I have decided to put out the newsletter named “Inside AE” as there are many developments and exciting things that happen at the company that we would like to tell you about but seldom have the opportunity to share with you. We supply mainly capital equipment and as a result will often not have contact with valued clients like yourselves for months, or even years, depending on your need for expansion or replacement. Whether you have had a longstanding relationship with the company or have only recently completed your first project with us, we would like you to have a better understanding of who we are and what we do.

I specifically decided not to produce an electronic newsletter since my own experience is that there is too much clutter and junk e-mail that we all have to sift through and print out. By posting you a printed newsletter we are hoping that you will take the time to browse through it when you take a coffee break.

This issue highlights a few of our recent projects and the progress in our apprenticeship programme, as well as providing you with our B-BBEE rating. We would appreciate it if you could find a few moments to let us have your thoughts on the content or ideas that you would like to see included in future editions.

Price increases
The dramatic price increase of stainless steel over the past 18 months has been cause for concern and has affected many expansion projects. Worldwide, the demand for stainless steel has risen by 6% p.a. and nickel supply was not able to match this growth. This created an apparent shortage and, together with other market factors, led to a dramatic increase in the price of nickel (see graph below). The result was a 130% increase in the price of "our" precious metal between June 2006 and June 2007. As the nickel supply improves, we should see more favourable prices for stainless steel during 2008.

I am looking forward to staying in touch on a more regular basis. May I take this opportunity to wish you a Blessed Christmas and a prosperous New Year. Hans Coertse Managing Member

Maxam Dantex - Surface Heat Exchanger
Maxam Dantex is a company that specializes in the manufacture of commercial explosives. The company had been using a batch manufacturing process to produce the watergel explosive that they market locally and internationally but with growing sales volumes they wanted to convert to a continuous manufacturing process. Anderson Engineering adapted their design of a food grade cream and butter swept surface heat exchanger. This machine was designed and built to stage of delivery within a 6-month period.

Another Laboratory Mixer for Nestlé (SA) (Pty) Ltd
Anderson Engineering has had a long-standing association with Nestlé in South Africa. A few years ago Nestlé approached us to develop a laboratory model of the production machines used for mayonnaise manufacture so that further development work could be undertaken on this very important product. This year we were approached to provide a second mixer, which has just recently been completed and delivered.

Anderson Engineering has had a long-standing association with Nestlé in South Africa. A few years ago Nestlé approached us to develop a laboratory model of the production machines used for mayonnaise manufacture so that further development work could be undertaken on this very important product.

This year we were approached to provide a second mixer, which has just recently been completed and delivered.

A New Pasteurisation and Yoghurt Plant for
Greenacres Dairy
Anderson Engineering was contracted by Greenacres Dairy to undertake the upgrade of their Pietermaritzburg-based Mkondeni facility. The existing milk pasteurisation plant was upgraded from 3 000 l/hr to 4 000 l/hr to create an additional capacity of 1000 l/hr to pasteurise milk and yoghurt.

Increasing the capacity and improving the processing capability (i.e. improving the throughput and hygiene systems) also required new installations, including plant for heating and chilling capability, as well as C.I.P. (Cleaning In Place) capability, so that the processing equipment does not have to be dismantled to clean it). Whereas C.I.P. had previously been done manually, the new system is fully automated with a caustic acid and rinse facility.

While the previous yoghurt manufacturing system used keg incubation, the new plant produces yoghurt by the continuous pasteurisation into Batch Incubation Vessels. The new plant required a premix tank with blender as well as yoghurt maturing tanks and flavouring tanks to provide a batch plant with exceptional quality control capability and therefore the production of a high-quality yoghurt for the Greenacres brand.

After this project was successfully completed, Greenacres went on to relaunch their yoghurt range through the Spar chain store group.

