The Hospice, which now has a small team of permanent staff members, complemented by the specialised services of a medical and administrative team of volunteers, relies completely on the benevolence of donors for its sustainability.

“We provide a home-based support, through palliative care and counselling services, to a large number of patients, their families and caregivers in the 30 Wards of the uMhlathuze area. Cancer continues to be one of the dread diseases our patients face but at least 80% of the people we provide aid to are HIV/AIDS sufferers, a large number of whom are affected by the co-morbid TB disease,” says Zululand Hospice General Manager, Lynn Rubly.

Air Products, a manufacturer and supplier of industrial and specialty gas products and chemicals annually allocates a donation to a worthy cause in its area of operation. The Empangeni branch, headed by Depot Administrator Karen Judd, was cognisant of the unswerving and selfless investment of the Zululand Hospice and decided to make this admirable cause its CSI recipient for 2012.

“Zululand Hospice provides holistic health care for patients in the form of the four pillars of palliative care, including the physical, psychological, social and spiritual areas. We provide the patients and their families or caregivers with counselling through a well trained team of social workers, while a medical doctor offers his services on a part-time basis and a local pharmacist handles the dispensing of medicines on a voluntary basis,” Rubly explains.

A team of careworkers, supervised by qualified registered nurses, have to occasionally travel to very remote areas. The team dispense medicine and advice, and conduct obligatory TB screening tests for the patients and their immediate caregivers. “Probably our biggest concern right now is the difficulties encountered in travelling to see patients.

As we do not have an in-house facility, our team spends a great deal of time on the road, at great expense. The donations from caring companies like Air Products help to ease the burden considerably,” adds Rubly.

“In the past our Empangeni branch have made their annual donation to Child Welfare, Cansa, the Drug and Alcohol Rehabilitation Centre and various needy schools in the area. This year Air Products felt that the Zululand Hospice would benefit from the allocated funds,” says Karen Judd.

“The Hospice provided Air Products with a list of their needs, but ultimately the manner in which the money is used is entirely at their discretion. We are aware that they have a number of projects they are busy with and it is our hope that this donation will help them to make headway on their elected missions,” Judd concludes.

Air Products, a leading manufacturer and supplier of a wide range of industrial gases, believes that it has a moral and ethical role to play in the communities in which it operates, with assistance that will result in sustainability.

The company became actively involved with the Izazi Secondary School, situated in the Osizweni District near Newcastle, Northern Kwazulu-Natal, in 2008. “Our initial social investment entailed the building of eight new classrooms. Mandla Motloung had a vision of the school becoming a creative learning centre aimed at preparing matriculants for the after-school market. This vision resonated with our decision to support community initiatives and we decided that classrooms were an immediate need,” says Josua le Roux, General Manager, Central Support at Air Products.

Motloung, explains that the school previously used the classroom facilities of another nearby school. “They were desperate to create an environment conducive to learning, but this was extremely difficult given their lack of funds at the time.  Air Products’ investment has made an enormous difference in the lives of the learners.”

Recognising the emphasis on corporate social investment displayed by Air Products, The Content Company, developers of the Streetwise information system, approached Air Products with the view to initiating an additional corporate social transformation at Izazi. “The project entails the supply of 30 information terminals. These ‘dumb’ terminals have word processing, email and basic text based internet access capabilities and are linked to our server in Cape Town,” says The Content Company’s CEO Ian Harrison.

“The Streetwise information systems  will allow learners to access information for projects, provide news feeds, allow writing of documents, provide an HIV/AIDS information portal and offer study guides and tips,” Harrison explains. “This is considered a stepping stone technology and can be likened to an online library.”

Control mechanisms are in place to ensure that content downloaded by the learners is of an appropriate nature. “We are also able to monitor trends such as the applications used, the type of content that proves most popular, frequency of visits to specific search destinations/centres and related information,” says Harrison.

Le Roux says that Air Products recognises that it is difficult for a school whose learners have to cope with so many disadvantages, to produce a high pass rate from its matriculants.

“We believe that by facilitating the access to learning through a system such as Streetwise, we will provide them with a fighting chance to improve their marks and present them with opportunities for further education and training in the future.”

