and retains enthusiastic achievers with integrity who embrace change and opportunity. CHC recognises individuals who are committed to the growth of the CHC Group. The following senior staff members were promoted (effective 1 March 2007):

Reshaan Laljith
Managing Director: CH Chemicals and CHC Global

Reshaan, Managing Director for CHC Global and Group Logistics, now takes on the added responsibility as Managing Director of CH Chemicals. He joined CHC Global in 1998 and was appointed Managing Director in 2005.

Reshaan helped develop the soda ash supply chain and spent two years refining the purchasing and contract negotiations with service providers. In 2001, he was also given the task as group Logistics Manager to develop a Logistics ‘Hub’ that served all the business units within the CHC Group. Reshaan holds a Bachelor of Science (University of Durban Westville) and MBA (Bond University).

Baxter Wareing
Financial Manager: CHC Group

The last few years have seen Baxter involved in managing the operational side from a financial perspective at CHC with a strong emphasis on planning and performance measurement. Baxter describes himself as a hands-on person with an appetite for getting things done with the team. Baxter has a hearing disability, but this has not stopped him from moving full speed ahead in his career. Learning to lip read has helped him overcome many obstacles in his life and, in the process, he has earned the respect and admiration of all his friends and colleagues. After graduating with a B.Com from the University of Natal, Baxter spent nine years with Eskom (Majuba Power Station project), during which time he was admitted as an Associate Member of the Chartered Institute of Management Accountants. He then relocated to Megawatt Park before joining CHC as its Group Financial Manager in August 2001.

Amanda Dippenaar
Financial Manager: CHC Corporate and International Affairs

Amanda, a chartered accountant by profession, also holds a Law degree (LLB) and a LLM in Tax Law as well as a B.Com Accounts Honours (RAU). She joined the CHC Group in 2005 as Group Financial Manager after four years with PKF as technical manager.

Her CHC corporate finance responsibilities include directing all statutory requirements i.e. tax planning, auditing and management accounts. Amanda will also be responsible for international finance which includes all statutory and operational requirements that CHC requires.

Positive energy drives the company values at CHC – integrity, dynamism, enthusiasm and achievement. Add sincerity and compassion to the People IDEA formula and you have kindheartedness and commitment as the end result!

In commemorating World Aids Day on 1 December 2006, CHC formally announced its support for the Good Hope Child and Home Based Care Centre, a non-profit organisation that was established six years ago to take care of community members who are infected and affected by the HIV-virus.

Flora Mogano is the driving force of the Good Hope Child and Home Based Care Centre, which is located in Tembisa. She provides crucial services to approximately 400 orphans, many of whom are heading up their own households due to cruel circumstances spurred by the HIV/Aids endemic. These teenagers are fulfilling parenting roles by taking care of their younger siblings. They have no one but Flora to turn to as the stigma of HIV/Aids holds irreversible consequences.

Some of Flora’s daily tasks include:
• Feeding the orphans under her care;
• Transporting them to schools, hospitals and clinics;
• Cleaning the various homes that are being used;
• Organising disability grants for HIV/AIDS infected patients;
• Bathing, feeding, cleaning, cooking and attending to the spiritual needs of the orphans; and
• Fundraising.

Although local churches and businesses also support the Good Hope Child and Home Based Care Centre, the daily operational needs and costs outweigh periodic income derived from donations/ sponsorships.

Says Neil Hellmann, CEO of the CHC Group: “We look forward to a long-term relationship with Flora in the fight against HIV/Aids. Her positive energy in succeeding against all odds is commendable. We support Flora’s enthusiasm - sustaining healthy, productive communities are pivotal to South Africa’s future development and growth. Guided by our company values, CHC takes community involvement to heart.”

The CHC team collectively contributed food and clothing resulting in a happy, meaningful festive period for young and old at the Good Hope Child and Home Based Care Centre.

“CHC recognises that the water treatment and separation systems will provide ongoing opportunities for growth. In order to effectively take advantage, we need to focus and commit resources to this field, which is why CHC Amnion has been established. People of the highest calibre have been brought into the organisation to drive this initiative,” says Neil Hellmann, the CHC Group CEO.

