• Permanent job creation for between 250 and 300 employees.
• Secured cement supply for the domestic market. An increase in domestic demand will be adjusted by the decline of exports (Capacity: 650000 tpa - actual Namibian market: 320000 tpa).
• The reali sation of strategic projects, including power plants, water dams and infrastructure measurement with high cement demand.
• Development of the Otavi region by sustainable job creation, as weil as housing, infrastructure, schools for education, medical care and commercial facilities.
• Potential synergies between power plants and cement production.
• The delivery of limestone products for f1ue gas deaning systems in power plants and use of by-products from gas cleaning systems like flyash and DSG in the cement industry.
• Ignltion effects for other industries and foreign investments. Once the construction phase at Otavi starts Ohorongo Cement will contract Polysius AG, a highly competent partner for project elaboration, design, delivery, erection, commissioning and comprehensive service activities.
  The partnership between the Schwenk Group and Polysius has been in existance for more than a hund red years and their competence in erecting cement factories is why the company has been contracted . The plant is expected to be fullY functional by 2010, producing 700,000 tons of cement per year.
  The plant will use environment-friendly modern technology, and its energy consun:tption will be comparatively low using alternative fuels, including debushing, wood chips, plastics etc.

The ambassador said that the Schwenk Group, that is Schwenk Zement KG, a family owned company, has a long and successful history in Germany, with a tradition of 160 years in the cement and building materials industry.

"I am pleased that the German Embassy could support the Schwenk Group since it first showed an interest in this investment two years ago. The groundbreaking today is one of the first steps towards the expected completion in December 2010. Then the Ohorongo Cement Factory will become a strong contributor to Namibia's GDP. More importantly, this factory will create 300 jobs and many business opportunities which will provide employment for another 600 workers. Especially in these economically difficult times, such an investment is vitally important for the life of
many Namibians."

He said the Ohorongo Cement Factory will be the first self sustainable cement plant in Namibia and will substitute imports and thus also counteract cement shortages in the country as well as ever increasing cement prices. Namibia will be less dependent on the import of construction material.

Kochanke said in contrast to many other foreign direct investors, 'the Schwenk Group does not look for short-term gains and shareholder value. According to him, their commitment and business interest is a long term one.

"The deposits at this site in the Otavi Mountains should last for at least a hundred years and the Schwenk Group is determined to make this factory a lasting success story for the Otavi Region, the Namiban economy and the Namibian people. It is a winwin situation."

He added that one of the decisive reasons for this investment in the Otavi Region (apart from the abundance of raw material) is the good infrastructure. "The factory is strategically located next to the national road and the railway line. It provides easy access to neighbouring markets of southern Angola, through the Trans-Cunene Highway and to South Africa, Botswana, and Zambia through the Trans Caprivi Highway."

The German Ambassador said his government has supported Namibia's developmental efforts since independence and that since then, the country has received more that 500 million Euro.

In this regard he pointed out that one of the priorities was the transport sector, adding that Germany also supported the Trans-Caprivi- and Trans-Cunene-Corridors for many years. He said this development cooperation now helps to benefit the Namibian economy and the Namibian people.

According to Kochanke, Ohorongo Cement strives to promote local economic development and to introduce quality standards and environmentally sustainable energy utilisation. He said the factory will be based on the best available technology with low energy use and limited water consumption. "All environmental requirements by the IFC/World Bank and EU standards are being met. Namibia can profit from the transfer of leading technological knowhow and the use of alternative fuels from local resources."

The German Ambassador announced that Ohorongo Cement in cooperation with the Otavi Town Council, has initiated the Otavi Community Trust to which it already contributed N$100 000 as start-up capital for infrastructure investments. Together with the National Housing Enterprise, Ohorongo Cement plans to construct 200 new houses in Otavi.

Govenor of the Otjozondjupa Region, Mr. Theo Eiseb (photo)

He said that in the last 36 months Namibians have been frustrated by the shortage of cement in the country, and that it has without a doubt caused delays in the construction industry. "Therefore I have no doubt that with the emergence of the Ohorongo Cement Factory, we are bound to see a major boost in the economic development of the area, but also that of the regional, national and SADC economies." He added that with the reconstruction efforts in Angola, the Ohorongoro Cement Factory is bound to have them and others on board as major customers, which will auger well for
all. "I am convinced that this venture will help transform our economy from that of an importing nation to that of an exporting nation."

During the event, the Governor extended an invitation to all to visit the various historic sites in the region, and while doing so to look for other investment opportunities. "We are ready to engage everyone on our quest towards the economic independence of our region," he concluded.