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02 - Plastics SA

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Introduction to 02

Financial Overview76

Messages from the Chairperson and the Executive Director

04 Team08

Advocacy12 Marketing and Communications16 Sustainability30

Training48 Plastics Statistics60 Partnerships74

Plastics|SA Annual Review

This Annual Report was compiled by ’s Marketing and Communications Division

Design and layout by www.redcreativestudio.com

W H E R E C A N I G E T M O R E I N F O R M AT I O N ?

+27 (0) 11 314 4021 | [email protected] | www.plasticsinfo.co.za

O P E R AT E S F R O M T H R E E C E N T R E S :

Head Office Midrand, GautengTwo regional centres Pinetown, Kwa-Zulu Natal and Maitland, Cape Town.

Introduction to Plastics|SA

Introduction to Plastics|SA

is registered as a non profit company (NPC).

It is funded by membership fees based on sales of locally manufactured and imported plastics raw material and other contributions and sponsorships from industry associations. Most of the income is derived from our training activities within the Plastics Industry.

represents all sectors of the South African Plastics Industry including polymer producers and importers, converters, machine suppliers, fabricators and recyclers.

Together with our associations, we play an active role in the growth and development of the SA industry and strive to address plastics related issues and influence role players.

3A N N U A L R E V I E W 2 0 1 7 | 2 0 1 8

Our Vision

To enable a vibrant and sustainable plastics industry in South Africa

Valued and respected by local and international industry, customers, suppliers, government, community and employees;

Promoting the use of plastics as the material of choice;

Developing the skills needed through accredited training programmes;

Supporting environmentally responsible actions that benefit industry and society.

Who we are

TrainingAdvocacy

SustainabilityCommunication

Member ServicesResearch

Our Core

Focus

Areas

2 A N N U A L R E V I E W 2 0 1 7 | 2 0 1 8

Messages from the

Chairperson

and the Executive Director

Chairperson’s message

Bernhard Mahl Chairperson

Board

5A N N U A L R E V I E W 2 0 1 7 | 2 0 1 84 A N N U A L R E V I E W 2 0 1 7 | 2 0 1 8

Public perception of plastics

The concept of ‘A life without plastics’, specifically single-use plastics, has become a

worldwide trend. Social media offers platforms for a plethora of anti-plastics messages

and campaigns, fuelling the negative perception of plastics on a daily basis.

Pressure is mounting from all sides to minimise the environmental impact of plastics packaging. It started with the plastic bag that stirred up emotions and environmental concerns and the most recent video of a sea turtle with a straw lodged in its nose went viral on social media and started the turmoil around plastic drinking straws.

International beach clean-up data from the Ocean Conservancy shows that plastic drinks bottles, food wrappers, plastic bottle caps, straws and stirrers, plastic bags and plastic lids are amongst the top ten most common items collected globally.

There is a huge gap between industry telling the positive plastics story and the visible evidence of plastics ending their valuable life in the ocean. Plastics industry leaders believe that plastics play a role in helping save the environment, but it has little to zero impact on the growing sentiment to refuse or even ban single-use plastics.

The plastics industry believes that government does not do enough to ensure proper waste management in the country. The consumer blames plastic products for the pollution. Government thinks the responsibility lies with the plastic producer. Unfortunately, behaviour needs to change, but without the necessary infrastructure, there is no incentive to change.

Moving towards a circular economy

supports the vision of a circular economy and is committed to ensuring that plastics do not end up in the environment.

As the industry body, we believe that the solution to marine plastic pollution is to create robust recovery systems, ensuring that valuable plastics packaging is recovered and doesn’t end up in our waterways.

Post-consumer recycled content creates demand in addition to supply. Neither of these actions come without investment, but the alternative scenario is one in which governments, brand owners and retailers crack down on the use of all plastic packaging.

Packaging is the first thing that consumers see and can influence their buying behaviour. Unsustainable packaging can make environmentally conscious consumers decide against even the most sustainable products.

The idea of increasing the use of other packaging material is not a sustainable solution and there is no guarantee that they will be recycled and will avoid ending up in the ocean as well.

How do we change the negative perception of plastics?

conducted a survey among ordinary South Africans using the AfricanPulse survey panel, an African Response online platform of almost 8 000 members. The sample was set at 400 although the realized sample was 609.

Based on the aim to gain an understanding of the drivers behind the negative perceptions of plastics and the plastics industry, this survey investigated, across SA, the extent and depth of perceptions held, whether positive or negative.

The results were segmented into five segments. These segments or behaviour groups represent a

broad overview of the perceptions held by the public at large.

PR Companies interpreted the results of the perception survey and pitched their PR campaigns aimed at changing the public’s perception of plastics.

The time is now

For a long time plastics have been the scapegoat. It is time for the plastics industry to be more pro-active, to determine the public agenda, take part in public debates and form public opinion on plastics - as the material of the future.

It is imperative that we engage government if we are to succeed. Let us resume our position as a critical role player in society and in the government space.

I am not saying that it will be easy, but it will definitely be worth it!

Thank you to the team for your

contribution and hard work. Let us explore the

concept of the circular economy in the South African

context and develop an all-inclusive and collective

circular economy strategic plan for the industry.

Berhard Mahl

Chairperson Board

Executive Director’s message

‘Every cloud has a silver lining’.

This proverb usually applies when encouraging someone facing difficulty, and who is unable to see any positive way forward. This is true for the current worldwide pressure on plastics too. With the world’s negative focus on single use plastics and marine litter, Industry has been forced to be proactive and look at things differently, with Design for Recycling becoming an integral part of manufacturing. It has also resulted in more successful collaboration across the value chain as brand owners, retailers and governments seek new technologies to solve industry challenges and change behavior as we collectively address the global marine litter tragedy.

