Namibian tycoon Sven Thieme's Namibia Dairies spends $3.3 million on long-life milk line

Namibia Dairies, the milk processor owned by Namibian tycoon Sven Thieme's Ohlthaver & List Group, has spent about N$54.5 million ($3.3 million) on a new filling line for long-life milk, replacing equipment that had run for more than 15 years.

The Tetra Pak A3 Flex line can fill up to 8,000 packs an hour. The installation also includes a new conveyor system, a helix accumulator, a cardboard packer, new cap application equipment and other packaging and handling machinery.

Thieme, executive chairman of the O&L Group, recently visited the Namibia Dairies plant to see the line running.

"We are investing today for the next generation of growth," he said, adding that the spending reflects the group's confidence in its people, its products and the future of Namibian manufacturing.

Old line, new line

The old filler packed Namibia's only locally produced long-life milk. It needed more and more maintenance, ran on outdated technology and was becoming hard to keep supplied with spare parts and service support. The company said the new line improves reliability and cuts the risk of unplanned stoppages.

The filler sits at the center of the ultra-high temperature, or UHT, process. It fills, seals and packs long-life milk and other shelf-stable products under sterile conditions. UHT milk keeps for six to nine months, compared with six to eight weeks for fresh dairy products.

The upgrade also opens the way for 500-milliliter UHT packs and a possible move into shelf-stable juices. It gives Namibia Dairies a more dependable platform to process rising milk volumes from Namibian and regional farmers.

Packaging waste is expected to drop to about 1.5% from about 4%. The company has redesigned its packaging, now sources materials from South Africa to cut stockholding and supply costs, and has replaced glued-on caps with injection-molded caps that carry a tamper-proof ring-pull seal.

Bringing UHT home

The spending builds on a decision Namibia Dairies made in 2022 to bring production of its Nammilk UHT range back to Namibia after years of relying on processing in South Africa. The new filler keeps that local production running.

Namibia Dairies is one of several businesses in the O&L Group, Namibia's largest privately owned company, which has interests in food processing, fishing, retail, property and hospitality. The group traces its roots to 1919.

Thieme is a grandson of Werner List, who built O&L into one of the country's largest business groups, and now runs the family-controlled company as executive chairman.

Figures were converted at N$16.6 to the dollar.