Introduction

Today’s cash constrained economy means that investing in future operations and product manufacture has become largely dependent on the ability to incorporate energy efficient mechanisms and environmental responsibility into the business model. Corobrik is embracing these principals, having converted both its Lawley and Driefontein facilities from a coal-fired operations to a natural gas-fired operation. It has also implemented enhanced extrusion technology to further reduce the company’s carbon footprint and is well set to maximise opportunities consequent to the new energy efficient building regulations due to be implemented by mid November 2011.

What do the National Building Regulations and Building Standards Act mean for the construction industry?

Energy usage in buildings is under the spotlight in South Africa through the new regulations for energy-efficiency in the National Building Regulations (NBR) and Building Standards Act (BSA). Energy efficiency in buildings can easily be achieved through the introduction of sensible measures, beginning at the design and planning phase, running through to construction and ending at practical handover. It will be the responsibility of a new public entity, the National Regulator for Compulsory Specifications (NCRS), to ensure that the construction industry operates within the stipulated parameters. The NCRS will report to the Department of Trade and Industry and will handle the administration of the NBR and BSA.

The Minister of Trade and Industry, Rob Davies, promulgated these regulations in the Government Gazette of 9 September 2011 after which the regulations became mandated legislation. Requirements set within the legislation will have to be approved before a building plan application can be approved. The legislation comes into effect on 10 November 2011.

“Corobrik has benefited significantly from the introduction of new extrusion technology that has resulted in fuel savings for the drying and firing of products, this in the order of 20%. This technology innovation and the wider use of natural gas for the firing our products, (natural gas nearly halves the carbon footprint of clay brick manufacture), is driving Corobrik’s embodied energy reductions,” explains Corobrik’s managing director, Dirk Meyer.

“Sustainability is inextricably linked to durability. In conjunction with the thermal properties of clay brick products the company’s environment-friendly status augers well for the future.”

Corobrik’s vision and implementation of energy efficient methods of production and delivery of product, combined with the embodied energy value of clay bricks will stand the company in good stead as the construction industry seeks to incorporate these values through the entire construction programme â€" from planning to completion. Corobrik has also been trading carbon credits it receives through energy efficient innovation to fund further expansion in its coal-to-natural-gas programme for a number of years â€" a feat few industrial manufactures can lay claim to.

In the year ahead Corobrik expects to receive the UNFCCC’s ratification to sell carbon credits from the Driefontein factory.

Corobrik looks back on 2011

At the beginning of the year Meyer, maintained the company had weathered the financial storm of the previous three years extremely well. This firm footing has remained in place through the year with Corobrik experiencing a 25% growth in sales.

There are two reasons for this.

“We have diversified and launched new products,” points out Meyer. “We specifically designed and developed the CoroJem brick for the government subsidy housing market in conjunction with new face brick products.”

Corobrik also manufactures clay pavers and the newly launched Springs manufactured PB clay pavers is making good progress in the low-cost commercial paving segment..

“These two new products have been specifically manufactured to compete in these new markets.”

Government expenditure in the low cost housing market has been a positive factor for Corobrik.

“Through the year we have made significant in-roads into the Free State, Gauteng, Limpopo and Polokwane provinces by focusing on the low cost and affordable housing markets,” explains Meyer.

The affordable housing market is defined with a ceiling value of R800 000 and Corobrik’s specially developed economical face brick range is geared to this significant market.

Government has indicated that it will be funding a significant amount of financing for the construction of infrastructure projects including prisons, schools, clinics and hospitals around the country but exact programmes have yet to be released.

Looking ahead to 2012

A steady approach to the year building off the solid market footing gained over the previous four years.

“Our strategy will continue as it is â€" we will grow our market share in existing markets and keep contesting low cost and affordable housing markets,” states Meyer.

Corobrik currently exports product to Zambia, Malawi, Mauritius and the Seychelles and will be looking to grow its market share in these countries. In addition, South Africa’s immediate neighbours are indicating positive growth and opportunities stemming from these countries will be pursued.

“Trucks travelling from Zambia with metals return carrying our products. Wherever possible, we look for return load economies. We will exploit this growth opportunity, but are not looking at opening up manufacturing facilities outside of South Africa at present,” continues Meyer.

Investment
Corobrik has steadily grown over a number of years and it is reinvesting in capital projects which improve manufacturing quality and capacity across the board in several of its factories. Meyer has indicated that Corobrik is in a position to look at investment again and finance its own organic expansion.

Gas conversion
Following the conversion of Corobrik’s Lawley and Driefontein facilities the company is now planning to continue the process in its facilities in Mpumalanga.

Health and safety
The majority of Corobrik’s facilities have ISO 9001 accreditation and the company has undertaken to achieve the accreditation for four more facilities during the course of 2012. The company is also well on its way to ISO 1400 accreditation at its ISO 9001: 2008 certified factories.

Conclusion
Despite tough conditions, Corobrik has produced good results. With another difficult year anticipated Meyer says the strategy is in place to maximise every opportunity with toe to toe trading.

Distributed on behalf of Corobrik (Pty) Ltd

For more information contact Dirk Meyer or Peter Kidger on 031 560 3111.