ngodwana mill update investing in the future - · pdf filengodwana mill update . investing in...

45
SPCI Convention 2013 26 September 2013 Ngodwana Mill Update Investing in the future

Upload: dinhdieu

Post on 17-Mar-2018

217 views

Category:

Documents


3 download

TRANSCRIPT

Page 1: Ngodwana Mill Update Investing in the future - · PDF fileNgodwana Mill Update . Investing in the future ... What is DP / Specialized Cellulose ... One of the most modern fibrelines

SPCI Convention 2013 26 September 2013

Ngodwana Mill Update

Investing in the future

Page 2: Ngodwana Mill Update Investing in the future - · PDF fileNgodwana Mill Update . Investing in the future ... What is DP / Specialized Cellulose ... One of the most modern fibrelines

| SPCI 2013 – 26 September 2

Andrea Rossi

GoCell Project Executive Director

Andrew Hall

GoCell Project Manager

Kristina Idner

GoCell Project Process Manager

Page 3: Ngodwana Mill Update Investing in the future - · PDF fileNgodwana Mill Update . Investing in the future ... What is DP / Specialized Cellulose ... One of the most modern fibrelines

| SPCI 2013 – 26 September 3

AMEC at a glance

• FTSE 100 company • Market cap*

c.£3.2 billion

• Operating in over 40 countries worldwide

• Serving oil & gas, mining, clean energy and environment & infrastructure markets across the world

• Over 29,000 employees in:

– Europe 11,000 – Americas 14,500 – Growth Regions 3,500

• Revenue some £4.2 billion, or US$6.6 billion

* As at 9 August 2013

Page 4: Ngodwana Mill Update Investing in the future - · PDF fileNgodwana Mill Update . Investing in the future ... What is DP / Specialized Cellulose ... One of the most modern fibrelines

| SPCI 2013 – 26 September 4

AMEC market sectors

Oil & Gas

• FTSE 100 company

• Oil & Gas • Unconventional Oil &

Gas

Clean Energy

• Nuclear • Renewables / Bio-

process • Transmission &

Distribution • Power

Environment & Infrastructure

• Water • Transportation /

Infrastructure • Government Services • Industrial /

Commercial

Mining

• Mining

* As at 9 August 2013

Page 5: Ngodwana Mill Update Investing in the future - · PDF fileNgodwana Mill Update . Investing in the future ... What is DP / Specialized Cellulose ... One of the most modern fibrelines

| SPCI 2013 – 26 September 5

Infrastructure ca 1700 consultants

International ca 1250 consultants

Industry ca 1750 consultants

Technology ca 2000 consultants

10 c

ost &

Im

plem

ent.

Mill

Im

prov

emen

t

Ene

rgy

Effi

cien

cy

Env

iron-

men

tal

Impr

ovem

ent

Dam

age

&

Failu

re

Con

sulti

ng

Con

cept

/

P

re fe

asib

ility

st

udie

s

Sweden 57%

South America

23%

South Africa 11% Europe

8%

Asia 1%

ÅF Forest Industry ca 300 consultants sales 27 MEuro 2012

Assignments of the process and consultant group

2013

Page 6: Ngodwana Mill Update Investing in the future - · PDF fileNgodwana Mill Update . Investing in the future ... What is DP / Specialized Cellulose ... One of the most modern fibrelines

| SPCI 2013 – 26 September 6

Sappi Group Profile

• Headquartered in Johannesburg, Sappi is a global company, with global

brands, global assets and a global shareholding

• Listed on the Johannesburg stock exchange

• Sales in more than 100 countries

• Leading supplier of coated fine paper

• Also manufacture a range of uncoated specialties and commodity grades

• World’s largest producer of Specialized Cellulose

• Own and/or manage 567 000 hectares of forest lands in Southern Africa

Page 7: Ngodwana Mill Update Investing in the future - · PDF fileNgodwana Mill Update . Investing in the future ... What is DP / Specialized Cellulose ... One of the most modern fibrelines

| SPCI 2013 – 26 September 7

What is DP / Specialized Cellulose

• Dissolving Pulp / Specialty Cellulose / Specialized Cellulose

– High purity cellulose

– Low hemi-cellulose content

– High brightness and low dirt count

– Low ash content (Ca, SiO2, Mg, Fe)