Vassie Naidoo, previously employed in this sector as a Business Unit Manager, will head up CHC Amnion. “Together with our international partners, we take pride in providing customers with a package of tailor-made world-class products and innovative solutions,” says Vassie, Managing Director.

Aligned with CHC’s payoff line, ‘The Future Formula’, Vassie and his competent team will strive to consistently add value to all customer requirements.

“CHC recognises that the water treatment and separation systems will provide ongoing opportunities for growth. In order to effectively take advantage, we need to focus and commit resources to this field, which is why CHC Amnion has been established. People of the highest calibre have been brought into the organisation to drive this initiative,” says Neil Hellmann, the CHC Group CEO.

Vassie Naidoo, previously employed in this sector as a Business Unit Manager, will head up CHC Amnion. “Together with our international partners, we take pride in providing customers with a package of tailor-made world-class products and innovative solutions,” says Vassie, Managing Director. Aligned with CHC’s payoff line, ‘The Future Formula’, Vassie and his competent team will strive to consistently add value to all customer requirements.

The team represents:

Johannesburg
• Lolly Chibi manages chemical supply to potable, effluent, mining and wastewater sectors and specialises in chemical commodities including biocides (Dow range).
• Anna Leppert grows the Filmtec range of equipment and resins available from Dow Water Solutions and focuses on the supply of flocculants and chemicals to various industries.

Cape Town
• Joan Fyfe is responsible for the Western and Eastern Cape regions in terms of technical and sales support to the OEM market (membranes and resins) and processes all water treatment business orders.

Durban
• Pradesh Badal, export manager, has extensive experience in various applications in the mining and textile industries. He focuses on the supply of Beijing Hengju range of flocculants.

Zambia
• Regina Bailey, representing the CHC Group in the central African region based in Kitwe, has extensive knowledge of the Zambian water and mining sectors.

Kenya (Nairobi)
• David Kihara is currently involved in a number of projects incorporating ion exchange resins and Filmtech reverse osmosis membranes. Given the need for clean water, ultra filtration and new flocculants have been introduced to improve the traditional aluminium sulphate used in this region.

CHC Amnion has been elected as a member of the Water Quality Association, an international body representing the interests and development of water quality.

Directors promoting their personal interests at the expense of companies in breach of their fiduciary duties will suffer severe legal consequences. The High Court of South Africa handed down a judgement in favour of CH Chemicals (CHC) against its previous MD and the business he set up while MD of CHC, says Neil Hellmann, CEO of CHC Group.

The judgement, in favour of CHC, concluded a seven-year legal dispute against Jose Duarte Coelho Da Silva, Resinex Plastics (Pty) Ltd (currently known as Ultrapolymers) and Resinex Southern Africa (Pty) Ltd (the holding company of Plastomark), the latter being the second and third defendants.

Judge W.L. Seriti of the High Court of South Africa found that Da Silva, a Chartered Accountant, breached his fiduciary duties towards CH Chemicals of which he was the MD and colluded with Joaquim Schoch (previously with Dow Plastics) and Benoit De Keyser (Resinex NV, the Belgium Holding Company now called Ultrapolymer NV and associated with the Ravago Group) to remove Dow's plastics business from CH Chemicals and to give it to Resinex Plastics (now Ultrapolymers).

Evidence was obtained through an Anton Pillar application about a joint business venture contract that was entered into between Da Silva and Resinex NV to set up the second and third defendants businesses while Da Silva was an employee and MD of CHC. Computer records were recovered evidencing overseas trips and meetings with companies against the instruction of the chairman of CHC. The Court also heard evidence of Jose Da Silva and Joaquim Schoch going on holiday to Namibia, about secret meetings, numerous telephone calls to competitors and cryptic e-mail messages.

The judgement referred negatively to the credibility of Da Silva, Joaquim Schoch and Beniot De Keyser. Rejecting Da Silva’s testimony the Court found that his evidence was unreliable. The evidence was contrary to the probabilities. The Court further said that it could not rely on the evidence of Joaquim Schoch who contradicted himself on a number of occasions and who was part of the secret meetings with Da Silva and Beniot De Keyser.

