Chinese company to invest Rs 36.75 billion in cement factory
Kathmandu - The Investment Board of Nepal and Hongshi-Shivam Cement signed a project investment agreement on Sunday for the development of a mega cement factory in Nepal.
As per the agreement, the Chinese company will make an investment of Rs 36.75 billion to set up a cement factory in Nawalparasi district, Chief Executive Officer of Board Maha Prasad Adhikari said.
Adhikari and Director/General Manager of Hongshi Shivam Cement Lai Weipeng signed the agreement in the presence of Nepal's Finance Minister Gyanendra Bahadur Karki and Ambassador of China to Nepal Yu Hong.
The project, a joint partnership between Hong Kong Red Lion Cement No. 3 Ltd, a subsidiary unit of Hongshi Group from China and Shivam Holdings, consisting representatives from various business groups in Nepal, has planned to produce 6000 tons of cement per day.
The company will provide high quality cement to the local market's demand and also create competition for quality of cement production in Nepal.
Speaking on the occasion, Finance Minister Karki said the realization of the investment has sent a positive message in terms of overall business climate in Nepal. He also expressed commitment to providing necessary support on behalf of the government.
Likewise, CEO Adhikari said the agreement proved that Nepal has truly become an attractive investment opportunity for foreign investors.
On the occasion, Director/General Manager of Hongshi Shivam Cement Private Limited Lai Weipeng thanked the IBN for its support to bring the project to this stage.