NATIONAL PROJECTS SUCCESS STORY. total NUMBER of PARTICIPANTS. Unemployed to Empowered A Private Public Partnership. with Sonae Novobord (White River)

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1 SUCCESS STORY Unemployed to Empowered A Private Public Partnership with Sonae Novobord (White River) DURING THE YEAR, FURNTECH WAS APPROACHED BY SONAE NOVOBORD WITH REGARDS TO A POSSIBLE COLLABORATION IN THE PROVISION OF SKILLS DEVELOPMENT TRAINING TO UNEMPLOYED INDIVIDUALS IN THE WHITE RIVER AREA. A PROPOSAL WAS SUBMITTED AND ACCEPTED BY SONAE FOR A FURNITURE MANUFACTURING SKILLS PROGRAMME LEADING TO SMME DEVELOPMENT PROJECT. NATIONAL PROJECTS The aim of the 13 week project was to provide the selected unemployed individuals with technical and business skills training in order to enable them to start their own businesses in the furniture and wood products sector. For Sonae Novobord, the project represented a contribution to its Corporate Social Investment initiatives. The recruitment of the participants was completed in August 2013 and 12 unemployed individuals (comprising 10 males and 2 females) commenced training in September All 12 individuals successfully completed the project in November During February 2014, a graduation ceremony for the 12 successful learners was held at the Furntech White River Centre and this was attended by Mr. Steve Dennis (Chairman of Sonae Novobord CSI) and the Vice Chairperson of the Furntech Board of Trustees, Mr. John Mortimer. 12 total NUMBER of PARTICIPANTS Following the training, 6 of the participants have applied for and are participating in Furntech Business technology Incubation Programme, 2 of the participants are running their own businesses from their own premises, 1 of the participants is continuing with studies and 3 have opted to seek formal employment in the furniture manufacturing sector. The implementation of the project has provided the individuals with the opportunity to foster greater economic growth and development within the communities from which they hail by enabling them to start and run their own businesses or acquire formal employment which would allow them to sustain themselves. The project was made possible through the support of Sonae Novobord and has been considered an overwhelming success. The partnership provided a clear glimpse of how successful joint initiatives can make a positive contribution towards the reduction of poverty in our country and both partners have indicated a willingness to continue with this project in the new financial year

2 National projects Above: a newspaper clipping about the launch of the Testing Centre in March this year. Establishment of the Seda Furntech Furniture Manufacturing Testing Centre THE FURNITURE INDUSTRY, WITH A PRE-DOMINANCE OF SMALL AND MEDIUM SIZED MANUFACTURING COMPANIES, HAS BEEN IDENTIFIED BY THE DEPARTMENT OF TRADE AND INDUSTRY (DTI), IN ITS DRAFT STRATEGY, AS AN IMPORTANT SECTOR IN THE SOUTH AFRICAN ECONOMY. THIS SECTOR HAS THE POTENTIAL TO MAKE A SIGNIFICANT CONTRIBUTION TO THE REDUCTION OF UNEMPLOYMENT BY DEVELOPING THE LOCAL MARKET THROUGH STATE PROCUREMENT OF DESIGNATED PRODUCTS. The Testing Centre was opened by the Acting Executive Manager of the Seda Technology Programme, Mr. Siphiwo Soga and the Chairperson of the Furntech Board of Trustees, Advocate Sibongile Sigodi. The South African furniture manufacturing industry however, faces tremendous challenges from imports that are often described as cheap and nasty. In the main, these imports originate in the East. A study conducted by the furniture industry in 2010, revealed that total imports of furniture in South Africa increased from R l.5 billion in 2005 to R2.6 billion in While South Africa has an import tariff system in place, we have reached the maximum duties that we can impose as per the World Trade Organization. Thus we need to consider alternative barriers to imports if we are to protect and grow our local manufacturers. One such barrier is the implementation of compulsory quality standards for furniture. Secondly, the revised Preferential Procurement Policy Framework Act (PPPFA) regulations that came into effect on the 7 December 2011 empowers the dti to designate industries, sectors and sub-sectors for local production at a specified level of local content. To date, the dti has 32 33

