THE BUSINESS
MANUFACTURING CAPITAL
Senwes believes that investment in property, plant and equipment as well as main-
taining its upgrading programme, retail networks and silo infrastructure will ensure
efficiency to improve customer service and 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 as well as for
the maintenance of mechanisation equipment.
KEY INPUTS
Property, plant and equipment with a carrying value of R715,0 million, which
includes additional capital expenditure of R151,9 million for the year for the
Senwes Grainlink division;
Senwes Equipment and Hinterland are in the process of upgrading the existing
Wolmaransstad branch and are also building a new workshop there;
Senwes Grainlink Silo Operations kicked off with high carry over stock levels and
storage capacity was under pressure. Additional storage capacity of 145 500
tonnes was created at 8 silos to accommodate grain producers;
Photo of Senwes Grainlink silo at Petrusburg
in the Free State.
TRADE-OFFS IN OUR USE OF
MANUFACTURING CAPITAL
The continued growth of Senwes by means of
capital projects decreases financial capital over the
short term. However, the focus is on unlocking va
lue to the advantage of human, social and relation-
ship, natural and financial capital. This includes the
new branch and store at Hartswater, that will result
in long-term job creation and long-term financial
return, as well as the Graintech project and accele
rated grain handling project, that improved the utili
sation of assets and resulted in greater certainty in
meeting customers’ demands.
2018
Higher moisture content grain received (Graintech
project) % 23,6 42,9
Total (increase)/savings in electricity cost R’m (0,4) 2,7
Depreciation R’m 55,3 42,6
Maintenance costs R’m 58,0 44,8
Workshop hours Hours 74 475 69 958
Senwes uses natural capital such as land, water and energy to generate income.
Senwes invests significantly in decreasing the impact of its activities on the envi-
ronment and to promote a culture of efficiency. Senwes’ manufacturing capital has
a low impact on natural capital, however.
ACTIONS TO IMPROVE
OUTCOMES
Fire destroyed the Hartswater branch and damaged a portion of the Petrus-
burg- and Bloemfontein silos. These branches are still under construction.
2019
NATURAL CAPITAL
Development of a new branch and store
at Hartswater and Wolmaransstad (work-
shop included);
Project to upgrade silo’s at Mirage and
Vierfontein;
Improve customer service by means of
accelerated intake rate and efficiency pro
jects; and
Additional alternative storage facilities will
be established in order to offer continuous
storage solutions to producers.
KEY INPUTS
New energy saving projects planned at the following Hinterland branches:
• Bloemfontein;
• Delmas.
Water consumption efficiency programme;
Electricity consumption efficiency programme;
Registered as a member of the Green Building Council of South Africa (GBCSA)
while we are also focused on building all new developments to obtain a green
star rating; and
The establishment of alternative storage struc-
tures;
JSE-compliance audit on Silo Operations; and Develop the skills of industrial engineers and
workshop technicians;
Application of capital at the right silo complexes
in order to ensure optimal return and to mitigate
risks; and
Property Management Committee. Compliance with SHEQ-regulations.
Approval of projects by the Senwes board. Overview and reporting are done
afterwards by the Audit Committee;
SHEQ-safety audits;
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Installation of electronic electricity meters
at silos to record municipal readings.
FUTURE CHALLENGES
FUTURE CHALLENGES
Asset verification by external auditors;
Solar power projects are planned for two
Hinterland branches;
Focus on finding solutions for producers
relating to more efficient water usage;
A waste reduction programme focused
on lower paper usage by using technolo-
gy, as well as the recycling of used paper;
and
Waste reduction programme.
OUTCOMES
REASSURANCE IN RESPECT OF
MANUFACTURING CAPITAL
The investment in energy and water savings pro
jects has a negative impact on financial capital
over the short term. However, it will have a posi
tive impact on natural and financial capital over
the long term, through reduced municipal costs,
as well as reduced depletion of natural resources.
ACTIONS TO IMPROVE
OUTCOMES
The Graintech project, in terms of which grain is received at higher than normal
moisture levels to accommodate producers in delivering on their grain con-
tracts, was implemented at 15 silos and 21 bins;
OUTCOMES
TRADE-OFFS IN OUR USE OF
INTELLECTUAL CAPITAL
SENWES INTEGRATED REPORT 2019
2019 2018
Energy consumption at head office GWh 1,3 1,3
(Decrease)/increase in water consumption
at head office % (6) 10
Cumulative CO2, as a result of lower paper con-
sumption Tonnes 2 836 1 805
REASSURANCE IN RESPECT OF NATURAL CAPITAL
Independent consultation on the rehabilitation of the mining sites of Bastion
Lime.
SENWES INTEGRATED REPORT 2019
Increasing scarcity and decreasing quality of
natural resources;
Inability of municipalities to manage their wa-
ter and electricity accounts has a negative
effect on business activities;
Climate change: drought has a negative im-
pact on food production;
The demand for water exceeds its natural
availability; and
The inability of Eskom to meet the demand
for electricity, due to poor infrastructure and
maintenance of networks.
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