Gas shortage grinds Ashulia factories to a halt, threatens mass layoffs
At AR Wet Processing Ltd, production had fallen by up to 75% since the crisis began
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%
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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.
