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THE BUSINESS
MANUFACTURING CAPITAL
S
enwes believes that investment in property, plant and equipment and the main-
taining of its upgrading programme, retail networks and silo infrastructure effi-
ciency will improve customer service and the buying experience. Senwes uses
its manufacturing capital to generate cash from the storage and handling of grain, to
supply input products and mechanisation equipment to customers and for the main-
tenance of mechanisation equipment.
KEY INPUTS
New SPPD (Senwes Property Planning and Development department) with
specialist employees responsible for maximising the economic and financial
value of the total property portfolio in the group;
OUTCOMES
The biggest harvest since 1981 was handled by Senwes’ silo infrastructure;
Due to Senwes’ innovation initiative, the Graintech project, Senwes Grainlink
was able to receive 50,3% of all maize with a higher moisture content, thus
creating shared value;
Net silo income (handling and storage) of R638 million for the year, which is
191,9% higher than the previous year;
Saving of 30% in electricity consumption at head office of 460 242 kWh, total
saving in electricity costs of R2,7 million;
Depreciation of R40,7 million;
Maintenance costs of R44,9 million.
Property, plant and equipment with a carrying value of R567 million, which
includes additional capex spending of R141 million for the year;
Upgraded training and conference centre at Senwes head office with a
project value of R10,2 million;
The Delmas, Middelburg and Newcastle branches were revamped, with the
focus on customer service and a wide product range. Potchefstroom currently
in process;
Hinterland opened a new OK Foods in Bultfontein;
Grainovation expanded its fleet by 41%;
Senwes Equipment upgraded its facilities at Hartswater, Ventersdorp, Aliwal
North and Ugie;
Grasland Ondernemings upgraded its Buhrmansdrif and Britten crushing
plants to increase capacity by 144%;
Continuous capital investment in Senwes’ silo infrastructure. However, due to
the huge harvest, Senwes Grainlink’s capital investment programme had to be
temporarily halted to a certain extent due to capacity constraints;
Concrete roadways and/or access roads at 13 silo complexes were upgraded;
Intake speed of two silos (Gottenburg and Protespan) were increased to 150
tons per hour. Makokskraal is currently in the process of being upgraded;
Alternative storage facilities were established to store additional grain due to
the exceptionally large harvest at Raathsvlei, Wolwehoek, Viljoenskroon, Rooi-
wal, Vierfontein and Potchefstroom silos.
OVERVIEW | THE BUSINESS | STRATEGIC AND OPERATING CONTEXT | CORPORATE GOVERNANCE | FINANCIAL REVIEW
ACTIONS TO IMPROVE OUTCOMES
Development of a new branch and store at Hartswater to the value of
R17 million;
Project at Arlington silo to the value of R20 million for upgrading and
increasing storage capacity to be completed;
Improved customer service by means of accelerated intake rate and efficiency
projects;
Additional alternative storage facilities will be erected in order to offer continuous
storage solutions to producers;
Upgrading of mechanisation workshops at Wesselsbron and Schweizer-
Reneke.