– Chemical feedstock

• Similar process technology and equipment as for conventional pulps, but:

– Requires acid treatment to remove hemicellulose

Acid sulphite or Prehydrolysed Kraft (PHK)

– Very low cooking Kappa followed by high brightness bleaching

– Process water is deionised to manage metals content

– Viscosity control critical – need consistent molecular chain length

Page 8: Ngodwana Mill Update Investing in the future - · PDF fileNgodwana Mill Update . Investing in the future ... What is DP / Specialized Cellulose ... One of the most modern fibrelines

| SPCI 2013 – 26 September 8

Two Main Grades

• “High-Alpha” or “Acetate” grade

– Approx. 30% of global production

– Acetates, ethers, nitrates, other specialties

• “Low-Alpha” or “Viscose” grade

– Balance of 70% of global production

– Approx. 90% goes into manufacture of viscose products

– Balance is used in ethers, nitrates, MCC, moulding powders, etc

– Viscose family of products includes:

Staple fibre (textiles and non-wovens)

Tyre cord and industrial yarns

Films (cellophane) and sponges

Page 9: Ngodwana Mill Update Investing in the future - · PDF fileNgodwana Mill Update . Investing in the future ... What is DP / Specialized Cellulose ... One of the most modern fibrelines

| SPCI 2013 – 26 September 9

Specialized Cellulose : End Uses

Page 10: Ngodwana Mill Update Investing in the future - · PDF fileNgodwana Mill Update . Investing in the future ... What is DP / Specialized Cellulose ... One of the most modern fibrelines

| SPCI 2013 – 26 September 10

Sappi and Specialized Cellulose

• South African Industrial Cellulose Corporation (SAICCOR) was established in

the 1950’s to pioneer the production of Specialized Cellulose from eucalyptus

– JV between Courtauld, SNIA Viscosa and the South African IDC

– Started up a 30 000 tpa mill based on Ca-sulphite cooking in 1955

• Commissioned 170 000 tpa Mg-sulphite line in 1985

• SAICCOR was purchased by Sappi in 1989 – by this time production capacity

had increased to 400 000 tpa on 2 fibrelines and 4 drying lines

• “Mkomazi” Project increased capacity to 580 000 tpa in 1994

– Entire mill converted to O2 delignification and ECF bleaching

– Flash drying plant decommissioned and original Pulp Dryer 1 retired

– 3 fibrelines and 3 drying lines

Page 11: Ngodwana Mill Update Investing in the future - · PDF fileNgodwana Mill Update . Investing in the future ... What is DP / Specialized Cellulose ... One of the most modern fibrelines

| SPCI 2013 – 26 September 11

Recent Specialized Cellulose Investments - Saiccor

• Project “Amakhulu” commissioned in 2008

– New 310 000 tpa production line comprising:

New hardwood chipping plant

11 batch digesters (Mg-sulphite process)

New washing, screening and bleaching line

New pulp dryer (Andritz twin-wire with shoe press)

Multiple effect evaporator set

Recovery boiler and steam turbine generator (60 MVA)

Decommissioned 75 000 tpa of old Ca-sulphite capacity

• Saiccor capacity today is 815 000 tpa of viscose grade pulp, making it by far

the largest sulphite mill and largest SC mill in the world

Page 12: Ngodwana Mill Update Investing in the future - · PDF fileNgodwana Mill Update . Investing in the future ... What is DP / Specialized Cellulose ... One of the most modern fibrelines

| SPCI 2013 – 26 September 12

Recent Specialized Cellulose Investments - Cloquet

• Cloquet mill was purchased from Potlatch in 2002

• One of the most modern fibrelines in N. America based on Metso’s

SuperBatch cooking and wash presses throughout the fibreline

• Capacity of 440 000 tpa of bleached kraft pulp, partially integrated with the

site’s 2 CWF paper machines with balance sold on the market

• Project Athena: Conversion of Cloquet fibreline to 330 000 tpa SC

– All capacity is aimed at the VSF market

– Detailed engineering started November 2011

– Major shutdowns in April 2012 and April 2013

– Start-up May 2013

– Paper mill converted to run on purchased pulp

Page 13: Ngodwana Mill Update Investing in the future - · PDF fileNgodwana Mill Update . Investing in the future ... What is DP / Specialized Cellulose ... One of the most modern fibrelines

| SPCI 2013 – 26 September 13

Recent Specialized Cellulose Investments - Cloquet

• Project Athena comprised the following upgrades:

