November 15: Hongshi Shivan Cement Industry which received electricity three years after starting its commercial production will enhance its production capacity by injecting additional investment. The cement factory is pouring in an additional Rs 20 billion to increase the production capacity. The company had earlier invested Rs 36 billion for cement production.
Until now, Hongshi Shivan Cement used to produce cement using diesel energy. The cement company started received 30 megawatts of electricity from Nepal Electricity Authority since November 13.
The company has been producing 6000 metric tons of cement regularly from its Nawalparsi-based factory. The industry is pouring in more investment to increase its production capacity by an additional 6000 metric tons a day.
The industry will meet its full production capacity by producing 12000 metric tons of cement a day with the additional investment. Despite receiving additional investment and extension in production capacity, the industry will operate in the same modality as before.
The cement industry is a joint venture of Chinese and Nepali investors. Hong Kong Red Lion group owns 70 percent stake of the company, and Shivam Cement owns the remaining 30 percent stake of the company.
The capacity enhancement of the industry will be done on the same modality. The Chinese investor will put in 70 percent investment, and Nepali investors will add 30 percent of the proposed capital.
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