This also fits in with our industry’s need to facilitate a circular economy, closing the loop through reuse and recycling and ensuring a restorative and regenerative economy where the value of plastic is not lost by being thrown away. This will assist in economic growth, jobs and a more sustainable environment for South Africa. We are proud to report that for the seventh year running, plastics recycling in South Africa has continued

to grow, with more than 334 727 tons recycled back into raw material.

This gives South Africa an input recycling rate of 43.7% - well above that of

Europe’s recycling rate that currently sits at 31.1%.

South Africa is doing phenomenally well with its recycling, and I believe the latest results show that we are slowly but steadily beating the odds.

Plastics recycling provided an income to more than 58 100 workers in 2017. This figure includes self-employed waste pickers, employees of smaller entrepreneurial collectors and formal jobs in the recycling factories. Through the procurement of

recyclables, an estimated R 448 million was injected into the economy at primary sourcing level.

Packaging and Paper Industry Waste Management Plan

The National Department of Environmental Affairs (DEA) issued the Section 28 Call for Industry Waste Management Plans on 6th December 2017. In response, a consolidated multi-stream Industry Waste Management Plan for the paper and packaging sector based on the Extended Producer Responsibility Model was submitted to the DEA and we await their response.

Thanks to the team for your hard work and dedication. This was definitely one of the most difficult years for the plastics industry and perhaps the country as well, due to the technical recession that our economy currently faces.

Thanks to the Board members for your guidance and our industry partners for your continued support and financial contribution.

There are still many success stories, despite the challenges! Let’s not lose focus,

let’s stay positive and pro-active in an ever-changing environment. I hereby present

our Annual Review 2017/18.

Anton Hanekom

Executive Director

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South Africa

is doing

phenomenally

well with its

recycling, and

I believe the

latest results

show that we

are slowly

but steadily

beating the

odds.

Anton HanekomExecutive Director

Plastics|SA Team

Plastics|SA Team

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Plastics|SA Board Members 2017|2018

Plastics|SA is governed by the Board

Plastics|SA’s Associations

Producer Responsibility Organisations

www.savinyls.co.za

www.petco.co.za

www.polyco.co.za

www.polystyrenesa.co.za

Wayne Wiid

Representing ARMSA

Bernhard Mahl

ChairpersonRepresentingSafripol (Pty) Ltd

Jeremy Mackintosh

Deputy ChairpersonRepresenting PCA

Geoff Barends

Representing Importers

Bob Bond

Representing PISA

Anton Hanekom

Executive DirectorRepresenting

Rudi Johannes

Representing SAPRO

Mxolisi Khutama

Representing PCA

Gerome Marrian

Representing Sasol Polymers

Mike Meyers

Representing EPSASA

Helmut Oellerman

Representing Importers

Douw Steyn

Ex OfficioRepresenting

Jan Venter

Representing SAPPMA

9

Raw Material Suppliers and Importers

www.kap.co.za

www.omnia.co.za

www.plastomark.co.za

www.vinmar.com

www.engen.co.za

www.sasol.com

www.dow.com

www.safripol.com

www.brenntag.com

Associations

Association of Rotational Moulders

of South Africa

www.armsa.co.za

Southern African Plastic Pipe Manufacturers

Association

SOUTHERN AFRICAN PLASTIC PIPEMANUFACTURERS ASSOCIATION

www.sappma.co.za

Expanded Polystyrene Association of South Africa

www.epsasa.co.za

Plastics Institute of South Africa

www.pisa.org.za

www.pcasa.co.za

Plastics Convertors Association of South Africa

www.plasticrecyclingsa.co.za

Recycling Association

Plastics|SA Team

11A N N U A L R E V I E W 2 0 1 7 | 2 0 1 810 A N N U A L R E V I E W 2 0 1 7 | 2 0 1 8

Training Division

Training ExecutiveKirtida Bhana

Advocacy Division

Vacant

Sustainability Division

Sustainability DirectorDouw Steyn

Sustainability ManagersJacques Lightfoot

John Kieser

Central Grants and

Administration

AccountantLeslie Kearney

AdministratorElmarie Botha

Marketing and

Communications Division

Marketing and Comms Executive

Monya Vermaak

Online EditorDianne Blumberg

Executive DirectorAnton Hanekom

ReceptionistRi-Meij Davey

Personal Assistant and Venue Co-ordinatorKaren Wichman

General AssistantKagiso Ndaka

General AssistantSifiso Mpofo

Factory AssistantRobert Mkhize

GardenerJimmy Ndlovu

Regional Training ManagerSuzanne Stevens

Technical TrainersPrean Reddy

Xolani MdletshePaul Nkunzi

Training AdministrationDesirée Reddy

General AssistantDoris Gwija

Regional Training ManagerIsabelle Brettenny

Technical TrainersAndrew Murray

Grant Crosby

Training AdministrationKim Arendse

General AssistantZikhona Nokama

Regional Training ManagerIsaya Ntuli

Technical TrainersMark Malan

Amos MkhontoEdwin ManziniKoos Phalane

Training AdmistratorsRenée Mclean

Fhatuwani Ramugondo

Team Members

KwaZulu-NatalWestern CapeGauteng

Advocacy

Advocacy

13A N N U A L R E V I E W 2 0 1 7 | 2 0 1 812 A N N U A L R E V I E W 2 0 1 7 | 2 0 1 8

Portfolio Committee on Environmental Affairs attended various meetings and had ongoing engagement with

members of the Portfolio Committee on Environmental Affairs and the National Department of Environmental Affairs on policy, advocacy issues such plastics, especially single use, and the potential bans on them.

