Just two years ago, on March 17, 2015, Red Lion Group and Nepal Hope Cement Group formally signed a joint venture agreement in Kathmandu. The two sides jointly invested in the construction of a 6000t/d cement production line, which will become the largest cement production line in Nepal after completion. On July 28 of that year, Nepalese Prime Minister Sushil Koirala chaired a meeting of the National Investment Commission and approved Red Lion Group and Hope Cement Group to invest in the construction of a 6000t/d cement production line in Nepal. The Nepal project of Red Lion Group has entered the substantive implementation stage.
How is the project going now? Recently, the People's Television (PTV) video reported that the project is expected to be completed and put into production in April 2018. From the video, it can be seen that the concrete tanker shuttles back and forth at the construction site, the construction of the foundation project is proceeding in an orderly manner, and the whole site presents a busy and orderly scene.
In 2013, Red Lion Group implemented the "going out" strategy and planned to build five large-scale new dry cement projects in Myanmar, Nepal, Indonesia and Laos. The Red Lion Hope Cement Project in Nepal is one of the five "the Belt and Road" projects implemented by Red Lion Group. The chairman of Nepal Investment Commission said that the project not only promotes the rapid development of cement projects in Nepal, but also helps to support and promote infrastructure construction and economic development in Nepal.
In May 2015, the State Council issued the Guiding Opinions on Promoting International Capacity and Equipment Manufacturing Cooperation. The Opinion points out that actively promoting international cooperation in production capacity and equipment manufacturing is conducive to promoting foreign cooperation in superior production capacity, forming a new economic growth point in China, promoting enterprises to continuously improve their technology, quality and service level, enhancing their overall quality and core competitiveness, promoting economic restructuring and industrial transformation and upgrading, and realizing the upgrading from product output to industrial output.
& emsp; & emsp; The Opinions requires in the main tasks to carry out international cooperation on superior production capacity in the building materials industry in combination with the local market demand. According to the needs of domestic industrial restructuring, we should give full play to the role of key domestic enterprises and engineering construction enterprises. In developing countries with market demand and insufficient production capacity, we should give priority to investment in combination with design, engineering construction and equipment supply. We will build production lines for cement , flat glass, building sanitary ceramics, new building materials and new houses, so as to improve the industrial production capacity of the host country and increase the supply of the local market.
Hongshi hopes that the cement project will conform to the basic principles of international capacity and equipment manufacturing cooperation proposed by the State Council, fully consider the national conditions and actual needs of the host country, pay attention to mutually beneficial cooperation with local governments and enterprises, create good economic and social benefits, and achieve mutual benefit and common development. This can be fully confirmed by the fact that Nepal Red Lion Hope Cement Company won the Honorary Award for Chinese Enterprises to Invest in Nepal at the 14th Annual Meeting of Nepal-China Chamber of Commerce and Industry on February 28 this year. Red Lion is the only award-winning Chinese company in the field of investment in Nepal, and Mahala, Deputy Prime Minister and Minister of Finance of Nepal, also attended the presentation of medals.
It can also be seen from the PTV report that after the construction of the main project started in January this year, the local village has shown a prosperous scene in the construction stage of the project, which is in great contrast to the tranquility of the past. According to Jinhua News Network, where Red Lion Group is located, Nepal Red Lion hopes that the cement project will be located in Nawalpalaxi County, Lumbini District, to build a new dry cement production line with a daily output of 6000 tons and a supporting 12 MW pure low-temperature waste heat power generation project, covering an area of about 3000 mu (including mines), with a total investment of 350 million US dollars. It adopts the world-class new dry process and is constructed according to the high standards of intelligent manufacturing and clean production, with an annual output of 2.3 million tons of high-grade cement, a sales revenue of about 300 million US dollars, a direct increase of more than 500 jobs and an indirect increase of more than 2000 jobs, which can promote the development of logistics, packaging, accessories and other related industries, and promote the faster development of the local economy.
For a large group like China Building Materials (Sinoma), it has entered the international market early in history, and it can be said that it is familiar with undertaking cement projects in the world. As a private enterprise, Red Lion faces much greater difficulties and spends much more energy in this step. Nepal is also located in the plateau area, and the supporting conditions for the construction of the project are relatively poor, so it is not easy for the project to come to this stage.
Of course, the Red Lion Group also has its unique advantages. Its diversified investment strategy of "integration of industry and finance", which breaks through the traditional development mode, enhances the ability of enterprises to resist risks, optimizes the allocation of resources, improves the efficiency of investment and financing, and creates synergistic value, has laid a solid financing foundation for its going out. With the good cooperation relationship and cooperation experience established in the cement industry, we have a keen vision to select excellent partners. To realize the task of "building cement production line mainly by investment, combining design, engineering construction, equipment supply and other ways" put forward in the Opinions, Red Lion Group can also be said to have quite unique conditions.
It is expected that the 6000t/d cement production line invested by Hongshi Group and Hope Cement Group in Nepal will be completed and put into operation as planned to achieve mutual benefit and common development. Globalization for economic development can indeed bring benefits to the people of the world and add a strong footnote to trade protectionism.
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