IBN signs Agreement with a Chinese Company to Establish a Cement Industry

December 28: The Investment Board of Nepal (IBN) has signed an agreement with a Chinese firm, Huaxin Cement Company, to establish a cement factory in Nepal.

The Memorandum of Understanding (MoU) in this regard was signed by IBN CEO Maha Prasad Adhikari and Huaxin Cement Company’s Overseas Development Director, Liu Jianguo on Wednesday, December 27.

The Chinese company will establish the cement industry in Nepal with an investment of Rs 15 billion.

As per the agreement, the Chinese company will set up the industry which will produce 3,000 tons of cement daily. Huaxin will pay Rs 30 million as project charge to the government.  The project is expected to give employment to more than 1,000 individuals.

The company has already bought a limestone mine at Rs 600 million in Dhading. Meanwhile, another Nepal-China joint venture company, Hongshi, is also establishing a cement industry in Nepal with an investment of Rs 36 billion. Hongshi will start its production after two months and it will have production rate of 6,000 tons of cement per day.