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The transformation of manufacturing processes and operations into connected, integrated, automated and smart operations, collectively known as Industry 4.0, will reduce the amount of low skilled positions but also create new skilled positions, assurance and advisory services multinational PwC South Africa's 'Insights into the I4.0 maturity of SA Manufacturing' report has found.

The report surveyed representatives across nine industrial sectors in South Africa during April and May and found that 35% of respondents predicted that throughput would increase between 10% to 20% owing to Industry 4.0 investments made over five years, and enable them to see a return on their investments.

However, some participants indicated that it might take more time for them to capitalise on investments made, depending on their specific sector.

Further, 35% of participants expected to realise a 20% to 30% increase in efficiency gain owing to Industry 4.0 investments.

"This finding relates to and concurs with a cost reduction expected by 82% of participants [arising from Industry 4.0 investments made] over the next five years, with 26% of respondents expecting cost reductions of more than 30%," says PwC South Africa smart manufacturing leader Vinesh Maharaj.

"As visible in the report, there are definite benefits to implementing Industry 4.0 technologies and organisations are quite bullish on what the returns will be. However, despite many foreseeing significant benefits, 23% of respondents remain uncertain about the return on investment.

"Further, 15% said they experienced resistance to transformation from workers and unions and 37% said they foresaw a challenge in terms of skills to operate transformed operations. However, if we can overcome the challenge of upskilling people, we will get the benefits from the transformation," Maharaj says.

SKILLED EMPLOYEES

The report indicated that 73% of participants expect the number of skilled employees will increase as the industry transforms, with 77% expecting new skilled positions to increase because of the implementation of Industry 4.0.

In terms of the impact on the workforce within industrial manufacturing, a significant increase in skilled labour is expected and 40% of participants expected the level of productivity of employees to increase. Similarly, 30% of participants expected the number of new skilled positions to increase.

Additionally, 20% of participants expect workforce costs to increase and 30% of participants expect production costs to decrease. This shows an overall improvement in efficiencies and safety, with higher paid skilled staff, the report shows.

"Given the fact that Industry 4.0 is changing how we work, live and socialise, it is expected that a number of skills are mandatory to thrive in this new technological era, deliver on high expectations and use technology to serve employees and their companies," the report notes.

"We found that the number of unskilled employees was not necessarily linked to a reduction in employment rates, as manufacturers were eager to upskill employees to complete more fulfilling tasks, while being open to the idea of automation and digitisation, paving the way in terms of repetitive and laborious tasks. It is, therefore, important to consider how upskilling will happen within each sector."

The majority of participating manufacturers, 67%, agreed that the number of unskilled employees would decrease. This is in line with literature suggesting that South Africa has a significant skills shortage owing to failings in its education system, limiting the supply of workers needed for Industry 4.0.

Meanwhile, overall investment made into Industry 4.0 in South African manufacturing is substantially low. Investment risk owing to South Africa’s unstable political and economic climate, as well as poor infrastructure and logistics, was noted, the report states.

Significantly, from a historical context, Asian economies developed through the use of low labour costs an...

Mercedes-Benz South Africa (MBSA) has declared its pilot solar energy project a success.

MBSA piloted the project in order to evaluate the solar yield for the East London manufacturing plant, in the Eastern Cape.

The 360 kW-peak solar array was installed on the roof of its recently commissioned body-shop building.

Since the start of the pilot project in January, the project has delivered “impressive solar yields”, says MBSA, moving the manufacturer closer towards its vision of carbon-neutral production.

Mercedes-Benz, MBSA’s parent company, intends to go all-electric by 2030. It also aims to cut its carbon footprint per passenger car by more than half by 2030 compared with 2020 levels.

To achieve this goal will include not only electrifying the vehicle fleet, but also charging them with green energy; improving battery technology; implementing the extensive use of recycled materials; and expanding the use of renewable energy in production.

Mercedes-Benz plans to cover more than 70% of its energy needs through renewable energy by 2030, by rolling out solar and wind power at its own sites, as well as by implementing power purchase agreements. It is in line with this ambition that MBSA piloted a solar project in East London.

“As Mercedes-Benz our goal is to make the world’s most desirable cars,” says MBSA CEO and manufacturing executive director Andreas Brand.

“We are proud of our successful pilot project here in East London and look forward to actively making a significant contribution to sustainable production/carbon neutral manufacturing.”

