Earthquake Impact: Iron & Steel Industries in Nepal

Nepal Steel and Iron Rolling Mills Association (NSIRMA) assured that although post-earthquake Nepalese steel and iron industry might be utilizing around 48% of its production capacity, it would be sufficient to meet the demand. When the Gorkha Earthquake rocked the nation, there were around 20 steel and iron factories operating across the country. This sector consists of industries like the rebar industry, corrugated iron industry, and wire industry, among others. The steel rod industry, under normal conditions has an estimated annual production capacity of 1.5 million tons. Likewise, the corrugated iron industry and wire industry has an annual production capacity of around 300,000 tons and around 200,000 tons respectively. (New Business Age, July 2015)

Reinforcement Steel Bar Industries….

CGI Sheet Industries….

GI Wire Industries….

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Gorkha Earthquake Impact: Nepalese Iron & Steel Industries

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Earthquake Impact: Cement Industries in Nepal

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….

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Cement Industries in Nepal: Aftermath of the Gorkha Earthquake 2015

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Earthquake Impact: Brick Industries in Nepal

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

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)

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

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