TABLE OF CONTENTS

1. NCPC-SA OVERVIEW

1.1. Background of The NCPC-SA1.2. Mission Statement of The NCPC-SA1.3. Goal Statement1.4. NCPC-SA Organogram

2. REMARKS

2.1. Executive Management Committee Chairperson’s Remarks2.2. Director’s Remarks2.3. Advisory Forum Chairperson’s Remarks

3. HIGHLIGTHS AND ACHIEVEMENTS

3.1. Stakeholder Activities3.2. Technical Assessments

4. TRAINING AND CAPACITY BUILDING

4.1. Training

5. HUMAN RESOURCES AND OPERATIONAL ISSUES

5.1. Human Resources5.2. Operational Issues

6. FINANCIAL REPORT

7. ACRONYMS

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1. NCPC-SA OVERVIEW

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The NCPC-SA wasestablished within

the framework of theUnited Nations

IndustrialDevelopmentOrganisation

(UNIDO) CleanerProduction

Programme, withthe CSIR being

appointed as thehost institution.

1.1. BACKGROUND OF THE NCPC-SA

The National Cleaner Production Centre South Africa was established in2002, when the Department of Trade and Industry (the dti) concluded athree-year collaboration agreement with Switzerland and Austria duringthe World Summit for Sustainable Development (WSSD). The NCPC-SAwas established within the framework of the United Nations IndustrialDevelopment Organisation (UNIDO) Cleaner Production Programme, withthe CSIR being appointed as the host institution.

Upon conclusion of the initial collaboration phase in March 2006, the dtivoted additional funding to the NCPC-SA for a further period of threeyears, so as to facilitate Phase 2.

During Phase 2, the dti will contribute towards project funds via the Sector-Wide Enterprise Employment Equity Programme (SWEEEP) Fund, aswell as towards the operational costs of the Centre. The initial collaborationpartners, i.e. Austria and Switzerland, will continue to fund the Centre’sproject activities via UNIDO. Funding has also been obtained via apartnership with the Royal Danish Embassy (DANIDA), which will focuson transferring the activities of the Clothing and Textile EnvironmentalLinkage Centre (CTELC) to the NCPC-SA, as well as on CTELC’sincorporation into the NCPC-SA.

1.2. MISSION STATEMENTOF THE NCPC-SA

The NCPC-SA is a national body, aimed at improving market access tothe South African industry and business sectors, via the fostering ofnetworks to transfer cleaner production technologies and services, whichcould contribute to the sustainability of value chains, by deliveringmeasurable economic, environmental and social inputs that will supportthe national priorit ies of growth, equity and employment.

The NCPC-SA follows holistic approach to sustainable production andconsumption, as adopted during the 2002 Johannesburg World Summiton Sustainable Development (WSSD).

The NCPC-SAfollows holistic

approach tosustainable

production andconsumption, as

adopted during the2002 Johannesburg

World Summit onSustainable

Development(WSSD)

1.3. GOAL STATEMENT

The Centre will strive for recognition by the private and public sectors asthe premier national asset for cleaner production advocacy, informationand environmental management solutions.

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1.4. NCPC-SA ORGANOGRAM

Director

Chemicals Automotive Clothing & Textile Agro-Processing AdministrationManager

Director PA & OfficeSecretary

Administration

Field Specialist

Corporate Services

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2. REMARKS

This report provides information on the cleaner production work doneduring the 2005/2006 financial year. The report also marks the end of thethree-year co-operation programme between the dti, Switzerland andAustria, facilitated by the United Nations Industrial DevelopmentOrganisation (UNIDO) and the Council for Scientific and Industrial Research(CSIR) as the host institution.

the dti has undertaken to continue funding the National Cleaner ProductionCentre (South Africa). The donor countries still remain partners, but atproject level; i.e. their funding will now be directed towards project activitiesto maximise technical and other resources that are brought into theprojects.

This new direction furthermore requires the leadership of the executiveNCPC-SA to be reviewed, so as to become more local and industryinclusive. The Funder’s Board is being replaced by a new committee,namely the Executive Management Committee (EMCO), whose role is toapprove the strategic direction of the NCPC-SA and oversee theimplementat ion and management of i ts business p lan.

EMCO is constituted by the following people and their organisations:1. Ms Elsabé Steyn

Chairperson of EMCO:the dti, Director: Standards and Environment

2. Dr Laurraine LötterChemicals and Allied Industry Association: Executive DirectorNCPC-SA Advisory Forum: ChairpersonBusiness Unity South Africa (BUSA): Representative

3. Ms Tebatso MatlalaDepartment of Environmental Affairs and Tourism (DEAT):Deputy-Director: Cleaner Production Unit.

4. Ms Maryna Möhr-SwartSouth African Chamber of Mines: Assistant Environmental AdvisorBusiness Unity South Africa (BUSA): Representative

5. Mr Bongani MemelaCSIR: Materials Science and Manufacturing (MSM) Agency Manager

6. Ms Marba Visagiethe dti: Deputy-Director: Standards and Environment.

7. Mr Xolile Mabuselathe dti: Assistant-Director: Standards and Environment.

8. Mr Ndivhuho RaphuluNCPC-SA Director

2.1. REMARKS BY THEEXECUTIVE MANAGEMENT COMMITTEE

CHAIRPERSON

Elsabé Steyn

Chairperson: NCPC-SA Executive

Management Committee

“The Centre will berolling out

sector-specificcleaner production

projects in thechemical,

automotive,clothing and textile,and agro-processing

sectors”

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Financial and administrative issuesAn income statement is presented as part of this report, also reflectingthe significant standards of excellence maintained by the Centre and theCSIR in the management of their financial and administrative resources.The CSIR has proven to be the ideal home for the Centre, enabling theCentre to focus on its core business, whilst ensuring that the financial andadministrative activities of the Centre run smoothly.