3 National projects THE FURNITURE INDUSTRY, WITH A PRE- DOMINANCE OF SMALL AND MEDIUM SIZED MANUFACTURING COMPANIES, HAS BEEN IDENTIFIED BY THE DEPARTMENT OF TRADE AND INDUSTRY (DTI), IN ITS DRAFT STRATEGY, AS AN IMPORTANT SECTOR IN THE SOUTH AFRICAN ECONOMY. industry and is the first port of call for anyone looking for information on Business Incubation and Skills Development in this sector. As part of its offerings to the furniture sector, Furntech aims to establish and manage the proposed testing centre. Furntech is supported by the Seda Technology Programme (STP) who provided the necessary financial support for the establishment of this Testing Centre. USING INTERNATIONAL STANDARDS AS THE BASIS FOR THE TESTING CENTRE WILL ALLOW US TO SET THE BENCHMARK FOR ALL FUTURE TESTING FACILITIES. designated a number of products from the furniture sector including bedding and school furniture. With regards to standards and conformity assessments, the current standards available in the country are limited and most of the testing equipment is out of date and are not up to international standards. Therefore, the fundamental rationale for the establishment of a Furniture Testing Centre revolves around the necessity to provide a dual paid for service, namely: A testing facility for those manufacturers that need an independent certificate of compliance so that they can comply with state tender requirements; and Importers that wish to obtain independent certification for products that are being imported in South Africa. Over the last 10 years, Fumtech has successfully established a national footprint though the implementation and management of seven (7) Manufacturing Business Technology Centres across five (5) provinces that focuses on the furniture and wood products sector. Furntech has been designated a Centre of Excellence in the furniture The Seda Furntech Furniture Manufacturing Testing Centre was officially launched on the 27th of March 2014 in Paarden Eiland, Cape Town. The Testing Centre was opened by the Acting Executive Manager of the Seda Technology Programme, Mr. Siphiwo Soga and the Chairperson of the Furntech Board of Trustees, Advocate Sibongile Sigodi. The testing equipment currently available is as follows: Chair fatigue and static test rig (This test rig has the capacity to conduct Durability testing of the front and edges of seating; and stability testing of seating); Arm durability test rig; Impact test rig; Stability testing rig (seating); Durability testing rig (tables and desks); and Static and durability testing rig (seating, tables and cabinets). Using international standards as the basis for the Testing Centre will allow us to set the benchmark for all future testing facilities. The Centre will now commence the process of acquiring accreditation from SANAS and once acquired, undertake a marketing campaign to create awareness of its existence and services to the furniture industry at large

4 SASDI Background and Overview IN 2011, THROUGH ITS CONTINUAL COLLABORATIONS, FURNTECH AND THE TIBRO TRAINING CENTRE (TTC) LAUNCHED THE SOUTH AFRICAN SWEDISH DESIGN INITIATIVE. THE AIM OF THE INITIATIVE WAS TO DEVELOP THE DESIGN CAPACITY OF OUR CLIENTS IN THE INCUBATION PROGRAMME BY PARTNERING THEM WITH SWEDISH DESIGNERS FOR THE PURPOSE OF KNOWLEDGE, DESIGN AND PRODUCTION SHARING INTERACTIONS

5 SASDI SOUTH AFRICAN SWEDISH DESIGN INITIATIVE The South African participants are drawn from our Incubation Programme based on a competitive selection process while TTC selects the Swedish Participants. FOR THE SOUTH AFRICAN PARTICIPANTS, THE INITIATIVES EXPOSED THEM TO DIFFERENT THINKING, IDEOLOGIES AND PRODUCT/PROCESS DESIGN THAT GAVE THEM THE ABILITY TO ENHANCE THE QUALITY OF THEIR FURNITURE MANUFACTURE AND DESIGN. The objectives of the South African Swedish Design Initiative (SASDI) are to: Expose the South African participants to international trends in furniture design; Develop the design capacity of the SA participants by partnering them with Swedish designers; Assisting the participants to develop a range of products that has both local and international appeal; Exposing the participant s design and manufacturing best practice relative to the product range; Develop potential export markets for high value low volume furniture; Provide international and local marketing opportunities at the Stockholm Furniture Fair and Design Indaba. The initiative is implemented in three phases namely: Phase 1 - South African Workshop A workshop is held in South Africa where the Swedish and South African participants meet in a matchmaking session and then work together to develop a design concept based on a pre-agreed theme. This workshop includes preliminary designs and a simple model that illustrates the designs. The main objective of this phase is for the participants to agree on their design concepts so that they can finalize these during the online collaboration phase. Phase 2 - Online Collaborations During this phase the participants work towards finalizing their designs and producing working drawings that can be used in manufacturing. The drawings and specifications are also used to source materials and fittings as required. Phase 3 - Swedish Workshop During this phase the participants are actively involved in the finalization and manufacturing of their product(s). All of the manufacturing processes are finished by the last day. The workshop concludes with a judging of the products. The participants are required to do a presentation that includes their design concept, the final design, the challenges and opportunities that they identified. Based on the above a winning design is identified. The South African from the winning team may, based on financial considerations, be selected to participate at the Stockholm Furniture Fair

