S Alam Group, a leading industrial conglomerate in Bangladesh, has been compelled to shut down nine factories in Chattogram due to a severe shortage of raw materials, caused by restrictions on opening letters of credit (LC).
According to the group’s authorities, the crisis stemmed from government-imposed suspensions on LCs opened prior to the former government’s fall on 5 August and the inability to open new LCs subsequently.
The closures have sparked significant unrest among workers, who staged protest marches on Tuesday (24 December) evening in Chattogram’s Karnaphuli area.
The aggrieved workers indirectly blamed the government for the shutdowns and warned of larger demonstrations if the factories are not reopened promptly.
Mohammad Borhan Uddin, head of the group’s Human Resources and Administration Division, confirmed the development, stating, "The factories are unable to operate due to raw material shortages. LCs opened before 5 August were suspended, and no new LCs could be initiated. Without production, keeping factories operational incurs additional costs, leaving us no choice but to take this decision."
The affected factories include Karnaphuli’s S Alam Refined Sugar Industries Limited, Bashkhali’s 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, Cheman Steel Limited, S Alam Bag, and S Alam Steel. Collectively, these facilities employ over 12,000 workers.
In a notice issued on Tuesday afternoon, signed by Borhan Uddin, the company announced the closure of the factories effective Wednesday (25 December), until further notice.
The workers demanded immediate government intervention to allow the opening of LCs and ensure the resumption of factory operations. Photo: BFirst
However, essential departments, including security and supply, will remain operational.
The reopening date will be communicated in a subsequent notice.
Following the announcement, workers gathered in Karnaphuli and expressed their grievances through protest marches.
Many lamented the sudden loss of livelihood, highlighting the uncertainty of supporting their families without work. "We have been sustaining our families through jobs at these factories for years. How are we to survive now?" a protesting worker questioned.
The workers demanded immediate government intervention to allow the opening of LCs and ensure the resumption of factory operations. They warned of escalating their protests into larger movements if their demands are not addressed.
Some also accused the government of indirectly orchestrating the shutdown by preventing the import of essential raw materials, describing the situation as "untenable and inhumane."
The closure has cast a shadow over the livelihoods of thousands, intensifying calls for swift action to resolve the crisis.
