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News Nepal

Displaying items by tag: Nepal

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Udayapur Cement resumes operations after six-month shutdown

25 April 2025

Nepal: Udayapur Cement Industry resumed operations on 24 April 2025, despite ongoing legal disputes and internal administrative obstructions, according to acting general manager Mahesh Sah. The plant ceased all activities in late November 2024. It began kiln firing at 10:40am local time and expected clinker production to begin after eight hours of machine operation.

The plant aims to produce approximately 400t/day of clinker. Coal and dinepalesel stocks are expected to last 12 days. Sah noted that coordination has been made with the Nepal Electricity Authority, which has assured uninterrupted power supply despite outstanding dues. Udayapur Cement, a fully state-owned enterprise, has a daily production capacity of 800t/day.

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Hetauda Cement Industry resumes production after five-month hiatus

08 April 2025

Nepal: Hetauda Cement Industry resumed cement production on 7 April 2025 following a five-month suspension due to electricity shortages. According to general manager Nabin Kumar Karna, the plant requires 8MW/day of electricity to crush limestone.

The plant reportedly holds 1900t of coal in reserve and is acquiring a further 4000t through a bidding process. Though its capacity is 18,000 bags/day, current output is only 12,000 bags/day.

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Hetauda Cement Industry to resume operations

26 March 2025

Nepal: Hetauda Cement Industry will restart production in the first week of April 2025 after completing machinery maintenance, securing raw materials and reaching agreement with employees, according to local news reports. The state-owned plant halted production on 1 October 2024. It has a capacity of 16,000 bags/day.

Acting general manager Nabin Kumar Karna said “It took some time to repair the machinery as it was old and damaged. The machines were installed when the industry was first established in 1977, and replacing them immediately was not possible due to financial constraints. Currently, we have about 100t of coal in stock, and more is expected to arrive starting tomorrow, so the raw material supply is not a major concern.”

Karna said that the electricity issues the company had previously faced had been resolved, and the Nepal Electricity Authority were ‘committed’ to providing a regular electricity supply.

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Nepal’s parliamentary committee to address cement price ‘cartel’

20 January 2025

Nepal: The Public Accounts Committee of the House of Representatives has received a complaint alleging that cement producers have created artificial shortages in order to raise prices, according to Republica newspaper. A meeting has been scheduled to discuss the complaint.

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Hetauda Cement Industry faces disruption

07 January 2025

Nepal: Hetauda Cement Industry has paused production for nearly three months, with no clear timeline for the return to regular cement production, according to Khabar Hub news. The company has cited a need for repairs to various equipment and the installation of new machinery as the cause.

Basanta Raj Pandey, general manager, said that operations depend on confirmation of a regular 8MW power supply from the Nepal Electricity Authority. Ongoing negotiations with the NEA have reportedly yet to resolve daily power cuts, which have delayed the repairs and installations, which are expected to take several more weeks. The company once produced 18,000 bags/day of cement, but now produces just 10,000 bags/day due to deteriorating equipment. A bidding process for the procurement of 4000t/day of coal has now begun.

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Nepal construction sector hit by rising cement prices

10 December 2024

Nepal: Construction activities in Nepal have been impacted as a result of private cement manufacturers raising prices, allegedly through cartelisation, according to Online Khabar news. According to Ravi Singh, president of the Federation of Contractors’ Associations of Nepal, contractors are struggling to purchase cement at the increased rates.

He said “On one hand, contractors have not been paid for completed projects, and on the other, rising cement prices have pushed many to consider halting construction altogether.”

He accused manufacturers of cutting production by up to 40% to create an artificial shortage, calling it “a tactic to manufacture scarcity and exploit the situation.”

Many contractors have already stopped purchasing cement at the new prices. Cement producers defended the price rise, claiming it corrects previous underpricing caused by ‘unhealthy competition’. The Department of Commerce, Supplies and Consumer Protection has held discussions with producers, giving them seven days to justify the price hike and submit their price lists.

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Nepal exports US$3.81m-worth of cement to India via Kakarvitta crossing in 2024 financial year

29 August 2024

Nepal: Exports of cement to India via the Kakarvitta road border crossing in Jhapa totalled 50,000t in the 2024 financial year, which ended on 15 July 2024. KhabarHub News has reported that shipments had a combined value of US$3.81m. The Kakarvitta crossing had not previously served to convey major despatches of cement between the two countries. The cement industry in Jhapa is 50% dependent on export markets for its demand. Eight plants operate in the district, of which three currently sit idle due to 40% local oversupply.

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Nepal sees rise in cement and clinker exports

24 July 2024

Nepal: Exports of cement and clinker reached US$48bn in the 2024 financial year, tripling the figure from 2023, according to the Department of Customs. Exports of cement were US$23.5m, while clinker exports stood at US$22.5m.

This follows the government’s introduction of an 8% cash incentive for mine-based product exports and the identification of cement as a potential export item in the Nepal Trade Integration Strategy 2023. Policy changes, including tariff waivers on significant electricity usage by manufacturers, also contributed to this growth.

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Sarbottam Cement concludes initial public offering

19 March 2024

Nepal: Sarbottam Cement's initial public offering (IPO) concluded on 8 March 2023, with the company issuing 13% of its capital. SSPro News has reported that this corresponds to a value of US$35m. Of the issued shares, 40% were allocated to qualified institutional investors. The issue was oversubscribed by a factor of 18.

The last traded price of Sarbottam Cement’s shares had risen by 10% on its first trading day on 19 March 2024.

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Hetauda Cement Industry resumes production

07 February 2024

Nepal: Hetauda Cement Industry has resumed cement production after a three-month cessation since late 2023. The company stopped making cement due to coal shortages, according to the República newspaper. General manager Basant Raj Pandey said that future stoppages were now unlikely, as the company had secured a regular supply of coal. The company is also conducting negotiations with the Ministry of Industry, Commerce and Supplies to install new equipment and provide subsidies for the purchase of raw materials such as coal.

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