THE Ohorongo Cement manufacturing company 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 Germany's Schwenk Group, is currently setting up a N$2,5 billion cement plant outside Otavi with a production capacity of 750 000 tonnes cement per annum. It says it is not content to supply only the Namibian and southern Angolan markets with cement.
"We want to expand our cement exports when production starts at the end of this year," Hans-Wilhelm Schütte, Managing Director of Ohorongo Cement, announced on Friday.
"We consider setting up a satellite plant at Walvis Bay. This satellite plant will be supported by the construction of sophisticated trans-shipment infrastructure needed to improve the efficient transport of cement to African countries and the Americas."
Namibia is currently a net importer of cement, with most of the cement imported from South Africa. "Since the Ohorongo plant near Otavi has a production capacity in excess of the present Namibian cement consumption, we are looking further for export," Schütte said in a statement. "Walvis Bay is the ideal place for this, being the gateway to the West African coast, the Americas and other potential cement markets."
With the proposed satellite plant and trans-shipment facilities in Walvis Bay, the ocean would open up important additional markets, he added.
"Through Ohorongo's export activities, the positive effect on Namibia's trade balance will be significant."
Preliminary negotiations between NamPort and Ohorongo had already started in 2008, with both partners appreciative of the advantages an operating plant would bring for NamPort, Ohorongo and the town of Walvis Bay.
An environmental impact assessment (EIA) was completed in 2008, including public hearings where Walvis Bay residents indicated support for this proposal.
Although the principle decision for the investment was taken, Ohorongo is not yet able to disclose how big the envisaged satellite plant would be and the financial dimension.
"This is the planning stage and no details about the costs can be made at this stage," Kirsten Günzel, personal assistant to Schütte, told The Namibian on enquiry.
Construction of the Ohorongo plant near Otavi started early last year, with production to start at the end of this year. It is said to be the most modern plant in Africa.
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