Whale Rock Cement, the second cement producing company in Namibia after Ohorongo Cement, expects to fully commission its plant at the end of October, spokesperson Manfred /Uxamb told the Windhoek Observer this week.
Production at the new cement plant, a joint venture between Chinese and Namibian partners, started in April.
The Whale Rock plant was built at a cost of US$350 million.
Production at Whale Rock Cement, which produces the Cheetah cement brand, will be 1.2 million tonnes per annum bringing the country’s cement production capacity to 2.2 million tonnes per annum.
Ohorongo Cement MD Hans-Wilhelm Schutte recently warned in an interview with the Windhoek Observer that the new cement manufacturer’s entry onto the market will leave Namibia with an excess capacity of 1 million tonnes of cement, which will likely threaten the sustainability of jobs in the sector and other related industries.
He said no big construction projects are expected in the country in the foreseeable future as both the government and the private sector have cut on construction projects due to the current economic downturn.
But /Uxamb poured water on the assertions, saying Whale Rock Cement is targeting the global market.
“Whale Rock Cement has already started with cement production in April and has entered the market in May 2018. The plant will be fully commissioned at the end of October. Our plant is built for a global market from the start. Our horizon is stretched and wherever needs arise, our cement will be there globally.”
/Uxamb said the major impact of Cheetah Cement’s entry on the market is that cement prices will drop benefiting consumers.
Current demand in Namibia is estimated at about 500,000 to 600,000 tonnes.
Whale Rock, which is situated near Otjiwarongo, recently imported clinker from China for the plant.
Originally, the company intended to buy clinker from a local producer, but the negotiations failed, leading the cement producer to settle for imports instead.
The plant is expected to create around 600 jobs when operating at full capacity.
Asked what impact the new cement plant will have on the construction industry, Construction Industries Federation of Namibia General Manager, Bärbel Kirchner, said cement prices might go down.
“This can have an impact on pricing. If the competition is unfair, that industry needs to be protected. Anyone involved in the construction sector knows that the price of a product cannot be the sole criterion when buying building material.”
She said with regard to any product, it is especially important that the consumer be assured of the quality of the product.
“This can be done by a recognised institute such as the Namibia Standards Institute, which determines if a product meets local or international standards. This becomes particularly relevant when we look at how much building material generally is being imported. Any buyer of products should ask for the proof of certification by an internationally accreditation institute.”
Kirchner said that in general, quality positively impacts the longevity of an infrastructure in the interest and safety of its users.
“In a nutshell, pricing plays a role, but surely also quality, in particular in the building and construction sector. Another critical factor, often ignored by buyers of construction services and material, is the question of local value addition. Surely, this must be taken into consideration, especially if we are to consider Namibia’s current trade balance and the state of our economy.”