27 INTEGRATED ANNUAL REPORT 2024 Reduced orders particularly for Eucalyptus resulted in NCT maximising Vryheid East access and curbing NCT Tree Farming access. Allocations were done appropriately to not overstock mill storage capacities but still allow a critically needed controlled timber flow for member cash flow purposes. Given the sudden downturn in the market, NCT published a series of Member Briefs to keep members updated of the situation unfolding on the global front and providing some decision-making tools with which to plan their harvesting operations. As stock levels increased in the NCT mills NCT Tree Farming offset vehicle capacity to the mill complex to move logs internally from log stock through to the chippers to speed up space availability for continued, albeit limited, member access. Specialised NCT work groups were established, each tasked to strategise around specific identified key areas of concern and to come up with workable and innovative solutions, alternatives and options. The market decline offered breathing space for NCT to reflect on chain-of-custody concerns, determine where the true risks lie, and to implement ameliorative measures. This given that supply chain integrity had arguably become rather loose during the “high road” marketing period. The tragic and devastating fire at the NCT Richards Bay Wood Chips Complex on 29 September 2023 changed the strategic trajectory of NCT significantly. Once the firefighting efforts were complete, NCT immediately prioritised the re-build and recovery phase: • Affected staff were reassigned tasks resulting in null staff losses post fire. • A commitment made to protect as best possible the Acacia bark industry. • A series of cascading market access points created for Acacia, north to south: NTE depots, Vryheid East depot, BayFibre Acacia storage, direct supply to NCT Durban Wood Chips. • Special Markets explored for every opportunity. • Strict financial prudence on all levels • Decontamination and refurbishment of damaged mill infrastructure as far as ongoing investigative and financial constraints allowed. • Client liaison and retention of trade relations. • NCT Tree Farming supply “removed” from the supply chain to maximise member access. • Establishing a robust Eucalyptus biomass project using mobile chippers. • Engaging with members and NCT Durban Wood Chips management to facilitate less vehicle congestion and freer flow of Acacia. • Regular post-fire update briefs to members. • Regular member mill visits. • Attend to and close out the unintended environmental consequences of the fire caused ostensibly by the fire water run-off.
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