cleaning up in africa - Kimberly

Kimberly-Clark
CLEANING
UP IN
AFRICA
www.kimberly-clark.co.za
Kimberly-Clark
CLEANING
UP IN
AFRICA
Kimberly-Clark is now a wholly owned
subsidiary of Kimberly-Clark Corporation,
and feeling more in control of its destiny as a
supplier to the whole of Sub-Saharan Africa
Written by By John O’Hanlon
& Produced by Trevor Gretsinger
The manufacturer of Kleenex®,
Huggies®, Kotex® and Baby Soft® needs little
introduction. But growing business in Africa is
a task for a specialist. As Managing Director of
Kimberly-Clark South Africa, Garth Towell points
out that while the CPG business and portfolio
accounts for 65 percent of the company’s multimillion annual revenues, their other businesses
— “Kimberly-Clark Healthcare and KimberlyClark Professional – service key business and
healthcare sectors of the economy and support
the corporate vision of ‘leading the world in
essentials for a better life.’
Bucking global trends
Left to right:
Hamilton Sithole, Vijay
Gajjar and Garth Towell
The recession might have been expected to
hit CPG sectors hardest; however in South
Africa the K-C portfolio has continued to grow
both in volume and value share terms in most
categories: “We haven’t seen consumers
Kimberly-Clark
Flexible Packaging Specialists
Proud partners with Kimberly Clark
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Products offered:
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The new Bathroom tissue converting asset at K-CSA facility
www.tropicplastic.co.za
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“Countries like Ghana and
Angola are leveraging
their natural resources and
we have seen a far bigger
amount of disposable
income available
to consumers”
Garth Towell, MD
leaving the categories, but there have been
signs of down-trading from premium to value
particularly in our personal care portfolio.”
The biggest single change to the business
has been the 2008 acquisition of overall
share-holding by Kimberly-Clark Corporation.
Long-time minority shareholder — The Lion
Match Company, Kimberly-Clark’s local BEE
(black economic empowerment) partner –
decided to change strategic course and offered
KCC their shares in a win-win deal that led to
K-C South Africa becoming a wholly owned
subsidiary. This did not dilute the company’s
BBBEE standing, but reinforced the need to
transform in areas other than ownership such
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supplier profile:
TROPIC PLASTIC &
PACKAGING (PTY) LTD
www.tropicplastic.co.za
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Country: South Africa
Established Partnership: 1969
Employees: 250
Industry: Plastic Film
Manufacturing & Converting
Provided Services:
> Technologically advanced speciality film types made to customer
specification
Gustavo Calvo Paz - KCC
President, Middle East, East
Europe Africa at the opening of
the new tissue asset in March 2010
Completed Projects:
> Current suppliers to food/beverage/diaper and most manufacturing industries
On-Going Projects:
> Maintain service and quality
standards and ongoing support in
R&D offering new cost effective
packaging solutions
ic.co.za
Management:
> Mr Fazel Bhabha - M.D
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www.tropicplastic.co.za
2015
$1 bn
turnover that
kimberly-clark
is targeting
the year in
which it hopes
to reach its
$1 billion
target
“O ver the past couple of years we have started to
put forward attractive business plans, delivered
on short-term commitments and thereby earned
international credibility and investment funding
from our shareholders”
as “preferential procurement, skills development
and employment equity”. The company has
recently retained its Level 5 rating on the
BBBEE score-card.
The change signals Kimberly-Clark’s intent
to invest more significantly on the African
continent, says Garth Towell. “Kimberly-Clark
International is required to double its business
over the next five years as part of the Kimberly-
Clark Corporation’s five-year Global Business
Plan and Sub-Saharan Africa needs to deliver
its part in achieving these goals. Over the
past couple of years we have started to put
forward attractive business plans, delivered on
short-term commitments and thereby earned
international credibility and investment funding
from our shareholders.”
Kimberly-Clark
supplier profile:
Catanchem (Pty) Ltd
Country: South Africa
Completed Projects:
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Introducing Polymac to
Kimberly-Clark tissue
machines, worldwide.
Ongoing Projects:
tPolymac to Kimberly Clark worldwide
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www.aquaplustech.com
Contact Gerhard Viljoen
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Est’d Partnership: 1998
Employees: 5
Industry: Chemical manufacturer and supplier.