The Court found that the second and third defendants were both the unlawful product of but also the vehicles by which the first defendant (Da Silva) perpetrated his own misconduct against the plaintiff (CHC).

“Second and third defendants benefited from the wrongful conduct of the first defendant. Without the assistance of the second and third defendants, the first defendant would not have been in a position to compromise the interests of the plaintiff to the extent he did. First, second and third defendants are joint wrongdoers.”

In the judgement on 30 January 2007 the Court ruled that Da Silva, Resinex Plastics (now known as Ultrapolymers) and Resinex Southern Africa are jointly and severally liable for the damages suffered by CHC. They are being held to account for profits in these businesses as well as damages. The amount claimed is approximately R80 million (USD 12 million). The claim will, however, be accurately quantified, in due course, after comprehensive investigation. The first, second and third defendants are also to pay for the legal costs of CHC. The Court also ruled that in the light of the documents recovered as a result of the Anton Pillar application, and the findings in the case, the costs of the Anton Pillar application should also be awarded to CHC.

Concludes Hellmann: “At CHC integrity is our most important value. The outcome of this court case is a victory for Integrity which CHC will continue to uphold and we will not tolerate any breaches.”

Issued by:
Riana Sinden
CHC Group Communication Manager
Tel +27 (0) 876-6719 or 083-659-6155

Download a copy of the judgment:

Judgment - Pages 1 to 60 (2MB)
Judgment - Pages 61 to 120 (2MB)
Judgment - Pages 121 to 193 (2MB)

The drawn out battle between the country's main suppliers of soda ash is set to continue for a while yet. As you may have noticed, a few media reports on the matter have surfaced during the past weeks.

To date, some of the media reports did not objectively represent the facts relating to the ANSAC/Botash Competition Commission hearings. We take this opportunity to provide you with important feedback on the relevant court proceedings and findings.

In 1999, Botswana Ash (Botash), a Botswana producer of soda ash, lodged a complaint with the Competition Commission against ANSAC. Soda ash is an inorganic chemical vital to the manufacture of a diverse range of products including glass, soap and detergent powders.

Botash (supported by its SA agent, Chemserve, a subsidiary of AECI) complained that ANSAC's prices for soda ash in the South African market were too low, that ANSAC was engaged in predatory pricing, and in calculatedly pejorative terms claimed that ANSAC, contrary to being an open and transparent legitimate export joint venture between several American producers of soda ash to reduce costs and promote exports, was a “cartel” of “price fixing competitors” that should be barred from the marketplace.

The Competition Commission referred the complaint to the Competition Tribunal and Botash was permitted to participate in the proceedings as an intervener.

Botash dropped the predatory pricing complaint, which the Commission declined to refer to the Tribunal in any event, but the claims are starkly indicative of Botash’s motivations which were not to further the interests of the South African consumer by “protecting” them from low prices.

CHC Global, the erstwhile local agent for ANSAC’s product, was dragged into the fray, accused of having “aided and abetted” ANSAC in its activities in South Africa.

CHC Global remains a party to the dispute, but resigned as ANSAC's agent in April 2001.

Since then, CHC Global has been a customer of ANSAC, purchasing its soda ash at competitive prices for resale in the South African market.

Botash - 51% owned by the Botswana government - is partly owned by AECI with other major shareholders being De Beers and Anglo. Botash claims that the per se prohibition in the Competition Act (1998), against price fixing between competitors, is to be widely interpreted and outlaws all manner of arrangements between competitors which see their goods reaching the market at the same price.

By contrast, ANSAC argues that it is in fact a legitimate, efficiency producing joint venture. Without the sharing of costs, risks and worldwide trade volumes ANSAC's members achieve through ANSAC, it would not be possible for American soda ash to reach the South African market at a competitive price.

This matter was born when the Competition Act had not long been in existence, and ANSAC has had to go to great lengths to even be afforded the right to prove that it is not a price fixing cartel, but rather a substantive joint venture generating true economies and efficiencies to the benefit of the South African consumer.