6 SASDI SOUTH AFRICAN SWEDISH DESIGN INITIATIVE The South African Swedish Design Initiative summary: Year Theme Participants Workshop 1 Workshop 2 Exhibitions 2011 None 9 Durban, March 2011 Tibro (Sweden), September 2011 Stockholm Furniture Fair 2012 Living in an Eco Friendly Home 8 Cape Town, March 2012 Tibro (Sweden), September 2012 Stockholm Furniture Fair & Design Indaba 2013 (Group 1) Creative Office and School Furniture 10 Cape Town, March 2013 Tibro (Sweden), May 2013 Stockholm Furniture Fair 2013 (Group 2) Sustainable Outdoor Furniture 8 Tibro (Sweden), September 2013 Cape Town, November 2013 Stockholm Furniture Fair SASDI Wrap Up 2013 marked the end of the SASDI Programme and this coincided with the formal end to the official partnership agreement with the TTC. The general consensus is that the initiative has added tremendous value to the numerous participants, both South African and Swedish. For the South African participants, the initiatives exposed them to different thinking, ideologies and product/process design that gave them the ability to enhance the quality of their furniture manufacture and design. The initiative provided the Swedish participants with the opportunity to immerse themselves in the diverse and extensive South African culture and also provided them the chance to see and experience different manufacturing materials and processes. The knowledge sharing interactions between the participants was vast and the initiative served as a melting pot for ideas, thoughts, and design concepts. The initiative also allowed for the human aspect by giving the participants the opportunity to learn about each other, interact with each other, work with each other and create experiences with each other. THE GENERAL CONSENSUS IS THAT THE INITIATIVE HAS ADDED TREMENDOUS VALUE TO THE NUMEROUS PARTICIPANTS, BOTH SOUTH AFRICAN AND SWEDISH. Whilst there were tangible outcomes for the initiative in the form of the products that were designed and manufactured, perhaps the greatest benefit was in gaining a different perspective of design and how to incorporate it into different aspects of business and life. The learning and friendships gained will last long beyond the initiatives and it is hoped that Furntech and TTC will share and implement many more such programmes in the future that will continue to support and enhance the competiveness of our respective clients and beneficiaries

7 CORPORATE SOCIAL INVESTMENT Background and Overview AT FURNTECH WE RECOGNIZE THE IMPORTANCE OF ENGAGING AND WORKING IN COLLABORATION WITH THE COMMUNITIES IN WHICH WE OPERATE. THEREFORE, WE CONTINUE TO PLAY A MEANINGFUL ROLE IN THE SKILLS DEVELOPMENT AND BUSINESS DEVELOPMENT ENVIRONMENT, GUIDED NOT ONLY BY THE NATIONAL QUALIFICATIONS FRAMEWORK AND OUR ASSOCIATED SOCIAL AND STAFF EQUITY PLANS BUT, IMPORTANTLY, ALSO BY OUR CORPORATE CITIZENSHIP PRINCIPLES

8 CORPORATE SOCIAL INVESTMENT DELIVERING 1000 REFURBISHED SCHOOL DESKS ON MANDELA DAY IN 2012 WE HAVE EMBARKED ON AN EXTENSIVE INITIATIVE TO DEVELOP THE EDUCATIONAL COMMUNITIES IN OUR AREAS THROUGH OUR SKILLS AND EXPERTISE. EVERY ONE OF OUR OPERATIONS IS GEARED SPECIFICALLY TOWARDS ESTABLISHING AND IMPROVING WELFARE, EDUCATION AND INFRASTRUCTURE WITHIN OUR COMMUNITIES. THESE PLANS ARE DEVELOPED THROUGH A CONSULTATIVE PROCESS WITH RELEVANT STAKEHOLDERS AS WELL AS THROUGH REGULAR INTERACTION WITH SCHOOLS TO ENSURE THAT THE IDENTIFIED PROJECTS ARE SUSTAINABLE AND IN LINE WITH THEIR NEEDS. Furntech is a not-for profit organisation and does not have the cash reserves to make donations and contributions to worthy causes. However, the Furntech staff are inspired by Nelson Mandela and his legacy, and wanted to heed the call for everyone to volunteer their services for international Mandela Day and to try to make a difference to the lives of needy people. In the first year on Mandela Day, 18 July 2012 we handed over 564 refurbished/new desks to six schools in the regions of our centres. A key motivator in our decision was Nelson Mandela s statement that education is the most powerful weapon you can use to change the world