A total of 9 factories operated by S Alam Group have ceased production due to an inability to open letters of credit (LC) for importing raw materials.
Despite these closures, the group has maintained regular payment of salaries and benefits to its employees.
The government suspended the conglomerate’s existing LC facilities and prohibited the opening of new ones, leading to the gradual shutdown of production across the factories.
Employees have voiced concerns about the long-term sustainability of the group's support, questioning how long such measures can continue while production remains halted.
Workers have urged the immediate reopening of the factories to secure their jobs and ensure financial stability for their families.
Hoping for government intervention, workers and officials alike fear that the prolonged closures could jeopardise the livelihoods of over a lakh individuals directly and indirectly associated with the group, including factory employees, sales staff, dealers, agents, and import-export workers.
Multiple officials within S Alam Group have appealed to the authorities, suggesting that frozen bank accounts be reactivated and LCs allowed to resume.
They argued that raw material imports would enable the reopening of factories, which play a crucial role in meeting the nation's demand for essentials like oil and sugar.
Failure to restart operations, they warned, could lead to severe disruptions in the consumer goods market, potentially driving up prices and causing hardship for the general population.
The nine affected factories include the Karnaphuli-based S Alam Refined Sugar Industries Limited, the Banshkhali S Alam Power Plant Limited, S Alam Cold Rolled Limited, S Alam Cold Rolled Steel NOF, S Alam Power Generation Limited, Infinity CR Strips Industries Limited, Chemen Ispat Limited, S Alam Bag, and S Alam Steel.
Together, these factories employ over 12,000 individuals directly, with countless more indirectly reliant on their operations.
An engineer from S Alam Refined Sugar Industries, Mohammad Hasmat Ali, expressed concern, stating, “If factories remain closed, employees will ultimately bear the brunt. Although salaries and benefits are still being paid, it is uncertain how long this can be sustained. The government should urgently allow LC approvals to ensure the factories' reopening.”
He further questioned who would take responsibility for the workers if closures continue, adding, “Where will they find new employment? The government must consider this and act swiftly.”
Minhaz Uddin, administrative head (factory) of S Alam Cold Rolled Steel Mill Limited, explained the rationale behind the closures, stating, “Keeping factories open is not feasible without production, as operational costs persist. To mitigate these costs, the decision to halt operations was made. However, employees are still receiving their salaries and benefits.”
He urged the government to address the issue, stating, “From a humanitarian perspective, the government should take swift measures to reopen these factories, considering the livelihoods of lakhs of workers.”
The prolonged closures and continued inability to open LCs risk exacerbating economic uncertainty for thousands of families, as workers await decisive action to resolve the crisis.