After the Tribunal declined to allow ANSAC to lead any evidence as to its true character, ANSAC took the matter on appeal first to the Competition Appeal Court and then to the Supreme Court of Appeal ("SCA").

The SCA found that before the Tribunal makes any final ruling on ANSAC, it must first make a pronouncement as to precisely what sort of agreements between competitors concerning price are in fact outlawed by the Competition Act.

This directive is based on the SCA's finding that it is probable that there are legitimate joint ventures between competitors which incidentally result in goods reaching the market at the same price, but which do not have the elimination of price competition as their aim.

Botash and the Competition Commission were ordered by the SCA to jointly and severally pay 50% of ANSAC and CHC Global’s costs since the latter two had been successful in their appeal on the most significant issue in dispute.

The protracted and continuing litigation is burdensome to ANSAC and CHC Global, particularly in light of the fact that these parties reached a settlement of the matter with the Competition Commission as far back as 2002.

The Commission repudiated the settlement agreement subsequent to Botash becoming aware of its existence.

While Botash would have ANSAC and its product exit the South African market, this would leave Botash with an almost complete monopoly over the supply of soda ash in South Africa and would inevitably result in higher prices to South African consumers.

It would appear that Botash is using the competition adjudication process in an attempt to bring about a net reduction in competition in the South African soda ash market by eliminating the presence of its only real competitor, ANSAC.

We look forward to keep you up to date on future developments.

“At CHC, transformation is not seen as a priority because of legislation. Our efforts are not merely as a result of compliance, but rather as a result of our endeavours to be the Future Formula,” says Palesa Bokako, CHC Group Talent Manager.

CHC’s Transformation Committee (TC) is aimed at facilitating an efficient and effective consultation and information-sharing platform on matters relating to employment equity, skills development and Black Economic Empowerment (BEE).

The company has succeeded in employing diverse people at all levels and this proves our commitment to Employment Equity. People development is also the order of the day.

In support of its transformation process, CHC has ensured that all policy and procedures including management practices are continuously improved and monitored to allow success in this area.

Concludes Palesa: “CHC’s talent management strategy is focused on attracting the most dynamic achievers in the market. Our core values – integrity, dynamism, enthusiasm and achievement – are our driving force in identifying people, including those from previously disadvantaged communities with potential to be further developed and given opportunities at top levels within the business.”

When it comes to innovation, CHC has a proven track record. CHC Resources introduces an exceptional roofing solution as an option to replace tiled roofs and also traditional corrugated iron roofs.

The applications and benefits of plastic roof sheeting are diverse, multiple and flexible, implying creative and imaginative building solutions. The plastic roof sheeting is extruded and profiled to take up the shape of a tiled roof.

Says Neil Hellmann, CHC Group CEO: “The future for innovative roofing solutions and materials is stronger than ever. Already tried and tested by our Chinese partners for the past ten years, this emerging market has convinced stakeholders to sit back and take note.”

The CHC roof product features Geloy, an engineering thermoplastic from General Electric Advanced Materials, which is a co-extruded coating that enables colour retention, ultraviolet stability and exceptional weather ability properties. Houses are kept much cooler in summer and warmer in winter, which is ideal for sub-Saharan climate conditions.

Says Dave Garrett, sales representative for CHC Resources: “The roof sheeting is available in any colour, making the end-result aesthetically pleasing to the eye. In addition, the roof sheeting is easy to install. Compared to traditional corrugated iron roof tiles, this roof sheeting product sets a new standard altogether.”

Locally, the product is undergoing refinement for South African conditions.

“CHC’s roof sheeting holds many benefits for both the installer and end-user. We are currently gaining the necessary certification from local regulatory authorities, after which we’ll start supplying the sheeting into South Africa. We hope to manufacture the roof sheeting locally as the product holds enormous socio-economic scope for housing and property developments in South Africa,” concludes Chris Masuku, MD for CHC Resources.

CHC Resources is already supplying the Namibian market. The rest of Africa, Australia and New Zealand are to follow suit.

