26 INTEGRATED ANNUAL REPORT 2024 The May 2023 heavy winds damaged the metal cladding and chipper trolleys at NCT Durban Wood Chips, leading once again to a concerted effort by NCT engineers to effect repairs in record time and with minimal downtime. Lessons learned during the early year biomass project facilitated efficiencies being engineered into the second chipper line under construction at Richards Bay Wood Chips, providing NCT with a potential leading edge in biomass manufacture. NCT top management continued to place pressure on engaging formally with top State-owned enterprise management, industry partners, lobby organisations and even the State President to effect state service improvement. The joint Acacia / E. smithii project into NCT Durban Wood Chips commencing May 2023, provided valuable and parallel market access to both Acacia and E. smithii members, without the need to shut down flow of a single commodity entirely. Mill efficiencies at all NCT mills were optimised and stock levels grew in anticipation of a busy second half year. The strike rate on Acacia supply was almost 100% against allocation further illustrating the ease of access to market created by NCT for its members. Commission was no longer charged on special market sales (non-pulpwood) leading to greater throughput of nonpulpwood via NCT. The NCT marketing team achieved a significant price increase for wood chips in Japan, despite the global pulp price decline, in which process NCT’s clients expressed appreciation for NCT’s flexibility in a highly challenging economic environment. A well-attended Annual General Meeting of NCT members highlighted the high regard that many of our members have for NCT as their marketing organisation of choice. Whilst understanding that NCT Tree Farming supply must not impede member supply, the FSC certified rendering from this quarter played an extremely important role in securing sustained and essential market access for member timber. By mid-year, our Chinese clients were postponing scheduled vessels for one to three months, given the severe decline in global pulp prices and demand, and high pulp stock inventories growing at ports. Of significance, however, was the postponement rather than cancellation of vessels. NCT interprets this as a mark of respect for NCT as an organisation and the ongoing trust relationship between NCT and client. Reading the market situation, NCT engaged with alternative markets in the search for opportunity and an Indian opportunity nearly came to fruition. Japan maintained their strong trade relationship with NCT despite the global decline. Again, this was an accolade to the trust relationship with NCT. The Road Traffic legislation pertaining to overloading seemingly spawned an illegal industry in dumped timber with timber either being dumped before or after mill entry and collected by criminals for sale back into the industry. NCT accordingly joined the FSA industry initiative to come up with innovative means to put a stop to truck skimming. NCT also provided members and suppliers with regular guidance as to how to maintain vigilance over their loads throughout the supply chain.
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