Nepal's operational capacity enough to meet demand for 10 years

Nepalese cement manufacturers are reportedly discouraging fresh investment into new domestic production capacity, as supply is now more than adequate to meet demand.

"Cement produced by the industries currently in operation is adequate to meet the demand for the next 10 years," said Dhruba Raj Thapa, president of the Cement Manufacturers' Association of Nepal (CMAN), in an interview with Nepal Republica. "If investment continues to pour in this sector, all industries have to lower their capacity utilisation by a half."

Mr Thapa also stated that clinker imports have stopped for the last few months due to the increased domestic production. While there is a possibility to export excess production, it would be difficult to export to the major market of India as it is already producing surplus cement.