The next phase of the project will be to provide the plant’s baseload requirement through future projects on newly commissioned buildings.

MBSA produces the C-Class for the local and export markets.

Public Enterprises Minister Pravin Gordhan on Tuesday evening said he was hopeful that Eskom would be able to avoid implementing Stage 6 load-shedding for a second day on Wednesday, after the power utility and unions had reached a wage agreement earlier in the day.

Eskom on Tuesday afternoon announced that it would implement Stage 6 load-shedding from 16:00 to 22:00 on Tuesday and Wednesday, after unlawful industrial action had worsened its ability to generate electricity.

Eskom, which would reveal details of the agreement at a later stage, has only once before had to implement Stage 6 load-shedding – in December 2019.

Gordhan said striking employees would be requested to return to work on Wednesday morning.

He was hopeful that Eskom would then be able to undertake the necessary clean-up and restart of power station units, as well as resume maintenance activities that had to be put on hold as a result of the industrial action.

The Minister, in an appeal to unions and others who may be inspiring the activity at Eskom's power stations over recent days, said "now is not the time to interfere in electricity supply.".

He urged Eskom employees to work in the national interest and in the interest of the country and its 60-million citizens.

He stressed that the illegal industrial action by some Eskom employees since June 22 had done a huge amount of damage to South Africa's reputation and economic growth.

On Tuesday morning, Eskom had warned that it may have to implement Stage 6 load-shedding, following a deterioration in its generation capacity overnight on Monday.

COO Jan Oberholzer noted in a media briefing on Tuesday morning that there was a significant risk that the utility may have to implement Stage 6 load-shedding.

He added that ten generating units were lost overnight on Monday. Two of these units had been returned to service by Tuesday morning.

Eskom had planned to return a further four units to service ahead of the evening peak, but was only able to return one more unit to service by Tuesday afternoon.

Oberholzer said a further four units would not be able to return to service on Tuesday as they require prolonged repairs.

Units that had previously broken down could also not be returned to service, as a result of a lack of operators needed at those units.

CEO André de Ruyter further pointed out that the utility was already using about two-million litres of diesel a day to keep its Ankerlig and Gourikwa open-cycle gas turbines running, with Eskom having used 85-million litres of diesel so far in June.

Oberholzer noted that diesel volumes were being depleted "at an alarming rate", especially at Ankerlig.

With diesel supplies dwindling, a vessel delivering additional fuel for Ankerlig is only expected to reach South Africa at the weekend.

Eskom's already constrained electricity supply is being exacerbated by industrial action at various power plants, with a number of Eskom's power stations being run by managerial staff at present.

Oberholzer and De Ruyter commended those employees who have continued to work long hours to keep the power stations operational under the circumstances.

They also urged striking employees to consider the impact of the unlawful and illegal strike action on the country's population, as well as the economy, and to return to work.

They also condemned acts of intimidation, arson and public violence committed by some of the striking employees.

Gordhan on Tuesday evening also condemned the acts of violence, saying it was unacceptable that some nonstriking employees had had their homes and cars petrol bombed and vehicle tyres slashed, among other forms of intimidation.

He noted that the intimidation had resulted in more than 90% of staff not being at work at the majority of Eskom's power stations on Monday and Tuesday.

Volkswagen Group South Africa says production of the Polo and Polo Vivo at its Kariega plant in the Nelson Mandela Bay municipality is continuing, despite the water supply crisis in the area.

“Our Kariega plant is operating as normal and there are no issues as yet with the water supply,” says a spokesperson for the local arm of the German car maker.

VWSA notes that it has worked hard to reduce its water consumption over the last few years.

“Our plant has reduced its water consumption by 19.4% if one compares 2021 versus 2019, and by 63% for 2021 versus 2010.

“We have also introduced water recycling and rainwater harvesting in various areas of the plant.”

VWSA adds that its component suppliers, spread across the Nelson Mandela Bay metro, have contingency plans in place to mitigate the impact of water supply disruptions on their businesses and, subsequently, their supply of parts to the Volkswagen plant.

However, the manufacturer notes that some of its employees in “high-risk areas” have been affected by disruptions to the water supply.

VWSA does not believe that the water-supply problems will affect its production figures for the year, and that customers here and abroad can expect their vehicles on time and as ordered.

VWSA also notes that it is actively supporting initiatives by the Nelson Mandela Bay Business Chamber, such as Adopt-a-school and Adopt-a-leak, to rein in water leaks, and to ensure that local schools have access to clean water.

