Namibia: Ohorongo sees output rise in 2013

The Ohorongo cement works in Namibia saw its output rise by 23 per cent in 2013 after a muted 2012 production.

While the company experienced a difficult business environment in 2012 with imports from Asia capturing a large share of the market, last year saw an improved scenario. The cement producer supplied product to multibillion dollar construction projects such as the Husab uranium mine and the Grove shopping centre.

The outlook for 2014 continues to be positive. "In the future, large developments will follow, such as the Neckar Valley Dam and the expansion of the port in Walvis Bay ," says Hans Wilhelm Schütte, corporate director of Ohorongo Cement. "With the planned construction of the Walvis Bay port area, we hope that all the materials are also obtained from the Namibian market," he said. In contrast, the Neckar Valley cement supply is not a problem as opposed to the project’s logistics. Because of the extent of the project, this project had to be supplied by rail connection. However, it still had several challenges with Transnamib to eliminate , including in particular flaw in the infrastructure.

However, exports from the Namibian producer have not yet reached the expected level. Only 10 per cent of output is destined for export to Angola, Botswana, Zambia and South Africa. " We want to increase our exports strong this year, especially the export volume export to Angola could be larger," said Carina Sowden, Ohorongo spokeswoman.

In addition, the cement plant is still awaiting the granted state protection for infant industries, which offers newly-established industries the opportunity for economic success. The local cement industry had been awarded this status in August last year, but it will only be partially executed. “The Namibian Ministry of Finance has entered into a special agreement with an Asian importer. The framework is currently under consideration by the court,” said Ohorongo in a statement.