Provided Services:
> Chemical supply &
service
Completed Projects:
>P
olymac to Kimberly
Clark South Africa
Ongoing Projects:
> Polymac trials in
Kimberly Clark tissue
mills worldwide
> Visit our Website
supplier profile:
Delivering a
success story.
Dhoda Carriers CC takes huge
pride in reflecting back on its
18 years relationship partnering with Kimberly-Clark SA‘s
success story.
From its humble beginnings
it was brought into KCSA
vision of the group‘s management and in a collaborative
manner has been able to
provide and supply the agreed
needs to support the service
and growth experienced by
Kimberly-Clark SA.
Dhoda Carriers CC
Country: South Africa
Est’d Partnership: 1974
Employees: 75
Dhoda Carriers CC is a
medium player within the SA
Logistics industry, committed
to service excellence, flexibility
and adaptability to meet the
changing customer needs
at a competitive cost.
Dhoda Carriers CC looks
forward to a continued
partnership with
Kimberly-Clark SA
into the future.
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Industry: Transport &
Logistics
Provided Services:
>O
utsourced Logistics
Partner
Dhoda
C
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I
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cc
E-mail us click here
Completed Projects:
>C
onsol Plastics
Ongoing Projects:
>C
ontinue service
excellence in vehicle
supply to all existing
clients
> Visit our Website
The new Bathroom tissue converting
asset at K-CSA facility
The challenge of Africa
While South Africa will always form the biggest
part of a Sub-Saharan African growth plan,
future growth opportunities are going to be
in the emerging African economies of the
21st century, where Kimberly-Clark currently
operates through a network of distributors. “We
have a presence in 23 other markets: countries
like Ghana and Angola are leveraging their
natural resources and we have seen a far bigger
amount of disposable income become available
to consumers. The size of available disposable
income in Asia or Latin America but we have
seen disposable income double in the last five
years.” And there has been a greater degree
Kimberly-Clark
supplier profile:
PRINT BEYOND LIMITS
Fishwick Printers is one of the largest privately owned commercial
printers in South Africa and serves a broad client base throughout
South Africa. We rank as one of the most technologically advanced
printing concerns in the country. Our commitment to quality and
service has ensured that we have long been considered world class
in these aspects within the Print industry.
We offer a range of services under one roof be it printing Annual
Reports, Magazines, Point of Sale, Billboards Pull up Banner on a range
of materials some of them include Correx, Corrugated Board, Vinyl,
Paper, Board & Plastics.’
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Visit us online for further information www.fishwicks.co.za
Fishwick
Printers
Country: South Africa
Est’d Partnership: 1969
Employees: 270
Industry: Print
Provided Services:
>C
ommercial,
Advertising,
Publishing, Point of
Sale print material and
Software technology
solutions
#ONTACT5S
T: +27 (0)31 2687300
E: [email protected]
> Visit our Website
supplier profile:
PROUD TO BE ASSOCIATED WITH
FLEXIBLE PLASTIC PACKAGING
> Shrink film, form-fill and seal, lamination film.
> Specialised 3 layer co-extruded films.
> High, low and linear low density polyethylene.
> Polypropylene, metalloscene, ionomers.
> Flexographic printing – up to 10 colours.
> Laminated films.
> Various bags and laminated pouches.
Flexothene
Plastics
Country: South Africa
Est’d Partnership: 1971
Employees: 260
Industry: Packaging
Provided Services:
>F
lexible plastic
packaging
Ongoing Projects:
>E
xtrusion, Printing,
Laminating &
Converting
Films, pouches, various bags, specialised
co-extruded films
Visit us online for further information• www.flexothene.co.za
46 Aberdare Drive, Phoenix Industrial Park, Durban • TEL: +27 31 5077061 • FAX: +27 31 5001302
E-MAIL: flexo@flexothene.co.za
> Visit our Website
The new Bathroom tissue converting
asset at K-CSA facility
of political stability, he adds. Ghana, Kenya
and even Nigeria are shedding the inefficiency
and corruption that used to restrict investment
and, once the remaining hurdles are overcome,
Towell expects Nigeria to become a primary
engine of growth on the continent.
