24 INTEGRATED ANNUAL REPORT 2023 High demand for NCT product has led to a record supply year. This demands of NCT to ensure cost-efficiencies and equipment reliability in order to sustain maximum benefits back to the member. NCT’s assets and structure are under constant scrutiny as far as efficiencies and benefit-return to members are concerned. A need was identified to rationalise and consolidate certain elements of NCT Tree Farming. Major maintenance conducted successfully on Durban Wood Chips chipper motor and casing. Stacker refurbishment at NCT BayFibre successfully executed in October 2022. Approval given for the establishment of a second chip line at NCT Richards Bay Wood chips. This in anticipation of higher future pulpwood intakes and the establishment of a tactical biomass footprint. Commencement with the extension of the cement chip storage slab at NCT Richards Bay Wood Chips mill in anticipation of increased pulpwood and biomass intake. The replacement of the steel cladding on the Durban Wood Chips chip-shed commenced. On t he NCT Tr e e F a rmi ng f r on t , t he L en j ane management unit has been taken out of Forest Resources (Pty) Ltd and sold to NCT where it has been consolidated with Enyathi farms. The Enyathi unit now comprises 5 243ha of Eucalyptus and Acacia and provides employment opportunity for 500 people. A percentage of the Enyathi mixed Eucalyptus is being converted to E. smithii aimed at the NCT Richards Bay complex. The Broadmoore farms (part of Shincel (Pty) Ltd) were placed on open tender in June 2022 and sold January 2023. NCT will lease back the Broadmoore land with standing timber from the owner for a period of five years to allow for full utilisation of the remaining standing timber resource. The remaining farms owned by Forest resources (Pty) Ltd and Shincel (Pty) Ltd will be sold to NCT at market value during the 2023/24 financial year. The critical need for NCT to remain relevant, competitive, and cost-efficient Ensuring ongoing cost and operational efficiencies
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