– New woodyard de-barking system

– Conversion of cooking process from SuperBatch to Lenzing’s VISCBC

Addition of 2 new batch digesters

– Upgrade brownstock screening system

– Add ozone stage to existing bleach plant: Z/D – Eop – D

– New ozone generation plant

– Upgrade of the pulp drying line (Andritz):

Install cleaners (previously only screens)

Rebuild baling line (wrapping)

– New demineralised water plant

Page 14: Ngodwana Mill Update Investing in the future - · PDF fileNgodwana Mill Update . Investing in the future ... What is DP / Specialized Cellulose ... One of the most modern fibrelines

| SPCI 2013 – 26 September 14

Ngodwana – Project GoCell

Page 15: Ngodwana Mill Update Investing in the future - · PDF fileNgodwana Mill Update . Investing in the future ... What is DP / Specialized Cellulose ... One of the most modern fibrelines

| SPCI 2013 – 26 September 15

Recent Specialized Cellulose Investments - Ngodwana

• Ngodwana mill originally established in the 1960’s

• Major expansion in the 1980’s to current configuration

– Most plant and equipment is 1980’s vintage

• Mill configuration prior to most recent investment:

– PM1 producing KLB, WTL

– PM2 producing standard and improved newsprint grades

– Uptake Machine 3 (UM3) producing BSKP and BHKP

– Uptake Machine 2 (wetlap) producing USKP and UHKP

• Wood resource is pine and eucalyptus

• Mill is self-sufficient in terms of power generation

• Mill is severely water constrained

Page 16: Ngodwana Mill Update Investing in the future - · PDF fileNgodwana Mill Update . Investing in the future ... What is DP / Specialized Cellulose ... One of the most modern fibrelines

| SPCI 2013 – 26 September 16

Ngodwana Investment Objectives

• Time to announcement and time to market were key factors

– Project was fast-track from day 1

– Sappi needed to maintain its position as market leader

• Ngodwana mill is a key asset in South Africa and SC was a way to move it up

the value chain

• Conversion of Ngodwana to SC would provide synergies in terms of Sappi’s

restructuring of South African operations

• Align Ngodwana with the long term objective of switching forest lands from

softwood to hardwood

• Streamline the mill’s production processes for improved efficiencies

• Pre-feasibility study for Project NGOdwana CELLulose (GoCell) was

commissioned in October 2010

Page 17: Ngodwana Mill Update Investing in the future - · PDF fileNgodwana Mill Update . Investing in the future ... What is DP / Specialized Cellulose ... One of the most modern fibrelines

| SPCI 2013 – 26 September 17

Project GoCell - Constraints

• The site has a very low water usage, and the SC conversion had to be done

without increasing consumption

– Design water usage based on all products (paper & SC ) is <13 m3/t

• Effluent receiving body is very small, so strict discharge limits on Na, Cl & SO4

– Most difficult is Na at < 14 t/d (~ 9 kg/t)

• Mill to retain power self sufficiency

• Design a plant that is cost-effective but easy to operate and maintain

– Since this was a new product for the mill, the operators would have a steep

learning curve

• Produce a product interchangeable with Saiccor as far as possible

• Design a fibreline capable of ECF and TCF bleaching of SC and BHKP

• Overcome the space constraints inherent in a brownfield site

Page 18: Ngodwana Mill Update Investing in the future - · PDF fileNgodwana Mill Update . Investing in the future ... What is DP / Specialized Cellulose ... One of the most modern fibrelines

| SPCI 2013 – 26 September 18

Project GoCell – Overview

• Nominal SC capacity of 210 000 tpa

– Based on maximum utilization of the recovery boiler capacity

– RB2 rebuild from 1850 to 2200 tDS/d was added late in the project

• New hardwood chipping plant (Metso EPS)

• New PHK batch cooking process (Metso EPS)

