Cement producers in Nepal are upgrading their cement plants in preparation for the commencement of operations of foreign-owned cement enterprises. Dhruba Thapa, chairman of the Cement Association of Nepal (CMAN), told The Kathmandu Post that the imminent "invasion" of foreign cement companies has caused concern among local cement producers.
Dangote Cement from Nigeria, Red Lion Cement and Huaxin Cement from China , India's Reliance Cement has been licensed to operate in Nepal. Cumulative foreign direct investment in these enterprises has reached US $1.45 billion and the proposed cement plant has a cumulative output of 22000 tons per day.
Local cement companies are also actively expanding their production capacity, including Cosmos Cement, which plans to build its first clinker plant, which is expected to be put into operation in the second half of 2016. At present, it operates two cement grinding plants with a cumulative capacity of 800 tons per day. Through upgrading and transformation, the production capacity will be expanded to 2000 tons per day.
Arghakhanchi Cement has announced that it will triple its production capacity to 3,000 tons per day by the end of 2017, compared to its current capacity of 1,200 tons per day. Agni Cement has planned to build a new plant with a daily output of 1200 tons, currently 300 tons per day.
According to the data of Nepal Cement Association, the annual cement demand in Nepal is 5.5 million tons and the local annual production is 4.6 million tons. Domestic cement enterprises in Nepal claim that their cement enterprises can meet 80% of domestic demand with a capacity utilization rate of 50% -60%. Foreign investors say that with the development of infrastructure construction, Nepal has huge potential for cement demand. Local producers counter that, saying foreign direct investment is driven by more favorable tax policies than local businesses.
浙公网安备33010802003254号