Technical and training issuesThe past year has seen us defining our training capacity and needs inorder to achieve our technical output commitments. Seven quick-scansand three in-plant assessments were done, primarily in the textile andchemical sectors. These were utilised to facilitate the transfer of technicalskills to NCPC-SA staff members by UNIDO, as well as training forconsultants who are registered on our database.

The companies that we have worked with are excited about the projectedfinancial gains. It is encouraging that some have already requested theCentre to assist them with the next step in terms of implementing CPtechnology, and are starting to apply the benchmark of best practise intheir area of specialisation, so as to improve their production output. TheCentre is in the process of developing Best Available Techniques (BAT)for some of these companies, which will also be useful in guiding othercompanies in the same field.

The futureDuring the 2006/2007 financial year, the Centre will be rolling out sector-specific cleaner production projects in the chemical, automotive, clothingand textile, and agro-processing sectors. This is to facilitate greateralignment of the Centre with the dti’s Accelerated and Shared GrowthInitiatives of the Trade and Investment South African (TISA) CustomisedSector Programme.

We envisage the development of a set of generic cleaner production unitstandards, which will be implemented in the identified sectors.

On behalf of the NCPC-SA, I wish to thank the Funder’s Board for itsunwavering support, while looking forward to the continued support of thenewly es tab l i shed Execut ive Management Commi t tee .

Elsabé SteynChairperson: NCPC-SA Executive Management Committee

Seven quick-scansand three in-plant

assessments weredone, primarily in thetextile and chemical

sectors

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EMCO Members: Tebatso Matlala, Xolile Mabusela and Marba Visagie.Absent: Bongani Memela and Möhr Swart.

It gives me great pleasure to share with you the NCPC-SA 2005 – 2006management report. This report will also give you a glimpse of our newdevelopments and plans.

LeadershipThe 2005/2006 financial year-end marked the end of a three-year co-operation and partnership programme between the dti, the SwitzerlandState Secretariat for Economic Affairs (SECO) and the AustrianDevelopment Corporation (ADC), via the United Nations IndustrialDevelopment Organisation (UNIDO).

We would like to thank and acknowledge the dti for taking ownership ofthe Centre, as this facilitates alignment with the dti and its Trade andInvestment Division (TISA).

As a strategic requirement, the Funder’s Board has been replaced by thenew Executive Management Committee (EMCO), who will provideleadership during Phase 2.

I am excited and can state with confidence that we have a business planin place, supported by project plans, so as to ensure tangible outcomesby the end of the current financial year. The project plans are aimed atfacilitating our sector-specific cleaner production programmes.

The following sector plans are in place:

Clothing and Textile Sector Cleaner Production Project PlanThe roll-out of activities will be managed by three staff members, basedin our Cape Town offices, with Budu Manaka as project manager, AndréPage as field specialist and Fatimah Boltman as office administrator. TheClothing and Textile Bulletin provides interesting reading material on workdone by the team. This project plan has been used as a model in developingthe chemicals and agro-processing sector projects, since it has beenrunning for a while already, whilst enjoying wide-spread acceptance andsupport by government and industry alike.

Chemical Sector Cleaner Production Project PlanKevin Cilliers, chemical sector project manager, has done exceedinglywell in developing a project plan with very interesting proposed outputs,promising good case studies, as well as benefits for the chemical industry.Not only will the project plan focus on industry needs, but it will also assistin addressing some of the sector’s commitments towards government,pertaining to energy emissions and water conservation, and thereforereinforcing its relevance to the sector.

2.2. REMARKS BY THE DIRECTOR

Ndivhuho RaphuluDirector: NCPC-SA

“I am excitedand can state with

confidencethat we have abusiness plan

in place, supportedby project plans,so as to ensure

tangible outcomesby the end of thecurrent financial

year”

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Agro-Processing Sector Cleaner Production Project PlanManogaran Ram Reddi, agro-processing project manager, is lookingforward to the prospect of embarking on this project in a relatively complexand diverse sector. He has developed a project plan that proposespractical and achievable benefits for the sector. Not only will the projectplan focus on industry needs, but it will also address CP training needswithin the sector, while aligning with the dti and TISA objectives.

Automotive Cleaner Production Project PlanMention should be made of the fact that the automotive sectorimplementation plan still has to be developed. However, at this stage,with the limited resources available to the Centre, it will only be embarkedupon once the chemical and agro-processing programmes are underway.It is comforting to know that the AIDC is currently attending to some ofthe needs of the automotive industry. The recent training of seven AIDCrepresentatives in CP will, at least, buy the Centre some time to get amore formal programme running in this sector.

AdministrationAs the Centre is hosted by the CSIR, I take comfort in the knowledge thatour focus and energy can be concentrated on technical rather thanadministrative activities. Ms Thanyani Malange, the Centre’s administrativeofficer, has successfully ensured that the Centre keeps abreast of allactivities conducted by CSIR, and she manages all administrative andservice functions of the Centre. I also wish to acknowledge the CSIR/MSMfor their support.

