3 new cement factories to start production in 6 months, Bishal Cement,Ghorahi Cement,Sonapur Cement, Cement companies in Nepal

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Posted On: 2011-10-14

3 new cement factories to start production in 6 months

Kathmandu:Three new cement factories are scheduled to start production in the next six months. With these three—Bishal Cement, Ghorahi Cement and Sonapur Cement—coming online, the country’s daily output of cement will swell by 2,150 tonnes.

Bishal Cement, located in Rupendehi, expects to launch its product in mid-November. According to its executive director Jayendra Chudal, the factory plans to produce 400 tonnes of cement daily in the beginning.

Ghorahi Cement in Dang plans to enter the market in mid-March 2012. The company has completed 85-90 percent of its construction and has imported the main machinery required for production. It plans to produce 1,000 tonnes of cement daily. The company has its own limestone quarry and will provide direct employment to 500 people.

Sonapur Cement situated at Bijauri, Dang is in the final stages of construction. According to factory manager Basu Pandey, its limestone-based factory has a capacity of producing 750 tonnes of cement daily. “We have almost completed the construction of the factory, and will start production soon.”

With more private players entering the cement industry, domestic products now have a market share of about 65 percent. The annual requirement of cement in Nepal is estimated to be 4.5 million tonnes (90 million bags). Cement imports have declined along with the increase in domestic production. According to Nepal Rastra Bank’s annual macro-economic report, imports dropped 8 percent in the last fiscal year.

As of the present, there are 36 cement factories in the country with a combined investment of around Rs 250 billion. Among them, nine factories including Udaypur Cement, Hetauda Cement, Maruti Cement and Reliance Cement have limestone quarries.

With more factories producing cement by grinding clinker, the import of clinker has increased in recent years. According to the statistics of the Trade and Export Promotion Centre, the country imported clinker worth Rs 8.03 billion in 2009-10, a jump from Rs 3.9 billion in 2008-09.

President of the Cement Producers Association (CPA) Aatma Ram Murarka attributed the rise in imports to an increase in clinker-based cement factories in the last few years. According to Murarka, about 75 percent of the cement factories in Nepal are clinker-based which use mainly imported raw materials. Another three factories—Dang Cement, Rolpa Cement and Chaukuna Cement—are at the construction stage.

source: The Kathmandu Post, 13 Oct 2011

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