Transcript ABI PRESENTATION - Aluminium Beneficiation Initiative

Aluminium Beneficiation Initiative [ABI]
A Hulamin – BHP BILLITON Economic
Development Initiative
B6 Maritzburg Arch 39/45 Chief Albert Luthuli Street, Pietermaritzburg 3201
www.aluminiumbi.co.za
Reginald Nyandeni
CEO
Content
1. Vision
2. ABI Mission
3. Hulamin and BHP Billiton Entrepreneurial Support
4.Aluminium Industry Overview
5. Role of ABI
6. Requirements - Prospective Entrepreneurs
7. Impact of ABI to Economy
8. Sample of Aluminium Downstream Products
9. SEFA
10. Next Step
ABI Funders
Hulamin Operations
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Head Office and Plant : Pietermaritzburg/Midrand
Annual Turnover of R8-Billion
Employment: 2,000
BHP Billiton/South 32
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Head Office: JHB [Regional Office]
Aluminium Plants: Richard’s Bay/Mozambique
Annual Turnover: R12-billion
Employment: 1,500
Hulamin - Overview
• Independent rolling mill
• Installed Capacity – 250 000 tons
• In 2014
• Sales 200,000 tons
• Turnover R8 billion
• Sales >40 countries on all continents
• Major product groups
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Can end and tab stock
6xxx Plate
Brazing sheet
Painted sheet and coil
Closure sheet
1xxx, 3xxx and 5xxx alloys
Foil
Extrusion
Vision
To identify and support 100 entrepreneurs in the
aluminium fabrication sector and guide them into
sustainable businesses within 3 years which will
result in these businesses consuming at least 100
tons of aluminium each.
ABI Mission
To identify entrepreneurs [high potential] with innovative
business acumen to establish, grow and sustain successful enterprises.
To provide training
achieving their goals.
and support for these entrepreneurs to overcome constraints to
To support a pipeline of entrepreneurs, from selection
To capitalize
objectives
ideas and
to goal attainment.
on the support available from agencies and stakeholders with related
To raise Hulamin - BHP Billiton’s profile as a contributor to industrialization,
wealth creation.
job and
Hulamin – Entrepreneurial Support
1. Since 1996,Hulamin undertook to develop and grow African Enterprises. These have grown from R1 million
in 1996 to R75 Million in 2014 resulting in over 350 permanent
jobs [20% of Hulamin
compliment of 2000].
2. According to a study conducted by the University of Michigan [USA] and the National Business Incubation
Association [NBIA[ entitled Business Incubation 87%
business.
of business incubation graduates stay in
BHP Billiton – Entrepreneurial Support
• In 2013, BHP BILLITON established a R50 Million Enterprise
and Supplier Development
Centre in Richardsbay
• Over 70 entrepreneurs have gone through a
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2-year training programme
One of the entrepreneurs that went through this programme now employs > 800 people
Aluminium Industry Overview
Economic Landscape
During the last 20 years we have witnessed major economic trends in South Africa:
The economic size of the SA economy has doubled in GDP terms from R1 trillion to R2 trillion.
The rapid growth of the black middle class [approaching 4 million households from 350,000 in 1994];
Very slow growth in the industrialization sector - led to job losses in agriculture, mining and manufacturing.
The shrinkage of the productive sector has been, ironically, accompanied by the growth of service sector
especially finance, real estate, government, transport, communication and distribution.
Low Entrepreneurship in SA.
Key challenges for Entrepreneurs: - Market Access, lack of business support and Funding
Africa is the richest continent on Earth
yet It is the poorest of them All
WHY
We don’t invest in Human Resources & we
don’t manage our own natural Resources.
Role - Aluminium Beneficiation Initiative
Identify Potential Candidates
Select/Filter Candidates
Train based on accredited modules to address skills gap
Transfer relevant skills to candidates
Assist candidates to secure resources
Develop sustainable funding model for candidates
Promote and branding rights
Secure necessary Technology and Licences
Develop and protect Intellectual Property [IP]
Form strategic partnership with key role players within the relevant supply
chains
Leverage the relationship from Board to strategic partners to unlock potential
business opportunities
Requirements – Prospective Entrepreneur
1. Entrepreneurial, innovative, self-starter, business acumen,
intelligent/smart, strong selling, people skills, desire to learn, Strong
personality, independent, positive attitude
2. Types of Entrepreneurs:
1. ‘Necessity’ entrepreneurs:
Entrepreneurs starting a business to taking care of themselves and
their own families financially.
2. ‘Opportunity entrepreneurs’ or ‘longevity’
Entrepreneurs that identifying gaps or opportunities and establish a
growing business that creates employment for others and wealth
themselves.
Model of Entrepreneurship
People
Opportunity/ Idea
Risk
Resources
Manufacturing the jaws of a crocodile
Prices getting lower
Rising costs
Impact of ABI to Economy
 Growth in the size of the Aluminium industry resulting in high level skills
development and job creation.
 Import Replacement.
 Hulamin-BHP BILLITON - collaboration will unlock other business opportunities
within the upstream-midstream-downstream supply chain that would have a
trickle-down effect to the economy.
Impact on the Economy
Global Benchmark:
I Ton = 3 JOBS [Downstream sector]
Therefore overview within the next 9 Years:
2018: 100 tons x 100 Entrepreneurs = 10 000 tons x 3 = 30,000 NEW JOBS
2021: 100 tons x 100 Entrepreneurs = 10,000 tons x3 = 30,000 NEW JOBS
2024: 100 tons x 100 Entrepreneurs = 10,000 tons x3 = 30,000 NEW JOBS
TOTAL
30,000 tons
90,000 NEW JOBS
Sample of Downstream Aluminium Products
Small Enterprise Financial Agency [SEFA]
SEFA committed R80 Million towards an Aluminium Fund
An additional R20 Million - Hulamin/BHP Billiton Contractors
Fund [business growth/expansion, etc.]
Disbursement of Funds subject to skills transfer and support
Open to All South Africans
From idea to
To commercialisation
Technical Support?
Assistance with shape design
Alloy Selection
Fabrication & finishing
“Our Extrusions products are found on Mount Everest
as components in the highest ladder in the world
We helped our [offshore] customer achieve this feat we can do the same for you in your
business/industry”
Recap
Support Model
Technical
Support
(E.g. Specifications)
Raw
Material
(E.G Design Dies, Product Qualification
to commercialisation)
Funding
Facilitation
(E.g. Hybrid of funding
Models)
Business Support and Guidance – within the
Competition Act Framework
Next Step
Register your ideas/interest/enquiry on the website
www.aluminiumbi.co.za
“WE MUST BECOME BIGGER THAN WE HAVE BEEN,
MORE COURAGEOUS,
GREATER IN SPIRIT
AND LARGER IN OUTLOOK”.