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Last Updated: Friday, 2 September 2005, 09:20 GMT 10:20 UK
Unilever to reopen Nepal factory
Maoist rally in Nepal
The Maoists have forced several businesses to shut
Anglo-Dutch consumer goods giant Unilever is to resume operations at its soap factory in Nepal two weeks after Maoist rebels forced it to close down.

Unilever Nepal says it follows an agreement with a rebel-affiliated trade union which made a series of demands.

A spokesman for the union said the company had agreed to reinstate a number of sacked workers and pay compensation to others.

The company is 80% owned by Unilever's Indian subsidiary, Hindustan Lever.

The factory is located in Hetaunda, about 50 miles south of the Nepalese capital Kathmandu.

The closing of the factory was criticised by the Federation of Nepalese Chambers of Commerce or Industries.

It said the move affected more than 1,500 workers.

Rebel threat

Several industries have shut down in recent years in Nepal following threats from the rebels.

In the past, failure by Nepal-based organisations to comply with rebel demands has led to torchings and bombings.

Last year the Maoists exploded three bombs at the factory without prior warning, causing huge damage.

Some 12,000 have people have died in Nepal's civil war since the rebels began their armed struggle in 1996.


SEE ALSO:
Rebels force Nepal firms to close
17 Aug 04 |  South Asia
Concern over Nepal rebel threat
10 Aug 04 |  South Asia
Profits up as Unilever recovers
06 May 05 |  Business
Unilever shake up as profit slips
10 Feb 05 |  Business


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