According to the English version of Xinhua News Agency, Huaxin Cement Plant, the second largest cement plant invested by China in Nepal, has completed the construction of the plant and the installation of machinery, and is expected to be put into operation in the next one or two months. Its production capacity is 3000 tons per day. At present, the largest cement plant, Red Lion Cement , has a daily production capacity of 6000 tons.
Huaxin Cement was registered with Nepal's Ministry of Industry in 2017, but construction of the plant, which began in March 2019, has been delayed by floods, land disputes and the COVID-19 pandemic.
According to Vaidya, former president of the Federation of Nepalese Chambers of Commerce and Industry, the plant has now entered the production phase after repairing and maintaining the damaged infrastructure and machinery, and the rest of the construction work has been completed.
According to a recent study by the Central Bank of Nepal, the 55 cement plants currently operating in the South Asian country actually produce 7.49 million tonnes of cement a year against domestic demand of 9.05 million tonnes a year, despite their combined capacity of 15 million tonnes a year. Nepal's central bank study also predicts that Nepal's cement demand will reach 25.88 million tons by mid-July 2025.
Vaidia believes the new plant will be able to compete in the market. "There is still a lot of room for growth in Nepal's cement industry," he said. "The country has planned several major infrastructure projects with high demand for cement," adding that several hydropower projects are under construction and they also need cement.
In recent years, Nepal has been moving towards self-sufficiency in cement production. According to the Trade and Export Promotion Center of the Ministry of Commerce, the country imported 560 million Nepalese rupees ( $4.73 million) worth of cement and cement clinker , raw materials for cement production, worth 3.6 billion Nepalese rupees ( $30.5 million) in the fiscal year 2020-21, which ended in mid-July. Compared with the 2018-19 financial year, it has fallen sharply from 1.31 billion rupees ( $11 million) and 1.167 billion rupees ( $98.79 million) respectively. Large cement manufacturers
like Red Lion Cement, which also supplies clinker to a large number of cement producers in Nepal, "have greatly helped to narrow the gap between domestic demand and cement production in the country," the central bank study said. In March
2019, Xinhua News Agency reported that China Huaxin Cement Co., Ltd. and Nepal Vidia Industrial Group jointly invested 15 billion rupees ( $140 million) in the construction of a cement plant in Tading County, central Nepal. Mahala, Speaker of the House of Representatives of Nepal, said in his speech that the cement plant is one of the largest foreign investment projects in Nepal, and he believed that enterprises of the two countries would jointly build a modern factory to help Nepal's economic development. Xu Gang, vice president of Huaxin Cement, told Xinhua that the company will purchase modern equipment from China to produce high-quality and environmentally friendly cement products.
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