“In addition to the Streetwise information centres, Air Products has also provided the school with access to the services of a tutor – Themba Nkabinde – who will assist the learners for one period every day in the use of the system,” comments Neale Quilliam, HR Manager at Air Products.

The learners at Izazi Secondary School could be considered geographically disadvantaged due to the remote location of the school. “Internet access is extremely erratic in the area and we opted for a GPRS connection.” says Quilliam

“In addition to the excitement surrounding the building of the new classrooms by Air Products, we are thrilled with the Streetwise project,” says Mr Med Nkosi, Acting Principal at Izazi Secondary School. “Streetwise will make the lives of our students and teachers so much easier and will not only address the issue of access to information, but will also help us to improve the quality of education we offer.”

“The Izazi Streetwise corporate social investment initiative forms part of our intention to promote learning and education. Our corporate social investment philosophy is focused on education and  training. It is our aim to present these learners with opportunities that are equal to those of learners in less disadvantaged environments. We will therefore continue to assess the needs of any other viable projects,” Le Roux concludes.

This is true particularly in the area of modified atmosphere packaging (MAP), where Air Products’ Freshline offering brings a complete packaging solution to food manufacturers and suppliers, as well as new standards of safety for the consumer.

While MAP is not an entirely new concept, the technology has become increasingly sophisticated and more widely used in recent years.

This is according to Arthi Govender, Specialty Gas Sales Manager at Air Products. She says, “MAP is well-established overseas, particularly in Europe, but it is relatively new in South Africa.”

She continues: “Good looking, fresh, convenient food has become something the consumer demands from the food industry. In the past, MAP was primarily used to prolong the shelf life of foodstuffs such as processed meat under refrigeration. These days, MAP is used to package anything from fresh salads and meat portions, to sandwiches and snacks.”

What exactly is MAP?  Govender provides a definition: “In MAP, the gas composition in food packaging is changed by altering levels of oxygen, nitrogen and carbon dioxide, which inhibits microbial growth, controls reactions of enzymes and bio-chemicals, and reduces moisture loss.

In simple terms, the composition of the atmosphere surrounding food is modified, according to the type of food, in order to extend the shelf life of the food,” she says.

Apart from a longer shelf-life, the benefits of MAP include a better, more appetising appearance of food, an important consideration for both supplier and consumer.

MAP, in the packaging and retail process, is often used in combination with permitted respective preservatives, as the process does not stop the growth of bacteria entirely, just slows it down,” Govender points out.

There is a range of high purity gases, delivered in both liquid and gas form, that are primarily used for the food industry. Carbon dioxide is used widely in MAP, says Govender. “CO₂ inhibits the growth of most bacteria and moulds. It is used extensively in the packaging of bakery products.

“Generally speaking, the higher the level of carbon dioxide, the longer the achievable shelf-life,” says Govender.

Nitrogen, another important element in MAP, is used as an inert gas which displaces air, and in particular oxygen. Nitrogen is mostly used in extending the shelf life of processed fruit and vegetables.

“Oxygen causes oxidative deterioration, and moisture needs to be as far as possible reduced or eliminated, as it attracts micro-organisms,” says Aubrey Parsons, a food scientist and lecturer on food safety.

Aerobic bacteria thrive in an oxygenated environment, says Parsons, but not only that, bacteria are able to mutate. “Bacteria are becoming increasingly intelligent and adaptable,” he asserts, adding that they find ways of reproducing, which is making food safety technology more important than ever.

Parsons emphasises that food is subject not only to bacterial micro-organisms, but to other harmful agents, such as insecticides, fungicides and herbicides. He draws attention to two recent international incidents where toxins caused wide-spread illness. In 2004, Chinese milk powder manufactures added the chemical melamine to their products. Melamine, a rich protein substance, is used to make plastics and fertiliser. Many thousands of babies fell ill as a result, and, according to Parsons, the effects of the disaster are still being felt to this day.

More recently, a month-long e-coli outbreak caused by bean sprouts from a farm in Germany, killed several people and left thousands ill.

“That is why it is crucial to having a proper food safety management system in place,” he says. In this, the World Health Organisation (WHO) plays a crucial role by promoting safe practices and ensuring that food is both healthy and nutritious, according to Parsons.

