The government of Namibia through the National Planning Commission under the Office of the President has given an endorsement support for the development of Otavi Steel in Otavi in Namibia.
National Planning Commission states that the development of Otavi Steel is in line with the Fourth National Development Plan, whereby manufacturing have been identified as one of the key strategic areas to bring about economic growth and employment opportunities in Namibia.
On March 7th 2012, Otavi Steel signed a Commercial Agreement with the Italy based company Danieli, one of the world's largest providers of steel making technology and equipment, for the development and construction of the Otavi Steel Nanomill in Otavi, Namibia. The Company plans to expand its steel mill facility to an annual gross production capacity of 10.3 million tonnes of steel, making it the largest integrated steel manufacturer in Africa.
Budgeted at USD 3 billion for the development and construction, the Otavi Steel Mill expects to create more than 25,000 of direct manufacturing jobs in Otavi with more than 150,000 of sustainable indirect jobs throughout Namibia. It is being financed privately, through a combination of debt and equity through a network of connected financial institutions including pre selected commercial banks in Southern Africa and Europe.
Otavi Steel will have an exponential positive impact on the overall Namibian economy as it will affect nearly every sector; from energy, water, roads, railway, shipping, mining, human capital, medical clinics, agriculture, education and more. It is an economic ecosystem by itself as more developers and investors are expected to flock to the Otavi area to setup new businesses to offer products and services for the Otavi Steel Mill workers.
Otavi Steel is a JV between Groot Group, SDS Group, Otavi Town Council, and Andre Neethling Family Trust. The construction of Otavi Steel Nanomill is planned to start in May 2013 and be commissioned 22 months later.
Source - Otavi Steel (Pty) Ltd
(www.steelguru.com)
