S Alam Group in Bangladesh has halted operations at eight of its factories, including sugar factories, due to lack of bank support. The announcement of the closures was made on December 24.
Following the announcement, factory workers staged protests around 5 p.m. in the Moijjartek area of Chattogram’s Karnaphuli. However, according to the duty officer of Karnaphuli Police Station, the demonstrations ended by 5:30 p.m. after the workers received overdue payments.
The shutdown affected at least 10,000 workers and employees who were employed across the facilities. The affected units include S Alam Refined Sugar Industries, S Alam Bag, S Alam Cold Rolled Steels Limited, Infinity CR Strips Industries Limited, and steel sector companies such as NOF, Chemon Ispat, S Alam Steel, and Galco.
A notice signed by Mohammad Borhan Uddin, head of HR and Administration at S Alam Group, stated: “Due to unavoidable circumstances, the factories will remain closed from Wednesday until further notice as instructed by the authorities.” The notice added that the security, supply, and emergency departments would continue operating.
Speaking to The Business Standard, Borhan Uddin explained, “We are unable to source raw materials because banks are not cooperating. Without raw materials, there’s no way to reopen the factories, so we have temporarily shut them down.”
The crisis stems from changes in the company’s fortunes following the ouster of Sheikh Hasina on August 5 during a student-led uprising. Banks have reportedly taken a tough stance against S Alam Group, making it difficult for the company to secure the Letters of Credit (LCs) required for raw material imports.
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