Home Business Gorakhkali Rubber Industry halts production

Gorakhkali Rubber Industry halts production

Gorakhkali Rubber factory

GORKHA, November 1 2014: Gorakhkali Rubber Industry has stopped productions after its products failed to compete with Indian brands available in the market.

Officials of the country’s only tire manufacturer said the industry has been closed as its products cannot compete with cheaper Indian products.

Tires manufactured by Gorakhkali Rubber Industry cost comparatively higher than Indian tires available in the market. “We have stopped production as we have failed to find market for products manufactured before Dashain festival,” an official of the industry’s administration division, told Republica. “People prefer Indian tires as they are cheaper compared to our products.”

Gorakhkali tires costs up to Rs 500 more than the tires of Indian brands.

Officials say tires and tubes worth Rs 1.2 million have remained unsold at the industry and different selling units.

“As our products are stuck in warehouse or selling points, we couldn’t finance purchase of raw materials. We had no option but to halt production,” the official added. The official said the industry was mulling over selling its products stuck in its warehouse and distribution outlets by lowering the price. He also said production will be halted for long time as the management was yet to invite tender for purchase of raw materials.

Source: MyRepublica


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