“There is no alternative to food safety,” he says, “but the onus is on food companies and manufacturers to put in place safety systems, enhanced by MAP. A good food management system can reduce problems by 99%.”

MAP, Parsons asserts, is a highly effective means of ensuring food safety, and a “blessing” in an age where incidents of food poisoning are on the rise.  It is becoming widely used among the large food companies in South Africa who, by and large, have a reputation for responsible and reliable food safety practices.

“However, it doesn’t end with MAP – there are still risks if factory staff are not trained properly.  Dirty hands, for example, can be lethal weapons,” he says.

This is where the ISO 22 000 standard in food safety plays an important role.  Parsons explains: “ISO 22 000 is used to demonstrate food safety management. It teaches manufacturers how to train their staff, and it also protects intellectual property.”

The ISO 22 000 international standard specifies requirements for a food safety management system that involves, among other things, interactive communication and system management in the food supply chain.

“Since food safety hazards can occur at any stage in the food chain it is essential that adequate control be in place at all times,” says Parsons. “Therefore, a combined effort of all parties through the food chain is required.

The ISO food safety standards also provide formulations for processes such as weighing and sequencing when combining ingredients, which have to be signed off.  Staff must know what they are doing, which includes supervisors, who need awareness of what is happening in the production environment,” Parsons emphasises.

Air Products, whose facilities are all ISO-accredited, including GMP (Good Manufacturing Practice) in food safety, also believes that training has an important role to play. “Air Products provides training and advice in MAP technology and its role in food safety, to all our clients in the food industry,” says Govender.

The company’s customers include suppliers and packers of red meat, poultry, ready-made meals, beverage producers (who use CO₂ to make sparkling drinks, as well as nitrogen which retains the rigidity of the can), manufacturers of dry products, such as cereals, milk formula, and suppliers of fresh fruit, vegetables and fish.

“Air Products is a leader in MAP technology.  Our clients appreciate that we are able to draw on the expertise and experience of our global company, and the fact that safety is always our number one consideration,” Govender concludes.

The company is ISO 9000 certified at all its facilities, with ongoing safety programmes which   aim to integrate safety into all the company’s activities.

And once again, the company has gained recognition for its commitment to safety and health best practices, through the NOSA (National Occupation Safety Association) awards.

Sue Janse van Vuuren, Head of SHEQ (Safety, Health, Environment and Quality) at Air Products explains why the annual NOSA awards hold value for the company and why they are an important part of its calendar:

“The NOSA programme is externally audited which helps us benchmark ourselves against other companies in South Africa,” she says.  “Winning NOSA awards gives us confidence in the effectiveness of our internal environment health and safety programmes, and assures us that our systems are world class.”

The basis of the NOSA programme is the NOSA Integrated Five Star System Standard, which has been implemented by thousands of companies both in South Africa and around the world.  The NOSA audit guidelines provide a thorough evaluation of the principles and practices that keep an organisation safe, healthy, and environmentally sustainable.

“The NOSA system is based on South African legislation, and SHE best practices, so it provides us with a measure of our compliance and a level of assurance.”

NOSA holds a number of awards functions each year. Janse van Vuuren explains the process:

“The NOSCAR awards are presented at the NOSCAR Banquet. This award is the ultimate symbol of excellence in occupational risk management.  It recognises those companies, or divisions, which are the ‘best of the best’.  Air Products was thrilled to receive NOSCAR awards for five of its facilities.

Then each region holds its own award function,” she continues, “where the Sector Industry Category (SIC) awards are given to reward the best NOSA integrated system to companies within each respective industry sector.

And finally, the NOSA International Awards are held at NOSHCON (NOSA’s annual conference), which was held during August 2011.  Our highest achievement was our Head Office being awarded the Winner of the International Top 100 Award for World Class SHE (Safety, Health and Environment) Performance in the Commercial category,” she says.

The other categories in the Top 100 Awards are Manufacturing and Mining.

The International Top 100 Award is the highest NOSA accolade, and this was the second consecutive year that Air Products has received it.

At the regional SIC awards, held last year, Air Products won a number of first and second places, as well as awards for the Best Occupational Safety, Best Occupational Health and Best Environmental Management Programmes.

