Hongshi-Shivam Cement Project
A modern cement plant is adding new energy to Nepal's industrial development. Hongshi-Shivam Cement Plant, a joint venture between China and Nepal in south-central Nepal, is by far the largest foreign direct investment (FDI) industrial project in Nepal: the investment in the plant has reached 350 million USD. The plant produces cement in a low-carbon, safe, and environmentally friendly way. It not only promotes local economic and social development but also starts a new chapter in the cooperation between Nepal and China regarding the Belt and Road Initiative.
The Hongshi-Shivam Cement Project is co-invested in by Hongshi Cement of China and Shivam Holding Private Limited of Nepal. Located in Nawalparasi District, Lumbini Zone, Nepal, the Hongshi-Shivam Cement Plant covers an area of 0.67 km2. The plant started construction in January 2017 and went into operation in May 2018. It took only 16 months to build a production line with the capacity of 6,000 tons of cement slag. The plant is also equipped with a 12-megawatt power generation system of waste heat recovery.
In addition to waste heat recovery power generation, the plant uses new environmental protection technologies to minimize pollution. Liu Shuguang, general manager of Hongshi Cement Nepal, relayed that the factory has adopted a new process to produce cement in a low-carbon, safe, and environmentally sound way. The process, technology, and equipment of the plant are all world-class.
The cement produced by the project has been tested by many institutions in Nepal, and all the quality indicators rank it among the top. The high-quality cement has pushed Hongshi into the top rankings in most popular cement brands. At present, Hongshi-Shivam Cement Plant provides slag for over 80% of Nepalese cement manufacturers.
China-Nepal cooperation in cement production has changed Nepal's trend of spending a large amount of money in foreign imports to buy cement every year. After being put into operation, Hongshi-Shivam produces about two million tons of cement slag per year, accounting for about 25% of Nepal's cement slag market and saving Nepal about 200 million USD. Hongshi-Shivam Cement Plant's production fills the gap of high-grade cement in Nepal's market.
“Nepal's cement is being transformed from a luxury good to a consumer good,” said Liu Shuguang. He also remarked that Hongshi-Shivam Cement Plant has become the largest cement manufacturer in Nepal. The government of Nepal fully affirms the contribution of the project to Nepal's economic and social development, and awarded the project with the Chinese Enterprise Investment Honorary Award and the Best FDI Project Award.
In June 2019, Hongshi-Shivam donated 700,000 NPR (6,363.6 USD) to a primary school in Palpa District to renovate the school playground. In addition, the plant has created many jobs by employing over 400 workers.
Yuba Raj Khatiwada, minister of finance of Nepal, visited Hongshi-Shivam Cement Plant at the end of 2018 and expressed his appreciation to Hongshi Group's transnational development concept, environmental protection, and construction efficiency. The project boosts the overall level of Nepal's cement industry, provides high-quality cement for the country's infrastructure construction, and promotes Nepal's economic development. (By Yuan Jirong, translated by Jin Haiqiong, edited by Kendra Fiddler)