Economic crisis plagues Hetauda Cement Industry

Bagmati, Feb 16: The Hetauda Cement Industry (HCI) is facing a deepening financial crisis, adversely impacting production.

HCI management shut down the factory on October 1, 2024, citing the need for machine repairs. Although maintenance was expected to be completed by mid-November, the administration stated that the repairs took longer than anticipated.

However, administration chief and spokesperson Hareram Aryal said, “Maintenance is not the only reason for the delay in resuming operations. As the economic crisis worsens, it is uncertain when production will restart.”

Despite a halt in production, expenses continue, including employee salaries and fuel costs, further exacerbating financial difficulties, according to Aryal.

He added that the industry is struggling to acquire raw materials. “If the plant operates daily, at least 120 trucks of coal are required. Currently, coal is unavailable, and there are no funds to purchase it. Payments from previous orders have also been pending for a long time.”

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

Established in Lamsure, Hetauda, in 2033 BS, the industry began cement production in 2043 BS. However, much of its equipment is outdated and unable to function at full capacity.

Technical chief Kameshwor Mandal stated, “Many machines have been overused and are no longer functioning properly for smooth production.” He further mentioned that maintenance work is still ongoing.

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

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