The Passenger Rail Agency of South Africa (PRASA) has awarded five companies general overhaul contracts for its older rolling stock to the value of R7.5-billion.

The agency says the five-year contracts will allow for the heavy maintenance and repairs of its existing train sets, while also clearing the backlog in rolling-stock repair and refurbishment.

The work packages are expected to create around 2 000 jobs.

PRASA, which operates the Metrorail service, says the contracts were awarded to Armeture Technology; CTE Investment; Karabo Nhlamolo Projects Cooperative; TMH Africa; and YNF Engineering.

The contracts will see between 380 and 400 coaches undergo heavy maintenance and rehabilitation work every year for the next five years.

“Many of our train sets are out of commission due to the lifespan of our coaches, as well as the vandalism of our coaches, making our trains hazardous and unsafe for commuters,” states the agency.

“This is therefore a positive development for PRASA and its commuters because we can now . . . increase the availability of trains as we recover our lines.”

The lifespan of a Metrorail coach is about 40 years, says PRASA. However, the majority of the agency’s fleet is more than 50 years old.

In the asset lifecycle of trains, individual coaches must undergo general maintenance every nine to ten years.

“As we transition to the new electrical trains manufactured at the Gibela manufacturing plant, the current fleet needs to be maintained until new electrical motor units are finally acquired and fully incorporated into service by [around] 2033,” notes PRASA .

“The current fleet is expected to remain operational, and will be systematically phased out [by 2033].”

Independent renewable energy company Earth & Wire expects to begin installing its first long-duration energy storage system in South Africa in 2024 after announcing a 300 MW/1 200 MWh order for a battery system from Ambri, of the US.

First deliveries are scheduled for the second quarter of 2024, and implementation, which could be across multiple sites, is expected to involve a capital investment of between R3.5-billion and R4-billion depending on exchange-rate, interest-rate and supply-chain fluctuations.

Earth & Wire’s Thomas Garner tells Engineering News that the preferred site for the hybrid renewables-storage project has been identified close to Somerset East, in the Eastern Cape.

The site is said to be “permitted” and has the potential for about 700 MW of wind and 600 MW of solar photovoltaic capacity.

“There are other options which could support larger metropolitan municipalities to improve their grid stability and reduce the impact of load-shedding as well as variable supply from future renewables.”

Garner says the exact size of the storage component would be determined by the final optimisation of wind and solar and the specific generation profiles of the combined site.

He notes, too, that the battery system is a modular system and could, thus, be deployed across as more locations.

“By deploying Ambri’s technology, we will be able to help manage fluctuations in supply and demand, and work towards providing consistent and responsive electrical power to our customers 24-hours a day,” Garner says.

Ambri’s long-duration energy storage solution is designed for daily cycling over a 20-year period.

For the Eastern Cape site, Earth & Wire is gearing up to invest between R25-billion and R30-billion, which includes a 2 GW, 400 kV main transmission substation that will be constructed to connect this project area to the national grid.

Licensing and/or registration with the National Energy Regulator of South Africa will be pursued over the next 12 to 18 months.

“We need to make it clear that we develop projects for the private market at scale and the 100 MW ceiling doesn’t govern our development strategy.

“If we need to apply for a licence for a specific project larger than 100 MW, we will do so,” Garner explains, while confirming the project will be integrated into the Eskom grid.

The company, which recently concluded power purchase agreements (PPAs) with multiple customers, including a 12-year PPA with Mediclinic, is currently in discussion with various potential private customers and traders for the energy it will be supplying from the Eastern Cape.

“We have large amounts of energy to supply and we are in the process of securing offtake.

“The private market has only started to awaken and we see an increased demand for electricity and an increased level of engagement from the private sector.”

Garner adds its current focus is on energy traders and specific offtakers, such as small industrial companies, smaller mines where the life-of-mine is shorter than 20 years, data centres, and farmers.

“Depending how the municipal market develops, the end game is to supply municipal customers and consumers as well.”

Eskom has extended Stage 4 load-shedding – initially implemented at 11:00 on Friday June 24, after an illegal strike led to the loss of more coal production – until Sunday and the utility has also refrained from providing a system prognosis for the coming week.

COO Jan Oberholzer said the decision to implement and sustain 4 000 MW of rotational cuts was taken after unplanned unavailability across the fleet rose to above 18 000 MW, partly as a result of a decision to ramp-down some coal generators as a result of the resource constraints triggered by the labour action.

