8 INTEGRATED ANNUAL REPORT 2024 were three ships en route. At the time of the disaster, we had exported around 750 000 tonnes of woodchips for the year, together with around 300 000 tonnes of local sales, resulting in a turnover of approximately R2 biillion. This was on the back of the higher dollar prices underpinned by the exchange rate. The fire of 2023 is the biggest single disastrous occurrence that has struck our Co-operative in our 75year history. When comparing the challenges of the Covid-19 pandemic, the chipper incident at Richards Bay, the challenges of our State-Owned Enterprises (SOEs), including the failing rail and port networks, they all pale into insignificance when 50% of the country’s export chipping capacity goes up in flames. Those fateful days of the fire displayed the true spirit of our Co-operative. The spirit of Ubuntu came to the fore as our members, staff, and the community in Richards Bay pulled together to stop the spread of the fire to our neighbours and limit any further damage to our industry, the city surrounds and the environment. For those present at the fire, the shock was overshadowed by the collective action of those present and the many hidden talents which were revealed and which would aid Chairman’s Report 2024 The year under review is characterised by two distinct halves separated by the devastating fire at our Richards Bay Mill Complex. NCT initially had a full order book and was on track to surpass the previous year’s record sales in value. Dollar prices were at an all-time high and NCT was able to pay to its members the highest mill-delivered price on record. In essence NCT was well on track to achieve its mission of assisting members to market their timber whilst optimising financial results. As the year continued however, there was push-back from our Chinese customers requesting postponement rather than cancellation of ships they were due to take from us. Fortunately, one of our strategic objectives of diversifying our markets meant that our orders to Japan as well as the Biomass Market were still well on track. The higher stock levels at the Richards Bay Mill Complex at the time of the fire were as a direct result of the bigger order books, delayed shipments by our Chinese customers and NCT’s objective of assisting members to keep the Mill allocation at levels that would satisfy member requests. As a result, there were more than 200 000 tonnes of woodchips on the stockpiles at Richards Bay on that fateful day of 29 September 2023. The stock loss would have been reduced by almost twothirds had the fire occurred two weeks later as there V E R N S C H E F E RMANN
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