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Kathmandu [Nepal]Jan 21 (ANI): Nepal’s largest cement firm, China-owned Redstone Cement Industry, has reached a stage where it is “drowned by internal disputes”, EPardafas reported, adding that Nepali investors left the board after the economic crisis The industry situation is in crisis due to “arbitrary decisions by Chinese investors”.
In addition, according to news reports, Nepalese investors said that the economic situation in the cement industry is “very critical and may decline at any time.” The Redstone Cement Industry started with an investment of US$350 million, the report said, adding that in addition to Chinese investors, Sharda Group and other companies also own a 30 percent stake in the cement industry.
Sharda Group chairman Shiv Ratan Sharda and investor Bishwonath Goyal are members of Redstone’s board of directors. However, the Nepali investor left the board as the cement industry was plunged into crisis by an alleged arbitrary decision by the Chinese investor. The report quoted an investor as saying that for some time, Chinese investors have been selling cement at a low price to occupy the Nepalese market. He emphasized that according to news reports, the amount has not been raised in the market and it is difficult to pay wages to employees.
EPardafas reported that Nepalese investors left Hongshi’s board as the financial responsibility of the industry fell on them, adding that NMB Bank has lent $6 billion to the cement industry, while Rastriya Banijya Bank Prabhu Bank, Everest Bank And Nepal SBI Bank also gave it a huge loan.
Banks have started serious discussions as industry conditions worsen, EPardafas reported. Chinese investors have been selling cement at lower prices to capture the Nepalese cement market, the report said, adding that this was part of a strategy to drive other companies out of the market.
However, the Chinese strategy has weakened the financial position of the Hongshi cement industry.
Employees of the company started protesting over unpaid wages, EPardafas reported, adding that the Chinese-invested cement industry has not paid wages to employees and truck drivers for six months.
In addition, according to news reports, there have been complaints that the Chinese-owned cement industry failed to fulfill its promises to the locals when it was established. (Arnie)
(This is an unedited and auto-generated story from a Syndicated News feed, the content body may not have been modified or edited by LatestLY staff)
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