Total unavailability stood at above 20 000 MW on Friday afternoon.

However, acting generation executive Rhulani Mathebula said there had been no evidence of sabotage at any of the seven affected stations.

The decision to intensify and extend load-shedding was also taken to preserve diesel stocks at the Ankerlig and Gourikwa open-cycle gas turbines, which had been used extensively during the week.

Stocks at Ankerlig, which can be refuelled only by road tanker, had fallen to 30% after all nine units were deployed extensively on Thursday. Production was halted at the power station on Friday to preserve the remaining diesel.

Reports of uprotected strike action, often accompanied by acts of intimidation in the form of threatening cellphone message and stone throwing, had been received from Matla, Duvha, Hendrina, Arnot, Camden, Matimba and Medupi.

Groups of between 50 and 100 workers were said to be involved in the action at each site, and were preventing hundreds of other Eskom workers and contractors from entering the power stations.

Many workers and contractors had also decided to stay away as a result of threats sent to their cellphones.

The industrial unrest arose after the utility declared a deadlock in wage talks earlier in the week and the National Union of Metalworkers of South Africa (Numsa) stated that Eskom management should "take full responsibility for the protests that are taking place at power stations across the country".

"They arrogantly collapsed wage talks on Tuesday and now workers are angry," Numsa wrote on its official Twitter account.

Some 30 000 Eskom workers falling under the central bargaining forum (CBF) are affected by the dispute, which has been referred to the Commission for Conciliation, Mediation and Arbitration (CCMA) for urgent conciliation.

Human resources GM Thulane Ngele described as inaccurate claims by Numsa that Eskom had walked out of the wage talks.

Ngele said that a deadlock was declare once it became apparent that the positions of the parties were so far apart that there was no prospect of a resolution being found within the CBF itself.

"When there is no prospect that parties can meet one another, then one party or all the parties can declare a deadlock.

"So we declared a deadlock in order for us to move to the next phase of the process, which is the CCMA conciliation process," he explained, adding that it had requested an expedited process be implemented.

"We've asked them for an expedited process, which they normally give, and we hope that we are going to have discussions with trade unions to try and settle this particular dispute next week some time."

As an essential service, workers at Eskom are not legally entitled to strike and the utility has secured an court interdict against the action.

Oberholzer said that Eskom had procedures in place to discipline employees who engaged in illegal industrial action.

Further to Transnet National Port Authority’s (TNPA’s) “reimagined” operational model, launched in November last year, and increased efficiency initiatives that are under way, the State-owned utility has announced it will spend R9.1-billion over the next seven years on capital projects in the Central Region ports.

The Central Region ports comprise Ngqura, Gqeberha and East London.

The Ngqura and Gqeberha ports, which are jointly managed as the Nelson Mandela Bay port, will receive a R4.8-billion share of the seven-year capital allocation, while the East London port will receive R4.3-billion.

TNPA has, since the launch of its new operational model, been appointing new general managers to oversee various aspects of the business, improving terminal oversight, addressing backlogs as best it can and introducing automated systems, besides other efforts.

The utility had conducted some introspection, which led to an urgent review of its operations and identified various challenges, including customer dissatisfaction, declining port efficiency, performance and volumes, high costs of doing business, failure to deliver capital projects on time, ageing fleet and infrastructure and bureaucratic internal processes.

In the 2022/23 financial year, TNPA has adopted a robust approach to its capital projects delivery, which will see the Central Region ports spending R570-million on port infrastructure development.

Notably, TNPA will issue a request for information (RFI) in July for renewable energy capacity at the ports, which will be followed by a request for proposals (RFP) by September, on a power purchase agreement basis.

The ports authority will also issue an RFI in July for all ports to supply desalinated water, with an RFP to follow by October, on a water purchase agreement basis.

This is in response to the water crisis faced by residents of Gqeberha when flash flooding hit parts of the province, as well as KwaZulu-Natal, in April this year, and as a proactive measure for any future water-related crises.

More strategic projects for the current year include the relocation of the tank farm from Gqeberha to Ngqura, Phase 1 of Ngqura’s Manganese Export Terminal development, conducting a feasibility study for the reconstruction of East London’s Quay 3 and the construction of a slipway at the Port of Gqeberha.

