At least 11 factories owned by the S. Alam Group in Chattogram have been shut down due to financial difficulties and shortages of raw materials, leaving more than 4,000 workers without jobs.

According to workers, the closures took effect on Thursday, while the company has also begun paying outstanding dues to affected employees.

Workers at S. Alam Refined Sugar Industries Ltd. said a notice posted on the factory’s notice board on Thursday informed them that the listed officers and employees had been relieved of their duties, with the decision becoming effective from August 1.

The sudden announcement triggered anger and frustration among workers.

An official of S. Alam Refined Sugar Industries said the sugar refinery, one of the 11 closed factories in Karnaphuli, employed around 500 permanent workers and staff, along with nearly 200 temporary employees. Altogether, the affected factories had employed approximately 4,500 workers and staff.

Following the fall of the previous Awami League government on August 5, 2024, the group reportedly faced increasing financial pressure due to limited bank support and difficulties importing raw materials. These challenges led to repeated workforce reductions. Although some employees had previously been laid off, factory operations had continued. This marks the first time the company has completely shut down all of the affected industrial units after terminating employees.

Engineer Hasmat Ali of S. Alam Refined Sugar Industries said the closure was not a sudden decision but the culmination of nearly two years of operational difficulties.

He added that several months earlier, around 100 to 150 employees had already been released after receiving their full financial entitlements. Depending on their length of service, some received Tk 700,000, others Tk 1.5 million, while some were paid between Tk 1.7 million and Tk 2 million, including gratuity and other employment benefits.

The factories that have been completely shut down include S. Alam Refined Sugar Industries Ltd., S. Alam Cement, S. Alam Oil, S. Alam Vegetable Oil, S. Alam Bag Factory, a livestock feed factory, and several other industrial units. However, the group’s power plant remains in operation.

Officials of the S. Alam Group could not be reached immediately for comment.

Source: The Business Standard