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KwaZulu-Natal Business 2017-18 edition

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KwaZulu-Natal Business 2017/18 is the ninth edition of this highly successful publication that has, since its launch in 2008, established itself as the premier business and investment guide to the KwaZulu-Natal Province. The 2017/18 edition includes special features on the Richards Bay area and its increasingly important Industrial Development Zone, the investment appeal of Durban and the growing maritime economy. Up-to-date overviews on the province’s economic sectors provide unique insights. Global Africa Network Media (www.gan.co.za), the publisher of KwaZulu-Natal Business, specialises in business-to-business print and electronic publications, producing a series of region-specific, annual print journals. Every province in South Africa is covered by this unique range of journals and websites, complemented by a national business guidebook, South African Business.

PROFILE Mondi Group

PROFILE Mondi Group South Africa Operational excellence boosted by Richards Bay mill upgrade. Business priorities We are focused on leveraging our strong domestic market position and the global competitiveness of our Richards Bay mill. With a history spanning 50 years, we understand the value of being efficient, cost-competitive and customer-focused. There are three strategic value drivers for our business in Mondi South Africa. Maintaining a high-quality, low-cost asset base, keeping a strong focus on performance and the development of our people. We have a philosophy of continuous improvement and a constant focus on operational excellence. The fundamental principle behind operational excellence at Mondi is the desire to do more with less. We continue to invest in and manage our business to ensure that our manufacturing operations maintain their high-quality and low-cost advantages and are well-positioned for growth opportunities. Towards the end of 2016 we completed the investment project to upgrade our woodyard at our Richards Bay mill, allowing for improved efficiencies in wood handling processes in our forests and providing higher-quality fibre. Additional benefits include reduced maintenance costs, improved reliability, and some energy savings. Our investment to expand our product range by producing unbleached kraftliner in addition to white-top kraftliner at our Richards Bay mill gives us the opportunity to supply our customers with this specialised product. We manage about 250,000 hectares of plantation forests in South Africa and maintain 100% FSC certification of our forests – including the identification and protection of high conservation value areas. In addition to certification and sustainable procurement practices, we focus on the proactive and responsible stewardship of forests and freshwater ecosystems, and the maintenance of biodiversity and important habitats. New woodyard at Richards Bay mill. Partnering with our customers to develop innovative solutions At our Merebank operation, we have made the decision to restart our second uncoated fine paper machine to meet domestic demand for reels and, at the same time, reduce our KWAZULU-NATAL BUSINESS 2017/18 68

PROFILE production of newsprint in response to declining demand. We conducted a customer survey during 2016, and we remain the supplier of choice to our domestic customers who appreciate our reliable products, long-term relationships, and the value we add to their businesses. We have worked closely with our newsprint customers to enhance the quality of our product. Uncoated fine paper machine, Merebank. Growing responsibly and inspiring our people for long-term success The extended drought in South Africa remains a significant challenge. We are working with government and other industries in the region to find potential solutions to this challenge. Plans include reducing total water consumption, the municipality increasing the volume of water piped from the Tugela River to the supply dam, and investigating further recycling of water. We continue to focus on the efficient use of water at all our operations, and have reduced freshwater consumption by 12% compared to 2015. We place great importance on proactive and responsible stewardship of forests as well as freshwater ecosystems and maintaining biodiversity and habitats. Responsible forest management involves increasing long-term productivity and preserving ecosystem values in rural landscapes, and protecting high conservation value areas such as wetlands. The Mondi Group is also a long-standing supporter of the WWF-Mondi Wetlands Programme (WWF-MWP), which celebrates its 25th anniversary in 2016. The programme focuses on managing and rehabilitating wetlands with different groups of land-users (including Mondi) where we have improved wetland management on our forestry land while removing commercial trees from riparian zones and wetlands. The programme’s focus is shifting to catalysing water stewardship at the landscape scale, ensuring collaboration and action by different land-users in the uMngeni and Mvoti River catchments, both of which are strategically important water-supply areas for KZN’s economic hubs. Mondi Zimele, our local enterprise initiative, has an excellent track record of creating sustainable businesses and jobs. In addition, it helps to maintain a steady supply of high-quality fibre from a network of small forest enterprises, and this has continued to make a positive impact on the lives of people in our rural communities. Health and education are key community investment priorities. Through the REAP (Rural Educational Access Programme) we supported 59 bursaries as well as access to tertiary education in rural forestry areas. Our mobile clinics operate in partnership with local NGOs and the Department of Health, and these continue to provide high-quality healthcare for our contractors and communities. In 2016, the six clinics received 80 709 visits by forestry contractors and local communities. Our wider community investments continue to assist and empower schools, university students, forest smallholders and entrepreneurs, as well as provide healthcare and support. 69 KWAZULU-NATAL BUSINESS 2017/18

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