The growing market for fine chemicals in South Africa holds many promises, resulting in huge benefits to those who take on the challenge. CHC Group, known for its ambition, took on the challenge and achieved success!

CH Chemicals, one of several operating companies within the CHC Group, markets and distributes a broad spectrum of commodity and specialised chemicals to an extensive range of industries, including fine chemicals.

The fine chemicals division of CHC concentrates on the sourcing of quality raw materials for cosmetic and food/beverage products, meeting the individual needs of a diverse, yet competitive supply chain.

Says Group CEO, Neil Hellmann: We sharpened our focus on the business development of fine chemicals as a result of our team’s ability to understand the growing market potential, consumer needs and future trends. We believe in going the extra mile; we support our customers during product development phases, ensuring that they are given tailor-made solutions.”

South Africa follows strict European legislation in regard to environmental practices and is perceived as one of the best-regulated countries by the cosmetic and food/beverage manufacturing fraternities. However, the cosmetic industry faces several challenges ranging from time spent on ‘concept to product launch’ to free trade agreements between South Africa and Europe expected to be implemented by 2010.

The pressure, locally, is to meet these growing demands head on and to improve on existing standards. This, in itself, is not an easy task, especially when taking into consideration the collective marketing revenue spent internationally by cosmetic houses in product brand positioning.

“Over the past two and half years we have succeeded to secure innovative, quality ingredients that meet the needs and expectations of our customers. Using the latest technology, our successful formula lies in the integration of science and nature, supported by a dynamic, qualified team of specialists. Our competitive edge lies in our strategy to combine technical skills with consumer marketing solutions,” explains Mercia Jansen, Business Manager for the fine chemicals division (also a qualified chemist by trade), who heads up the team.

The team comprises an award-winning and experienced formulations chemist, Conny Oberrauter, backed by experienced sales executives, Corne Venter, Kumarie Jagganath, Sandra Simay and Judy Heine who have been in the industry for many years.

The fine chemicals division has secured credible, respected international suppliers. Recently, the fine chemicals business division has confirmed Setalg, based in France, as a new supplier.

Supported by international principals, the list of long standing partners expands to include Dow Chemical, Fanning Corporation, Active Concepts, Active Organics, Grant Industries and Fred Colour. In addition, food and beverage industry principals include RC Treatt, Armor Proteins and Food Design.

Mercia explains that primary international trends include the supply of technologically advanced products that are holistically approached to meet individual consumer needs. The strong overlap between product range – cosmetic and food/beverages - highlights a growing consumer trend. Well-being (health) is viewed as an integral component of beauty (i.e. the demand for spa products).

The current emphasis for the food and beverage industry is on the supply of health products that contain functional components using natural flavourants and preservatives.

Concludes, Mercia: “Our expertise enables us to offer a complete service which includes raw materials, unique formulations, marketing concepts and innovative ideas. Our initial focus on cosmetics has been extended to include the food and beverage market by sourcing top quality ingredients, enabling us to operate in a diverse and highly competitive industry ensuring that our customers stay one step ahead.”

Caption: Fine Chemicals recently moved its formulations laboratory from Durban to Johannesburg. Seen (standing) is Mercia Jansen and Conny Oberrauter.

The CHC International division, known for its ability to grab market opportunities ahead of its competitors, is sharpening its focus on Zambia and central Africa by responding to crucial market demands.

Regional representative, Regina Bailey, has been appointed to assist CHC in its drive to meet Zambia’s growing economic needs. Based in Kitwe, her focus is on the development and expansion of CHC Group chemical and mining products.

Her vast experience in the mining and chemical industry is sure to be a huge asset to the CHC Group. Regina holds a BComm degree from the University of Lusaka.

Says Neil Hellmann, Group CEO: “Zambia is a country that has shown exceptional growth and prosperity in the past ten years. It has taken up a strategic role in regard to farming, tourism and mining in central Africa. CHC aims to highlight the benefits of its chemical and mining products to this region as we see ourselves playing a significant role in Africa’s developing growth.”

Zambia is one of the largest producers of copper globally.

