Manufactured capital

We use our substantial base of factories and equipment in 11 African countries and the United Kingdom and Ireland to manufacture the fit-for-purpose packaging products our customers require. We also rely on public infrastructure, including roads, rail and ports, to transport both raw materials and finished products. To achieve our promise of “Packaging Excellence”, we continue to upgrade and invest in new technologies. This enables us to further reduce the impact on the environment of our manufacturing processes and products.

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Trade-offs in our use of manufactured capital

By investing in more efficient modern equipment and closing factories to remain competitive, we require fewer employees. Job losses negatively impact human capital. Investments have a short-term negative impact on financial capital, but a long-term beneficial impact on this capital stock. The closure of the tinplate Bevcan facility in Durban is forecast to result in savings of R30 million a year.

  Key inputs

           
      2017   2016  
Production facilities            
South Africa Number   28   28  
Rest of Africa Number   18   13  
UK/Ireland Number   8   10  
Cullet Tonnes   63 000   59 000  
Polymer resin Tonnes   105 000   97 600  

Aluminium and tinplate usage not disclosed for competitive reasons.

OUTPUTS

Dependable packaging products made of metals, glass, plastics and paper, the quantities of which we do not disclose for competitive reasons.

  OUTCOMES

           
      2017   2016  
Capital expenditure            
Expansion R billion   0.3   1.0  
Replacement R billion   0.4   0.4  
Depreciation and amortisation R billion   896   912  
Impairment of assets R billion   668   360  

HOW WE ACHIEVED THESE OUTPUTS AND OUTCOMES

  • Pursued operations excellence and enhanced our maintenance practices
  • Benefited from first full year of production of expanded beverage can ends plant in Springs
  • Installed and commissioned a gas transmission line to our Glass plant
  • Incurred transport costs and delays because of poor state of some public roads near our sites
  • Closed our tinplate Bevcan line in Durban
  • Acquired two can assembly lines in Botswana
  • Installed multi-deck printer at our paint pail facility in Mobeni
  • Upgraded large format can assembly line in Paarl
   

MANUFACTURED CAPITAL FOCUS: BEVCAN EXPANDS ENDS CAPACITY

     
   

2017 marked the first full year of production of the expanded can ends plant in Springs, Gauteng. The end is an essential part of the beverage can – it is the top of the can, containing the aperture through which the drink can be poured or sipped.

   

Growing beverage can demand in South Africa and Angola as well as the acquisition of Alucan in Nigeria resulted in there being insufficient capacity to manufacture all the ends required for the cans.

Most of the ends for the entire sub-Saharan market are manufactured at Bevcan’s factory in Springs. This plant was recently expanded and this involved acquiring new equipment as well as reconfiguring the existing lines to bring them up to world-class efficiency standards.

Half of these ends are supplied to the South African market, while the remainder is exported to mainly Angola and Nigeria.

This project has led to the creation of an additional 29 jobs and positively impacts Nampak’s human capital. The end handling system includes several robotic transfer systems plus auto-baggers all of which ensure high efficiencies and product quality. The opportunity was taken to reconfigure some equipment, which has enabled Bevcan to be globally competitive.

The new end profile is the most material-efficient in the Bevcan offering and has potential for further downgauging, which will result in even less raw material being used. The technology for this end design, the Interchangeable SuperEnd, has been supplied by Crown Cork.

 
  Manufactured capital