Consol is restructuring its glass operation in a drive=20 to becoming globally competitive, reports Karen=20
Packaging and rubber manufacturer Consol of Germiston=20 is undertaking a major restructuring of its glass=20 operation to become globally competitive through=20 greater throughput and better utilisation of man hours.
Speaking at the annual financial results, chairman Piet=20 Neethling said a R650-million upgrading and expansion=20 programme was underway in the glass division to rebuild=20 existing furnaces and increase efficiency over the next=20 three years.
The company, which supplies 75 percent of the R1- billion glass container market, anticipates increased=20 demand from the wine industry will require it to=20 increase its current capacity of 400 000 tons of glass=20 a year by 70 000 tons.
Neethling said the upgrade programme would result in=20 about a 25 percent reduction in its 4 000-employee=20 glass division, mostly through natural attrition.
He said the company decided to expand its two existing=20 plants in Wadeville and Bellville rather than put in a=20 new plant because towns in the Western Cape wine region=20 would not allow a major industrial factory to be set up=20 for environmental reasons.
He said the expansion at these two plants would not=20 mean an increase in the number of lines, but would=20 entail putting in larger furnaces with a lifespan of 10=20 to 12 years, double that of the existing six furnaces.
The new furnaces would improve on the current draw=20 level — the amount of glass which flows through the=20 furnace a day — by about 10 percent. =20
A new furnace will be put in at the Bellville factory=20 and the three existing furnaces are being rebuilt.
Despite high commodity prices of natural rubber, paper=20 and plastic polymers, the company reported a 24 percent=20 increase in its packaging turnover to R1,2-billion,=20 while its rubber division’s turnover rose by 21 percent=20 to R1,6-billion. Overall, net profit rose by 19 percent=20 to R197-million. =20
Neethling said the company had not been able to fully=20 recover the costs of increased raw materials over the=20 year, particularly in rubber where prices had more than=20
He said paper prices had also increased dramatically=20 and warned that a 40 percent increase would soon be=20 passed on to customers.
He said paper producers Sappi and Mondi had delayed=20
on the rise for a year and, even though a price rise=20 was now imminent, it would still be below world prices.