Says Regina Bailey: " I look forward to being associated with a dynamic and motivated export team. CHC Group’s ability to be flexible in meeting market demands is a huge strength; the areas for product expansion in Zambia is multiple, enabling us to apply further creativity in developing products to meet local requirements. This promises an excellent future and the task ahead is very exciting."

Its track record clearly illustrates CHC Group’s innovative and imaginative business approaches. CHC’s presence in East and West African regions confirms the Group’s strategic intent – to be the leaders in its field, locally and internationally.

Concludes Wade Bills, Business Manager, CHC International: “Our ambition is met with great enthusiasm. We are investigating warehousing in this region as the infrastructure to meet our supply chain needs (i.e. most cost effective transport routes) has huge potential. Long-term, our plans include expanding CHC’s presence to Lusaka.”

CHC’s soda ash footprint in Nigeria holds many advantages for businesses operating in Africa, says Matthew Stacey, Managing Director for CHC West Coast Ltd.

Recently registered, commercial trading in Nigeria for CHC has commenced, ensuring that CHC is at the cutting edge of providing product solutions to global market needs.

Says Matthew: “After many months of planning and preparation, the first shipment of soda ash has been delivered by a bulk vessel to Nigeria by the end of August 2006. We pride ourselves in providing Nigeria's growing soda ash market with cost effective, reliable and top quality products.”

The estimated market size for soda ash in West Africa is in excess of 50 000mts.
Ansac, the world’s largest exporter of soda ash, supplies the purest natural guaranteed product according to specification. They’ve appointed CHC Group as its agent and distributor for West Africa.

In remaining competitive in a highly volatile market, CHC has identified innovative delivery methods to further cut costs by increasing turn around time.

Nigeria is regarded as the gateway to West Africa and its market potential is expanding vastly due to the ongoing improvement of its infrastructure as a result of growing commercial markets with significant potential being the 10th largest producer of oil in the world.

“CHC, through its resourcefulness, is also able to access Nigeria’s neigbouring countries such as Ghana, Niger and Cameroon. These countries offer additional markets for carefully selected products and Lagos is a strategic base to work from,” explains Matthew.

Although the initial focus for CHC West Coast is on the supply of high grade, cost competitive soda ash, CHC International will introduce other Group products suitable to customer needs as has been achieved in East Africa. One particular focus area includes the supply of cost-effective roof sheeting addressing the need for affordable housing schemes.

“The population in Nigeria is estimated at 150 million people; the potential is very attractive for South African companies to invest in the country. We are positive that CHC West Coast will fill the gap that these emerging economies require,” concludes Matthew.

In a highly competitive environment, customer satisfaction is a crucial element for any business. CHC, known for its integrity, values the importance of two-way communication and customer feedback.

CHC scores customer satisfaction!
In assessing customer satisfaction levels, Group CEO Neil Hellmann presented critical benchmarks to those on the ‘receiving end’. Does the Group’s interaction with customers reflect its company values? Is the Group succeeding in creating and maintaining long-term customer relations? In a nutshell, does CHC impress its customers?

The answer, according to CHC Group customers, is an overwhelming ‘yes’! On a scale of 1 to 10, the Group achieved a very good 7,8.

CHC appointed independent research experts to conduct the integrated customer satisfaction survey which focused on customers' perceptions of the Group relating to sales, accounts, products, logistics and general service, drilling down to each Group company and further down to sales representatives. The survey sample consisted of four hundred customers who were contacted telephonically. Top-of-mind perceptions were assessed.

Says Neil: "We as CHC Group are very happy with our performance. I commend all CHC staff members for going the extra mile in treating our customers with the utmost respect and professionalism.

Operationally, we will be addressing important areas that require consistent attention in ensuring that we remain highly competitive. The next challenge is to improve on our rating in our efforts to further achieve and sustain excellence in every possible way. Thus, our vision to be the leaders in our industry has reached very good momentum.”

What is the next step going forward?

CHC Group is launching an internal customer satisfaction campaign to sensitise internal business divisions in regard to operations impacting on customer relations management. The integration of ‘people, processes, perceptions and proactive customer service’ will take emphasis.

