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Home Prime News

Hetauda Cement Industry Faces Deepening Financial Crisis, Halts Production

CEO Tab by CEO Tab
February 17, 2025
in Prime News
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Closed Hetauda cement industry resumes operation
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The Hetauda Cement Industry (HCI) is grappling with a severe financial crisis, significantly impacting production.

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HCI management initially shut down the factory on October 1, 2024, citing the need for machinery repairs. While maintenance was expected to be completed by mid-November, delays have persisted. Administration Chief and Spokesperson Hareram Aryal acknowledged that financial difficulties, not just repairs, are preventing the industry from resuming operations.

Despite production being at a standstill, expenses—including employee salaries and fuel costs—continue to burden the industry. Aryal noted that HCI requires substantial raw materials to function, including at least 120 trucks of coal daily. However, coal is currently unavailable, and pending payments have made procurement even more difficult.

Employees have also not been compensated for extra services, further exacerbating internal challenges.

Established in Lamsure, Hetauda, in 2033 BS, HCI began cement production in 2043 BS. However, aging machinery is now a major obstacle. Technical Chief Kameshwor Mandal stated that much of the equipment is overused and no longer fully operational, requiring ongoing maintenance.

At full capacity, the industry can produce up to 16,000 sacks of cement daily, but with mounting financial and technical issues, its future remains uncertain.

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