Namibian marble set to enter the US market

NAMIBIA Stone Processing, the Omaruru-based dimension stone factory, yesterday signed a marketing agreement with USA-based Bridgewater Marble and Granite Works that could see the local plant increase its turnover by between N$10 million and N$40 million a year.

Announcing the deal at a press conference in Windhoek, Bridgewater’s Managing Partner Bob Foster was full of praise for NSP’s efforts to set themselves up in what is generally regarded as a tightly controlled market dominated by Italian interests. The deal comes at a critical time for the NSP plant, started a year ago to try and break the trend of Namibian minerals being exported in raw form.Almost all other Namibian marble and granite is currently exported in blocks to South Africa and Europe, meaning that 90 per cent of its value is lost to the local economy.An international marketing partner is generally regarded as a critical component for any such venture, without which problems such as deficient cash flows – which NSP CEO Oscar Shigwana frankly admitted to – could scupper millions in investment made.”I came to see (the NSP) plant, and I was very favourably impressed,” Foster said, adding that problems experienced so far by NSP were part of “normal teething problems”.NSP had also managed to hire an experienced factory manager, whom Foster said he would appoint any time in his factory.A veteran of the dimension stone business, Foster believes that especially the more colourful stone products would find ready buyers in his home market on the East Coast of the US.He had previously tested the market with some Namibian products – obtained from an Italian supplier – and had found ready buyers for them.Similar products from other emerging markets such as China and India could not compete with the variety and quality of Namibian dimension stone, he said.Especially the yellow-golden colours from Namibia were very popular in the US – and competing, Italian-owned quarries in Brazil were now beginning to run into environmental problems, Foster said.Nuno Lourenco, the Angolan director of NSP in which Angolans hold a 15 per cent interest, proudly announced that the first container of NSP’s slab products were being shipped to the USA to test the market.Another purchase order, worth N$1 million, is also to be placed soon.”This marks our entrance into the American market,” Lourenco said.At present, NSP’s tile production line was still experiencing some teething problems, and a calibrating tool – to measure the evenness of tiles – was being imported at a cost of N$1,3 million, Shigwana said.But cash-flow problems could soon be a thing of the past if NSP could show that it was successfully exporting its product – which Foster said he believed NSP was capable of achieving.NSP, which has come under criticism for its very high capital outlay (estimated to be as much as N$60 million) and not declaring the various individual interests in the venture, was still looking for a partner to participate in the equity shareholding, Shigwana said in response to questions.The current agreement was “purely a marketing agreement” but BMG and NSP were discussing various options through their Washington-based lawyer Tess Seranti, Shigwana said.Bridgewater Marble and Granite (BMG) is one of eight larger players on the US East Coast, whose collective turnover is in the region of about N$1,2 billion.BMG operates two divisions, namely an importing and distribution arm, as well as a fabrication and installation arm for marble and granite products in homes and business buildings, Foster said.BMG until now has imported stone from Brazil, India and Italy.* John Grobler is a freelance journalist; 081 240 1587The deal comes at a critical time for the NSP plant, started a year ago to try and break the trend of Namibian minerals being exported in raw form.Almost all other Namibian marble and granite is currently exported in blocks to South Africa and Europe, meaning that 90 per cent of its value is lost to the local economy.An international marketing partner is generally regarded as a critical component for any such venture, without which problems such as deficient cash flows – which NSP CEO Oscar Shigwana frankly admitted to – could scupper millions in investment made.”I came to see (the NSP) plant, and I was very favourably impressed,” Foster said, adding that problems experienced so far by NSP were part of “normal teething problems”.NSP had also managed to hire an experienced factory manager, whom Foster said he would appoint any time in his factory.A veteran of the dimension stone business, Foster believes that especially the more colourful stone products would find ready buyers in his home market on the East Coast of the US.He had previously tested the market with some Namibian products – obtained from an Italian supplier – and had found ready buyers for them.Similar products from other emerging markets such as China and India could not compete with the variety and quality of Namibian dimension stone, he said.Especially the yellow-golden colours from Namibia were very popular in the US – and competing, Italian-owned quarries in Brazil were now beginning to run into environmental problems, Foster said.Nuno Lourenco, the Angolan director of NSP in which Angolans hold a 15 per cent interest, proudly announced that the first container of NSP’s slab products were being shipped to the USA to test the market.Another purchase order, worth N$1 million, is also to be placed soon.”This marks our entrance into the American market,” Lourenco said.At present, NSP’s tile production line was still experiencing some teething problems, and a calibrating tool – to measure the evenness of tiles – was being imported at a cost of N$1,3 million, Shigwana said.But cash-flow problems could soon be a thing of the past if NSP could show that it was successfully exporting its product – which Foster said he believed NSP was capable of achieving.NSP, which has come under criticism for its very high capital outlay (estimated to be as much as N$60 million) and not declaring the various individual interests in the venture, was still looking for a partner to participate in the equity shareholding, Shigwana said in response to questions.The current agreement was “purely a marketing agreement” but BMG and NSP were discussing various options through their Washington-based lawyer Tess Seranti, Shigwana said.Bridgewater Marble and Granite (BMG) is one of eight larger players on the US East Coast, whose collective turnover is in the region of about N$1,2 billion.BMG operates two divisions, namely an importing and distribution arm, as well as a fabrication and installation arm for marble and granite products in homes and business buildings, Foster said.BMG until now has imported stone from Brazil, India and Italy.* John Grobler is a freelance journalist; 081 240 1587