Project Steering CommitteeIt is anticipated that each of the sector programmes will be managed viaa Project Steering Committee (PSC), comprising representatives fromindustry and government. This is to ensure greater alignment with theneeds of industry and with the relevant goals and objectives of governmentinstitutions. The NCPC-SA achieved very good results by following thisapproach in the clothing and textiles sector programme. Recently, theNCPC-SA has been successful in establishing a Project Steering Committeefor the agro-processing sector programme.

United Nations Industrial Development Organisation (UNIDO)Despite the conclusion of the three-year co-operation programme betweenthe dti, Switzerland and Austria, which ended during March 2006, theNCPC-SA does not anticipate ending its relationship and partnershipswith donor institutions. Ms Petra Schwager (UNIDO), Dr Thomas Bürki(FHBB) and Dr Johannes Fresner (STENUM) will continue supporting theNCPC-SA in the transfer of technical skills and knowledge, so as toincrease the knowledge and skills capacity of the Centre.

I would like to give special recognition to the support we are receivingfrom the Department of Environmental Affairs and Tourism (DEAT), bothas a member of EMCO and as custodian of cleaner production activitiesin our country, within the legal framework of the National EnvironmentalManagement Act (NEMA). My team and I take great joy from the knowledgethat the National Cleaner Production Strategy is going to be operationalin the near future, giving us increased guidance and direction. TheDepartment has also put in place a number of activities to ensure greaterawareness of, and support for cleaner production activities.

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Project Steering CommitteeIt is anticipated that each of the sector programmes will be managed viaa Project Steering Committee (PSC), comprising representatives fromindustry and government. This is to ensure greater alignment with theneeds of industry and with the relevant goals and objectives of governmentinstitutions. The NCPC-SA achieved very good results by following thisapproach in the clothing and textiles sector programme. Recently, theNCPC-SA has been successful in establishing a Project Steering Committeefor the agro-processing sector programme.

United Nations Industrial Development Organisation (UNIDO)Despite the conclusion of the three-year co-operation programme betweenthe dti, Switzerland and Austria, which ended during March 2006, theNCPC-SA does not anticipate ending its relationship and partnershipswith donor institutions. Ms Petra Schwager (UNIDO), Dr Thomas Bürki(FHBB) and Dr Johannes Fresner (STENUM) will continue supporting theNCPC-SA in the transfer of technical skills and knowledge, so as toincrease the knowledge and skills capacity of the Centre.

I would like to give special recognition to the support we are receivingfrom the Department of Environmental Affairs and Tourism (DEAT), bothas a member of EMCO and as custodian of cleaner production activitiesin our country, within the legal framework of the National EnvironmentalManagement Act (NEMA). My team and I take great joy from the knowledgethat the National Cleaner Production Strategy is going to be operationalin the near future, giving us increased guidance and direction. TheDepartment has also put in place a number of activities to ensure greaterawareness of, and support for cleaner production activities.

The NCPC-SA would like to express its sincere gratitude to our donors,namely Switzerland, Austria, DANIDA and UNIDO, for their guidance andtechnical support. Last but not least, the NCPC-SA would like to thankthe dti for its generous support of the Centre and its commitment to theCentre’s future.

I thank you.

Ndivhuho RaphuluDirector: NCPC-SA

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The Advisory Forum (AF) was established to provide technical guidance and

assistance to both the NCPC-SA and the Executive Management Committee,

in respect of industry needs. The Forum currently comprises representatives

from the following sectors:

The forum currently comprises representatives from National, Provincial and

Local Government, business and industry associations as well as tertiary

institutions.Through its understanding of the latest technological developments

and applications, as well as of legislation and standards, the Forum can ensure

that the Centre’s focus and activities remain relevant and useful to the South

African industry. Currently, the Forum meets twice a year, with the option of

additional special meetings, should the need arise.

The Advisory Forum’s responsibilities and roles are summarised as follows:

• Providing input in respect of the nature of services being offered

and markets to which the NCPC-SA should be aligned.

• Assisting in establishing the credibility of the NCPC-SA via its

interaction with influential role-players.

• Providing strategic guidance and direction with regard to the

activities in which the NCPC-SA will participate in future.

• Providing high levels of support and leadership with regard to the

activities in which the NCPC-SA currently participates.

Participation in the Advisory Forum is by invitation and all corresponding

activities are undertaken voluntarily by Forum members. During 2005/2006,

the Forum was involved in two meetings as part of the review of the Centre’s

business plan, and has subsequently approved the plan for ratification by the

Executive Management Committee and the dti.

For most of the 2005/2006 period, special emphasis was placed on preparing

and positioning the Centre for the transition from Phase 1 to Phase 2. In terms

of the transition, we have advised on the format and structure of the new sector

CP implementation plan.

In conclusion, I would like to thank the Advisory Forum and Funder’s Board

members for their meaningful contributions.

Dr Laurraine Lötter

Chairperson: NCPC-SA Advisory Forum

2.3. REMARKS BY THEADVISORY FORUM CHAIRPERSON

Dr Laurraine LötterChairperson:

NCPC-SA Advisory Forum

“The Forum canensure that the

Centre’s focus andactivities remain

relevant and usefulto the South African

industry”

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3. HIGHLIGHTS ANDACHIEVEMENTS

Seminar in collaboration with the Swiss Embassy andthe JCCIThe NCPC-SA held a seminar in collaboration with the Swiss Embassy– Trade and Investment Network Switzerland-Southern Africa (TINSSA)– and the Johannesburg Chamber of Commerce and Industry (JCCI), on4 August 2005. Some 25 delegates, representing South African and Swiss-based companies, attended the event, which highlighted the concept ofcleaner production, as well as the services of the NCPC-SA.

