S Alam shuts all Karnaphuli factories

S Alam Group has shut all its factories in Karnaphuli upazila of Chattogram and laid off around 4,000 officers and workers after prolonged raw material shortages and banking restrictions brought production to a standstill.

The factories officially closed on Friday, while termination notices were issued to employees on Thursday. The layoffs took effect on August 1.

Company officials said operations had become unsustainable because of frozen bank accounts, difficulties opening letters of credit and an inability to import raw materials.

The affected units include S Alam Sugar, S Alam Refined Sugar Industries, S Alam Power Plant, S Alam Power Generation, Infinity CR Strips Industries, Chemon Ispat, S Alam Cold Rolled Steels, S Alam Cold Rolled Steels-NOF, S Alam Steel and S Alam Bag.

Md Hashmat Ali, shift in-charge at S Alam Sugar, said production at the factory had remained almost suspended for the past two years because of the raw material crisis.

Although production had largely stopped, the company continued paying salaries and allowances to employees, he said.

“It has now become impossible to continue under those circumstances,” he added.

Hashmat said 386 employees had been laid off from S Alam Sugar alone. Their salaries, benefits and retirement dues were being settled.

The company had previously reduced its workforce in several phases.

Workers said lists of retrenched employees were posted on factory notice boards on Thursday afternoon, triggering concern and frustration across the industrial units.

Company officials said some factories had maintained limited production using existing inventories, but all operations have now been suspended.

Rafiqul Islam, deputy general manager of S Alam Refined Sugar Industries, confirmed that production had completely stopped, leaving the management with no option but to terminate the remaining workforce.