Nepal's cement industry has stepped up construction of its new production units with Jagdamba Cement planning to build on its current market share as it expands its production capacity.

In addition to its existing cement plant in Lumbini corridor, Jagdamba Cement is setting up a further unit in the eastern part of Bhairahawa, representing an investment of NPR3bn (US$42.6m). The new plant will produce 1500tpd of cement, according to the company. Around 400 new jobs will also be created.

"Initially, we had planned to increase the capacity of our existing factory in Lumbini corridor, but due to unavailability of land and environment, we decided to set up another production plant in the eastern part of Bhairahawa," said Bidur Dhungana, managing director of Jagdamba Cement.

At its Lumbini unit, where Jagdamba has invested NPR3bn and employs 400 people, the company is currently producing 2200tpd of cement.  

Meanwhile, Arghakhachhi Cement is also making a fresh investment of NPR5bn to build a new plant to produce clinker. The company, which has already injected NPR3bn in its existing clinker plant, will launch the new clinker plant within three months.

"The new production unit will bring Nepal closer to its goal of becoming self-sufficient in clinker and cement production," said Uddav Karki, managing director of Arghakhachhi Cement, which currently produces about 2500tpd of cement and provides employment to around 400 people.