Presentation to the South African Local GovernmentAssociationA road show was held at the Irene Country Lodge in Pretoria on 15 August2005. It was attended by 20 representatives from the South African LocalGovernment Association (SALGA) and the Local Economic Development(LED) Committee. The Centre‘s objectives and its importance for localgovernments were highlighted. The event also afforded the Centre theopportunity to establish good relations with municipalities.

World Congress on Chemical Engineering: ScotlandThe seventh World Congress on Chemical Engineering (WCCE) was heldin Glasgow, Scotland, from 10 to 14 July 2005. The NCPC-SA presenteda paper and poster, titled “A South African perspective on CleanerProduction”. A total of 1 740 people attended the congress in Glasgow.

Seminar on the roll-out of the Air Quality ActRepresentatives from the NCPC-SA attended a seminar on the roll-outof the Air Quality Act, which was presented by national government andhosted by the National Association of Clean Air (NACA). The ChiefDirectorate: Air Quality Management and Climate Change did a presentationat the seminar. A brief overview was given of the process leading up tothe Act, and of the current plans to role out the Act’s implementation. TheAct is also envisaged to incorporate a national atmospheric emissionslicence permit.

Responsible Container Management Association ofSouth AfricaThe NCPC-SA presented road shows at the Responsible ContainerManagement Association of South Africa (RCMASA), outlining the NCPC-SA’s functions and services offered. Numerous speakers did presentationsduring the road show, detailing the status of CP and the environment inSouth Africa.

3.1. STAKEHOLDER ACTIVITIES

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The workshop alsoprovided a good

opportunity forinteraction and for

the sharing of ideasamongst the various

regional learninginstitutions and CP

centres

First African symposium and Training of trainers workshopon life cycle assessment: KenyaThe NCPC-SA was one of a number of NCPCs and learning institutionsfrom the African region that were invited to attend a symposium andtraining workshop on life cycle assessment (LCA). The workshop wasaimed at giving first-time users a hands-on demonstration and an overviewof LCA methodology, as well as of the supporting software tools that areavailable to do such assessments. The workshop also provided a goodopportunity for interaction and for the sharing of ideas amongst the variousregional learning institutions and CP centres.

Chief technical advisors visit the NCPC-SAThe Centre was visited by chief technical advisors on numerous occasions.During the visits, a draft plan was developed, aimed at integrating externalconsultants into the activities of the NCPC-SA and assigning the NCPC-SA the role of facilitator rather than service provider. Other activitiesdiscussed and finalised included:

• Assistance on how to promote and position the NCPC-SA in themarket-place

• The development of an NCPC-SA training course• Identification of tools for the Centre to support its activities

The following additional topics for discussion were identified for elaborationand support by CTAs:

• Investigating a financial consultancy as a supportive service• Methods that the Centre could utilise to expand its services and

support to other Southern African countries.

Pulp and paper demonstration projectThe NCPC-SA has been very closely involved with the Department ofEnvironmental Affairs and Tourism’s (DEAT) Cleaner Production Unit.The Centre has been involved in the project management group responsiblefor overseeing the CP demonstration project, funded by DEAT, for thepulp and paper industry. Representatives from the NCPC-SA furthermoreattended dissemination seminars on the results of the project in Gautengat Gallagher Estate in Midrand on 7 September 2005 and at the InternationalConvention Centre in Durban on 9 September 2005 respectively.

CP strategy and policy disseminationThe NCPC-SA accompanied DEAT on its CP strategy and policydissemination road show for provincial governments in Limpopo and inthe Northern Cape respectively. This afforded the NCPC-SA the opportunityto introduce the Centre and its activities to the provinces, as well as topresent a brief overview of CP to the provincial environmental managementteam.

ECOETAPE 2005The NCPC-SA accepted an invitation to ECOETAPE ’2005, which tookplace during POLLUTEC, the international exhibition on environmentalequipment, technologies and services, organised by the UNIDO ITPOParis, in co-operation with the UNIDO Cleaner Production (CP) Programme.This event was aimed at strengthening industrial and technological co-operation in the field of cleaner technologies between Europe, LatinAmerica, Africa and China.

The Centre hasbeen involved in

the projectmanagement

group responsiblefor overseeing theCP demonstrationproject, funded byDEAT, for the pulpand paper industry

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The conference wasaimed at bringingtogether experts

from various fields,including textiles,

clothing andagriculture, as well

as some nicheproduct areas to

discuss recentprogress, the

dissemination ofresearch and

technical findings

Project review meeting – CDM: ViennaRepresentatives from the Centre attended the CDM project review meetingin Vienna by invitation during November 2005. The objective of the meetingwas to bring together key stakeholders and to review CDM activities, andit was attended by representatives from Mexico, Vietnam, South Africaand Austria.

FAO/ESCCRENA International Conference –Textile for Sustainable DevelopmentRepresentatives from the NCPC-SA, accompanied by representativesfrom the dti, attended the FAO/ESCCRENA International Conference,held at the Tsitsikama Conference Centre in Port Elizabeth during October2005. The event was attended by 151 experts from 22 countries acrossthe globe. The Centre and the dti presented a joint paper, titled “A CleanerProduction Perspective on Textiles for Sustainable Development”.

The conference was aimed at bringing together experts from variousfields, including textiles, clothing and agriculture, as well as some nicheproduct areas to discuss recent progress, the dissemination of researchand technical findings. The conference was also aimed at determiningthe scope of future research to promote economic development in SouthAfrica in particular, and in the international arena in general.

