Tuesday, August 10, 2010

AFRICA: Ohorongo eyes American market

Ohorongo Cement is eyeing international markets, as the commissioning date for the plant nears. 

To facilitate the export of cement to the Americas, the company is now setting up a satellite plant at Walvis Bay port, as well as trans-shipment facilities. 

The Ohorongo Cement plant at Otavi comes on stream towards the end of this year. 

Its Managing Director, Hans-Wilhelm Schütte, says the company is not content to supply only the Namibian and southern Angolan markets with cement, but would also supply international cement markets along the shores of Africa and the Americas. 

“The main focus of such export markets was always the south of Angola and other neighbouring countries, but with the proposed satellite plant and trans-shipment facilities in Walvis Bay, the ocean will open up important additional markets,” says Schütte.

With a proposed annual production capacity above 700 000 tonnes, the cement plant would produce sufficient cement for local consumption, as well as for the export market. 

Ultimately, the cement plant would swell up the country’s total Gross Domestic Product by one percent, while current estimates indicate that the plant would contribute in excess of N$75 million every year to the overall economy.

Schütte says the idea to build the plant in Walvis Bay is not new, as Ohorongo has been in continuous discussions with the Namibia Ports Authority since the beginning of 2008, with both partners appreciative of the advantages an operating plant would bring for NamPort, Ohorongo and also Walvis Bay. 

“In this process, an environmental impact assessment was completed in 2008. Public hearings held in Walvis Bay also indicated the support for this proposal by the citizens of Walvis Bay,” say Schütte. 

He says Walvis Bay is the ideal place for this, being the gateway to the West African coast, America and other potential cement markets. 

“We can service our markets directly from our production plant, having a direct link by rail to Walvis Bay,” said Schütte. 

Construction of the Ohorongo plant commenced early 2009 at farm Sargberg, 20 kilometres north of Otavi. 

The plant is of the highest standards and places emphasis on the protection of the environment and ensures lowest emissions. 

Moreover, through the development of specialised technology, Ohorongo will produce clinkers, using biomass. This makes Sargberg one of the cement production plants with the lowest carbon dioxide (CO2) emissions anywhere in the world. 

German group, Schwenk, owns Ohorongo Cement. 

Ohorongo would take advantage of being ahead of other cement plants currently in the pipeline. 

The cement plant would employ 293 people, with an unspecified number of people to be employed in the ancillary services.

The Development Bank of Southern Africa, together with the European Investment Bank and the German Development Bank, provided long-term financing, while the Development Bank of Namibia and other local minority institutional investors provided short-term financing for the plant.

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