Schwenk International offloads Ohorongo Cement stake to Singapore-based company
German company, Schwenk Zement International announced this week that it has signed a share purchase agreement to sell 100% of the shares of its local subsidiary Schwenk Namibia to Singapore-based company, International Cement Group.
Schwenk Namibia owns approximately 70% of the shares of Namibia’s first fully integrated cement producer, Ohorongo Cement. According to Schwenk, the reason it has decided to divest its Namibian assets was to concentrate on the core business cement, concrete and aggregates in Europe.
Other shareholders of Ohorongo Cement are; Development Bank of Southern Africa, Development Bank of Namibia and Industrial Development Corporation.
After the commissioning of the cement plant during December 2010, initiated by Schwenk in 2007, Ohorongo Cement has successfully completed its development objectives by constructing a fully-fledged modern cement factory including the transfer of expertise to a workforce of Namibians.
Listed on Singapore’s Stock Exchange, International Cement Group’s key focus is to invest in the business of production, sale and/or distribution of cement in Central Asia, Africa and South-East Asia.
Meanwhile the acquisition of Schwenk Namibia, marks the company’s first foray into the African cement market and allows it to gain an immediate operational presence in the African cement market.