Cement factories operating at 40 percent capacity in Nepal

Seventy percent of cement factories in Nepal are operating on just 40 percent of its total production capacity, and the rest have closed their operations at all, reported The Kathmandu Post

May 23, 2021
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Cement factories

Seventy percent of cement factories in Nepal are operating on just 40 percent of its total production capacity, and the rest have closed their operations at all, reported The Kathmandu Post. 

Due to the raging pandemic and restrictions, works on major construction projects have been stopped, resulting in a drop of more than 50 percent in the demand for cement in the country.

A total of 64 cement factories have a production capacity of 22 million tonnes annually, and 20 percent of which alone produced by three foreign firms in the country. 

A recent report by Nepal’s central bank stated that the country would need around 26 million tonnes of cement by 2024-25, as many infrastructure projects are in line. 

“There are several big, medium, and small projects, including a large number of national pride projects under construction, which are the major drivers for cement demand,” reads the report released by the Nepal Rastra Bank on the country's cement industry.

However, despite enough domestic production capacity, big projects usually prefer to import cement from India, given their superior quality and bulk supply capacity. There is also the issue of certification with most of the domestic suppliers.  

Nepali investors have invested around one billion dollars in the industry.

(SAM)

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