International Trade IssuesIn terms of the Basel Convention, proposals regarding the movement of baled waste across international borders came under discussion. This proved problematic for developing countries that did not have proper mechanical recycling facilities in place and suddenly found themselves stuck with the waste. With South Africa’s

focused

on promoting the

plastics industry

in all spheres

of government

and making

input into policy

development of

government.

developed recycling industry, we only exported 6%of our waste and the ban didn’t

affect us, but the granting of import permits for waste certainly will. ITAC experienced a definite upsurge in applications for import permits, which is a concern and is constantly monitored.

Dumping of productsFocus sessions were held with SARS Customs and members of the industry to find solutions to dumping of products and other import related threats.

had meaningful engagement with NEDLAC on the TFTA (Tripartite Free Trade Agreement) and the ACFTA (African Continent Free Trade Agreement).

SA Bureau of Standards (SABS) was constantly involved with the review of standards that affect the

South African plastics industry. The SABS is currently under administration in an attempt to get it back to its past functionality.

Packaging and Paper Industry Waste

Management PlanDiscussions were ongoing between , Packaging SA and the Producer Responsibility Organisations. The federation of plans for the various waste streams (plastics, paper, cans and glass) was developed and submitted to Government. We are awaiting their response.

aims to build

relationships with

Government.

The purpose

is to create the

relationships

and to set up

forums where

the industry can

openly engage

in dialogue on

matters that

impact the

industry, to

the mutual

benefit of all.

Advocacy

15A N N U A L R E V I E W 2 0 1 7 | 2 0 1 814 A N N U A L R E V I E W 2 0 1 7 | 2 0 1 8

Circular Economy

With an ever-changing world, fast-growing populations and major climate change, we need to find efficient solutions to sustainable development. We need sustainable waste management solutions, energy recovery and large scale recycling. Luckily, thanks to their versatility and efficiency, plastics have enabled innovation in many sectors, allowing the development of solutions that could not exist today without this material.

At the end of their life, they can be recovered but will ultimately become waste. This waste is actually a new resource that should be kept in the life cycle of plastics, thus closing the loop of the Circular Economy. To benefit

from the full potential of plastics, we need to ensure sustainable options for waste management, recycling and energy recovery, which will also restrict landfill deposits of recoverable plastics waste.

Our industry should strive for competitiveness and resource efficiency if we are to make a significant contribution to the circular economy.

is still exploring various options on how to implement a circular economy for the South African industry.

re

source extraction

R

aw materials and Material processing Converters

RecyclingSorting

Brand owners | Fillers Retailers Consumers

Collection Recyclables SeparationEnergy Recovery

Organics and non-recyclablesLandfill | Composting

Marketing and Communications

Marketing and Communications

17A N N U A L R E V I E W 2 0 1 7 | 2 0 1 816 A N N U A L R E V I E W 2 0 1 7 | 2 0 1 8

Media

is proud of our Return on Investment (ROI) achieving a consistently high return on media spend investment since 2011.

Total Rand Value of media exposure from July 2017 – June 2018 is more than R22 p.a million, generated from our media releases and opinion pieces.

Total Rand Value of media coverage (2011-2017)

25 000 000

20 000 000

15 000 000

10 000 000

5 000 000

0

4 500 000

4 000 000

3 500 000

3 000 000

2 500 000

2 000 000

1 500 000

1 000 000

500 000

0

2011|20124.5 million

2012|201318 million

2013|201420 million

2014|20158 million

2015|201620 million

2016|20172017|201823 million

22 million

Plastics|SA Total Media Coverage

Plastics|SA: July 2017 - June 2018

Jul 17 Aug Sep Oct Nov Dec Jan 18 Feb Mar Apr May Jun

22 001 700Total media coverage

Marketing and Communications

19A N N U A L R E V I E W 2 0 1 7 | 2 0 1 818 A N N U A L R E V I E W 2 0 1 7 | 2 0 1 8

1 200 000

1 000 000

800 000

600 000

400 000

200 000

0

1 600 000

1 400 000

1 200 000

1 000 000

800 000

600 000

400 000

200 000

0

Broadcast Medium

Plastics|SA: July 2017 - June 2018

Online Media

Plastics|SA: July 2017 - June 2018

Jul 17 Aug Sep Oct Nov Dec Jan 18 Feb Mar Apr May JunJul 17 Aug Sep Oct Nov Dec Jan 18 Feb Mar Apr May Jun

3 715 921Total broadcast medium

8 535 190Total online media

Marketing and Communications

21A N N U A L R E V I E W 2 0 1 7 | 2 0 1 820 A N N U A L R E V I E W 2 0 1 7 | 2 0 1 8

2 000 000

1 800 000

1 600 000

1 400 000

1 200 000

1 000 000

800 000

600 000

400 000

200 000

0

Printed Media

Plastics|SA: July 2017 - June 2018

Jul 17 Aug Sep Oct Nov Dec Jan 18 Feb Mar Apr May Jun

10 316 631Total printed media

Consumer Education and Brand Awareness

’s Marketing and Communications division communicates with consumers by focusing on the most used social media platforms (Facebook, Instagram, LinkedIn, YouTube and Pinterest).

Jun 17 Jul Aug Sep Oct Nov Dec Jan 18 Feb Mar Apr May Jun Total

12 005 10 106 14 316 11 489 8 755 41 806 22 899 39 053 54 234 51 232 37 970 44 163 30 125 378 153

Pinterest Reach

Total reach of 378 153 p.a

p.a

Jun 17 Jul Aug Sep Oct Nov Dec Jan 18 Feb Mar Apr May Jun Total

38 866 39 573 25 225 42 902 36 716 46 366 46 608 61 056 35 361 29 573 82 332 31 129 33 182 548 889

Facebook ReachFacebook still remains ’s strongest platform with a reach of 548,889 p.a

p.a

Social Media StatisticsAverage number of posts posted daily – 2

23A N N U A L R E V I E W 2 0 1 7 | 2 0 1 822 A N N U A L R E V I E W 2 0 1 7 | 2 0 1 8

'Don't let your plastics end up in the ocean' Campaign

TV Commercial and Paid Social Media Campaign

released a series of new radio and television adverts addressing the issue of plastics litter found in the marine environment.

