The feasibility study of setting up a chloralkali plant has been completed successfully. The market study focusing on the SADC region has also been completed. The current capital cost for the project is estimated at US$ 56,000,000, including working capital. The current capital structure is designed at 70% gearing, and the financial model shows the following fundamentals:
- Annual return on capital employed – 12%
- Annual return on equity – 39%
- Annual gross margin – 40%
- Annual net margin – 23%
- Net positive discounted cash flow by the 9th year @ 5% of capital employed
- Market growth – 12% by 2026.
Feasibility studies have been completed and construction work will commence in Q2, 2024. Off-take agreements for the purchasing of caustic soda and secondary products have been secured. Ambo Consulting Engineers CC is the appointed consulting engineering firm for the project. A syndicated loan is being designed in conjunction with development banks. The project will create 400 temporary jobs and 140 permanent jobs. The plant will be located in the Arandis constituency of the Erongo Region. Visit the link for more information.