Cotton SA WorkshopRepresentatives from the NCPC-SA attended a workshop hosted byCotton SA. The theme of the workshop was: “Organic cotton and thepotential for SA cotton growers in this market”. There is currently aperception that, at present, demand levels and unclear pricing structuresare resulting in the fact that organic cotton production is not viable inSouth Africa. However, some consumer chain stores, such as Woolworths,have indicated their commitment to organic cotton and will source suchcotton wherever they could obtain it at reasonable prices.

This has since stimulated some interest from commercial cotton growersto investigate the organic cotton market more closely.

Climate change conference – Gallagher Estate: Midrand Aspart of the DEAT’s involvement in the Johannesburg Plan of Implementation,a conference on climate change was hosted at Gallagher Estate duringOctober 2005. Representatives from the NCPC-SA attended the openingsession, as well as additional sessions on the carbon finance market andon CDMs.

Automotive Industry Development Centre liaison and theTirisano Cluster ProgrammeOne of the focus sectors identified for NCPC-SA for Phase 2, is theautomotive sector. The NCPC-SA has conducted initial discussions withthe Automotive Industry Development Centre (AIDC) with regard to possiblecollaboration on CP projects. Initial training opportunities for AIDC staffmembers were identified as part of the AIDC’s capacity-building initiatives.

As part of these discussions, an invitation was extended to the NCPC-SA to attend the AIDC’s Tirisano Cluster Programme seminar, so as togain a better understanding of the projects currently underway in theAIDC. Representatives from the Centre attended this seminar that tookplace on 1 December 2005.

There is currently aperception that, atpresent, demand

levels and unclearpricing structures

are resulting in thefact that organic

cotton production isnot viable inSouth Africa

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Pollution Solution Task GroupA representative from NCPC-SA attended a Pollution Solution Task Groupmeeting as a guest speaker on 8 November 2005. This task groupcomprises members from the Cape Town Regional Chamber of Commerceand Industry. The task group had been established to investigate whethermembers could find ways to minimise waste generation, as well as to finda pro-active solution to the demand for land for waste disposal purposes.

Clothing and Textile Environmental Linkage Centre:farewell functionThe NCPC-SA hosted a farewell function for the Clothing and TextileEnvironmental Linkage Centre (CTELC) on 9 November 2005. The functionwas held at the CSIR Convention Centre in Pretoria. Ms Karen Lundbo,a representative from Danida, gave an overview of the project and activitiessince its inception in 2000 to the conclusion of its mandate in 2005. Thisevent was also attended by the Royal Danish Ambassador, Torben Brylle,who advised that the project would be incorporated into the NCPC-SA asof January 2006.

Tertiary institution interactionA representative from the NCPC-SA presented a guest lecture on cleanerproduction at the Vaal University of Technology on 19 May 2005. Thelecture covered the background of the Centre, as well as basic cleanerproduction methodology. A total of 24 final-year BTech students inProduction Management and Industrial Engineering attended the lecture.The formal feedback reflected an average score of 4,15, where 1 is mostunsatisfactory and 5 is excellent. The University will incorporate aspectsof cleaner production in future lectures as part of the curriculum.

Intelligent Management Strategies conference on wastemanagementIntelligent Management Strategies (IMS) hosted a conference, entitled“Waste Management in the Developing World, finding the South AfricanSolution”. The conference took place in Johannesburg on 2 and 3 June2005. Presentations included waste management in South Africa (includingsolid, water and integrated waste management) and government’sresponsibility with regard to waste management. Other presentations dealtwith best practice examples in South Africa, M2M communicationapplications in waste management and the collect-a-can story. Arepresentative from the NCPC-SA presented a brief background on theCentre and its services and elaborated on some case studies. Thepresentation was well received and succeeded in creating greaterawareness of the Centre.

The Durban Chamber of Commerce and Industrychemical congressThe Durban Chamber of Commerce and Industry (DCCI) hosted an annualcongress on environmental issues on 22 June 2005. The theme of the2005 event was: “Clean Business – Winning Futures”. Topics covered bythe environmental market included e-waste, the next industrial revolution,and climate change and waste = food.

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DEAT interactionThe Centre initiated an opportunity to engage provincial governments andlocal municipalities as policy-makers in awareness and capacity-buildingactivities. This is being done as part of the DEAT National CP Strategyworkshop for government stakeholders.

Mpumalanga provincial consultative meetingThe Centre did a presentation to the Mpumalanga Department of Agricultureand Land Affairs, introducing and outlining what the NCPC-SA stands for,its activities and what it has to offer. Interest was expressed in possibleassistance that the NCPC-SA could provide with regard to the training ofprovincial government officials in CP and related issues.

Northern Cape Department of Tourism, Environment andConservationRepresentative from the Centre attended a meeting of the Northern CapeDepartment of Tourism, Environment and Conservation. This formed partof the DEAT’s efforts in sharing information on the status of CP Policyand Strategy, which is being developed throughout the nine provincesunder the auspices of DEAT. The NCPC-SA identified this as an appropriateforum to introduce the Centre and its activities to the various provincesthat currently do not form part of CP awareness creation.

Institute of Waste Management of South AfricaThe Centre has been involved with the Institute of Waste Managementof South Africa (IWMSA), as well as with Responsible ContainerManagement of South Africa (RCMSA). The IWMSA requested DEAT,the CSIR, a number of consultants and the NCPC-SA to provide trainingon what CP constitutes and how the National CP Strategy is linked withthe National Waste Management Strategy.

