Kyalami Surface Business Plan — ESG and Sustainability

Film waste, solvent handling, skills development and the environmental and social commitments undertaken.

Section 18 of 31

ESG and Sustainability

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A genuine skills-development contribution and a genuine unresolved waste problem.

Social — the strongest element of the case

The Company’s central operational constraint is also its clearest social contribution. The internal certification programme takes candidates from automotive refinishing and signage backgrounds and trains them over twelve months into a scarce, portable and well-paid trade skill. By FY32 the Company will employ 30 to 32 people, of whom 13 are certified technicians earning substantially above the sector median, and will have carried a further cohort of apprentices through certification.

Table 25. Employment and skills development

Metric

FY28

FY29

FY30

FY31

FY32

Total employees

11

19

26

30

31

Certified installers (FTE)

4.0

7.8

11.8

13.0

13.0

Apprentices in certification

2

3

4

4

4

Training spend (R000)

132

264

289

308

330

Environmental — including what the Company cannot yet solve

  • Water: closed-loop wash bay recycling recovers approximately 80% of wash water, material in a water-constrained Gauteng.
  • Energy: LED lighting throughout, inverter capacity sized for critical loads, and a rooftop solar installation contemplated for Studio 1 in Year 3 subject to landlord consent.
  • Chemicals: coating and correction chemistry stored and disposed of through a licensed hazardous waste contractor.
  • Avoided emissions: film and coating extend the cosmetic life of a vehicle and avoid respray operations, which are solvent-intensive. A full respray avoided saves materially more emissions than the film installation generates.

Film waste has no good answer in South Africa today

Paint protection film is a thermoplastic polyurethane laminate with an acrylic adhesive. Offcut waste runs at roughly 20% to 25% of film consumed even with software pattern-cutting, and there is no established recycling route for it in South Africa. It currently goes to landfill.

The Company will reduce the volume through pattern nesting and will engage with the manufacturer on take-back programmes operating in other markets, but it would be dishonest to present a solution that does not exist. A development finance institution assessing this investment against environmental criteria should treat this as an open item.

Governance and transformation

  • Independent non-executive director appointed at financial close.
  • Targeted B-BBEE Level 4 at inception improving to Level 2 by Year 3, driven principally by the skills development and enterprise development elements rather than by ownership restructuring.
  • Preferential procurement from qualifying local suppliers for consumables, facilities and services where technically equivalent.
  • Occupational health and safety programme covering chemical handling, ergonomics and lifting equipment, with a documented incident register.