China’s Hongshi Holdings Group on Tuesday signed a joint-venture (JV) agreement with Shivam Holdings Nepal to set up a NPR30bn (US$297m) cement factory.

Hongshi Holdings will invest NPR21bn (70 per cent) in the project while the Nepali partner will inject NPR9bn.

The JV will be named Hongshi-Shivam Cement Private Limited. An agreement to this effect was signed by Vishwonath Goel, chairman of Shivam Holdings, and Xu Youyuan, executive vice-president of Hongshi Holdings, in Kathmandu on Tuesday.

The Hongshi-Shivam JV will produce 6000tpd of cement. “We aim to start production within next three years if the government clears the process and electricity is made available on time,” said Goel.

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