DEAT Cleanest Town CompetitionThe NCPC-SA was requested to get involved in the adjudication processof the National Cleanest Town Competition, administered by DEAT. Theobjective of the competition is to foster integrated development programmesto catalyse sustainable local economic development in municipal areas.CP is being highlighted as one of the tools that municipalities could utiliseto achieve sustainable consumption and production. It is also seen as themost effective tool for the management of the different waste streams thatmunicipalities have to deal with daily. The outcome was to allowmunicipalities, which are being evaluated in the competition, to initiateprojects that will allow them to run their integrated development programmesin a sustainable manner, while ensuring that sustainable consumptionand production become central to their economic development activities.

The most significant way forward for this process is reflected in the factthat the South African Local Government Association (SALGA) has askedthe NCPC-SA for assistance in making recommendations on how one ofthe municipalities that was evaluated, namely NALEDI Municipality, couldutilise CP strategies to achieve zero waste by turning waste streams intouseful resources that could also stimulate economic activities.

This formed part ofthe DEAT’s efforts

in sharinginformation on the

status of CP Policyand Strategy, whichis being developedthroughout the nineprovinces under theauspices of DEAT

The outcome wasto allow

municipalities toinitiate projects that

will allow them torun their integrated

developmentprogrammes in a

sustainablemanner

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NATCON conferenceThe NCPC-SA’s current involvement in the textile industry has promptedthe attendance of the NATCON 2006 conference, hosted by the SA Dyersand Finishing Association (SADFA). This two-day conference, held inDurban, focussed on the status of the industry and on the latest, as wellas developing trends and technologies.

Chemical and Allied Industries Association workshopThe NCPC-SA was invited by the Chemical and Allied Industries Association(CAIA) to present an overview of its proposed work plan for the chemicalsector at two workshops hosted by the Association during 2006. TheCentre’s work plan was presented at the workshops, which were held inJohannesburg and Durban respectively.

Cape Town Chamber of Commerce meetingDuring February 2006, a collaborative meeting was held in Cape Town.Representatives from a number of South African companies attended theevent, which highlighted the concept of cleaner production and the servicesof the NCPC-SA.

Kwazulu-Natal CP awareness road showsAs part of the NCPC-SA’s collaboration with the Department ofEnvironmental Affairs and Tourism, the Centre accompanied DEATrepresentatives to Cedara in KwaZulu-Natal, where presentations weremade to the provincial government on the latest developments in theNational Cleaner Production Strategy for South Africa. The presentationalso included case studies arising from NCPC-SA’s activities.

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During the 2005 and 2006 financial year, the National Cleaner ProductionCentre South Africa undertook seven cleaner production quick-scanassessments, as part of its ongoing demonstration of the benefits of CP.Of these assessments, six were undertaken within the textile industry, atHammarsdale in KwaZulu-Natal, in support of the eThekwini Municipality’snewly implemented effluent permit system. The companies that wereassessed included:

• Dano Textile Industries (Pty) Ltd – Glodina• Coats SA (Pty) Ltd• Gelvenor Textiles• Mediterranean Textile Mills• Denim Textiles• Polydye (Pty) Ltd

The NCPC-SA was also requested to undertake an assessment of a smallchemicals and detergents manufacturer, based in Pretoria. The quick-scans were aimed at providing companies with an overview of the currentstatus of their operations and at identifying potential opportunities withincompanies for implementing CP. The outcomes of these assessmentsare outlined below:

GlodinaEstablished as a family business in 1952,Glodina forms part of the KAPInternational Holdings LTD. Over the past 50 years Glodina has becomethe preffered supplier of toweling products to major SA retail chains andthe hospitality industry.

Glodina has become associated with an uncompromising commitment toquality, affordable luxury and durability. As a winner of numerous qualityawards, the company has also reinforced its commitment to quality andresponsible environmental management through its ISO9001, ISO14001and SHE 18000 certification.

Having completed the quick-scan assessment, the following areas, withopportunities for CP, have been identified:

• Boiler condensate recover• Energy losses in stenters• Effluent sulphate concentration• Air-conditioning control

Glodina has subsequently requested a detailed In-Plant Assessment (IPA)to quantify the potential savings from addressing the highlighted options.The final outcome has indicated that savings of approximately R400 000per annum could be realised through recovery of the condensate and areduction in energy losses from the stenter.

The companysupplies in excess

of 80% ofSouth African local

market needs

3.2. TECHNICAL ASSESSMENTS

During the 2005 and2006 financial year,the National CleanerProduction Centre

South Africaundertook seven

cleaner productionquick-scan

assessments, aspart of its ongoing

demonstration of thebenefits of CP

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Glodina further demonstrated its proactive approach to environmentalmanagement and requested the NCPC-SA to carry out additional workat the plant, in order to bring the company in line with the new effluentpermit system requirements, so as to qualify for the Best AvailableTechniques (BAT) concession tariff, currently offered to companiesdemonstrating CP implementation. The NCPC-SA is currently involvedin a project to assist the company with compliance pertaining to BATconcession tariff requirements.

The company is also currently investigating various available options foreffluent treatment plants to address the problem of sulphates in the effluent.

Coats SACoats SA’s operations primarily involve the dyeing and finishing of a variedassortment of yarns. The company is a member of the HammarsdaleIndustrial Conservancy Group. Some staff members previously attendedCP training hosted by the University of KwaZulu-Natal. The company hasalso shown proactive involvement in CP, via a number of energy efficiencyprojects undertaken in conjunction with Eskom, as part of its DemandSide Management Programme.

