Gas chokehold for industries

A severe gas shortage is disrupting production across the industrial belt around the capital, forcing most factories to stop operation, and a few to use expensive alternative fuel, leading them all to incur heavy losses and raising the risk of worker layoffs.

Narsingdi factories burn wood to keep production going

As more than 100 factories in Narsingdi have remained shut for three days due to a severe gas shortage, at least 50 factory owners are now burning wood as an alternative fuel to keep some production running.

Sizing mills, which process yarn, are using wood to operate their steam boilers. Each factory is spending more than Tk10,000 a day on wood.

During a visit to the Chowala industrial area yesterday, workers were found burning wood in the steam boilers at Haque Textile and Unifill Textile mills.

Mohammad Shakhawat, a boiler operator at Haque Textile, said, "Previously, we used waste fabric to start the boilers. But the price of waste fabric has increased, so we are now burning wood."

Aslam Fakir, general secretary of the Narsingdi Chowala Textile Industry Owners Association, told TBS that sizing and dyeing factories cannot operate without gas.

"Our factories have had no production for the past three days. We are losing around Tk300 crore a day on average. Some factories have been forced to burn wood as an alternative fuel," he said.

Production down by up to 70%

Narsingdi has more than 4,000 large and small factories, according to local businesspeople. Around 3,000 of them are textile, dyeing, sizing, spinning and garment factories.

About 400 factories are gas-dependent and require uninterrupted gas at a pressure of 10-15 PSI for normal production.

Although the gas crisis began in Narsingdi in the first week of August, it has intensified sharply over the past three days. More than 100 factories have been forced to shut down due to the shortage.

Businesspeople estimate that the crisis is causing losses of at least Tk300 crore every day.

A visit to several textile, dyeing and sizing factories in Chowala found most of them shut due to the gas shortage. Factories that are still operating with alternative arrangements have seen production fall by around 70%. Some are operating at just 10% of capacity, while production costs have also risen.

Seven of Momin Textile's 10 units shut

Momin Textile Mill, the largest and one of the oldest factories in the Chowala industrial area, has shut seven of its 10 units because of the gas shortage.

The export-oriented factory requires 22,000-23,000 cubic feet of gas a day but is currently receiving only 8,000-10,000 cubic feet.

The mill exports its fabrics to Sri Lanka and Vietnam. Although it has the capacity to produce 25 lakh yards of fabric a day, production has now plunged to just 20,000 yards.

Of its 2,500 workers, around 1,500 are currently without work because the factory cannot maintain normal production. The company, however, said it is continuing to pay their wages to retain them.

Masudur Rahman, managing director of Momin Textile Mill, told TBS that the company had been able to fulfil orders from foreign buyers until July.

"But we have been facing problems since this month. We still have orders for around 20 lakh yards of fabric, but we cannot produce them," he said.

The company is considering LPG as an alternative to gas, but that would increase production costs by at least Tk2.50 per yard.

"Foreign buyers are constantly asking about the gas and power situation. If the gas crisis is not resolved quickly, the industrial sector will face a prolonged crisis," Rahman said.

Other factories also sending workers home

Mohammad Irtajul Islam, proprietor of Al Madina Textile Mill, said his factory sources processed yarn from sizing mills to produce grey fabric, which is then sold to other factories for dyeing.

"But sizing mills have shut down because of the gas shortage, so we cannot process the yarn," he said.

"Previously, my factory produced 1 lakh yards a day. Now we cannot even produce 30,000 yards. We have been forced to reduce workers' shifts from two to one. To cut losses, we have decided to send around 100 of our 150 workers on leave. Given the current gas situation, the factory could shut down at any time," he added.

Gas supply falls below half of demand

According to the Narsingdi office of Titas Gas Transmission and Distribution, the district's monthly gas demand from residential and commercial consumers, the Ghorashal-Palash fertiliser complex and industrial factories stands at around 13 crore cubic metres. But due to the current shortage, supply has fallen to less than half of the required level.

Mohammad Maksudur Rahman, manager of Titas Gas Transmission and Distribution's Narsingdi office, told TBS that the company is unable to supply factory owners according to their demand because of the crisis.

"However, the situation may improve next week," he said.

Gazipur factories ironing garments by hand

A severe gas shortage is disrupting production across Gazipur's industrial belt, forcing factories to run costly diesel generators, shut gas-dependent units, and resort to manual processes normally done by machines, as exporters struggle to meet delivery deadlines and risk discounts, losses and buyer confidence.