• New fibreline with O – D – Z/Eop – D bleaching (Metso EPS)

• New ClO2 Plant (Eka EPS)

• Rebuild existing UM3 for Specialized Cellulose production (Andritz EPC)

• Upgrade existing Recausticizing and Evaporation (Metso EPS)

• New Ash Leaching Plant (Metso EPS)

• New Demineralised Water Plant (Veolia EPC)

• Rebuild Fibreline 2 for Hi-Kappa production

Page 19: Ngodwana Mill Update Investing in the future - · PDF fileNgodwana Mill Update . Investing in the future ... What is DP / Specialized Cellulose ... One of the most modern fibrelines

| SPCI 2013 – 26 September 19

Ngodwana Mill – Old Configuration

PINE

EUCALYPT

SOFTWOOD PROCESSING

GROUNDWOOD PLANT

BLEACH PLANT

FIBRELINE 1(HI-KAPPA)HARDWOOD

PROCESSING

PM1 (KLB)

PM2 (NEWSPRINT)

FIBRELINE 2(LO-KAPPA)

UPTAKE 3(BSKP / BHKP)

OCC PLANT

UPTAKE 2(USKP / UHKP)

Page 20: Ngodwana Mill Update Investing in the future - · PDF fileNgodwana Mill Update . Investing in the future ... What is DP / Specialized Cellulose ... One of the most modern fibrelines

| SPCI 2013 – 26 September 20

Ngodwana Mill – New Configuration

PURCHASED BSKP

PINE

EUCALYPT

210 000 tpa

220 000 tpa

124 000 tpa

SOFTWOOD PROCESSING

GROUNDWOOD PLANT

FIBRELINE 3WASHING & BLEACHING

FIBRELINE 3DIGESTERS

NEW HARDWOOD PROCESSING

PM1 (KLB)

PM2 (NEWSPRINT)

FIBRELINE 2(HI-KAPPA)

UPTAKE 3(CC)

OCC PLANT

PROJECT GOCELL

Page 21: Ngodwana Mill Update Investing in the future - · PDF fileNgodwana Mill Update . Investing in the future ... What is DP / Specialized Cellulose ... One of the most modern fibrelines

| SPCI 2013 – 26 September 21

Project GoCell – Mill Area Summaries

Page 22: Ngodwana Mill Update Investing in the future - · PDF fileNgodwana Mill Update . Investing in the future ... What is DP / Specialized Cellulose ... One of the most modern fibrelines

| SPCI 2013 – 26 September 22

Project GoCell – Execution Strategy

• Main process equipment packages from Vendors on EPS or EPC basis

– Included detailed process, mechanical and piping engineering

– Basic E&I engineering only

• Civil and Structural design by local consultant

• Detailed E&I engineering as well as main E & I equipment supply (including

instruments) by ABB (EPS basis – no construction)

• DCS engineering and supply by ABB

• Complete MEIP erection in a single general contract

• EpCM contractor to provide:

– Overall engineering, project & construction management (incl. HSSE)

– Detailed engineering for BoP and non-EPS/EPC packages

– Project services (planning, doc control, cost control)

– No procurement or QA/QC – directly by Sappi

Page 23: Ngodwana Mill Update Investing in the future - · PDF fileNgodwana Mill Update . Investing in the future ... What is DP / Specialized Cellulose ... One of the most modern fibrelines

| SPCI 2013 – 26 September 23

Wood Handling - Hardwood

• Hardwood is segregated into two blends:

– Blend of E. grandis, dunnii, and macarthuri

– E. nitens (+ minor quantities of high density cold tolerants)

