Bangladesh: Six cement plants in Nowapara, in the western Jessore district of Bangladesh, have closed due to a combined crisis in operating capital, a lack of raw materials and a lack of government patronisation. The plants were part of a group of twelve established in 1997 in the Khulna Division of the country and it is now feared that the remaining six plants will be shut also. The group had a combined capacity of about 3.5t/day.
Questions had previously arisen regarding the quality of cement from the plants. According to local sources the owners of these plants were evading VAT by purchasing contraband clinker. In addition some manufacturers were using excessive amounts of fly ash, forcing them to sell their cement below the cost of production.
Subsequent to the closures local market share is being captured by King Brand, Akij, Scan and Elephant Brand cement.