The new campaign was inspired by The Green Planet II – a nature documentary series on marine life in which naturalist Sir David Attenborough highlighted the growing problem of litter found in the oceans.

Throughout the adverts, the beautiful sounds and images of whales, dolphins and seagulls take centre stage while the narrator explains that not everything in the sea is as beautiful as the creatures who live in it. “Carelessly discarded plastic breaks down into small particles that look like food. When eaten, they harm sea creatures from tiny fish to large whales,” the Attenborough-like voice warns.

The adverts were broadcast on various DSTV channels and selected radio stations and were repeated over a few months to ensure maximum coverage.

The campaign was also adapted for printed media and shared on ’s various social media platforms such as Facebook, Instagram and Twitter.

In total, Facebook, YouTube and Instagram reached 662 414 viewers since it went live in September 2017.

365 807 181 633 114 974

Never before

has the issue

of plastics in

our oceans

received

so much

attention on a

global scale.

Marketing and Communications

Marketing and Communications

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New Plastics|SA website

launched its brand new website in keeping with current trends. Our new pages are easy to navigate and the information constantly updated. Visit www.plasticsinfo.co.za

Website reach 2011 - 2017

2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

1 624 2 992 3 972 7 899 20 771 38 951 39 696 35 568

4 500

4 000

3 500

3 000

2 500

2 000

1 500

1 000

500

0

Plastics|SA: July 2017 - June 2018

Jul 17 Aug Sep Oct Nov Dec Jan 18 Feb Mar Apr May Jun

35 568Total visits

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Printed Advertisements

29A N N U A L R E V I E W 2 0 1 7 | 2 0 1 828 A N N U A L R E V I E W 2 0 1 7 | 2 0 1 8

Press releases and Opinion Pieces

40 Press releases/opinion pieces were generated from July 2017 – June 2018

Marketing and Communications

Sustainability

Sustainability

31A N N U A L R E V I E W 2 0 1 7 | 2 0 1 830 A N N U A L R E V I E W 2 0 1 7 | 2 0 1 8

Plastics|SA Sustainability Advisory Board

Sustainability is one of the six core functions of .

The Sustainability Division, together with the Sustainability Advisory Board, provides strategic leadership to the industry on sustainability issues. This body determines the strategic direction of Sustainability activities ensuring that action plans are formulated for key issues affecting the plastics industry and the environment. Participation in global alliances is of the utmost importance and features high on the priority list of this Board.

The Sustainability Division works closely with the

Producer Responsibility Organisations,

The SA Plastics Recycling Organisation,

Retail Industry and specialist groups such as Packaging SA and the CSIR

who annually determine the programs and projects embarked on and the funding thereof.

Dr. Thommie Burger (CEO - Wildlife and Environment Society), Annabe Pretorius (Plastics 911 – Plastics Expert), Rowan Le Roux (Operations Manager- Polyoak Packaging), Shabeer Jhetam (CEO - Packaging SA), Cecilia Kinuthia-Njenga (UN Environment – Head, UN Environment Office in SA), Douw Steyn (Director Sustainability – Plastics SA), Prof. Linda Godfrey (Manager – Waste RDI Roadmap Implementation Unit - CSIR), Anton Hanekom (Executive Director – Plastics SA), Charles Muller (Tufflex).

Sustainability

33A N N U A L R E V I E W 2 0 1 7 | 2 0 1 832 A N N U A L R E V I E W 2 0 1 7 | 2 0 1 8

Operation Clean Sweep® Project

In recent years and with frequency, researchers have reported that seabirds, turtles and fish are ingesting a wide variety of plastic items, including pellets that could affect their ability to breath, swallow or digest foods properly. Plastic resins are used in manufacturing of products; e.g. packaging, automotive, construction, medical and textiles. Plastic resin pellets, flakes and powders that enter the waste stream can end up in the ocean and our natural environment.

While consumers are responsible for proper recycling and disposal of consumer products and packaging, the plastics industry must focus on proper containment of plastic pellets.

signed the Global Declaration on Marine Litter in 2011, to address the issue of plastics in the marine environment. Operation Clean Sweep (OCS) was launched in 2011. Our goal is to assist the plastics industry in keeping plastic pellets out of the natural environment, including waterways and oceans and for companies to sign the OCS pledge and commit to making zero pellet loss a priority.

, the licencee for OCS, will be promoting Operation Clean Sweep to the industry and has developed an OCS Training manual and Toolkit for its members. It will be rolled out to:

SA Plastics Industry

Raw Material Producers

Plastic Converters

Recyclers and Associations

The Plastics Industry Associations

ARMSA

EPSASA

SAPPMA

PCA

Producer Responsibility Organisations

PETCO

Polyco

SAVA

Polystyrene Association of SA

Polyoak Packaging was the first company to sign the pledge to prevent pellet loss.

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Sustainability

SA Bioplastics Forum

SA Bioplastics website

The SA Bioplastics website was launched in January 2018. Bioplastics are plastics derived from renewable biomass sources, such as vegetable fats and oils, starch or microbiota. Bioplastics provide new and forward-looking solutions for the plastics industry and are potential applications in all market segments. Some Bioplastics materials even offer new end-of-life options such as biodegradability, which can benefit certain products.

has established the ‘SA Bioplastics Forum’ to engage with Bioplastics industry players.

