Unilever Nepal closed after Maoist threats

The closure of Unilever Nepal in Hetaunda, 90km south of the capital Kathmandu, was the latest blow to impoverished Nepal's economy, reeling from a Maoist revolt which has claimed over 12,000 lives since 1996.

The closure came after the All Nepal Trade Union warned Unilever Nepal in a letter that if it failed to meet a 15-point set of demands by August 16 "the factory would not be permitted to operate and further actions would be taken," a company statement said.

The letter did not specify what steps might be taken. But companies which ignore Maoist demands are often torched or bombed by rebels and their employees warned they face physical harm if they report for work, police say.

Unilever Nepal, employing around 2,000 workers directly and indirectly, is 80 percent owned by Hindustan Lever Ltd, the Indian subsidiary of Anglo-Dutch giant Unilever Plc, a senior company official said.

Meanwhile, six Maoist rebels were killed and a government soldier wounded during a clash in western Nepal, a security force official said yesterday.

"The Maoists suddenly attacked a security patrol team at Pipaldanda village in Dailekh district and when the security personnel retaliated, six terrorists were killed while a soldier was injured," the official said.