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Ohrongo Cement planning further investment

World Cement,

In Namibia, Ohorongo Cement has decided to invest in a satellite plant at the port of Walvis Bay to enter international cement markets along the shores of Africa and the Americas.

The company, which belongs to the Schwenk Group in Germany, is currently setting up a N$ 2.5 billion, 750 000 tpa cement plant outside Octavi. It is reported that the company is not content to supply only the Namibian and southern Angolan markets, but wants to expand its cement exports as soon as the plant starts production at the end of the year. The satellite plant will be supported by the construction of what it terms sophisticated trans-shipment infrastructure needed to improve the efficient transport of cement to other African countries and the Americas.

Namibia is currently a net importer of cement, with most of the cement coming in from South Africa. As the new plant near Otavi will have a production capacity in excess of current Namibian cement consumption, Ohorongo Cement will be keen to enter the export market. Walvis Bay is the ideal place as it is the gateway to the West African coast, the Americas and other potential cement markets.

Preliminary negotiations between NamPort and Ohorongo had already begun in2008, with both partners appreciative of the advantages that a cement plant will bring for NamPort, Ohorongo and the town of Walvis Bay. The cement company is not yet able to disclose the size and capacity of the satellite plant nor the financial dimension.

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