Willie Stander, CEO of White River Saw Mills: “Our people are our edge”
How does a sawmill without its own log supply survive Covid, a collapsing structural timber market and soaring input costs driven by load-shedding? For the White River Saw Mills (WRSM) Group, the answer lies in its relationships with people.
The group comprises White River and Densa Sawmills in Mpumalanga, which produce 88,000 cubic metres of kiln-dried, Forest Stewardship Council (FSC)-certified structural and appearance-grade lumber each year. They serve their local market, with a small volume exported to Botswana, Namibia and Zimbabwe.
White River Sawmill was founded in 1989 and is located off Sabie Road on the outskirts of the small rural town of White River. Densa Sawmill was acquired in 1993 and is nearer to Mbombela, the province’s economic hub.
Independent mills
Unlike vertically integrated groups, White River and Densa are independent mills without their own plantations. They rely on short-term, five-year contracts with their main supplier, the state-owned Safcol, which accounts for over 90% of their log intake and requires multi-million-rand deposits to secure.
CEO Willie Stander says this limits WRSM’s ability to achieve volume-driven growth. “We can’t risk making long-term investments in new technologies without securing a longer-term contract of at least ten years, which will let us build cash reserves and see a return before the deposit and supply terms come up again”.
The mills are designed to produce 88,000 cubic metres of kiln-dried structural wood products annually. Without the option of volume-driven growth, they are yield-driven instead. However, both mills still run on older Linck and Mohringer framesaw technology and lack the modern log and board scanners and semi-automated materials handling found at better-capitalised competitors.
“The only way for us to lift productivity is to extract more value from each log by salvaging high-value structural and clear appearance-grade timber. To do this, we need to rely on what we have, and our biggest asset is our people. They are our edge”, Willie explains.
People are our edge
White River employs 215 people and Densa 340, with turnover low enough that 30-year service awards are common. It was business as usual, Willie says, until 2020. The Covid lockdown was potentially devastating for the group and its employees.
“Fortunately, the industry associations, Sawmilling SA, Forestry SA and the SA Wood Preservers Association assisted the sector in having the forestry and sawmilling industries declared essential services, and we could start up again”.
White River's workforce is bussed in from surrounding villages and about 20% live in the staff village, while Densa's employees live close to the mill. Uncertain times, compounded by load-shedding, left the mill managers unsure how employees would react to the onerous compulsory Covid health and safety protocols
“Our staff had to queue up every day for health checks before work could start. We expected complaints or resentment and were surprised that there were none. Instead, everyone wanted to play their part in helping the company to survive. That is when the penny dropped”, Willie explains.
“Our track record of employee retention proves that our staff want to work for us. It was time to review communication and relationships and chip away at the ‘us and them’ barrier associated with large organisations.”
What began five years ago has gained momentum.
National days, sporting events, friendly competitions and staff development achievements are enjoyed and celebrated by everyone. The group offers and supports workplace wellness programmes, including courses in teamwork, leadership and personal finance management. Attendance is voluntary, and the programmes are scheduled at different times and intervals to fit people’s work schedules.
Competitiveness
While researchers say SA’s sawmills need to upgrade and modernise to remain competitive, WRSM is focusing on managing its tangible and intangible resources. “How do you measure company culture? How do you assign a value to acknowledging people for their dedication, hard work, positive attitudes and team and individual performance?” Willie asks.
Average mill recovery is around 51%, above the industry average of 47.4% for pine sawlogs. Shorter-length material is finger-jointed into saleable structural lengths, and planed flooring, decking and ceiling boards add value to otherwise marginal products while offering customers a wider variety of products.
None of the sawmills’ by-products goes to waste. Fibre is sold to the Sonae Arauco board mill and Sappi's pulp mill; dry wood shavings are used by horse and chicken farmers for bedding; bark is supplied to macadamia farmers for mulch; and the remaining biomass fuels the mills' boilers.
“We may have antiquated machines; however, we measure everything. This includes material yield, cycle times, machine productivity, maintenance and breakdowns, tooling and tool changes, and production costs per cubic metre in the wetmill and the drymill. Data analysis is indispensable for staying competitive in the industry,” he explains.
WRSM has embraced digital data management. It uses customised apps that have replaced manual paper-based records across stores, maintenance and HR, turning what was often lost, forgotten or hidden in mountains of paperwork into data the mills can act on.
Willie says it wasn’t easy to shift mindsets among so many long-serving staff, some with over 30 years at the company. Management had to demonstrate that measurement was a production tool rather than a means of catching people out. "We have had to persuade and educate our staff that capturing real-time data frees them to focus on their core functions rather than waste time on filing."
This data shows that well-maintained equipment lasts longer, consumes less energy, and delivers more consistent results. Willie says, “We have our own sawshop and our preventive maintenance schedules keep unplanned breakdowns low. However, through all of this, we must not forget that it is people operating the machines, changing the blades, chasing throughput and keeping the mills clean and safe”.
Customer service
Business is all about relationships.
“We are not the cheapest supplier; however, we have loyal customers because they know we are reliable and deliver on time”, Willie comments.
“Also, our data analysis goes beyond measuring productivity. We add value by monitoring orders and keeping our resellers informed about changes in market buying behaviour”.
Sawmill Improvement Award
In June this year, White River received the prestigious Crickmay & Associates Sawmill Improvement Award, which recognises the South African sawmill that improved its productivity and competitiveness between 2021 and 2025. Densa placed among the top 10 runners-up.
“This recognition belongs to every employee whose hard work, expertise and commitment contributed to our productivity improvement over the past five years,” Willie concludes.