“Our Kempton Park facility was overall winner of the Sector E awards (Electricity, Gas and Water),” says Janse van Vuuren, “and this, along with their audit results, qualified them for their first NOSCAR.”

She recognises, however, that the company cannot afford to rest on its laurels. “In any certification system, it is one thing to achieve high standards but another to maintain them. This takes a lot of hard work and dedication from each and every employee at all levels and facilities within the organisation,” she says.

This is why employees find such recognition gratifying, and, as Janse van Vuuren says, it spurs the company on to future accolades. “We continually strive for improvement in our SHE systems and performance and are working to bring all our facilities up to the same level. We would like to continue to bring at least another facility up to NOSCAR standard each year,” she advises, adding that the company will also be working hard to maintain its Top 100 position for another year.

“It is also important to remember that SHE management is not all about awards but it is about providing and maintaining a safe workplace for our employees and preventing any harm to people and the environment,” Janse van Vuuren concludes.

ISO (International Organisation for Standardisation), is a voluntary system for companies around the world gain accreditation according to certain standards which meet the requirements of business and the broader needs of society.

Although entirely voluntary, ISO certification is becoming increasingly prevalent in industry today.  This is according to Abdul Shaik, Field Quality Manager at Air Products South Africa.  He explains that there are several reasons behind this.

“There are a number of drivers for ISO accreditation, including organisational procedures and operational efficiencies, as well as customer requirements,” he says.

As one of the country’s leading manufacturers, suppliers and distributors of gas and gas products, Air Products gives top priority to health and safety issues and is proud of its track record.

Sue Jansen van Vuuren, Environmental Health and Safety, and Quality Manager at Air Products, explains the company’s standpoint:  “For us, nothing is more important than safety – not production, not sales, not profits.”

She continues: “We regard the national legislation in terms of environmental health and safety as the very minimum standard.  Over and above legislative compliance, we have very well-entrenched quality management systems in place, including ISO 9001, which we have had since 1992.”

ISO 9001, Shaik explains, is a baseline quality management certification, which the company has in place at all its sites countrywide.  More recently, Air Products has achieved two further ISO accreditations:  ISO 22 000, which is a food management system utilised mainly in the food industry  and ISO 14 000, an environmental management system. “We comply to local legislation in terms of environmental safety,” says Shaik, “but it is important to us to reach over and above this by attaining ISO certification as well.”

He explains: “Being ISO compliant affects our operational efficiency by ensuring that we do not incur waste and that we operate according to carefully designed step-by-step procedures. This eliminates possible complaints, fewer failures and reworks, which in turn keeps production costs as low as possible.”

In addition, ISO certification has proved instrumental in providing the company with access to new markets.

“We get many requests from customers and prospective customers wanting to see our ISO certification,” Shaik says.

ISO, which is granted to South African companies through the SABS (South African Bureau of Standards) applies to a company’s manufacturing or production facilities, which in turn provides guarantees regarding that facility’s output and product consistency.

“It is about engineering and managing procedures according to international best practice to ensure a consistent quality output, which meets customer expectations,” says Shaik.

The start up to achieving ISO certification involves a lot of time and effort, with particular emphasis on careful documentation.

“Primary processes have to be well-documented and recorded for later scrutiny, which is quite an involved process in itself,” Shaik explains. “Thereafter, it is important to train your people on approved procedures, according to ISO standards – and then there are various ‘checks and balances’, checking incoming bulk product and raw material, and outgoing product according to specifications.”

He emphasises the importance of keeping careful records of all activities, including training.  “This is important for auditing purposes, as SABS routinely audits our systems.” Shaik says.

With regards to keeping compliant, Van Vuuren says: “Once we have achieved our ISO certification in the various areas, we conduct our own internal audits. But we realise that it’s not always possible to ensure compliance remotely, so we hold the people on the ground accountable for how they run their areas day-to-day.  It is something that is an ongoing effort – we definitely do not rest on our laurels!”

She adds that the SABS/ISO audit is generic in nature, and that Air Products’ internal auditing is run according to very strict industry-specific standards, conducted by subject experts and specialists in the various fields of gas production.

