Rebar foundry takes shape Deal with South Koreans sealed Work on constructing the first foundry plant is progressing well according to its developers, Otavi Rebar manufacturing. Plans to set up the first foundry plant are progressing well and ready for implementation, according to developers Otavi Rebar and Steel. The plant will be integrated into the envisaged Rebar manufacturing plant in Otavi. Initial capacity is anticipated at 60 tonnes per month and its developers are confident the operation will be successful grabbing 20% of the existing market share. Namibian Sun spoke to project coordinators, André Neethling and Sakkie Kaulinge. The duo revealed that discussions had been held and that the foundry project was ready for implementation. “We have had several discussions with relevant stakeholder following the feasibility study in August 2015 and we are ready to go.”
Said the duo: “However, what is important is that the foundry project will be incorporated into the steel project at Otavi, as the size of the furnace, in this case 70 tonnes, is a critical factor in operating a large foundry productively to serve Namibia and neighbouring countries. Serious discussions have taken place in this regard.
“The modalities and structures of integration and cooperation will be finalised between the different stakeholders in due course. We have been informed that a used foundry plant is available in one of the Balkan states. This opportunity will be assessed by the project team.”
In a motivation published in an investor handbook that was available to delegates that attended the Invest in Namibia International conference, Otavi Rebar said: “There is significant market potential and interest to warrant the establishment of a foundry facility. There is currently no foundry industry and imports of products relevant to castings are estimated at N$740 million per annum. More than sufficient scrap metal is generated locally to support a medium-sized foundry operation.”
Regarding Otavi Rebar and Manufacturing, both Neethling and Kaulinge stated that the deal with MK Steel had been closed.
“We had serious discussions with our partner, MK International from South Korea in the months leading up to the conference and managed to finalise all the outstanding matters to allow us to close the deal. We utilised the conference to discuss the project with several business and related entities that will be required for the successful implementation of the steel manufacturing project in Otavi. This is a joint venture between Otavi Rebar and MK international, based in South Korea.”
OGONE TLHAGE