The implementation and roll out of the ‘Eight is Great Campaign’ will be launched in the latter half of 2006, effectively giving CHC Group a realistic cycle in further identifying areas for improvement.

Concludes Neil Hellmann: “We look forward to an even better performance as we prepare to increase our customer satisfaction target from 7,8 to 8 out of 10. We thank all our customers for their feedback and support. CHC is continuously evaluating potential for operational improvement. We are enthusiastic, as the implementation of a very productive, customer-focused programme in the next few weeks will benefit all our stakeholders in the long run.”

CHC’s commitment to Kenya has paid off.

CHC East Coast, launched in October 2005, has secured break-even status, clearly illustrating CHC’s reputation for its resourcefulness and innovative approaches in taking on new boundaries.

Says Neil Hellmann, CHC Group CEO: “CHC East Coast’s competitive edge lies in its ideal location in Kenya, based on the country’s infrastructure, market potential, port facilities and accessibility to surrounding countries. Our success can be attributed to the commitment and dedication of CHC East Coast Managing Director, David Kihara, backed by the CHC team’s exceptional efforts.”

CHC East Coast provides cost-competitive quality chemical products which are technologically superior for the mining and construction markets in Africa and Australasia.

Says David Kihara: “Breaking into a very competitive market has been no easy feat and the path ahead is full of challenges, however, during the past year, the CHC team was able to establish its operations firmly in Kenya.”

According to Wade Bills, sales representative for CHC Group, future business looks extremely positive. “We are excited about a number of huge opportunities that involve our expertise in regard to water treatment, detergents, polyurethane and cosmetics.”

CH Chemicals have also already started moving out of its initial base in Nairobi to secure business in new areas such as Mombassa and Dar Es Salaam, Tanzania.

“CHC East Coast is making huge effort to address consumer needs with an integrated, innovative business approach,” concludes David.

In striving to continuously meet customer needs, CHC Group aims to secure and sustain viable business operations with a focus on chemical, plastic, mining and construction products. In achieving this objective, CHC Resources acquired a resin capsule manufacturing plant towards the end of 2005.

According to Nico van der Westhuizen, an industrial chemist and previous owner of Cyma Mining, the supply of Amnilock Resin Capsules to customers is underway.

Says Nico: “The product has been trialed and tested extensively with major mining houses. We are confident that CHC Resources will be a major competitive force in the market in the near future.”
A primary feature of the Amnilock Resin Capsules is its underground support application, which has multiple benefits to the mining industry.

Amnilock Resin Capsules are two-compartment capsules containing a resin mastic in the one compartment and a catalyst paste in the other.

Used with various types of steel tendons (roof bolts) in underground mines and tunnels, the capsules form part of an overall support system.

“Once holes have been drilled into the roof of the tunnel, the capsules are inserted and roof bolts are ‘spun’ through the resin capsules.

“The impact breaks the capsule, mixing the two components which results in a chemical reaction. Once the resin sets, the nut on the roof bolt is tightened to 5 tons tension. The tensioned roof bolts prevent the tunnel from collapsing as a beam is formed across the roof,” explains Nico.

The sales and marketing of the Amnilock Resin Capsules will be the responsibility of Johann Steyn, a qualified Rock Engineer who joined CHC Resources in December 2005.

“CHC Films’ recent appointment as agent and distributor for Forbo Adhesives is testimony to the CHC Group’s vision to be an outstanding manufacturer and distributor of chemical products in meeting the needs of our customers,” says Neil Hellmann, Chief Executive Officer, CHC Group.

The appointment provides a foundation for CHC Films in terms of adhesives and will complement its professional service to the packaging, labelling, industrial, automotive and publishing markets in English speaking Sub-Saharan African countries.

Matthew Stacey, MD of CHC Films, explains that the Forbo Group, a well-known and respected company, specialises in flooring, belting and adhesives. Forbo Adhesives is a top ten player in the global market for industrial adhesives.

Committed to quality, Forbo Adhesives is one of the largest formulators, producers and marketers of industrial adhesives, with more than 30 manufacturing sites and offices around the world. Forbo Adhesives will help expand the CHC Films’ existing range of products.

