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Afrisam Namibia to join Ohorongo Cement

Published on: 1 November 2010

Ohorongo Cement (PTY) Ltd and AfriSam Namibia (PTY) Ltd intend to enter an agreement under which the AfriSam organisation will sell and distribute cement under control of Ohorongo Cement in Namibia and neighbouring countries. With this agreement, AfriSam Namibia effectively transfers the firm’s operations and
entire market share to Namibian company Ohorongo Cement.

Under the agreement, effective 1 November 2010, Ohorongo will, until production at its local factory commences, import cement from South Africa. Building on AfriSam’s long history of involvement in the Namibian market and well-established distribution network with long-standing relationships between AfriSam employees and their
customers, the AfriSam Namibia sales team will distribute the cement in Namibia and neighbouring regions on behalf of Ohorongo Cement.

With the construction of the Ohorongo cement plant almost concluded, a total supply of 700 000 tons of locally produced cement will annually be supplied to Namibia and neighbouring countries, mainly southern Angola and the West African coast.

“In light of Ohorongo’s forthcoming start of production in Namibia, it will be difficult for AfriSam to compete in Namibia. AfriSam’s experienced personnel will offer a valuable contribution to the partnership between Ohorongo and AfriSam,” states Johan Burger, Manager of AfriSam Namibia.

Hans-Wilhelm Schütte, Managing Director of Ohorongo Cement, is looking forward to Ohorongo’s partnership with AfriSam. Schütte points out: “AfriSam has a wealth of experience in the marketing and distribution of cement in Namibia. Ohorongo can only benefit from this expertise.”

Ohorongo started construction of the N$2.5 billion cement plant early in 2009. The turnkey contract to build this only cement plant in Namibia was awarded to Polysius, daughter company of Thyssen Krupp and renowned for the construction of world-class cement plants. Deploying the best available technology, ensuring highest
standards in terms of quality, occupational safety and environmental protection, Ohorongo will have the capacity to produce 4 400 bags of cement per hour.

The impact of Ohorongo’s operations on the Namibian economy will be significant. It is estimated that the firm’s activities will raise the Namibian GDP by at close to 2 percent. Through employment opportunities created and secondary businesses set up as response to the presence of Ohorongo, the town of Otavi close to which the
plant is situated will particularly benefit.

Categories: Media Releases

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