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25 Percent of Cement Industries Closed

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25 Percent of Cement Industries Closed
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May 13: The production capacity of construction companies has started to decline with the onset of the second wave of Coronavirus (Covid-19) and prohibition order issued by the government to stop the disease from spreading.  At present, 25 percent of the cement industries have been shut down due to the fear of infection, while 75 percent of the operating industries are producing at minimum capacity.
Iron industries have also reduced production to 10-12 hours per day. Entrepreneurs say that they have not been able to pay much attention to production at a time when the main challenge is to save people's lives and remain free from infection.
Chairman of Nepal Cement Producers' Association, Dhruva Thapa, says that production of cement and its demand have dropped sharply since the prohibitory order was issued.
"Even though the production capacity has been reduced, some industries are still operating," he said, adding, "About 25 percent of the industries have been shut down due to the lack of workers."
Thapa said that the demand for cement and steel has also declined as workers are afraid to go to construction sites. He estimates that the demand for these construction materials has dropped by 50 percent.

Sources claim that most of the steel industries are also closed. These industries require oxygen cylinders. However, industries have supplied oxygen cylinders for the treatment of Covid-19 patients.
Dhruba Kumar Shrestha, vice-chairman of Panchakanya Group, said that his company has arranged food and shelter for the workers within the factory premises.

"We cannot shut the factory, the workers have to be paid or else they will starve. However, we have not been able to produce at full capacity like before," Shrestha said.
He said that they are facing difficulty in supplying their products even though there was some demand.
President of the Federation of Grill and Steel Entrepreneurs of Nepal Mohan Katuwal said that the production of grill and steel has dropped to 15 to 20 percent.
Katuwal, who is also the commodity vice-president of the Federation of Nepalese Small and Household Industries, said that industries other than agriculture, livestock, dairy, and essential food have started to shut down.
"Currently, local products have not found any market," he said.

 

 

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