• New hardwood log storage yard

– All hardwood is delivered de-barked, but layout will accommodate future mill

de-barking

• New Metso drop-feed chipper (15 knives) for 2.4 – 6 m logs

• Log washing station with water recirculation and clarification

– Remove sand to minimize silica ingress to process

• Existing mill SW chip storage pile converted for HW storage

– Together with existing HW storage pile, gives 7 days’ chip ageing

Page 24: Ngodwana Mill Update Investing in the future - · PDF fileNgodwana Mill Update . Investing in the future ... What is DP / Specialized Cellulose ... One of the most modern fibrelines

| SPCI 2013 – 26 September 24

Wood Handling - Softwood

• Existing Softwood log yard, de-barking and chipping unchanged

– Operates at much lower rates today

• New Softwood chip storage pile

– Old pile converted for HW use

– New pile much smaller than old due to much reduced future SW use

– Refurbished conveyor galleries and reclaimers from idled Usutu mill

• Existing chip screening system re-used

– Duties were swapped – existing SW screens are now HW and vice versa

Page 25: Ngodwana Mill Update Investing in the future - · PDF fileNgodwana Mill Update . Investing in the future ... What is DP / Specialized Cellulose ... One of the most modern fibrelines

| SPCI 2013 – 26 September 25

No.3 Fibreline : Cooking

• Prehydrolysed Kraft based on Metso Batch process

– 6 x 330 m3 digesters

– Getting the energy balance right is crucial to minimizing water consumption

– Digesters provides process heat for the bleach plant, for pulp drying and for

chilled water production for ClO2 and HVAC

– Surplus warm water used as cooling tower make-up millwide

– Surplus heat is rejected through cooling towers

• Two distinct cooking recipes for the two wood blends

– E. nitens has high hemicellulose content and low yield

• Plant is also designed to produce market hardwood pulp

– This, together with seasonal water temperature differences and 6 possible

bleaching configurations, made for a difficult water and heat balance.

Page 26: Ngodwana Mill Update Investing in the future - · PDF fileNgodwana Mill Update . Investing in the future ... What is DP / Specialized Cellulose ... One of the most modern fibrelines

| SPCI 2013 – 26 September 26

No.3 Fibreline : Washing & Screening

• Washing based on Metso’s new TRPE washpress

• First press much larger to deal with low consistency feed

• Two washing stages before and two after O2 Delignification

• 3-stage screening with sand removal (rejects content very low)

• Washed knots and screening rejects are pumped to Hi-Kappa Fibreline 2

– Only sand cleaner and junk trap rejects are dumped

• Single stage O2 Delignification

– Design Kappa drop 50% (6 – 8 → 3 – 4)

– Two stage post-O2 washing before brownstock storage

Page 27: Ngodwana Mill Update Investing in the future - · PDF fileNgodwana Mill Update . Investing in the future ... What is DP / Specialized Cellulose ... One of the most modern fibrelines

| SPCI 2013 – 26 September 27

No.3 Fibreline : Bleaching

• 3-stage to minimize capital and footprint

• Designed as ECF, but can also operate as ECF-”lite” and TCF

• Plant can also be operated to produce market pulp – 6 variants in all

• Washing based on Metso TRPE presses, except TRPZ ahead of HC Z stage

– “Normal” ECF effluent = 11.7 m3/ADt (design = 9.4 m3/ADt)

• ClO2 Plant from Eka Chemicals

– 5 t/d based on HPA process (first HPA plant engineered from scratch)

– Spent acid used as make-up to liquor cycle

Page 28: Ngodwana Mill Update Investing in the future - · PDF fileNgodwana Mill Update . Investing in the future ... What is DP / Specialized Cellulose ... One of the most modern fibrelines

| SPCI 2013 – 26 September 29

No.3 Uptake Machine

• 4.8 m wide fourdrinier machine designed for BSKP

• Scope of upgrade:

– New airborne dryer

Old dryer was badly corroded and had a difficult threading system

– New baling line

Existing bale press and unityer retained – everything in between replaced

– Upgrade of cutter

– New shoe press for wet tensile strength ahead of open draw into dryer

– Additional suction boxes for drainage at lower freeness

– Hot demineralised water showers over hi-vac boxes

– New broke storage tower

– Process water system converted to demineralised water

Page 29: Ngodwana Mill Update Investing in the future - · PDF fileNgodwana Mill Update . Investing in the future ... What is DP / Specialized Cellulose ... One of the most modern fibrelines