The quick-scan assessment findings indicated the following opportunities,which were duly brought to the attention of the management team:

• Overall process water balance• Effluent colour• Energy consumption• Lighting

The outcomes of the quick-scan prompted Coats to undertake a moredetailed assessment of their process, focussing on the highlighted CPopportunities. The results indicated that the potential existed for Coats toreduce its total water consumption by 19%, at a calculated cost savingof approximately R 147 000 per annum. In addition, the total projectedsavings attributable to the elimination of unnecessary operation ofequipment, condensate recovery, steam line insulation and the minimisationof fully flooded dyeing, amounted to approximately R61 000 per annum.

As part of the investigation, the NCPC-SA also facilitated the testing ofthe effluent by two effluent treatment equipment vendors. Coats is currentlyreviewing the options proposed for possible procurement.

Mediterranean Textile MillsMediterranean Textile Mills is a privately-owned vertical mill, incorporatingspinning, twisting, weaving, dyeing and finishing as part of its operations.The company manufactures fashionable fabrics for ladies’ and men’sapparel, as well as fabrics for industrial use.

The quick-scan assessment carried out at Mediterranean Textile Millshighlighted the following potential opportunities for the company:

• Water consumption and optimisation• Boiler circuit• Scourer heat recovery• Scourer rinse water re-use

The final outcomehas indicated that

savings ofapproximatelyR400 000 per

annum could berealised through

recovery of thecondensate and a

reduction in energylosses from the

stenter

The resultsindicated that the

potential existed forCoats to reduce its

total waterconsumption by

19%, at a calculatedcost saving ofapproximatelyR 147 000 per

annum

22

23

The quick-scan identified water savings opportunities that have beenhighlighted for immediate implementation. These alone stand to realisethe company a 15% reduction in water consumption at a calculated cost(including raw water in and effluent out) of approximately R 302 000 perannum.

DeNimDeNim is a large cotton denim fabric manufacturer. The quick-scanassessment carried out at the company identified a number of goodopportunities for CP. The following areas, with promising potential, havebeen identified:

• Segregation of clean waste cotton from dirty waste cotton• The implementation of a counter-current flow water rinse system,

following the dyeing step• A steam circuit (condensate recovery, energy recovery)

PolydyePolydye is currently involved in yarn dyeing operations to supply the SouthAfrican market. The assessment highlighted several areas with potential,as listed below:

• Occupational health and safety with regard to the handling, useand storage of chemicals

• Waste water recycling and recovery• Boiler operation

ABYX MarketingABYX Marketing is a small-to-medium, predominantly household detergentspackaging facility. Whilst the company does not subscribe to a formalenvironmental management system, it does acknowledge the importanceof responsible environmental management. Having heard of the NCPC-SA, ABYX enquired whether the Centre would be willing to undertake anassessment of the company in order to identify opportunities for costsavings, as well as an improvement in environmental performance.

As part of the assessment, the NCPC-SA conducted three site visits togather, monitor and verify information pertaining to process operations.The key areas, with CP opportunities identified, were:

If the identified options were to be addressed, it is anticipated that thecalculated financial gain to the company would amount to approximatelyR 23 000 per annum.

These alone standto realise the

company a 15%reduction in waterconsumption at a

calculated cost(including raw

water in andeffluent out) ofapproximatelyR 302 000 per

annum

Chemical handling and storage Shrink-wrapping(Temperature settings, insulation,film thickness)

Occupational health and safety Mixing(caking and lump formation)

Maintenance – air leaks, elements,equipment

Quality control (weights, dosing)

Robin blue line Hot glue process

It is anticipated thatthe calculated

financial gain to thecompany would

amount toapproximatelyR 23 000 per

annum

4.TRAINING ANDCAPACITY-BUILDING

One of the aims ofthe NCPC-SA is thedevelopment of CP

capacity, by usingconsultants to

execute CP workwithin companies

4.1. TRAINING

Mpumalanga trainingOn 20 September 2005, the Centre presented a one-day training courseto the Mpumalanga Department of Agriculture and Land Affairs (DALA)in Pilgrims Rest. Approximately 35 departmental staff members weretrained in basic CP methodology.

CSIR Innovation Leadership and Learning Academy trainingDuring the past year, the Centre has been working in close co-operationwith the CSIR Sustainable Development Liaison Committee (CSDLC).The CSDLC, via the CSIR Innovation Leadership and Learning Academy(CILLA), has been running courses in sustainable development to createawareness of this concept in the organisation. On 25 July 2005, the NCPC-SA presented a cleaner production module as part of this course.

CP consultant databaseThe advertisement of NCPC-SA’s public call for an expertise databasewas launched in the beginning of October 2005 in the Sunday Times andon the NCPC-SA website respectively. There has been a good responseto the call, with a total of 103 entries received by the closing date of 28October. A total of 54 eligible persons have been shortlisted. They aremainly from tertiary education institutions, from consultancies, as well asfrom the industry itself. Their experience covers mainly the environmental,waste and energy management fields.

One of the aims of the NCPC-SA is the development of CP capacity, byusing consultants to execute CP work within companies. In order to dothis, the development of a consultant database was proposed, which thecentre could then use as a basis for the selection of consultants for specifictasks. The consultant database is up and running on the NCPC-SA website.

First CP toolkit trainingThe NCPC-SA successfully hosted the first Cleaner Production workshopon the UNIDO CP toolkit. The first round of training took place on 23 and24 November 2005. There were 12 participants from all over South Africawho attended the workshop, all of whom were involved in cleaner productionand environmental goods and services related fields.

