Home Timber Projects

2006: Komati Land Forest

In 2006, PGBI was appointed to provide detailed process, mechanical, electrical and instrumentation engineering design, including project management and administrative functions, for the design, procurement, installation and commissioning of the new dry mill and planer mill, together with the associated auxiliary equipment and utilities, to be procured by Komatiland Forests (Pty) Ltd and constructed at Timbadola Sawmill, Makhodo (Louis Trichardt). This project was complete late in 2007.

2002: Mondi Technical Division (GTS)

In 2002 PGBI was appointed by Mondi Timber’s technical division (GTS) to design and engineer the upgrade of their hardwood processing facility at Ramanas. PGBI also undertook an extensive technology review exercise to establish the best sawing and drying processes and equipment to process plantation eucalyptus. The optimised design was costed and a Capex of R70m and an implementation plan were prepared for Board approval. Following a fire, which destroyed the Wet Mill at Mondi Forest’s Peak Sawmill, PGBI was appointed to assist with the insurance claim and to provide project management and engineering services to design and rebuild the Wet Mill. PGBI undertook concept design, provided all major equipment by assembling work packages for suppliers and managed the construction and commissioning of its new mill. The project was “fast track” in order to minimize operational losses and was managed by PGBI using its “Owners’ Team” methodology for rapid, complex projects which ensures the involvement of the client’s operations staff and aligns the objectives of the parties to drive the project to a successful and sustainable completion.

PG Bison

PG Bison has four board plants in South Africa, located at Boksburg, Piet Retief, Pietermaritzburg and Stellenbosch respectively. The Boksburg plant is a medium density Fibre Board Plant whilst the others are chip board plants. In 1995 PG Bison was producing up to 75% of the South African board demand, but was finding it increasingly difficult to compete with imported boards from Zimbabwe, Portugal, Brazil and elsewhere. The main reason for this was the old inefficient technology being employed that was prone to downtime. The objective of the recapitalisation programme was to increase plant utilization, decrease material waste and reduce the cost of production. PGBI was appointed to plan and manage this programme. An original recapitalisation programme of approximately R600 million was defined to be phased over four years. PGBI engineered and managed first phase of the programme (± R160 million) whereafter PG Bison terminated the programme due to the downturn in the board markets as well as the imminent disposal by PGSI of PG Bison. PGBI was responsible for procuring offshore-specialized equipment that was installed and commissioned with local subcontractors. The challenge of this project was to install and commission the new plant and equipment within PG Bison’s annual four-week shutdown.

1999: Mondi Timber

In the course of 1999, Mondi Timber recognised that, with the decreased consumption of timber in the mining industry (due to replacement composite products), it was necessary to rationalise and consolidate its mining timber milling capacity and increase the cost competitiveness of the remaining facilities. PGBI was appointed to prepare a rationalisation plan and recommend consolidated low cost operating centres. A business plan was developed that detailed the process and associated cost to proceed with the programme. A number of the recommendations have subsequently been implemented.

1997: Mondi Timber

In 1997, Mondi Timber operated 11 sawmills throughout South Africa. It was clear that consolidation of operations and upgrading of the plant and equipment was required to reverse the downward profitability trend. PGBI was commissioned to undertake a recapitalisation pre-engineering study to establish the cost of consolidating the timber processing operations and modernizing the operations. A comprehensive programme definition document was completed providing a class II capital estimate, process flow diagrams, energy and material balances, plant layouts, main equipment schedules and a provisional implementation plan. The study also incorporated preliminary financial analysis and market and raw material studies. PGBI in conjunction with Mondi Timbers team prepared a plan recommending the investment of R450 million to upgrade Mondi’s operations to a world class operation capable of competing with the Australian, New Zealand, American and Canadian timber processes. This study eventually formed the basis of the upgrade programme, which commenced in 2001 under co-ownership with GFP. To date, PGBI has supported the GFP project team with project management control systems and with the procurement, expediting and inspection of plant, equipment and services.