Shaik concludes: “Being ISO compliant has become a way of life for Air Products: it makes good business sense, and, more importantly, ensures that we are able to consistently provide a quality output, according to world standards – something our customers have come to expect from Air Products.”

ISO (International Organisation for Standardisation), is a voluntary system for companies around the world gain accreditation according to certain standards which meet the requirements of business and the broader needs of society.

Although entirely voluntary, ISO certification is becoming increasingly prevalent in industry today.  This is according to Abdul Shaik, Field Quality Manager at Air Products South Africa.  He explains that there are several reasons behind this.

“There are a number of drivers for ISO accreditation, including organisational procedures and operational efficiencies, as well as customer requirements,” he says.

As one of the country’s leading manufacturers, suppliers and distributors of gas and gas products, Air Products gives top priority to health and safety issues and is proud of its track record.

Sue Jansen van Vuuren, Environmental Health and Safety, and Quality Manager at Air Products, explains the company’s standpoint:  “For us, nothing is more important than safety – not production, not sales, not profits.”

She continues: “We regard the national legislation in terms of environmental health and safety as the very minimum standard.  Over and above legislative compliance, we have very well-entrenched quality management systems in place, including ISO 9001, which we have had since 1992.”

ISO 9001, Shaik explains, is a baseline quality management certification, which the company has in place at all its sites countrywide.  More recently, Air Products has achieved two further ISO accreditations:  ISO 22 000, which is a food management system utilised mainly in the food industry  and ISO 14 000, an environmental management system. “We comply to local legislation in terms of environmental safety,” says Shaik, “but it is important to us to reach over and above this by attaining ISO certification as well.”

He explains: “Being ISO compliant affects our operational efficiency by ensuring that we do not incur waste and that we operate according to carefully designed step-by-step procedures. This eliminates possible complaints, fewer failures and reworks, which in turn keeps production costs as low as possible.”

In addition, ISO certification has proved instrumental in providing the company with access to new markets.

“We get many requests from customers and prospective customers wanting to see our ISO certification,” Shaik says.

ISO, which is granted to South African companies through the SABS (South African Bureau of Standards) applies to a company’s manufacturing or production facilities, which in turn provides guarantees regarding that facility’s output and product consistency.

“It is about engineering and managing procedures according to international best practice to ensure a consistent quality output, which meets customer expectations,” says Shaik.

The start up to achieving ISO certification involves a lot of time and effort, with particular emphasis on careful documentation.

“Primary processes have to be well-documented and recorded for later scrutiny, which is quite an involved process in itself,” Shaik explains. “Thereafter, it is important to train your people on approved procedures, according to ISO standards – and then there are various ‘checks and balances’, checking incoming bulk product and raw material, and outgoing product according to specifications.”

He emphasises the importance of keeping careful records of all activities, including training.  “This is important for auditing purposes, as SABS routinely audits our systems.” Shaik says.

With regards to keeping compliant, Van Vuuren says: “Once we have achieved our ISO certification in the various areas, we conduct our own internal audits. But we realise that it’s not always possible to ensure compliance remotely, so we hold the people on the ground accountable for how they run their areas day-to-day.  It is something that is an ongoing effort – we definitely do not rest on our laurels!”

She adds that the SABS/ISO audit is generic in nature, and that Air Products’ internal auditing is run according to very strict industry-specific standards, conducted by subject experts and specialists in the various fields of gas production.

Shaik concludes: “Being ISO compliant has become a way of life for Air Products: it makes good business sense, and, more importantly, ensures that we are able to consistently provide a quality output, according to world standards – something our customers have come to expect from Air Products.”

“Air Products is leading the way in developing innovative hydrogen technologies, which can reduce dependence on other heavy fossil-burning fuels and drive economic growth,” says Seelan Gounden, General Manager Supply Chain at Air Products.

While hydrogen fuel cell technology points to a cleaner future, hydrogen use is already playing a key role in a number of industry sectors.

“Air Products is the largest producer of hydrogen to oil refineries globally which use the gas to produce cleaner burning fuels. Hydrogen enables refiners to increase the amount of fuel that can be produced from every barrel of crude oil while assisting to remove pollutants from crude oil” says Gounden.

