Schwenk Zement International still eager to sell its local subsidiary despite Competition Commission decision
Despite the rejection by the competition watchdog of the proposed acquisition by West China Cement, Schwenk Zement International Germany has further interest to sell its local subsidiary Schwenk’s Namibia.
Schwenk Namibia owns about 70% of the shares of Ohorongo Cement, the first fully integrated local cement producer. Other shareholders are the Industrial Development Corporation (IDC), Development Bank of Namibia (DBN) and the Development Bank of Southern Africa (DBSA).
According to Schwenk’s strategy to concentrate on the core business cement, concrete and aggregates in Europe, Schwenk has decided to maintain its decision to divest its Namibian assets and therefore to sell Schwenk’s Namibia to interested parties under the following requirements: financial capabilities to make the acquisition and further develop the business; deep understanding and expertise in the cement business and a keen interest to further develop “growth at home”.
CEO Schwenk Building Materials Group, Thomas Spannagl in a statement this week said it is important to note that the search for a potential buyer included Namibian institutions, asset managers and other interested parties, however none could be identified that could fulfil the above three requirements.
“Regardless of when a suitable buyer will be found and as in the past, it will remain the objective to continue to optimize the operations in Namibia in order to remain competitive and reliable in the Namibian market,” he said.
After the commissioning of the cement plant during December 2010, initiated by Schwenk in 2007, the business has successfully grown ever since.
Schwenk has fulfilled and completed its development objectives by constructing a fully-fledged modern cement factory including the transfer of expertise to a workforce of locals.
Further, this development included the promotion of SME suppliers and the establishment of an innovative industry e.g. alternative energy, contributing to the national development goals “growth at home”.