Udayapur Cement Industry, Nepal’s largest state-owned cement producer, has resumed operations after being fully closed for eight months. The plant, located in Triyuga Municipality–6, Jaljale, had faced prolonged uncertainty after the Council of Ministers decided in May to privatise the company, prompting a complete halt in production.
General Manager Kovid Kafle said the restart follows essential repairs and cooperation between workers, management and the current government. “The cooperation of workers, employees, and the current government played a crucial role in reopening the factory,” he said.
During the shutdown, the plant was unable to pay salaries and benefits. Only 193 permanent employees remain from the original 533 staff positions, and a further 60 outsourced security personnel have also gone unpaid for months. Despite this, employees continued reporting for duty in the hope of reopening, Kafle noted.
To stabilise operations, Udayapur Cement has requested a NPR240m (US$1.68m) loan from the government, proposing to repay it within three years, including interest. The company currently carries liabilities in the tens of millions of rupees.
The plant, which sits atop one of South Asia’s largest high-grade limestone deposits, has an installed clinker capacity of 0.24Mta. However, ageing machinery and frequent shutdowns have prevented operation at full capacity, with Kafle reporting daily financial losses during the closure.
The relaunch comes amid public pressure, including from local Gen Z groups, who demand the industry remain under government ownership and not be privatised.