Dr. Thomas Bürki of FHBB facilitated the intensive two-day workshop.The purpose of the training was to build consultants’ capacity in cleanerproduction. Each participant received a certificate of attendance, courtesyof NCPC-SA and UNIDO. The next round of training is to be finalised withthe CTAs.

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Second toolkit trainingThe NCPC-SA successfully hosted its second Cleaner Production workshopon the UNIDO CP toolkit from 13 to 17 March 2006, and 16 participantsfrom all over South Africa attended the training. These consultants areinvolved in the cleaner production and environmental goods and servicesrelated fields.

Drs Thomas Bürki and Johannes Fresner presented the intensive five-day workshop. The purpose of the training was to build CP capacity incleaner production. The workshop was well received by participants, andthe resultant feedback was excellent. More of these workshops, with theemphasis on greater technical detail, have been requested for forthcomingtraining sessions.

In addition, the consultants need to complete IPAs within the identifiedcompanies as part of the requirements for UNIDO accreditation as CPexperts. All the participants received a certificate of attendance, endorsedby both the NCPC-SA and UNIDO.

The purpose of thetraining was to build

consultants’capacity in cleaner

production

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5.HUMAN RESOURCES ANDOPERATIONAL ISSUES

Change management and transformationCentre staff members attended a change management course at HumanRelationship Interface (HRI). The course ran over a six-months period,with regular facilitated sessions that mainly dealt with the team’s interactionin project situations. The programme outlined the most effective way forconducting team operations by running personal and team profiles, andthen integrating these into an operational model for the Centre.

The NCPC-SA appointed new staff members in its Clothing and TextileDivision. These staff members are based at the CSIR offices in Rosebank,Cape Town.

5.1. HUMAN RESOURCES

New staff members: André Page, Budu Manaka and Fatimah Boltman

NCPC-SA staff: Back row, from left to right: Fatimah Boltman, Mano Ram Reddi,André Page, Budu Manaka and Kevin Cilliers. Front row, from left to right Ndivhuho Raphuluand Thanyani Malange

28

NCPC-SA brandingThe Centre’s branding has been completed in alignment with its newstrategy and business plan. Professional promotional material has beenproduced and the Centre’s website has also been re-designed.

FinancesThe finances of the Centre have been ring-fenced within its host institution,the CSIR. the dti is the Centre’s main funder.

5.2. OPERATIONAL ISSUES

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6. FINACIAL REPORT

6. FINANCIAL REPORT

NATIONAL CLEANER PRODUCTION CENTRESOUTH AFRICAINCOME STATEMENTFor theFinancial year ended31 March 2006

REVENUE

External Revenue – the dtiExternal Revenue – UNIDOExternal Revenue – Other

Sundry Income: Recovery of doubtful debts

OPERATING INCOME

TOTAL EXPENSES

Manpower CostsConsumablesMarketing, printing and publicationsEquipment and equipment maintenanceProfessional servicesLocal TravelInternational TravelTrainingNet foreign exchange lossAccomodation and securityExecutive Group levyShared services levyLicences and leviesFreight and PostageDepreciationOther costs and overheads

NET MARGIN

R

3 468 160

1 160 3352 219 841

87 984

110 176

3 578 336

3 562 458

1 437 59217 320

221 216146 141255 807155 046

87 09450 32046 94083 587

267 000467 220

15 2681 711

412309 784

15 878

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NATIONAL CLEANER PRODUCTION CENTRE SOUTH AFRICA INCOME STATEMENTFOR THE FINANCIAL YEAR ENDED 31 MARCH 2006.

ADC Austrian Development CorporationAIDC Automotive Industrial Development CentreAF Advisory ForumAMTS Advanced Manufacturing Technology StrategyARC Agricultural Research CentreBAT Best Available TechniquesCPC Cleaner Production CentreCP Cleaner ProductionCSIR Council for Scientific and Industrial ResearchCTA Chief Technical AdvisorCTELC Clothing and Textile Environmental Linkage CentreDANIDA Danish International Development AgencyDEAT Department of Environmental Affairs and TourismDME Department of Minerals and EnergyDST Department of Science and TechnologyEHS Environmental Health and SafetyEIA Environmental Impact AssessmentsEIDD Enterprise and Industry Development DivisionEMC Executive Management CommitteeEST Environmentally Sound TechnologiesGEF Global Environment FacilityGIBS Gordon Institute of Business Science (University of

Pretoria)HEI/FET Higher Education Institution/Further Education and TrainingIDC Industrial Development CorporationIEC International Expert CentreIMS Integrated Manufacturing StrategyKPA / KPI Key Performance Area / Key Performance IndicatorKZN KwaZulu - Natal (the province)MAC Manufacturing Advisory Centre (regional)MIS Management Information systemsNAMAC National Manufacturing Advisory CentreNCPC-SA National Cleaner Production Centre (South Africa)NEDLAC National Economic Development and Labour CouncilNEMA National Environmental Management Act (1998)NEPAD New Partnership for Africa’s DevelopmentNTTC National Technology Transfer CentreNWMS National Waste Management StrategyRDI Research and Development InstitutesSADC Southern African Development CommunitySAQA South African Qualifications AuthoritySECO State Secretariat for Economic AffairsSETA Sector Education and AuthoritySMMEs Small, medium and micro enterprisesSWOT Strengths, weaknesses, opportunities and threats

7. ACRONYMS

32