Schwenk Cement International considering exit from Namibian market

Schwenk Zement International GmbH & Co KG appears to be eager to withdraw from the Namibian market, only a decade following their investment in a modern factory as indicated by local news reports. In 2010, Schwenk founded the Ohorongo Cement plant in Otavi with a minority share owned by development banks, including the Development Bank of Namibia. Despite this, Schwenk sought to part with their Namibian business less than ten years later, encountering opposition from the competition commission in 2020.

Reports from The Namibian suggest that there is now a controversial atmosphere surrounding Schwenk’s second attempt to exit. Namibian politicians are suggesting that Ohorongo’s proprietors have not acted in good faith by not providing the opportunity to purchase the business to local citizens of Namibia but instead expressing interest in West China Ltd, according to The Namibian.

Ohorongo Cement expressed dissatisfaction with Namibia’s decision to allow bulk cement imports from China by figures held in high esteem by Swapo politicians, such as Jack Huang’s Jack’s Trading CC, for the expansion of the Walvis Bay harbor by the Namibian Port Authority using imported, rather than domestic, cement. The only other notable cement producer in Namibia, aside from Ohorongo Cement, is Whale Rock Cement (Pty) Ltd, operating a 0.825Mta plant in Otiwarongo. Nonetheless, the African Portland Cement company is making plans to establish a 0.2Mta cement plant in Otiwarongo. The situation surrounding Schwenk Zement International’s continuous efforts to exit the Namibian market remains intriguing and continues to generate buzz in the local news circuit.