A new Namibian steel recycling and manufacturing plant is expected to boost local content in the industry.
It is estimated that the N$2.75 billion Otavi-based steel plant will generate a revenue stream of N$2.8 billion within the first year of production, project manager Adriaan Grobler, director of Lithon Project Consultants, told the Namibian Economist.
‘The project will be a catalyst for the steel industry in Namibia. It will smelt scrap and produce rebar and other steel sections (around 300 000 tons per year) for the construction industry, thereby stimulating both the scrap industry as well as providing steel on a cost-competitive basis to the construction sector.’
According to Grobler, the annual revenue stream for the plant will increase to N$6.1 billion after the first 10 years.
With the plant set to create an estimated 350 permanent jobs, the Otavi town council, which is a shareholder in the project, has provided additional industrial plots for supporting industries, 1 500 new residential plots close to the area as well as 77 ha for the project itself.
