Ohorongo Cement critical for growth

Ohorongo Cement was hailed this week as a vital partner to Namibia’s development, and a shining example for other local enterprises to emulate. The company celebrated three major milestones this week, the highlight being an announcement that the Development Bank of Namibia (DBN) would increase its shareholding in the local enterprise from 9.07% to 11.73%. This agreement has resulted in a new ownership structure for Ohorongo Cement, with founders Schwenk Namibia now owning 69.83% of the company, the Industrial Development Corporation (IDC) owning 14.27%, and the Development Bank of Southern Africa owning a further 4.17%. The shareholding announcement was made at the Ohorongo’s Sargberg Cement Factory, just outside Otavi, on Wednesday. Speaking at the event, DBN Chairperson Penny Akwenye explained the lender’s increased stake in the company as driven by its existing equity investment strategy, to take up shareholding in business projects of national importance. “At DBN we consider the local production of cement as a necessary input for most construction activities of strategic importance for the development of our infrastructure and economic growth” Akwenye said. The DBN took advantage of the the opportunity to increase its ownership in the company after the Industrial Development Corporation of South Africa, made the shares available for purchase. “At the time when DBN first acquired an equity shareholding in Ohorongo, cement was imported from across the border,” Akwenye said. “This placed the country at the mercy of pricing from across the border. Should the pricing suddenly increase, Namibia would experience an increase in building costs, and naturally building would slow down and infrastructure project expenses would increase,” she said. Breaking new ground Wednesday’s ceremonies included the inauguration of a new simulation training centre, and the groundbreaking ceremony of a new, N$150 million composite cement plant. The new cement plant will allow the business to add production and packaging capacity in anticipation of several ‘Vision 2030’ projects for which it is expected to supply cement – construction of the Neckartal Dam, and a major expansion at the Namibian Ports Authority (Namport). Ohorongo Cement MD Hans-Wilhelm Schütte said the new training centre is a first for Namibia. Before its launch, the company sent more than 60 Namibians for training in Europe at the VDZ, Siemens and ThyssenKrupp Polysius. “I am delighted to witness these milestones in the history of Ohorongo cement”, said Minister of Mines and Energy Obeth Kandjoze. “Having started with only a handful of employees a few years ago, the Ohorongo Cement workforce has grown into a highly committed and competitive team which is tackling the challenging task of operating Ohorongo as Namibia’s only cement producing company,” he said. He especially applauded the company’s support for government’s ‘Growth at Home’ campaign. “The company’s focus on supplying a variety of products as required by the market, the composite cement plant and the new packaging line being a case in point, is a smart move. “Not only for reason of increasing customer satisfaction but because the company is safeguarding its position in the unlikely event of a downturn in one product or significant competition in the industry for that matter. “The fact that Ohorongo Cement is Africa’s most modern and efficient cement plant means that we, as a country, are benefiting in terms of job creation and transfer of specialised skills and knowledge,” the minister said. “This puts us at a competitive advantage regionally and even continentally as we become experts in a new industry.” WINDHOEK DENVER ISAACS