Visit www.sabioplastics.co.za

Sustainability Week (CSIR)

Africa’s premier green economy forum, Sustainability Week, took place from 5-7 June 2018 at the CSIR International Convention Centre in Tshwane. One of the major themes at this year’s event was the sustainable development in Africa. hosted a “Beat Plastic Pollution” Workshop on the opening day of the Week, which attracted much local and international attention.

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River Catchment Projects

Waste Management and Recycling

Special environmental days, such as Sustainability Week (5 – 7 June 2018), World Environment Day (5 June 2018), World Oceans Day (9 June) and Clean-up and Recycle SA Week help us to focus on the importance of individuals, governments, the public and private sector collaboration.

More than 80% of marine pollution and litter comes from land-based sources. There is a need to identify pathways of pollution, from land to sea, using a Source-to-Sea approach, and take necessary action. We aim to ensure that the public is educated on river and marine pollution and aware of the benefits of recycling plastics.

has identified four river catchment areas

eThekwini River Catchment (Durban Functional Region, KZN)

Zwartkops Estuary (Port Elizabeth, Eastern Cape)

Black River Catchment (Cape Town, Western Cape)

Sabie River Catchment (Hazyview), Mpumalanga.

24 938 learners were reached during this project.

50 x Schools | 4 x Beach events | 4 x Radio interviews | 3 x Exhibitions | 2 x Newspaper articles

Sustainability

Aqua Amazing is one of 's partners in the eThekwini catchment area, where Steven Mabugana conducts shark

dissections to create awareness of the impact humans have on the rivers and ocean.

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Sustainability

Litter Booms to prevent plastic pollution

joined forces with environmentalists north of Durban, to fight ocean pollution, by installing a litter boom at the Umhlanga Lagoon. The boom was designed to trap litter and prevent it from entering the ocean and was launched in celebration of World Oceans Day in June 2018.

The aim is to reduce the amount of litter that washes into the sea from the Ohlanga River. The litter boom floats on the surface of the water and acts as a trap that prevents all the floating litter from washing down into the estuary and into the sea. It then allows for that litter to be collected at one point. The device does not pose a risk to any species found in the lagoon. A similar boom has also recently been launched at the Black River in Cape Town as part of the Kader Asmal Integrated Catchment Management Project. Funds raised from the collection of the waste are used to purchase polywood furniture for local schools and to improve the facilities of the local communities.

Fishing line bins

, the Dyer Island Conservation Trust and the Wildlife and Environmental Society of Southern Africa (WESSA) joined hands in helping to reduce marine debris. With funding from DPI Plastics and the South African Plastics Pipe Manufacturers Association (SAPPMA), we are building a nationwide network of monofilament recycling locations to make proper disposal of fishing line more accessible.

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Sustainability

Education and training

educated society about the benefits of recycling and its effect on the environment and initiated plastics awareness and educational programs with specific focus areas, target audiences and projects.

2017 Sasol Techno X Exhibition

Took place in Sasolburg in August 2017 and attracted more than 19 000 visitors. and AquaAmazing teamed up to highlight the value of plastics and why they should be recycled. This message was conveyed through shark dissection displays where the learners got up close and personal with sharks as Steven Mabugana told them why their litter should not end up in the stomachs of our sea creatures.

Mpumalanga Municipal Councillors learn more about recycling

40 municipal councillors of the 18 municipalities of the Mpumalanga Province received in-depth training into the recycling of packaging material at a 2-day workshop arranged by Packaging SA and hosted by in November.

This workshop was a joint initiative of the South African Local Government Association (SALGA) and the Departments of Agriculture, Rural Development, Land and Environmental Affairs (DARDLEA) and Environmental Affairs (DEA) and was an excellent example of the first fruits being reaped after a concerted effort to improve public-private partnerships.

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Sustainability

Recycling Training

trained new staff at Re-Cycle-It in Howick (KZN). The new recycling company has started collecting packaging materials including; plastics, paper, metals and glass.

Durban Solid Waste (DSW) supports waste pickers in Durban with training. assisted DSW with an overview of recycling in South Africa and educated the pickers on what types of materials are recycled and what products can be made from them.

Clean-up campaigns

Clean-up and Recycling SA Week 2017

2017 saw the 21styear in which South Africa participated in the International

Coastal Clean-Up (ICC) – an annual event that has become the biggest, global volunteer effort for ocean health.

We coordinated more than 400 beach clean-up points around the Cape and

40 in KZN in partnership with the KZN Marine Waste Network members on the Saturday alone. This excludes the various clean-ups that took place during the course of “Clean-Up and Recycle SA Week” and inland clean-ups that were held at rivers and streams.

Over 300 000 clean-up bags were sponsored for clean-up events by and partners.

Clean-up crews minimise waste footprint

Despite inclement

weather 2017 will

be remembered

for having one

of the best turn-

outs of volunteers

who freely offered

up their time to

participate in

picking up litter

from our beaches.

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Sustainability

Tswelopele Clean-up campaign launch

Multiple stakeholders particularly , the Capital City

Business Chamber, Standard Bank and WasteGroup were involved.

On Saturday 2 June, the Executive Mayor of Tshwane,

Solly Msimanga, launched the Tswelopele Clean-up

campaign. It focused on cleaning up the city.

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Sustainability

The Clean-up crews once again helped to ensure that the waste footprint of two of Cape Town’s biggest sporting events was kept as small as possible.

For the 11thconsecutive year, we coordinated clean-up crews who worked

around the clock to keep the routes and surrounding areas used for the

40thCape Town Cycle Tour and the 49st

Old Mutual Two Oceans

Marathon clean and litter-free. With the support of waste management

company WastePlan, more than 10 truckloads of waste, consisting mainly of energy drink sachets and other high value plastic waste, was collected and removed for recycling at each of these events.