At Sparrow Apparels Ltd, pressing denim is being done by hand because low gas pressure has rendered machines unusable.

"Had the gas pressure been normal, we could easily do denim and finishing work with pressing machines. Now we are doing it manually, slowing down production," said Shawon Islam, managing director of Sparrow Apparels and former director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

Gas pressure falls below operating level

Gazipur has around 2,500 registered export-oriented garment factories, more than 400 of which depend entirely on gas, industry sources said. Textile, dyeing, finishing, denim, knitting and woven units need 7-8 PSI to operate, but pressure at many factories has fallen below 2 PSI, with some meters showing nearly zero during a visit yesterday.

The shortage has raised production costs by around 30% as factories turn to diesel generators to maintain lead times. Dyeing operations at Divine Group and Sadma Group's textile factory have shut, while other gas-dependent units face temporary closures or reduced output.

Gazipur's industrial sector needs around 550 mmcfd of gas daily but receives only about 300 mmcfd, a shortfall of roughly 250 mmcfd, or 45% of demand, according to industry and Titas Gas sources. Tongi BSCIC, Gacha, Basan, Konabari BSCIC, Kashimpur, Gazipur Sadar, Safipur, Chandra in Kaliakair, and Sreepur are among the worst-affected areas.

Although garment factories mainly run on electricity, backward-linkage industries – spinning, dyeing, knitting and finishing – depend heavily on gas, and disruptions there are hitting the wider export chain. BGMEA-member factories are operating 30-35% below full capacity, while overtime is pushing up costs.

"Never before has this industry faced such a big crisis," said Nasir Uddin, managing director of Sadma Group and former BGMEA vice-president, adding that gas pressure in Ashulia, Savar, Gazipur, Kaliakair and Bhaluka often falls to 1 PSI or below, against the 5–6 PSI needed to run factories.

Crisis pushing costs up 30%, jobs at risk

Delayed production is pushing up shipment costs: exporters are spending around $50,000 extra on air freight and offering buyers discounts of up to 20-25% for late deliveries, while owners must keep paying workers even when production stops.

"I have 4,000 workers sitting idle at my two factories. I am trying to keep one running with diesel, but the textile factory is shut because there is no gas. We have to pay workers despite having no production or exports. I am losing Tk50 lakh a day," Uddin said.

Lead times run around 70 days for garments made with local fabric, against up to 91 days for imported fabric, with overland fabric imports from India suspended and container shortages adding further delays.

Operators said foreign buyers are increasingly concerned about timely deliveries, with some weighing alternative sourcing countries, and warned of job losses as units shut or cut hours.

A Titas Gas official in Gazipur, speaking anonymously, confirmed the 45% shortfall. However, Titas Gas Gazipur Sales Division Deputy General Manager Suruj Alam said no factory owner had formally reported a complete shutdown.

Gazipur Industrial Police-2 superintendent Mohammad Amzad Hossain said his office had received no such report either, though production was being disrupted by 20-25% at various factories, with some units possibly halting temporarily as owners sought alternatives to meet shipment deadlines.

Gas shortage grinds Ashulia factories to a halt, threatens mass layoffs

A severe gas shortage has brought production to a standstill at several gas-dependent factories in Ashulia, with some reporting massive losses, sharp output cuts and growing pressure to reduce their workforce.

At AR Wet Processing Ltd, a Fashion Globe Group factory in Kathgara Amtala, production had run at reduced capacity for weeks before stopping completely yesterday morning, having operated until Wednesday night. A visit found all three sections shut, with only security guards and a few officials present and no workers.

Production down up to 75%

Officials said production had fallen by up to 75% since the crisis began. The factory has a daily capacity of 50,000 pieces but managed a maximum of 20,000 by bringing in gas from outside, while part of it still had to remain closed.

Of 80-90 machines across its dry-process, washing and finishing-quality sections, 24 have to stay shut. The gas metre showed 2.5 PSI during the visit; officials said pressure fluctuates between zero and 2.5 PSI against a requirement of 10 PSI, and even at 2.5 PSI, poor gas quality makes it unusable.

"We are losing up to 75% of production at our washing plant. We have even brought in gas from outside and set it up like a CNG station, but still cannot manage the crisis. This costs an additional Tk30,000 an hour. Gas pressure is zero for about half the day," said RAK Liton, company secretary of Fashion Globe Group, adding that most gas-dependent factories in Savar-Ashulia faced the same situation.

