Nepal cement production falls 70%

Nepal’s cement industry has cut production by up to 70 per cent due to a lack of demand, reports My Republica. According to the Nepal Cement Manufacturers Association, unless the situation changes, more than a dozen industries will be forced to shut down this year.

Reduced capital expenditure and a lack of construction materials have caused many development projects to grind to a halt, resulting in a significant decline in demand for cement. The situation has been exacerbated by the closure of the country’s crusher industry, which has led to a lack of sand and gravel.

Dhruba Thapa, president of the Nepal Cement Manufacturers Association, said that the annual cement turnover is about NPR150bn (US$1148m), but this year the turnover is expected to be very low. “Decline in consumption of cement means that development and construction is affected," said Mr Thapa. "It will affect the development and economy of the country."

"It was expected that cement consumption would increase by 10 per cent annually. Instead of increasing, the demand has decreased significantly," he added.

Nepal is currently home to around 20.5Mta of cement production capacity.