Recent multi-million dollar investments
in both the Johannesburg and Cape Town
facilities have proved KCC’s appetite for
emerging market growth opportunities. “We
have been striving to establish this business as
an investable proposition to our shareholders
and that is being recognised. When operating
in an deflationary and unstable macroeconomic
Kimberly-Clark
Flexible
Packaging
Specialists
The new Bathroom tissue converting asset at K-CSA facility
Proud partners with
Supreme Poultry
GREEN. Our Color. Our Commitment.
GREEN. Our Color. Our Commitment.
We know it isn’t
At Buckman, the most important commitment we can make is to a sustainable future.
just good for the planet; it’s good for business. And we know it isn’t just about the environment; it’s about people,
At Buckman,
the most
importanttocommitment
we canpath
make
is to a And
sustainable
future.
We
know it isn’t
too. You can depend
on Buckman
find the sustainable
forward.
to help you
do the
same.
just good for the planet; it’s good for business. And we know it isn’t just about the environment; it’s about people,
For more information call 1-800-BUCKMAN (1-800-282-5626) or visit buckman.com
©2010 Buckman Laboratories International, Inc.
www.tropicplastic.co.za
čŏŇĂĈŏăāŏąćĉŏāĆăĉŏđŏčŏ0.+,%Į0.+,%,(/0%ċ+ċ6ŏ
For more information call 1-800-BUCKMAN
©2010 Buckman Laboratories International, Inc.
“I put my hand up for
South Africa to be a
pilot for the Middle
East, Eastern Europe
and Africa region”
environment you should be focusing on how to
run a business more efficiently, more effectively,
whilst continuing to attract and develop talent
through growth strategies.”
Lean and sustainable
This mindset has led to the adoption of LEAN
principles within the business: “I put my hand
up for South Africa to be a pilot for the Middle
East, Eastern Europe and Africa region.”
The programme has been developed with
management consultants McKinsey and he has
been impressed as much by the cultural change
as by production metrics which are expected to
be impressive.
“This year we selected a couple of assets
Kimberly-Clark
Clockwise- far left:
One of K-CSA’s
corporate social
responsibility
programs and
sponsored charities.
Statistics
Name: Kimberly-Clark South Africa
Above: The One
K-C Culture launch
to Senior Managers
in 2009
Left: The K-CSA
Team Leader
Graduate Class of
2010, completed
in conjunction with
the University of
Stellenbosch.
in our Johannesburg facility that we wanted
to work on. In the 16 week roll-out of this
program we have seen a fundamental shift
in how people behave, their problem solving
capabilities and how they are approaching day
to day activities. I do a Gemba walk every two
weeks in those areas. You can really feel it in
their housekeeping, the charts and boards that
have been developed on the line showing what
is expected against what is being achieved!”
At the same time as introducing the lean
business philosophy Kimberly-Clark introduced
end-to-end planning processes, which uses
real time data to improve ways of doing
business. The result? “Significant
improvements in forecasting
accuracy, production performance
against the plan, service levels and
speed-to-market.
His vision for Kimberly-Clark
Sub-Saharan Africa is ambitious
– nothing less than building a $1
billion business by 2015. Talent
management will be the key to
His vision for Kimberly-Clark
Sub-Saharan Africa is ambitious –
nothing less than turning the $250
million business into a $1 billion
business by 2015
achieving that goal, he says: “People want to be
working for a great employer. We participated
in the local Best-Company-To-Work-For survey
for the first time this year and were ranked in the
top 35 of medium-large size companies in South
Africa which provides a solid foundation, as we
strive to achieve top 10 status by
2015.”
There are 1200+
company reports
available to read
>www.manufacturingdigital.com
Visit Website
For feedback and comments please get in touch.
> [email protected]
Country: South Africa
Est: 1948 (South Afica)
Employees: 820
Industry: Manufacturing
Premiere Service: Consumer, HealthCare and Business-2-Business products and services
Revenue: N/A
URL: www.kimberly-clark.co.za
Management
Managing Director: Garth Towell
Management team: Dion De Graaff,
Lizet Norval, Joanne Siney-Gould,
William Steenkamp, Anna-Marie
Viljoen, Vijay Gajjar, Hamilton
Sithole
Kimberly-Clark
Kimberly-Clark House, 8 Leicester Road
Bedford Gardens, Bedfordview
Gauteng, South Africa
T: +27 (0) 11 456-5700
F: +27 (0) 11 456-5917
www.kimberly-clark.co.za
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