Cement producers to combine business in Namibia

In Namibia, Ohorongo Cement and AfriSam Namibia are reportedly in talks to consolidate their businesses rather than enter into competition against each other. However, it is not clear from reports in the press which company is taking over the other. AfriSam has said that it will be selling and distributing Ohorongo cement in Namibia and neighbouring countries. Ohorongo Cement, meanwhile, puts it that it will be taking over AfriSam Namibia’s operations, after which point the latter company will no longer exist. In doing so, Ohorongo Cement will be able to make use of AfriSam’s existing distribution network.

Ohorongo Cement, a Schwenk company, will shortly be starting its new N$ 2.5 billion facility in Otavi. Spokesperson for the company, Kirsten Gunzel, said: “There is no question that Ohorongo would have taken the Namibian and regional market by storm but, it would have taken longer than it will with the AfriSam agreement.”

AfriSam holds a capacity of 4.6 million tpa from six facilities, distributed across Sub-Saharan Africa via nine depots. The agreement between AfriSam and Ohorongo Cement has yet to be finalised.

Read the article online at: https://www.worldcement.com/africa-middle-east/14102010/cement_producers_to_combine_business_in_namibia/