Hydrogen has applications in many other industries such as chemical, electronics, and foods, where it is used on a daily basis. Its dynamic properties are proven to improve quality output, optimise performance and reduce costs.

Air Products, which already operates an extensive hydrogen pipeline network around the world and in South Africa is investing substantially in the development of hydrogen as a commercial energy source, notably in fuel cell technology.

“Hydrogen is the cleanest burning and most efficient fuel,” explains Gounden. “It can be used to produce electricity in a fuel cell for the cleanest option, or in an internal combustion engine where emissions are significantly reduced compared to other fuels.”

“Hydrogen is a great carrier of energy and can be produced from many renewable resources. It is carbon-free, non-hazardous and produces no greenhouse gases when used as a fuel.”

Because hydrogen is a light, clean-burning, abundant chemical, it is the first choice for fuel cells.

“Through the process of electrolysis, hydrogen can produce electricity and electricity can produce hydrogen, creating an energy loop that is ongoing and renewable.  We are proud to partner with key stakeholders and industry leaders in helping to develop and commercialise fuel cell technology.”

“Our unparalleled expertise in the safe generation and supply of hydrogen makes us a crucial partner in advancing a new era of renewable energy in South Africa and ultimately, in helping to mitigate the negative effects of climate change” says Gounden.

Companies have had to revisit old ideas, and change the way they have done things in the past. They have been forced to sit up and realise that, unless they keep their fingers firmly on the pulse of the environment in which they operate, and become finely attuned to market changes, their businesses will slowly erode and become less sustainable in the long term.

That is why, when considering long-term capital investments, it has become crucial for a company to learn to read the markets, understand the environment and be able to manage the ups and downs.  Although we all desire balance, good leadership is about equilibrium and learning to manage the push and pull of the markets. The key to good operational strategy is to identify the risk areas.

The ‘golden thread’ of Strategy

Long-term capital investment is connected closely with strategy; and strategy is a golden thread which runs through an organisation.

Just as strategy forms the basis of a company’s future intent, so too, do long-term investment choices.  Long-term investment has a significant impact on a company in several important ways: it impacts a company’s long-term performance, its future viability and sustainability, and its service levels – and therefore its reputation.

Because the key to Air Products’ Packaged Gas business is to supply cylinder gas timeously and reliably to our customers, it is important never to lose sight of the importance of the service element of the business and the effect that sound investment decisions have on our ability to deliver.  We, at Air Products, have come to realise that we are not as much a gas company, as we are a supply chain company, and, as such, have built a solid industry reputation for security of supply.

To maintain this reputation it is not only crucial to our ongoing success in a changing, and increasingly competitive market, but also to that of our customers, and their manufacturing processes.

Gas Is Vital

Gas is everywhere.  It is an age-old and ubiquitous commodity which touches every conceivable industry.  Yet, despite this indisputable fact, most of the time gas is perceived as being a relatively inconsequential part of an industrial or manufacturing project – a major element which goes unnoticed.

One sometimes needs to be reminded, however, that gas is vital to many industrial processes, in both manufacturing and mining. So much so, that certain activities, such as modern day welding, simply cannot take place without it, and if gas supply falters, a costly project could grind to a halt.

This is why, at Packaged Gas, we have to constantly examine and re-examine our investment in cylinder capacity, and to analyse our supply percentages.  If our supply-demand ratio goes ‘out of kilter’, not only would Air Products suffer by incurring unforeseen costs, but we would be losing sight of our ability to deliver customer service. All of these factors would have a negative impact on our customers’ productivity, with a knock-on effect on their capacity to deliver to their own customers. In short, getting the supply ratios right, ensures that the business remains viable in the long-term.

When considering long-term investments, it is vital, therefore, to consider both one’s reputational risk, and how best to not only sustain, but improve service levels. Long-term capital investment must go hand-in-hand with customer service improvement.

In Packaged Gas, there are many ways we tackle customer service improvement.  These include improved delivery and logistics methods and processes – such as handheld devices for instant invoicing, and telemetry. Telemetry monitors the gas levels at a customer’s facility automatically, so that gas is ordered on behalf of the customer before he even realises his supply is running low. Predicting demand accurately in this way, elevates gas to the status of a utility, like electricity or water, in the eyes of the customer.

