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Chinese company to set up cement factory in Nepal

Xinhua | Updated: 2017-12-28 14:04
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KATHMANDU - Investment Board Nepal (IBN) and Huaxin Cement Narayani Private Limited have signed a Project Investment Agreement (PIA) for the Chinese firm to set up a cement factory in Nepal.

The PIA came weeks after Nepal's Department of Mines and Geology (DoMG) awarded a limestone mine in Dhading district in central Nepal to the Chinese company.

The DoMG on Wednesday invited Huaxin to sign an agreement regarding the detail exploration of the mine within 30 days.

IBN's Chief Executive Officer Maha Prasad Adhikari and Liu Jianguo, overseas development director of Huaxin, signed the initial PIA, according to a statement issued by the IBN.

"This agreement has conveyed message to the foreign investors that Nepal is attractive place to invest," said Adhikari. "Once the company starts producing cement, there will be availability of quality cements."

Huaxin is bringing the second largest foreign direct investment (FDI) in Nepal's cement sector with the IBN on Dec 20, 2015 approving the company's FDI pledge of $140 million. Initially, it will be producing 3,000 tons of cement per day, according to the IBN.

Another Chinese company Hongshi Cement has also entered into Nepal's cement sector with investment of $360 million under a joint venture arrangement with Nepal's Shivam Group. The joint venture company Hongshi-Shivam Cement has been constructing factory in Nepal's southern Nawalparasi district.

According to the IBN, Huaxin will be setting up its cement factory soon. "After acquiring mine, it now can find location of setting up the factory," an official of the IBN told Xinhua.

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