Economic Crisis Plagues Hetauda Cement Industry

The Hetauda Cement Industry is grappling with a worsening financial crisis, severely impacting production.

Hetauda Cement Industry’s management shut down the factory on October 1, 2024, citing the need for machine repairs. While maintenance was initially expected to be completed by mid-November, the administration later stated that the process took longer than anticipated.

However, administration chief and spokesperson Hareram Aryal acknowledged that maintenance was not the sole reason for the delay. "The economic crisis is deepening, and it is uncertain when the industry will resume operations," he said.

Despite production being at a standstill, the company continues to incur expenses, including employee salaries and fuel costs, further exacerbating its financial troubles.

Aryal also highlighted the industry's shortage of raw materials. "If the factory operates daily, at least 120 trucks of coal are required. Currently, coal is unavailable, and there are no funds to procure it. Previous payments have also been pending for a long time," he said.

Additionally, employees have not been compensated for their extra services.

Established in Lamsure, Hetauda, in 2033 BS (1976 AD), Hetauda Cement Industry began cement production in 2043 BS (1986 AD). The factory's equipment is outdated, limiting its production capacity.

Technical chief Kameshwor Mandal noted that many machines are worn out and no longer function efficiently. "Maintenance is still ongoing," he added.

At full capacity, the industry can produce up to 16,000 sacks of cement daily. -- RSS