| SPCI 2013 – 26 September 30

Recovery Upgrade

• Mill has two evaporation trains with total capacity of 485 t/h

• GoCell upgrade to 550 t/h total

– Approx. 60% of condensates are stripped to ensure suitable quality for re-use

• Capacity of the Recausticizing plant increased to 5 500 m3/d white liquor

– New slaker and No.4 causticizer

– New green liquor cooler

– New PDW white liquor filter

– New dregs centrifuge

• Existing Lime Kiln has adequate capacity

– Coal gas producer rebuild completed on mill maintenance budget

– Additional LVHC and SOG are fired in the kiln

Page 30: Ngodwana Mill Update Investing in the future - · PDF fileNgodwana Mill Update . Investing in the future ... What is DP / Specialized Cellulose ... One of the most modern fibrelines

| SPCI 2013 – 26 September 31

Recovery – Ash Leaching Plant

• Designed to treat 60 t/d of recovery boiler precipitator ash

• Much higher potassium and chloride load on liquor cycle due to hardwoods

• Two-stage process with two centrifuges

– First two-stage system sold by Metso

– Required to minimize the loss of sodium to effluent (<14 t/d !!)

Page 31: Ngodwana Mill Update Investing in the future - · PDF fileNgodwana Mill Update . Investing in the future ... What is DP / Specialized Cellulose ... One of the most modern fibrelines

| SPCI 2013 – 26 September 32

Recovery – No.2 Recovery Boiler Upgrade

• Capacity increase from nominal 1 850 tDS/d to 2 200 tDS/d

• Late addition to the project due to concerns that the condition of the boiler would

preclude it from achieving the required performance

• 1980’s Götaverken boiler upgraded by Metso:

– Complete air system upgrade

– New primary SH I and II banks

– Repairs to primary SH III and secondary SH

– Complete the boiler wall tube replacement program (364 tubes)

– New firing liquor stations complete with services

– Water circulation system upgrades, incl. 4 new risers

• Boiler has already passed the performance test

Page 32: Ngodwana Mill Update Investing in the future - · PDF fileNgodwana Mill Update . Investing in the future ... What is DP / Specialized Cellulose ... One of the most modern fibrelines

| SPCI 2013 – 26 September 33

No.2 Recovery Boiler Upgrade

New Primary air ports and windboxes New secondary air port

Page 33: Ngodwana Mill Update Investing in the future - · PDF fileNgodwana Mill Update . Investing in the future ... What is DP / Specialized Cellulose ... One of the most modern fibrelines

| SPCI 2013 – 26 September 34

No.2 Recovery Boiler Upgrade

Superheater panel offloading New steam header

Page 34: Ngodwana Mill Update Investing in the future - · PDF fileNgodwana Mill Update . Investing in the future ... What is DP / Specialized Cellulose ... One of the most modern fibrelines

| SPCI 2013 – 26 September 35

Project GoCell – Construction Overview

Page 35: Ngodwana Mill Update Investing in the future - · PDF fileNgodwana Mill Update . Investing in the future ... What is DP / Specialized Cellulose ... One of the most modern fibrelines

| SPCI 2013 – 26 September 36

GoCell Project Timeline

• Start Feasibility Study (± 25%)

• Start Definition Study (± 10%)

• Main EPS contracts awarded

• Start of piling

• Civil contractor mobilized

• MEIP Contractor mobilized

• First cook

October 2010

January 2011

August 2011

October 2011

January 2012

May 2012

27 July 2013

Page 36: Ngodwana Mill Update Investing in the future - · PDF fileNgodwana Mill Update . Investing in the future ... What is DP / Specialized Cellulose ... One of the most modern fibrelines

| SPCI 2013 – 26 September 37

Construction Achievements

• Start-up Date – Target

– Actual

• Safety record

– Total man-hours

– No. of LTI’s

– LTIFR

– LTI-free hours

May 2013

July 2013

5 403 958

2

0.07

4 532 328

Page 37: Ngodwana Mill Update Investing in the future - · PDF fileNgodwana Mill Update . Investing in the future ... What is DP / Specialized Cellulose ... One of the most modern fibrelines

| SPCI 2013 – 26 September 38

Construction Challenges - Skills

• Steady decline in the number of skilled artisans in South Africa

• Two large power station projects competing for resources

• Civil, structural, E&I less of a problem

• Major problem is

– Pipe fitting

– Pipe welding

– Boilermaking

• No choice but to bring in artisans from overseas

Page 38: Ngodwana Mill Update Investing in the future - · PDF fileNgodwana Mill Update . Investing in the future ... What is DP / Specialized Cellulose ... One of the most modern fibrelines

| SPCI 2013 – 26 September 39

Construction Challenges - Skills

• Project had a multi-cultural workforce with artisans from

– South Africa - Pakistan

– Thailand - Portugal

– Croatia - Sweden

• In addition, the site management and supervision team comprised people from:

