THE Development Bank of Namibia has increased its stake in Ohorongo Cement, which is majority-owned by Schwenk Zement KG of Germany from 10% to 11,72%. This was said by the chairperson of the bank, Penny Akwenye, on Wednesday.
“The bank’s decision to increase its shareholding in Ohorongo Cement is firstly driven by its equity investment strategy to take up shareholding in business projects and secondly its desire to invest in quality assets with potential to earn profits to finance future development,” she said.
Other shareholders are the Development Bank of Southern Africa (7,3%) and IDC of South Africa (20%).
Ohorongo commenced production in December 2010 and produces about 700 000 tonnes of cement annually for the local market as well as for export.
Ohorongo MD Hans-Wilhelm Schütte said the company has invested N$150 million in a new production plant, which was opened on Wednesday.
The money will be used for a special composite cement plant at its facilities near Otavi.
At present, Ohorongo supplies the Namibian market and export market with only three different product types.
In order to meet the increasing demand for additional cement types, a new production unit is required, a so-called special composite cement plant, hence the further investment.
The new production unit will allow Ohorongo to produce various other types of consistent high quality cement.
In another development, minister of mines, Obeth Kandjoze, inaugurated the first ever simulation training centre at the plant.
“The reinvestment into the country is done to ensure a sustainable Namibian cement industry before any benefits have been derived by shareholders. This proves how serious Ohorongo Cement is regarding its investment into the country and its people”, said Schütte.
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