Hetauda Cement Factory halts production due to financial crisis

BAGMATI: The state-owned Hetauda Cement Factory is grappling with a severe financial crisis, leading to a complete halt in production.

Operations at the factory were suspended on October 1, 2024 due to the need for machinery repairs. While it was initially anticipated that maintenance would be completed by mid-November, the administration has stated that the repairs have taken longer than expected.

According to Hareram Aryal, the factory's chief and spokesperson, "The delay in resuming operations is not solely due to maintenance. The deepening financial crisis makes it uncertain when the factory will restart."

Despite the cessation of production, the factory continues to incur regular expenses, including employee salaries and fuel costs, further exacerbating the financial difficulties.

Aryal also highlighted the factory's dire need for raw materials. "To operate daily, at least 120 truckloads of coal are required, which are currently unavailable, and there are no funds to purchase them. Previous payments have been pending for a long time," he said.

Additionally, employees have not been compensated for their overtime work.

The Hetauda Cement Factory, established in Lamsure, Hetauda, Makawanpur district in 2033 BS, began producing cement in 2043 BS. The ageing equipment is no longer capable of operating at full capacity.

Technical chief Kameshwor Mandal remarked, "Many pieces of equipment are overused and not functioning properly to ensure smooth production." He added that maintenance work is still ongoing.

When operating at full capacity, the factory has the potential to produce up to 16,000 sacks of cement daily.

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