In a dynamic and volatile economic environment, it has become increasingly important for a business to hone its strategy to one that is proactive, not reactive.  And for an organisational strategy that is proactive, leadership needs to be flexible, agile and quickly respond to change.

Like a ‘speed boat’

Packaged Gas has the ability to quickly respond to an environment in flux. We use the analogy of a speed boat: agile and able to turn around quickly according to market demand, as opposed to a large oil tanker which is less manoeuvrable.

In order to be flexible and proactive in strategic management, it is vitally important to develop an understanding and intrinsic knowledge of the key market drives as well as its current and future needs.

To do this requires two things: doing one’s homework, and developing a reliable ‘gut feel’.  In fact, growing a dependable ‘gut feel’ or instinct for the best way to react to market fluctuations, comes from doing one’s homework.  It comes from gaining information, but more importantly it is the strategic application of that information. It is the combination of market intelligence and knowledge that is the key to successful strategic decisions and the correct investment choices.

Getting the right match – on the same page

Not only is a careful assessment of the environment a key component of long-term capital investment considerations, but so too is having the right people in place. By this, I mean not only the choice of partners in a long-term investment, but also suppliers and staff.  Here it is important to understand and communicate your principles and values, as a company. There needs to be both an ethical and a cultural match with your management team, your business partners, your suppliers, your customers and, importantly, your staff.  To ensure that everyone is ‘on the same page’, there needs to be a marriage of minds, and an alignment in strategic thinking.

Conversely, without such alignment, the result can be staff attrition; and bad investment decisions can result in a negative perception of the organisation on the part of staff members and partners. However, a sound investment strategy connects all stakeholders on a positive growth trajectory.

In order for long-term capital investments to positively impact a company’s long-term performance, viability, and reliability, the approach also needs to be both innovative and bold. This is assuming that you have done your homework, your business is finely attuned to changing market conditions, and you have developed that all-important ‘gut feel’.

‘Thinking big’ and executing fearlessly

When it comes to capital investment, it is easy to get paralysed by over-cautious thinking, to let your thoughts limit your company’s growth. Here, the confidence to ‘think big’ comes into play. And once again, this comes with careful assessment of the environment, past experience, and a business acumen that is developed over time.

It is important, therefore, to innovate as part of your strategy, and then to execute fearlessly. Yet the ability to focus, think big and to boldly seize opportunities only comes with keeping one’s finger on the pulse of the market, both locally and globally – checking for, and reacting to, key indicators and measurements.

Long-term capital investments that are tied in closely to that ‘golden thread’ – a flexible and knowledge-based strategy – will have a long-lasting and positive impact on your company’s performance, customer service, and reputation.

A. Hak Industrial Services is the leading industrial services supplier to the petrochemical industry in South Africa. One of the services it offers its blue chip clients is high volume nitrogen pumping. “This methodology has many uses, from purging and displacing product in pipelines, to plant shutdown operations, where our pump units are used to supplement the on-site nitrogen supply to reduce the turnaround time,” says Stuart Baigent, Project Engineer (Sales) at A. Hak Industrial Services.

Working together with the gas (nitrogen) suppliers, A. Hak coordinates shutdown purging and displacement activities to ensure a continuous operation and gas free environment prior to commencement of mechanical works. The same principle applies during the plant start-up operation. A.Hak’s units are frequently used for pressure testing, drying, purging and leak testing operations.

During the annual maintenance shutdown for its regular client last year, A. Hak Industrial Services was called on to provide an atypically large volume of gaseous nitrogen. “This request was due to the fact that instead of shutting down only one of the two sections – East and West – at the plant, the petrochemical facility decided to concurrently shut down both sections,” says Baigent.

“The petrochemical facility uses gaseous nitrogen to remove the hydrocarbons in the high pressure system in the plant to ensure the safety of the maintenance workers on site. In a nutshell, nitrogen is an inert gas that displaces air to greatly reduce the risk of ignition and subsequent fires or explosions,” Baigent explains.

“The complete plant shutdown resulted in the demand for gaseous nitrogen far exceeding the volumes available on site. We were requested by the petrochemical facility to project manage the supply of additional nitrogen in order to meet the on site requirements,” says Baigent.