Event Greening

40th Cape Town Cycle Tour and the 49th Old Mutual Two Oceans Marathon.

The active and visible

involvement of the

clean-up

team and the red

PETCO-branded bins

and truck at these

annual events are

helping to create an

awareness of the

mountains of litter

generated at big

events such as these

and the importance

of recycling.

Training

Training

Generic Management

is a newly available qualification which targets managers, supervisors and all learners who have completed the NQF 4 and Supervisory Management Programmes. Each learning programme addresses the outcomes required for specific Unit Standards included in the National Certificate Generic Management – Generic Manufacturing on NQF 5.

Phase 1 Workforce Management (31 credits)

Phase 2 Workplace Operations, Change Management and Communication (32 credits)

Phase 3 Workplace Risk, Coaching and Knowledge Management (30 credits)

Phase 4 Workplace Process Optimisation and Efficiencies (36 credits)

Phase 5 Workplace Project Management and Finances (34 credits)

The Training Division’s role in industry is about facilitating change in technology advances by addressing skills gaps. We are so excited that SMART Factories are no longer Sci-Fi but the new tomorrow in our country.

To us in the Training Division it means that our ‘near future’ skills offerings need to involve the following technologies:

1. Digital Assistant Systems

Augmented Reality

Gesture Control

Wearables and Cobots

Sensitive industrial robots

2. Advanced Robotics

3. Machine Learning

4. Autonomous Systems: software, sensors, artificial intelligence

We therefore invite all converters to involve the Training Division in the ‘SMART’ elements you have introduced into your organisations, so that together we are able to adequately transfer the right skills to your staff.

Let’s shape the new world order to suit our economy. Remember: It’s always better to be involved with the change so that it’s tailor-made to fit rather than force-fitting just to keep up with the times.

Kirtida Bhana, Training Executive

Skills Development

The new world

order is here and

moving along

at a rather rapid

rate. Industry

4.0, Advanced

Manufacturing,

Big Data, the

Internet of Things

(IOT) and the

circular economy

are no longer just

buzzwords but our

new reality.

49A N N U A L R E V I E W 2 0 1 7 | 2 0 1 848 A N N U A L R E V I E W 2 0 1 7 | 2 0 1 8

Training

Upskilling in the Training Division

Trainers Meeting to refine ‘pockets of excellence’ within the Training Division

Our trainers participated in a stimulating 2-day session in January 2018. Energised and inspired, trainers found common values during the initial ‘Walt Disney Productions’ session, identifying challenges and discussing opportunities. The second session - ‘Making learning stick’ - about creating an exciting and active learning environment, allows learners to engage in their learning process. Day 2 included sessions on ‘Learning Material Design and Development’ and ‘How to market to a captive audience’.

These interactive workshops uplifted team morale and allowed members of the team to revisit the transformative nature of their jobs and their influence on learners’ lives through uplifting skills, building confidence and ultimately replenishing dignity.

The team left the meeting having no doubts about their role in the organisation, their contribution to the Training Division and the expectations in terms of performance.

51A N N U A L R E V I E W 2 0 1 7 | 2 0 1 850 A N N U A L R E V I E W 2 0 1 7 | 2 0 1 8

Annual Information Sharing Breakfasts

In March 2018, ’s

Training Division hosted

a series of well-attended

information sharing

breakfasts in Cape

Town, Port Elizabeth,

Johannesburg and Durban,

offering their current and

potential customers the

opportunity to familiarise

themselves with the

Training Division’s offerings.

The training teams were on

hand to answer questions

regarding funding, course

content or tailoring courses

to companies’ specific

needs.

Training

Welding Technology Day

Interested students, industry members, journalists and technical trainers attended presentations that focused on the importance of thermoplastic welding, standards, processes and conformance assessments, improving welding and reporting.

trained more than 400 welders in Gauteng alone during the previous financial year, and continues to see an increase in enrolments for the Thermoplastic Fabrication learning programme. A Matric qualification is not required, nor is a proficiency to read or write in English, as assessments can be verbal.

The introduction of a welder identification system a few years ago ensures a consistently high quality of welding as well as transparency and accountability. For easy traceability, a unique welder number is allocated to each welder. In addition, ’s recently introduced digital certificates with QR Codes, allow for quicker onsite verification by means of a free QR Reader app which can be downloaded on a smartphone and which already exists on an iPhone.

Companies who displayed their latest technologies included:

Rothenberger

Plastiweld

Horner

Astore Keymak

Marley Pipe Systems

STPA Custer and

Plasti-Tech.

put

welding skills,

learnership

programmes,

technology and

the latest welding

equipment in

the spotlight at

its third series of

Thermoplastics

Welding

Technology Days

in Gauteng and

KZN in May 2018.

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Training

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South Africa is a diverse

country in terms of its

resources, posing extreme

challenges to an industry

trying to create a more fertile

environment for growth on

the economic and socio-

economic front.

Peter Cracknell: Plastic Materials Selection

recognised this need for specialised knowledge and invited well known international plastics expert, Peter Cracknell, to run his 5 day 'Material Selection for Plastics Parts' Programme in South Africa.

Peter Cracknell is a highly knowledgeable academic leader at the London School of Polymer Technology, with experience in polymer technology, engineering and processing, and tool design. This Programme took place in July 2017 and was well attended.

