Brick Industries in Nepal: Before and after the Gorkha Earthquake 2015

As per FNBI (Federation of Nepal Brick Industries) estimation there are a total of 850 registered brick industries in Nepal. Around 108 brick factories residing inside Kathmandu valley produced around 430 million bricks while nearly 3 billion bricks were produced by 742 brick industries outside the valley. The total estimated annual production capacity was around 3.4 billion bricks before the earthquake. Please see Table 1.

Table 1. Brick industries and their production capacity in Nepal

table-1

After the Gorkha Earthquake, there were 2 recorded fatalities and 6 injuries in brick factories all over the nation. Extensive major and minor damages to chimneys, kilns and green bricks were recorded in factories throughout the nation. The total damage loss was estimated to be NPR 1,126,111,700. Please refer the Table 2 below for a detailed earthquake damage loss estimation of brick industries in Nepal.

Table 2. Earthquake damage loss estimation of brick industries in Nepal (Source: FNBI)

table-2

At least 75% monthly loss of revenue was estimated for individual brick factories due to reduced demand, production and sales. Right after the quake, there were around 300,000 workers who were unemployed in brick factories throughout the country. Although workers gradually started returning to factories, approximately 95% job loss was estimated in the following 6 months after the earthquake. Please see Table 3.

Table 3. Information related to employee casualty, damage loss, revenue loss and employment loss

table-3

Most of the brick factories were unable to recover even after 6 months. Over 95% of the factories were not in full operation due to the earthquake damages incurred as well as lack of workers and fuel scarcity after the economic blockade. Before the earthquake an average 4 million bricks were produced annually by individual brick factories in Nepal. Around 850 brick factories all over the country produced about 3.4 billion bricks every year.

It was estimated that the national annual demand for bricks all over the country was around 3.57 billion before the earthquake. It was also predicted that in coming days the annual demand would increase by at least 30% after the earthquake. Depending on varying quality of bricks, the current brick price fluctuates, although prices were claimed to have remained stable even after the earthquake. Please see Table 4.

Table 4. Information related to business recovery, production capacity, demand and market prices

table-4

Analyzing the trend of first 3 months after the earthquake, the brick factories seemed to be in miserable condition with only 170 million projected annual productions nationwide. The national annual demand for bricks before the earthquake was 3.57 billion while the estimated annual production capacity was 3.4 billion.

It would be tough to meet the annual projected demand of 4.77 billion bricks. PDNA (Post-Disaster Needs Assessment) estimated that around 25% of this demand could be compensated by the recycling of the salvage. On the other hand FNBI then claimed that with an expected 25% increase in existing total capacity, around 5 billion bricks could be produced within next year if economic and climate conditions were favorable. Please see Table 5.

Table 5. Annual Projected Demand for Bricks in Nepal

table-5

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About SafeNEPAL

Environmental health & safety professionals for planet, people and profit.
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One Response to Brick Industries in Nepal: Before and after the Gorkha Earthquake 2015

  1. Pingback: Earthquake Impact: Brick Industries in Nepal | SafeNEPAL

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