Case Study Of Cement Industry In Nepal
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CHAPTER-5
FOREIGN DIRECT INVESTMENT OPPORTUNITY IN NEPAL: A CASE OF CEMENT INDUSTRY
5.1 Cement market in Nepal
5.1.1 Background
Cement is a most important construction material for all of the infrastructures. It is produced by clinker, gypsum and flyash. The major raw material is clinker which constitutes 97% of cement and clinker is produced from limestone.
Use of cement in Nepal was started since 1950s. At that time, cement was imported from India, China, Korea and many other countries. The commercial import of cement was startedd from 1970s from China. In 1975, Himal Cement Industry was established under the government ownership which was the first cement industry in Nepal and was dissloved in 2002 with some environmental issues as the factory was located near to capital city Kathmandu.
Recently, Nepal has more than 42 cement industries in operation, including 2 government owned industries. Among these, 15 industries are self-clinker producing and rests are based on imported clinker. Currently, market share of domestic manufacturer is about 80% with all factories including clinker production as well as clinker importer. Market share of cement industry based on self-clinker production is only 40%. The remaining 60% market is suppliedd either by cement importation from abroad or by clinker import.
5.1.2 Role of Cement Industry in Nepalese Economy
Cement is one of the basic construction elements that have a history of more than one hundred and fifty years of its usage