Angola: Pan-African group Lonrho creates construction materials centre in Angola

13 October 2008

Luanda, Angola, 13 Oct – The Lonrho group, with a vast portfolio of investments in Africa, has announced it plans to set up a construction materials distribution centre in Angola’s Bengo province.

The project, which will cover an area of 75 hectares, will be located in Quinzenze/Mussenga in Dande municipality.

In order to launch the project Lonrho plans to set up an Angolan company called Lonrho Aggregates Angola (LAA) in which it will have a 51 percent stake.

The other shareholders of LAA will be Angolan company Project Net Lda with 14 percent and materials supplier Golden Market SA, with 35 percent.

The project is expected to represent an investment of US$5 million, 65 percent of which will be funded by Angolan banks.

The executive chairman of Lonrho, David Lenigas said that the location of the project was ideal because not only was it to the north of the Angolan capital and close to where the new city of Luanda will be built, but also to the area where the Soyo liquid gas refinery is being built by Bechtel, at a cost of some US$4.5 billion.

Lenigas also said that this construction materials depot would also support other of Lonrho’s projects in Angola, namely the Enditrade logistics terminal and the company’s water bottling factory.

Lonrho said it believed that wide-scale infrastructure development in Angola had led to greater consumption of construction materials than the existing capacity of the Angolan market.

Importing construction materials into Angola is one of the serious problems the country faces as there are delays and congestion at the country’s main ports, which led to subsequent delays in delivery of the materials.

Lonrho is involved in areas as diverse as hotels, aviation, sea transport, mining, water factories and logistics centres for the fuel industry. (macauhub)