Nepal's Udayapur Cement Plant Resumes Operations
After Eight Months of Shutdown Nepal's largest state-owned cement producer, Udayapur Cement Industries, has officially resumed operations after a total eight-month shutdown. The shutdown, the longest in the plant's recent history, was caused by the decision of the cabinet meeting on May 28, 2025 to privatize the plant, and the uncertainty brought about by this decision led to a complete halt in production. The plant is located in the city of Triuga, Jarjal, and has a daily capacity of 800 tons.
The resumption of production benefited from the cooperation of many parties, but the remaining problems were serious
. General Manager Covid Kaffler said that the cooperation between workers, management and the current government played a key role in the restart of the factory after completing the necessary repairs. However, during the shutdown, the factory was unable to pay salaries and benefits to employees, and only 193 of the original 533 employees remained in permanent positions, while another 60 outsourced security personnel were not paid for many months. Kaffler pointed out that despite the lack of pay, many employees still insisted on reporting to work, hoping that the factory would reopen.
In
order to stabilize its operation, the factory has applied for a loan of 2.4 billion Nepalese rupees ( $1.68 million) from the government and plans to repay it with interest within three years. Companies are currently saddled with tens of millions of rupees in debt. Although the plant is located in one of the largest high-quality limestone deposits in South Asia, with an annual clinker production capacity of 240,000 tons, its aging equipment and frequent shutdowns have made it unable to operate at full capacity for a long time, and it faces financial losses every day during the shutdown period.
Public Opposes Privatization, Future Challenges Remain
The resumption of production is also accompanied by public pressure, with local groups, including Generation Z, strongly demanding that the industry remain state-owned and oppose privatization. Under the pressure of huge debt and operational inefficiency, the long-term sustainable development of the plant is still facing serious challenges.
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