“We have earmarked the Port of Gqeberha for the automotive sector, while Ngqura is being positioned as a transshipment and energy hub for the southern hemisphere,” confirms TNPA central region managing executive Siyabulela Mhlaluka.

He adds that Ngqura will see an increased focus on energy operations, such as liquid natural gas, while Gqeberha is being positioned as a leisure and recreational port, and will receive support in this regard. East London will have an increased focus to cater for agriculture, and see expanded liquid bulk operations.

TNPA has also recognised the need to realise more value from its assets, such as real estate, and plans on venturing into other revenue streams away from the traditional ones. It is engaging with sister company Transnet Property in this regard, which manages a portfolio of commercial and residential properties with a book value of R6.5-billion across the country.

TNPA has asked executives at ports to come up with plans for refurbishment of properties owned by TNPA around the ports, and will, in some cases, be demolishing and developing properties from scratch.

Mhlaluka states that TNPA’s capital investment programme and plan demonstrate a renewed focused on ensuring delivery of its mandate to develop the South African ports and become an enabler for economic growth.

“We are continuously creating an enabling and performance-driven environment that unlocks bottlenecks and accelerates the execution of strategic projects through the establishment of regional and national capital investment war rooms, where project sponsor engagement is relevant and influential in enabling the project team.

“This app...

Creamer Media's Chanel de Bruyn speaks to Engineering News Editor Terence Creamer about the fresh attention this week on the $8.5-billion Just Energy Transition Partnership (JET-P) between South Africa and various developed countries; the importance of South Africa finalising a JET-P investment plan before COP27 in November; and other projects in South Africa that may in future be bundled under the JET-P banner.

The National Union of Metalworkers of South Africa (Numsa) says it will be picketing the Japanese Embassy in Pretoria on Friday.

The union intends to hand over a memorandum of demands regarding a “number of grievances” against Nissan’s management in South Africa.

Included in the list of demands is clarity on what Numsa says is the Japanese car maker’s failure to engage the union on its electric vehicle (EV) ambitions, and transparency on the future of the South African plant.

“ . . . Some workers are likely to be displaced because the new {EV] technology is not labour intensive,” says Numsa in a statement.

“Workers want to know what the plans are and whether they will be trained and upskilled to adjust to the new technology.

“There are also plans to terminate at least 150 fixed-term contracts at the plant, and rumours that the Nissan plant [in Pretoria] will be moved to Egypt, thus threatening the livelihoods of over 1 200 workers.”

Nissan Ambition 2030 will see the car maker accelerate the electrification of its vehicle line-up with investments of 2-trillion yen over the next five years.

Nissan says it will introduce 23 new electrified models, including 15 new EVs by fiscal year 2030, aiming for an electrification mix of more than 50% globally across the Nissan and Infiniti brands.

Nissan SA last year started production of the Nissan Navara pickup for the local and selected export markets. Production at the plant reached just more than 22 500 units last year.

Some Contracts Coming to an End, Says Nissan SA

Nissan SA says it is incorrect that “150 workers have been released”.

The company notes, however, that there are a number of fixed-term contractors in its manufacturing operations whose fixed-term contracts have come to an end.

“Resourcing needs are currently being reviewed, taking into account operational requirements, along with micro- and macro-factors, such as semi-conductor availability.”

The global auto industry has been battling a shortage of computer-chips since the start of the Covid-19 pandemic.

Nissan SA says it “remains committed to maintaining open engagements with Numsa and key stakeholders in order to find mutually beneficial resolutions”.

The local arm of the Japanese manufacturer also denies that it is shutting its doors.

“Africa has been identified as the last frontier of automotive growth and, to this end, Nissan has expansion plans across the continent.

“This is evidenced by the recent R3-billion investment into the South African manufacturing plant and skills development of employees to locally manufacture the new Nissan Navara.

“With a six-decade legacy of producing light commercial vehicles, the strategic goal is to establish Nissan’s South Africa operation to be the continental light commercial vehicle hub.”

It also does not seem as if Nissan's Rosslyn plant will soon produce EVs.

“Our Rosslyn facility’s primary strategic role in our broader global business is focused on continuing to manufacture LCVs for the African market,” says Nissan SA.

“The future of the EV ecosystem in South Africa, including supply and demand, is currently at policy formulating phase. Key stakeholders . . . are actively co-creating the country’s EV policy. Ultimately, it will be policy that guides [vehicle manufacturer] activity moving forward.”