Plastics|SA Training Statistics

Plastics|SA: July 2017 - June 2018

Number of Learners Enrolled per Region

Total numbers of Learners: 2014 - 2018

4 000

3 000

2 000

1 000

0

3 2923 456 3 653

3 1872014/15

2015/16 2017/18

2016/17

2 000

1 500

1 000

500

0

1 739

1 215

699

Gauteng

KZN

Western Cape

3 653Total learners

Training

57A N N U A L R E V I E W 2 0 1 7 | 2 0 1 856 A N N U A L R E V I E W 2 0 1 7 | 2 0 1 8

Facility Upgrades

We would like to thank learners and clients for their patience during visits to our Gauteng and KZN facilities during the recent renovations. Our training facilities have been transformed into oases of learning in the midst of highly industrial environments.

Donations

Company

Alplas Plastics

Conro Precision

Flexo Line Products

Hestico

Mpact Plastics Atlantis

Pioneer Plastics

Plastic Bubbles

Plasti-weld

Purpleline Plastics

Safripol

Spicoly Plastics

Tuffy Manufacturing

Usabco

is grateful for the generous

donations by key stakeholders who

sponsored various items including

material and machinery to enhance our

training offerings.

Training

59A N N U A L R E V I E W 2 0 1 7 | 2 0 1 858 A N N U A L R E V I E W 2 0 1 7 | 2 0 1 8

Customised Learning Programmes

The following customised programmes were developed:

Pailpac

An overview of the Plastics Industry in South Africa, materials, quality and environmental impact

Plastic Materials

The impact of Quality

The impact of Plastics

Mahle

Raw Materials and Quality

We thank

our Industry Partners who trained with us this financial year and we look forward to strengthening our relationship in the future.

each and every learner and wish them much success in their path of knowledge. Ngikufisela inhanhla!

A huge SHOUT OUT to the amazing individuals who make up the Training Division. Tenacity, determination,

dedication and a passion for developing people, are but a few of the invaluable qualities they possess!

customised a one-year learning programme for Venture Diversified

Products’ 13 learners, comprehensively covering all aspects of knowledge, practical skills and workplace experiential components of the Injection Moulding Machine Setter Occupation.

Owing to the fact that knowledge and an understanding of pneumatics and hydraulics were vital to this group of learners, called upon the assistance of Festo - a leading, global supplier of automation technology and the performance leader in industrial training and education programmes.

Festo provided a fully equipped “classroom on wheels”, which remained parked at ’s premises for the duration of the training, allowing for a highly engaging

experience as the students interacted with technology used in today’s advanced manufacturing environment.

Classroom on Wheels – Venture Setter Training

offers

personalised

learning

programmes and

training modules

for customers

who specifically

request a

modified version

for their staff.

Plastics Statistics

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Plastics Statistics

Virgin Material and Recyclate Apparent Consumption in 2017

Domestic Consumption (Virgin and Recyclate)

Ton

nag

es

1 900 000

1 700 000

1 500 000

1 300 000

1 100 000

900 000

700 000

500 000

South African Plastics Industry

companies mainly SMME’s

± 1 800people employed in the Plastics industry

< 60 000Apparent virgin material converted in 2017 is

andtons1 492 000 Recyclate

margins are low

tons313 780

%

of all polymer goes into packaging

Approximately

53Market size ex converter is estimated to be around

R 67 billion

Plastics per capita consumption of

27.11 kg/person2009 2010 2011 2012 2013 2014 2015 2016 2017

Recycled Consumption 215 199 228 101 230 111 254 054 260 930 284 521 292 917 309 520 313 780

Virgin Consumption 1,280 000 1,312 700 1,300 000 1,370 000 1,400 000 1,400 000 1,481 000 1,518 000 1,492 000

63A N N U A L R E V I E W 2 0 1 7 | 2 0 1 862 A N N U A L R E V I E W 2 0 1 7 | 2 0 1 8

Plastics Statistics

Apparent Plastics Consumption – 2017 | Growth vs GDP Growth

Domestic Virgin Plastics Consumption (Tonnages)

Ton

nag

es

% G

row

th

1 600 000

1 500 000

1 400 000

1 300 000

1 200 000

1 100 000

1 000 000

900 000

800 000

700 000

600 000

Tonnage % Growth % GDP growth

35%

30%

25%

20%

15%

10%

5%

0%

-5%

-10%

-15%

Different plastics for different needs

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1 492 000 tons

consumptionBottles

CapsContainers

BagsWire cables

Office/school foldersCar bumpersFlowerpots

12,7%

15,2%

10,5%

22,8% 21,1%3,4%

3,2%

10,8%

Plastic cups Spectacle frames Yoghurt tubs

SpongeIsolation

ABS bricks

FridgesPTFE

(teflon) pans

PE

T

P

E-H

D

PVC

PE-LD, PE-LLD PP PS, PS-E PUR O

THE

RS

BootsWindows

65A N N U A L R E V I E W 2 0 1 7 | 2 0 1 864 A N N U A L R E V I E W 2 0 1 7 | 2 0 1 8

Plastics Statistics

South African Plastics Market Sectors - 2015

SA 2015

Building and Construction 13.0%

Agriculture 8.9%

Electrical and Electronics 6.3%

Automotive 4.2%

Other 4.3%

Domesticware 3.9%

Mining and Engineering 3.6%

Furniture 2.7%

Rigid Packaging 29.7%

Flexible Packaging 23.3%

Europe 2016

Packaging 39.9%

Building and Construction 19.7%

Automotive 10%

Electrical and Electronics 6.2%

Agriculture 3.3%

Other 20.9%

%

Plastics Trade Balance – 2017 Rand Value

Trade Balance for Raw Materials and Products (HS 39)

Cu

sto

ms

Val

ue

– M

illio

ns

of

Ran

ds

R 35 000

R 30 000

R 25 000

R 20 000

R 15 000

R 10 000

R 5 000

R 0

(R 5 000)

(R 10 000)

(R 15 000)

(R 20 000)

(R 25 000)

(R 30 000)

(R 35 000)

