Joining forces
Nedbank Corporate and Investment Banking (CIB) was appointed by Noric Otavi Steel Processing (Pty) Ltd this week as the lead arranger for the Otavi steel manufacturing plant project at Otavi.
This was confirmed by Andre Neethling, director of Noric Otavi.
Nedbank will assist with the financial structuring of the project and the raising of both quasi-equity and debt capital for the N$2.7 billion initiative.
The two shareholders of Noric Otavi are Namibian company Otavi Rebar Manufacturing (Pty) Ltd (ORM) and Swiss-based company NORIC Swiss GmbH (NORIC).
NORIC will also be the engineering, procurement and construction contractor, as well as the plant operator, and take full responsibility for the planning, design, provision of technology, construction and operation of the plant.
Namibian contractors will be appointed sub-contractors for the construction that can be done locally, according to Neethling and Adriaan Grobler, director of Lithon Project Consultants, who are consultants on the project.
The project entails the development of a 300 000-ton per annum long product mini-mill steel manufacturing plant, where scrap steel is used as primary input and basic steel products (rebar and steel sections) are produced for the construction industry.
It involves receiving scrap and sorting it. It is then fed into an electrical arc furnace that melts the scrap, from which billets are casted and fed to a rolling mill that produces the different steel profiles and products. The target markets are Namibia, Angola, Zambia, Zimbabwe and Botswana.
The socio-economic impact of the project on Otavi will be significant, according the town’s mayor Martha Shipanga. It will create 350 permanent jobs, and with an eventual annual estimated revenue of N$2 billion, it will further stimulate other economic activities and development.
The population of Otavi will most likely double over the next two years when the construction is completed and operations begin. The Otavi town council has already made provision for additional industrial plots for supporting industries, as well as 1 500 new residential and other plots next to the new industrial area.
Shipanga said the town council has provided 77 hectares of land, through a public-private partnership for the project, and is also a shareholder. The project will substantially increase the town council’s revenue stream from the dividends, which will be used to develop Otavi even further.
Nedbank will assist with the financial structuring of the project and the raising of both quasi-equity and debt capital for the N$2.7 billion initiative.
The two shareholders of Noric Otavi are Namibian company Otavi Rebar Manufacturing (Pty) Ltd (ORM) and Swiss-based company NORIC Swiss GmbH (NORIC).
NORIC will also be the engineering, procurement and construction contractor, as well as the plant operator, and take full responsibility for the planning, design, provision of technology, construction and operation of the plant.
Namibian contractors will be appointed sub-contractors for the construction that can be done locally, according to Neethling and Adriaan Grobler, director of Lithon Project Consultants, who are consultants on the project.
The project entails the development of a 300 000-ton per annum long product mini-mill steel manufacturing plant, where scrap steel is used as primary input and basic steel products (rebar and steel sections) are produced for the construction industry.
It involves receiving scrap and sorting it. It is then fed into an electrical arc furnace that melts the scrap, from which billets are casted and fed to a rolling mill that produces the different steel profiles and products. The target markets are Namibia, Angola, Zambia, Zimbabwe and Botswana.
The socio-economic impact of the project on Otavi will be significant, according the town’s mayor Martha Shipanga. It will create 350 permanent jobs, and with an eventual annual estimated revenue of N$2 billion, it will further stimulate other economic activities and development.
The population of Otavi will most likely double over the next two years when the construction is completed and operations begin. The Otavi town council has already made provision for additional industrial plots for supporting industries, as well as 1 500 new residential and other plots next to the new industrial area.
Shipanga said the town council has provided 77 hectares of land, through a public-private partnership for the project, and is also a shareholder. The project will substantially increase the town council’s revenue stream from the dividends, which will be used to develop Otavi even further.
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