Nepal: State-owned Hetauda Cement Industry is facing severe financial difficulties and continues to operate intermittently, despite recently resuming clinker production after a long shutdown, according to Ratopati news. The company is reportedly burdened with debts of around US$8.2m and has not paid employees their salaries for nine months. The plant once employed around 1100 workers, but now has only 136 staff remaining, with some employees working double or triple shifts due to staff shortages.
Bhakti Ram Shrestha, deputy manager at the plant, said that the company has been struggling financially for the past three to four years and lacks funds to purchase raw materials or spare parts for damaged machinery. Rubin Majhi, who works in the ‘kiln department’, said that the plant’s ageing equipment contributes to low production levels, but that electricity costs still reach around US$244,000 per month.
Management has submitted proposals to the government, including a request for a US$1.6m loan to resume operations and repay debts, but no approvals have been granted so far.
Majhi said that the plant would need modern equipment capable of producing 2800-3000t/day of cement to become financially viable.