R 35 000

R 30 000

R 25 000

R 20 000

R 15 000

R 10 000

R 5 000

R 0

(R 5 000)

(R 10 000)

(R 15 000)

(R 20 000)

(R 25 000)

(R 30 000)

(R 35 000)

Imports Raw materials Imports Products Exports Raw materials Exports Products Trade deficit

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

67A N N U A L R E V I E W 2 0 1 7 | 2 0 1 866 A N N U A L R E V I E W 2 0 1 7 | 2 0 1 8

Plastics Statistics

Key Findings Recycling Survey 2017Plastics Raw Materials and Products Tonnage Trade Balance - 2017

Trade Balance for Raw Materials and Products (HS 39)

Ton

nag

es

1 400 000

1 000 000

600 000

200 000

- 200 000

- 600 000

-1 000 000

- 1 400 000

- 1 800 000

1 400 000

1 000 000

600 000

200 000

- 200 000

- 600 000

-1 000 000

- 1 400 000

- 1 800 000

Imports Raw materials Imports Products Exports Raw materials Exports Products Trade deficit

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

%

%

recycling rate in 2017

exported - recycled elsewhere

Managed a

43.7

6.3

% tons

but still in excess of 700 000 tons

in 2017, a drop of 1.7 % from 2016

Recyclables to landfill dropped by

Domestic virgin consumption was

5.2 1 492 000

mechanically recycledEquivalent weight of 560 Airbus A380 aeroplanes

Saved enough fuel to keep 178 000 cars on the road for 1 year

313 780 tons

69A N N U A L R E V I E W 2 0 1 7 | 2 0 1 868 A N N U A L R E V I E W 2 0 1 7 | 2 0 1 8

Plastics Statistics

Key Findings Recycling Survey 2017Key Findings Recycling Survey 2017

%

of all materials recycled originated from landfill and other post-consumer sources

74

Recyclers procure mainly sorted, baled materials from Waste Management Companies;

%of all recyclables were sourced as bales

60 %sorted in bulk format

12 %sourced from waste pickers

3

are key to the value chain in sourcing recyclables from the communities

Waste pickers Jobs in the recycling industry

58 100Recycled tonnages increased for

PET, PE-HD, PP and PVC

The tonnages recycled in 2017

saved

enough214 220 landfill spaceto fill 714 Olympic size swimming pools.

%2 direct result of

PE-LD tonnages declined by

the impact of the drought on agriculture

the economic decline in the building industry

tons of CO2

71A N N U A L R E V I E W 2 0 1 7 | 2 0 1 870 A N N U A L R E V I E W 2 0 1 7 | 2 0 1 8

Plastics Statistics

Plastics waste recycled in South Africa into raw materials in the last four years

Ton

nag

es

recy

cle

d

120 000

100 000

80 000

60 000

40 000

20 000

0

Source of incoming recyclable waste 2017

Post Consumer 74%

Toll and In-house 3%

Ex-factory 11%

Post-industrial 12%

%

PE-LD / LLD PET PE-HD PP PVC Other PS & PS-E

2014 98 563 42 911 62 809 50 718 18 488 6 231 4 801

2015 104 881 53 493 59 992 47 685 15 363 5 631 5 873

2016 108 229 64 475 62 208 44 986 17 081 7 092 5 449

2017 105 155 67 872 63 333 47 338 17 844 6 855 5 384

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Plastics Statistics

Domestic market applications for recycled materials in 2017

Flexible packaging 23%

Agriculture 15%

Clothing and Footwear 14%

Building and Construction 14%

Rigid packaging 9%

Furniture 6%

Exports 6%

Domestic- and houseware 4%

Mining and Engineering 3%

Polywood 1%

Traders 1%

%

Partnerships

Thank you to

our industry

partners for their

continued financial

contributions and

support

– without them,

none of this would

be possible.

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Partnerships

Raw Material Suppliers

Importers

Producer Responsibility Organisations

Recyclers

Financial Overview

76 A N N U A L R E V I E W 2 0 1 7 | 2 0 1 8

2018 R

2017 R

Revenue 31 827 678 29 169 443

Cost of services rendered (8 962 925) (7 202 497)

Gross surplus 22 864 753 21 966 946

Other income 383 112 601 013

Operating expenses (23 162 289) (22 857 115)

Operating surplus / (deficit) 85 576 (289 156)

Investment revenue 664 203 637 312

Fair value adjustments 676 608 (112 960)

Finance costs (10 303) (8 837)

Surplus for the year 1 416 084 226 359

Statement of Comprehensive Income

Plastics Federation of South Africa NPC (Registration number 1979/006067/08) Trading as

%

Producer Responsibility Organisations Membership Fees

04%

Other Income

08%

Membership Fees

35Training Income

53 %

Annual Financial Statements for the year ended 30 June 2018

Revenue Resources income split 2017|2018

77A N N U A L R E V I E W 2 0 1 7 | 2 0 1 8

2018 R

2017 R

Assets

Non-Current Assets

Property, plant and equipment 7 053 959 7 534 901

Other financial assets 5 966 384 5 206 584

13 020 343 12 741 485

Current Assets

Loans to related parties 70 662 231 952

Trade and other receivables 5 718 569 3 416 683

Cash and cash equivalents 7 980 235 7 759 855

13 769 466 11 408 490

Total Assets 26 789 809 24 149 975

Equity and Liabilities

Equity

Accumulated surplus 21 510 096 20 094 012

Liabilities

Current Liabilities

Trade and other payables 5 279 713 4 055 966

Total Equity and Liabilities 26 789 809 24 149 975

Statement of Financial Position

Plastics Federation of South Africa NPC (Registration number 1979/006067/08) Trading as

Annual Financial Statements for the year ended 30 June 2018

Financial Overview


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