A Pakiza Group official, speaking anonymously, said its textile factory had been completely shut for 15 days, causing daily losses of around Tk1 crore; security guards confirmed no workers were inside, and some who came to the gate Thursday morning were sent back.

At Ring Shine Textile Ltd, managing director Auniruddho Piaal said the dyeing factory was technically open but had virtually no production for lack of gas pressure.

"All the workers are sitting idle," he said, putting the daily loss at Tk11 crore. The factory can produce 90 tonnes a day but currently cannot manage even two tonnes.

Intermittent pressure compounds the losses, he said, "We start all the machines when a little gas pressure comes, but by the time they heat up, the gas is gone… Each batch contains goods worth Tk8–10 crore." The factory employs 975 workers who must still be paid; as a DEPZ unit, it is required to pay wages by the 10th of each month.

Factories warn of workforce cut

At Little Star Spinning Mill in Jamgora, chairman Khorshed Alam said the mill was struggling to produce even 40% of capacity despite using multiple energy sources. "Gas is producing nothing. Electricity gives us around 25%, with solar and batteries making up some of the rest," he said.

Alternative energy has raised costs by 12%, adding Tk14-15 per pound to yarn production, with gas pressure peaking at only 1-1.5 PSI – too low to run generators. The mill is rationing output across three shifts, running only two of six sections, and has sold yarn at a loss to pay workers. "If this continues, we will have no choice but to cut at least 30% of our workforce," Alam said.

However, Mohammad Mominul Islam Bhuiyan, superintendent of Industrial Police-1, said they had no information that any factory in the Ashulia zone had shut down due to the gas shortage.

He said Munnu Ceramics had closed for one or two days, while Preeti Apparels and another factory faced problems for a similar span. "When gas pressure improves, they do not face the problem. We have no other information about factories being closed," he said.

Factory in Narayanganj being repaired amid labour unrest fears

Rows of fabric lie piled up inside Saikat Textile in Narayanganj's Fatullah area, but no production is taking place as the factory's dyeing operations remain shut due to a gas shortage. Welding and repair work is underway in the factory sheds. A few workers were seen inside, but they had little or no work to do.

An official of the company, speaking to TBS on condition of anonymity yesterday, said the factory had remained closed since the gas crisis began.

"There is fear among the workers of losing their jobs. To prevent labour unrest, the owners are carrying out cleaning and repair work at the factory," he said.

"The factory is closed because there is no gas. For now, we are doing renovation work inside. We will resume operations once gas becomes available. We are suffering huge losses every day," he added.

The situation is similar at dyeing and textile factories across Fatullah. At Fatullah Dyeing and Calendaring, the usual sound of machinery has been replaced by silence. Apart from security personnel and a few staff responsible for supervising the facility, almost no one was present. Although officials were at the factory, workers had marked their attendance and left. The large machines stood idle.

Tushar, general manager of Fatullah Dyeing and Calendaring, said the factory was completely shut.

"All the dyeing factories around us are in the same situation. Nothing can be done with gas pressure of just 1 or 1.5 PSI. We have kept the entire factory closed," he said.

"Because of the gas crisis, we had been able to operate at full capacity for only five to six hours a day. Now even that has stopped. If this continues, it will be almost impossible to pay workers' wages. The owners will have to subsidise the factory to keep it running," he added.

Businesspeople said gas supply to industrial facilities in Narayanganj had improved somewhat from 15 August but the crisis had intensified again.

A visit to several factories in Fatullah on Wednesday found that facilities connected to 50-PSI gas lines had completely halted production. They were receiving only 1-1.5 PSI of gas.

Factories connected to 150-PSI lines, meanwhile, were managing to operate one or two machines, receiving 6-8 PSI of gas. Even this limited supply was severely disrupting production.

Monir Sardar, GM of Model D Capital Group, said the available gas was barely enough to keep its dyeing section running.

"We are using alternative fuel to keep the factory operational. This is increasing our costs. Even so, we are continuing to operate at full capacity by absorbing the additional expense so that we can deliver products to our buyers," he said.

Nasir Uddin, vice-president of the Bangladesh Knit Dyeing Owners Association, said at least 152 member factories were at risk of closure.

"It is not possible to sustain production by using additional fuel. Many factory owners have already shut their factories," he said.

"The entire dyeing industry is now at risk," he added.