“We are confident that our association with Forbo Adhesives will help us provide our customers not only with a bigger product range but also with improved operational efficiencies,” says Matthew.

For enquiries, contact Matthew Stacey/Donna Devaney (+27 11 876 6709); Dhiresh Moodley, Durban (+27 31 910 6402); David Kihara, Nairobi
(+254 20 422 4228); or Jeanette Betti, Cape Town (+27 21 532 6508).

CHC Resources has concluded a new technology license agreement with the DOW Chemical Company, effective September 2005.

The agreement allows CHC to utilise a unique technology and to manufacture a range of PUD (Polyurethane Dispersion) products at the Chloorkop site. The technology provides all the inherent properties of a traditional polyurethane elastomer but is far more user friendly, being a water-based product. Advantages of the technology include impressive physical properties such as tensile strength and exceptional elongation.

"CHC Resources is very excited about this opportunity," says Peter Smith, Managing Director, CHC Resources. "We have implemented business strategies for developing and commercializing technologies using polyurethane dispersions in mining, building/construction and waterproofing applications and we have evaluated using polyurethane dispersion with initial success".

An international leader using this technology in the mining and construction industry, CHC Resources will be the third site in the world with this manufacturing capability.

The CHC Group and the BASF/Elastogran Group are pleased to announce the merger of their polyurethane businesses (CHC Urethane Products and Elastogran) in a joint venture company, to be called CHC Elastogran. The new Polyurethane (PU) systems house is subject to the customary Competition Commission approvals.

The joint venture company, CHC Elastogran, will be responsible for the production and distribution of polyurethane systems and PU raw materials in South Africa and Sub-Saharan Africa. The new company will employ some 50 people and is based in Elandsfontein, Johannesburg. CHC Elastogran is to be headed by Andrew Bailey as Managing Director.

“In a steadily growing market, the CHC Elastogran joint venture will allow us to be in a better position to respond to the changes and opportunities out there. CHC Elastogran will have the advantage of having direct access to essential raw materials! This, along with the combined R&D technological capabilities of its partners, will place the company in a strong position for growth into the future” says Neil Hellmann, Group Managing Director, CHC Group.

By the formation of the joint venture, Elastogran and BASF's corporate sector for polyurethanes delivers the goal in South Africa and Sub-Saharan Africa of being close to the customer for the marketing of raw materials processed to systems by a local system house. The customers are mainly from the appliance, automotive, furniture and bedding, construction and building, and mining industries. Here CHC Urethane Products has built a strong market position. In addition, CHC Elastogran will invest in additional manufacturing capacity in order to meet ambitious growth plans so as to establish a leading presence in the Sub-Saharan Africa market.

CHC Group extends its reach into new growth markets in Africa and Australasia.

CHC Group has been appointed as the agents for Chinese mining and construction companies, Beijing Henju and Fangxing, in Africa and Australasia. To meet this challenge, CHC recently established CHC East Coast Ltd in Nairobi; CHC Group Australia (Pty) Ltd in Sydney; and CHC Group New Zealand (Pty) Ltd in Auckland.

“A cornerstone of our strategy to establish CHC as a global company is to provide cost-competitive products which are technologically superior for the mining and construction markets in Africa and Australasia,” says Neil Hellmann, Managing Director, CHC Group.

Heading up the Australasian companies are John Kirkness (Australia) and Hylton Warman (New Zealand). Local Kenyan, David Kihara, will be responsible for the East African office. These Directors have been tasked to set up the necessary infrastructure (warehousing, distribution and administration) so that the foundations are laid for the pursuit of new business.

The company’s competitive edge in East Africa lies in its ideal location in Kenya, based on the country’s infrastructure, market potential, port facilities, and accessibility to surrounding countries. In Australia and New Zealand, Sydney and Auckland were respectively the obvious choices to set up offices with both cities being the major financial centers.

“CHC has a reputation for its resourcefulness, and with our imaginative approach, innovation and drive, we are confident in our ability to successfully establish new offices and develop new markets in other parts of the world,” concludes Neil Hellmann, Group Managing Director.