“Our scope of work included the supply of two purpose built nitrogen pump and vaporiser units fed from a temporary nitrogen storage facility erected at the pumping location in the Plant he says. In addition, A. Hak was responsible for sourcing the liquid nitrogen from three suppliers; providing storage for on-site nitrogen; and coordinating the daily nitrogen deliveries to ensure a constant availability of 10 000 Nm3/hour to be fed into the high pressure header and maintained at a pressure of 28 to 33 bar. “We approached three nitrogen suppliers, including Air Products, to provide us with both the liquid nitrogen as well as the specified storage vessels. Air Products went out of their way to accommodate all our requirements and in fact were responsible for supplying product well in excess of our initial discussions. In addition, they were the only supplier that was prepared to provide the requisite storage vessels,” says Baigent.

Of the three suppliers, Air Products was initially requested to supply 60% of all liquid nitrogen for the project. The final supply ratio exceeded this by 10%, with a total contribution of 310 tons. “Air Products also supplied three pre-filled vacuum insulated evaporator (VIE) storage tanks which were essential for ensuring a constant supply of nitrogen around the clock. The team moved these storage tanks on to site on 16 August. The vessels then underwent the appropriate testing in preparation for the commencement of Phase 1 of the shutdown on 24 August,” says Baigent.

The second phase of the shutdown, which involved the start-up of the plant, commenced on 10 September and ended on 17 September. “During this period the gaseous flow rate requirements were drastically reduced and thus the sense of urgency was alleviated,” says Baigent. Baigent says that the level of commitment and flexibility exhibited by Air Products has resulted in the company now being officially declared a preferred supplier to A. Hak.

“The service provided by the Air Products team was superb. A dedicated coordinator ensured that all our demands were met with grace and speed. Their ability to react quickly to our changing needs was exemplary and where we are in a position to select our own supplier, Air Products will be our first choice going forward.” “We were impressed by the consistent feedback from Air Products, their can-do attitude and by the way they exceeded our over all expectations,” Baigent concludes.

In a bid to enhance the safety and security of its drivers, the company has installed DriveCam in its fleet of trucks. This system records and monitors the causes of bad driving.

Distribution Manager of Air Products South Africa, Donovan O’Grady, says that the DriveCam monitoring system has positively impacted driver behaviour and attitudes, leading to a markedly lower accident rate.

“Through DriveCam, Air Products has been able to reduce accidents by highlighting undesirous driver behaviour. It has improved driver understanding and performance through review of the recorded incidents. A driver can also manually record unusual occurrences he feels necessary towards providing feedback following a trip, ” O’Grady adds.

He explains that the system is located on the windscreen of the vehicle and consists of a video recording unit, which has two cameras: one focused on the interior of the cabin and the other on the road. Video footage is recorded for a total of 8 seconds – 2 seconds prior to an event and 6 seconds after an event.

“The system is triggered either manually by the driver, or automatically in the event of some kind of sudden movement or jolt, such as taking a hard corner, braking suddenly, or a collision,” explains O’Grady.

Air Products, as a leading manufacturer and distributor of industrial gas to an extensive network in the southern African region, prizes its drivers as integral to a successful supply chain. The company’s drivers are referred to as ’operators’ and are subjected to an intensive cryogenic driver programme which entails being evaluated twice a year.

“They have to pass written tests during these evaluations to demonstrate their knowledge of how to react in a hazardous situation,” says O’Grady.

“The data that we receive from the DriveCam system enables us to modify our driver training programme. It’s given us a better understanding of what happens on the roads and, more importantly, because it is recorded it allows us to immediately address bad driving habits and techniques,” he says. The data is uploaded via a cell phone connection to the company’s data centre, and is immediately available for scrutiny. O’Grady points out that one further benefit is that footage can be used as prosecutory evidence in a court of law.

“Being monitored in this way, when they need it, has changed the attitude of our drivers,” maintains O’Grady. “And the results speak for themselves: fewer accidents and the added benefit of a reduction in fuel consumption.”

Looking after its drivers is further proof of Air Products’ commitment to operating safely and diligently in the environment they share.