Nepal: Arghakhanchi Cement has obtained a consortium loan pledge to finance the expansion of its cement plant from 1200t/day (0.4Mt/yr) to 3000t/day (1.0Mt/yr). The company expects to spend US$38.6m, including US$27m in consortium financing led by Nabil Bank. Other banks involved include Nepal Bank, NIC Asia Bank, Global IME Bank, Prime Bank and Century Bank.

The company's promoters, the Siddhartha Group, Murarka Organisation, Kedia Organisation and India's Uma Cement International, will invest US$11.6m in the expansion project.

When it is completed by the close of 2017 Arghakhanchi Cement will be the largest cement factory in Nepal. "If we don't increase our capacity and achieve economy of scale, we will vanish once big plants with foreign investment start producing cement," said Rajesh Agrawal, Managing Director.

Nigeria’s Dangote Cement, China’s Hongshi Cement and Huaxin Cement and India’s Reliance Cement have all received approval to start operations in Nepal. Their combined foreign direct investment amounts to US$1.45bn and their proposed output stands at 22,000t/day (7Mt/yr).