– Canada, USA, Australia, New Zealand, Finland, Austria, Germany

• Significant challenges:

– Communication

– Different management / supervision styles / requirements

– Different levels of productivity and different attitudes to safety

Page 39: Ngodwana Mill Update Investing in the future - · PDF fileNgodwana Mill Update . Investing in the future ... What is DP / Specialized Cellulose ... One of the most modern fibrelines

| SPCI 2013 – 26 September 40

Addressing the Lack of Skills

• Established a recruitment and training centre adjacent to the mill, to source

labour locally and teach unemployed people from the local community new skills

• Established a database of all work seekers – all contractors required to draw

unskilled and semi-skilled labour from this database

• Candidates for skills training were identified and provided 6 weeks intensive

training in one of the following:

– Bricklaying

– Rebar fixing

– Carpentry / shuttering

– Plumbing

– Mechanical / piping artisan assistants

– Grouting

Page 40: Ngodwana Mill Update Investing in the future - · PDF fileNgodwana Mill Update . Investing in the future ... What is DP / Specialized Cellulose ... One of the most modern fibrelines

| SPCI 2013 – 26 September 41

GoCell Training Centre

• Total of 650 people received training at the centre

• 476 of these found employment on the project

• Safety was strongly emphasized

– No graduate of the program suffered a reportable injury on the project

• The program was well received and supported by all stakeholders

– Graduates received a nationally recognized certificate

– Contributed significantly to Industrial Relations on site – no strikes

• The project was able to source 29% of the total labour from the local community

• Program was recognized nationally at the 2012 annual BHP Billiton Skills

Development Summit, with gold awards in two categories:

– Best Training Program – Large Companies

– Best Training Program – Empowerment Skills Development

Page 41: Ngodwana Mill Update Investing in the future - · PDF fileNgodwana Mill Update . Investing in the future ... What is DP / Specialized Cellulose ... One of the most modern fibrelines

| SPCI 2013 – 26 September 42

GoCell Skills Transfer – Welding School

• A welding school was established jointly by the project and the Thai labour

broker

– Project supplied the facilities, equipment and funding

– Thai welding supervisors provided instruction

– 20 graduates from the training centre were provided 8 weeks of instruction

and qualified as certified welders

• Programme was also opened up to Sappi’s own welders from mills all across

South Africa

• Excellent example of real skills transfer in action

Page 42: Ngodwana Mill Update Investing in the future - · PDF fileNgodwana Mill Update . Investing in the future ... What is DP / Specialized Cellulose ... One of the most modern fibrelines

| SPCI 2013 – 26 September 43

Construction Challenges – New UM3 Dryer

• The old UM3 Dryer was somewhat unique in that it stood on a raised steel

structure, with bale storage conveyors below

• Replacing this dryer was always going to be a challenge

– Limited crane access from either side due to proximity of pulp warehouses

– North wall above the bleached pulp warehouse is facebrick tied into the steel

structure

– Space inside the building was limited – all work on the bale line replacement

would need to stop while dryer demolition and erection in progress

– Tests on the roof revealed asbestos

Page 43: Ngodwana Mill Update Investing in the future - · PDF fileNgodwana Mill Update . Investing in the future ... What is DP / Specialized Cellulose ... One of the most modern fibrelines

| SPCI 2013 – 26 September 44

Construction Challenges – New UM3 Dryer

Page 44: Ngodwana Mill Update Investing in the future - · PDF fileNgodwana Mill Update . Investing in the future ... What is DP / Specialized Cellulose ... One of the most modern fibrelines

| SPCI 2013 – 26 September 45

Photo of Existing Dryer

Page 45: Ngodwana Mill Update Investing in the future - · PDF fileNgodwana Mill Update . Investing in the future ... What is DP / Specialized Cellulose ... One of the most modern fibrelines

Thank You