Two Further Projects for Unilever Nigeria
Anderson Engineering has fabricated a number of toothpaste plants and with the toothpaste market in Africa continuing to expand, Unilever Nigeria approached us to produce a second plant for their Oregun Factory. It was to be a turnkey project in which we had to install a toothpaste plant with a 3-ton batch manufacturing capacity. Despite the challenges and logistics of working at a distance, the team installed the equipment on time and it was commissioned successfully.

In addition to the toothpaste plant, Unilever Nigeria also required a hair care plant. Again, this was a turnkey project that required us to design, build and commission the key plant which included manufacturing equipment as well as storage facilities for the new product.

ISO Update
The team at Anderson Engineering is committed to the ongoing provision of products and service that consistently exceeds client requirements and expectations. A formal Quality Management System, certified to ISO9001: 2000 by SGS, has been in place since June 2002 with the aim of continually improving our service levels, quality of workmanship and productivity.

The system is continually improved through the establishment of measurable objectives and ongoing follow-up regarding the achievement of those objectives. Key processes such as sales, purchasing, estimating, planning, manufacturing, in process and final quality control are measured by this system.

In addition Quality Assurance processes such as calibration, corrective action, internal auditing and training are also maintained. A customer questionnaire programme is in place to encourage clients to give direct feedback on the completion of each project. This valuable feedback is used as part of our continuous assessment and improvement.

Our Apprenticeship Programme
In 2004 Anderson Engineering identified a shortage of qualified boilermakers in our industry. After consulting with the Merseta and Seifsa it was agreed that we would put an in-house training programme in place.

On completion of the initial training by the training officer, Arthur McCabe (a qualified boilermaker who has held the positions of foreman and works manager) an apprentice joins a production team for in-service training by our qualified artisans. After having completed the four-year apprenticeship training period and having passed their trade test, apprentices may qualify for a position as an artisan at Anderson. We now have five registered boilermaker apprentices. Our first two apprentices have completed their trade tests and qualified in November 2007. More recently we have introduced an in-house training programme in fitting and turning and are in the process of registering our first apprentice.

The design office at Anderson requires specialised draughting and designing skills and so we have also put together an in-house draughting training programme that runs over four years. The programme has already produced a number of well-qualified draughtsmen.

Left to Right: Kyle Stainbank, Colbert Oakes, Sudhir Debideen,
Wesley Greene, Craig Lipsett (Operations Manager), Jock Debideen
(Factory Foreman), Kyle de' Air, Cyprian Bengu, Hans Coertse
(Managing Member). Two apprentices not in the photo are
Clinton Ahrens and Craig Stieger (attending trade tests).

Top Marks for B-BBEE!
Anderson Engineering was independently verified in terms of the Broad-based Black Economic empowerment Act No. 53 of 2003 and is very proud to be deemed a Qualifying Small Enterprise. The audit result was a 99,13% score, which equates to our being a Level 2 contributor with a B-BBEE procurement recognition level of 125%. A copy of our certificate is available on request and can also be found on our website, www.andersoneng.co.za.

A number of projects were considered, but discussions with Matron Marlene Murphy resulted in our agreeing to donate mobile commodes to the facility, as the new frail and semi-frail bathrooms could not be used because there was no means to move the residents to the bathrooms or support them while they were bathing.

As the team at Anderson found that they could not source the mobile commodes, it was decided to manufacture both the commodes and the ramps in-house. Institutional castors were used and the frame was manufactured from stainless steel tubing. The ramps were made from stainless steel plate, to allow movement in and out of the showers.

At the handover of the commodes, Matron Murphy commented that the mobile commodes and ramps would improve the quality of life for both the staff and the residents.

“We are so excited, as using the mobile commodes will mean that some of the residents will be able to take a shower for the first time in five years.”

Commented Hans Coertse, Managing Member of Anderson Engineering, “This project has been driven and implemented by the employees of the company. It has been a privilege to provide this assistance and it has been an eye-opener to all of us as to the difference we can make to the lives of others.”

Trevor Govender (AE), Marlene Murphy, Barrie de Wee (AE) and Hans Coertse (AE) at the handover of the commodes.