Ohrongo defends pricing position, Namibia

Ohrongo defends pricing position, Namibia
11 May 2011

Recent consumer complaints about current prices of cement in the market have displeased local market leader, Ohorongo Cement, which says contrary to the complaints, the average cement price has gone down since the opening of its cement plant at Otavi.

Consumer complaints have surfaced stating that there is little price differentiation between competing cement brands. Complaints are of the retail prices, and specifically from further inland where prices have shot up in recent weeks.

There are three other cement brands in the Namibian market in addition to AfriSam and Ohorongo Cement. These are Conch brand imported from China, Lafarge, and another brand by a small Namibian cement importing company, Karibib Cement.

Ohorongo Cement, now says the complaints make it appear as if it is abusing its market position. The company is also upset that the story paints it as monopolistic, a perception that it is working hard to shake off.

Managing Director, Hans-Wilhelm Schütte, pointed out: “besides several price increases and increases in associated costs of logistics, Ohorongo Cement prices remain the cheapest in the market”.
Published under Cement News