Hetauda Cement trapped in financial morass

BAGMATI, FEBRUARY 16: The Hetauda Cement Industry (HCI) is facing a worsening financial crisis that has significantly impacted its production.

HCI management halted factory operations on October 1, 2024, citing the need for machine repairs. Although maintenance was expected to be completed by mid-November, the administration stated that the repairs took longer than anticipated.

However, Administration Chief and Spokesperson, Hareram Aryal, clarified, “Maintenance isn’t the only reason for the delay in resuming production. With the deepening economic crisis, it’s uncertain when the industry will restart.”

Despite the halt in production, expenses continue to accumulate, including employee salaries and fuel costs, exacerbating the financial challenges.

Aryal also revealed that the industry is struggling with a shortage of raw materials. “To operate daily, at least 120 trucks of coal are needed. Currently, we neither have the supply nor the funds to purchase it. Previous payments have been pending for a long time,” he explained.

Additionally, employees have not been compensated for their extra services.

Established in Lamsure, Hetauda city, in 2033 BS, HCI began cement production in 2043 BS. However, the machinery is outdated and unable to operate at full capacity.

Technical Chief Kameshwor Mandal noted, “Many pieces of equipment are overused and no longer function effectively to maintain smooth production.” He added that maintenance work is still ongoing.

At full capacity, the industry can produce up to 16,000 sacks of cement daily.