1996: Mondi Timber

In 1996 Mondi Timber identified an opportunity to market and sell edge laminated clear boards into the Korean furniture market. PGBI was appointed to manage the procurement and construction, installation and commissioning of a new value adding plant and drying kilns at a cost of R18 million to produce edge laminated clear products at Mondi Timbers Driekop site. The project entailed upgrading of the drying facilities, installation of automatic de-stackers, installation of moulders, finger jointers, cross cut and edge laminating equipment. The necessary infrastructure (e.g. buildings, steam supply, electrical supply) was also constructed and installed. The 110 m3 per day edge laminator plant consists of equipment, which was procured from six overseas suppliers. PGBI performed the integration engineering and successfully facilitated the interaction between the offshore suppliers and the local contractors. The project was completed three weeks ahead of schedule and within budget and PGBI earned a bonus for reaching the planned production ahead of schedule.

The Wattle Company

The Wattle Company in Zimbabwe, a subsidiary of Lonrho Africa, owned 9 000 hectares of wattle plantations that was harvested for bark from which tannins were extracted for the tanning industry. The remaining timber was transformed into charcoal and sold as fuel into the local market. Wattle fibre is rated as a premium fibre by the pulp and paper industry and the opportunity existed to supply this fibre to Simotomo, one of the Japanese pulp trading houses. PGBI was commissioned to design a chipping mill to produce 180 000 tonnes of wattle chips per annum. The chipping mill would be located in the port of Beira, Mozambique. The engineering exercise therefore had to also consider the transport of the logs to Beira and, as this type of material handling was new to the Port of Beira, also the chip handling and loading at quay side. PGBI performed an extensive study into the benefits and limitations of the various chipping equipment available on the world market. On the chippers, criteria such as horizontal versus drop feed and bottom versus side discharge were evaluated. The different techniques of screening (rotary versus oscillating) were also assessed in order to establish which equipment would best suit the chip specification required by Simotomo. A feasibility study recommending the investment of US$20 million and supported by an engineering study, marketing plan, material supply plan and financial analyses was prepared and submitted to the Lonrho Board for approval. Although the project met Lonrho’s hurdle rate of return, approval was not obtained, as Lonrho was in the process of unbundling its non-core businesses of which Wattle Company formed a part.

SilvaCel

SilvaCel is a log chipping plant (pine, wattle and eucalyptus species), which uses two chipping lines to produce high quality wood chips for the export market in the pulp and paper industries. The existing Fulghum chipper (Line 1) has been replaced with a drop feed Camura chipper and all associated utilities and infrastructure have been modified to accommodate the new chipping equipment. The log washing station, chipper infeed / outfeed and the re-chipping station have also been upgraded. The implementation and commissioning was successfully performed within a fast track two-week window, due to production requirements. The main equipment supplier, Metso, undertook all the basic engineering and the detail engineering associated with the main equipment only. Mondi appointed a civil consultant for the design of all the civil works on the project. PGBI was appointed in 2004 as a mechanical, electrical and instrumentation (MEI) engineering consultant to prepare the concept design; layouts; detailed engineering for the secondary equipment, piping and auxiliaries outside the scope of Metso’s supply and to provide co-ordination and administration of all the engineering undertaken by local suppliers, manufacturers and other consultants for the project.

1995: Lomati Sawmill

Early in 1995, PGBI was requested by the BonusKor Board to review the proposed expansion programme at its Lomati Sawmill in Barberton. PGBI’s due diligence lead to its appointment as project managers to procure and manage the installation and commissioning of a new logyard, profiling sawline, boiler and drying kilns. The 60 000m3 per annum profiling line for R26 million was installed adjacent to the existing frame sawline without production stoppages to the existing operation. Five major contracts were placed with main equipment suppliers, civil and electrical works contractors and a general mechanical erection contract.