Cement Manufacturers Association of Nepal (CMAN) claimed that the ban on building construction immediately after the Gorkha Earthquake induced an estimated 85 percent dip in the demand for cement. As per CMAN there were 46 cement industries producing a total of around 4 million MT cement every year before the earthquake. Major 16 cement industries had the annual production capacity of around 3.5 million MT cement nationwide. Please see Table 1.
Table 1. Factory location and production capacity of Cement industries in Nepal (Source: NSET)
The national annual demand for cement before the earthquake was around 5 million MT while the annual projected demand increased to 7 million MT after the earthquake.
It is worth mentioning here that around 2 million MT of additional cement would be required to meet reconstruction demand alone; as projected by Post Disaster Needs Assessment. This demand would spread out in next couple of years or so hence might not overburden the industries’ annual targets in the future. Also, CMAN estimated that due to reconstruction activities there would be only 25% hike in total demand which could be easily sustained by Nepalese cement factories as most of them were operating 50% below their installed capacity even before the earthquake….
(NOTE: Please click below link to view the entire article)
* * * *