China is investing in Nepal in a big way. This week, China agreed a RMB800 million (nearly US$128 million) grant to the country, its biggest ever annual grant, which is set to be invested in infrastructure projects and development programmes that the two countries will agree on. In addition, China’s Hongshi Holdings Group has signed a joint venture with Nepal’s Shivam Holdings to invest US$300 million in a greenfield cement plant. Hongshi Holdings will put in nearly US$210 million, making it the biggest foreign direct investment (FDI) by a Chinese company into Nepal to date. Other big investors into the cement industry in Nepal are Nigeria’s Dangote Cement and India’s Reliance Cement.
Hongshi-Shivam Cement Private Limited will produce 6000 tpd of cement, or 120 000 bags. It is hoped production will begin within 3 years. Once up and running, the plant will provide direct employment for 2000 people.
Currently, Nepalese cement demand runs at approximately 3.5 million tpy, while production falls short at 2 million tpy.
Hongshi Holdings is the largest privately owned cement company in China with an annual production capacity of 70 million t.
Edited from various sources by Katherine Guenioui
Read the article online at: https://www.worldcement.com/asia-pacific-rim/18032015/chinese-firm-invests-in-6000-tpd-cement-plant-in-nepal-535/