Big cement factories plan full-fledged production

Four large clinker-based cement factories that were facing difficulty in carrying out production in full capacity have announced that they are planning to commence full-fledged production within three to six months.
“Technical reasons like monsoon and other factors have forced us to slow production. But those difficulties will be overcome soon,” said Pashupati Murarka, promoter of Arghakhachi Cement Industry.
He said all the four factories -- Gorahi, Sonapur, Shibham and Arghakhachi Cement -- would start full-fledged production in the next few months.
The factories claim that they would easily be able fulfill the annual national demand of 3 million tons once they start full-fledged production.
"This will prevent outflow of Rs 12 billion a year to countries like India and Bhutan,” said Murarka, who is also the vice president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI).
Currently, local cement factories are fulfilling only around 40 percent of total domestic demand, while remaining 60 percent is fulfilled through imports from India and Bhutan.
According to Cement Producers Association, of the total imports, 40 percent of the imports include raw materials. Some 30 factories that do not have capacity to produce clinkers locally source raw materials to produce cement.
Likewise, remaining 20 percent of import is recorded in the form of final product -- packaged cement.
As the four new clinker-based cement industries have the capacity of 4,850 tons of clinkers a day, Murarka said their full-fledged productions will enable the country to be self-reliant on cement.
“Owing to such huge clinker producing capacity, we would also be able to supply the raw material to 30 factories dependent on imported clinkers for production,” he stated.
According to FNCCI, Arghakhachi Cement Industry has the capacity of producing 1100 tons of clinkers per day. While capacity of Gorahi cement is still higher, Sonapur and Shibam too can produce 750 tons and 1,200 tons of clinker every day respectively.
The cement industry had lured investment of around Rs 11 billion in last fiscal year.