S Alam says banking restrictions forced closure of 11 Ctg factories
The group said it had continued paying salaries and allowances to employees for several months despite production remaining suspended, hoping that the government and banks would resolve the crisis.
S Alam Group has broken its silence a week after suspending production at all 11 of its factories in Chattogram, saying banking restrictions and policy decisions over the past two years have left it unable to continue operations.
In a statement issued yesterday (6 August), the conglomerate said restrictions on banking facilities, limitations on its accounts and its inability to open letters of credit (LCs) had disrupted imports of essential raw materials, forcing it to temporarily halt production.
The group said it had continued paying salaries and allowances to employees for several months despite production remaining suspended, hoping that the government and banks would resolve the crisis.
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"However, we have now been compelled to temporarily suspend production at our 11 factories in Chattogram," the statement said, describing the decision as "painful" after having built the industrial group over several decades.
The closure has left the livelihoods of thousands of workers uncertain.
Founded in 1985, S Alam Group said it had grown from a modest enterprise into one of Bangladesh's largest conglomerates, with investments spanning power generation, banking, insurance, sugar, edible oil, steel, cement, transportation and real estate.
The company added that it had never defaulted on bank loans or maintained overdue liabilities throughout its business history, saying integrity, reputation and customer service had been the foundation of its operations.
According to the statement, the crisis deepened over the past two years due to policy decisions, restrictions on banking facilities and company accounts and the inability to open LCs.
As many of its manufacturing units depend on imported raw materials, the group said production had become unsustainable with supplies being disrupted.
Calling on the government to keep industry and employment above politics, S Alam urged the authorities to conduct a comprehensive review of the issues affecting its operations.
It said production could resume quickly if banking facilities were restored and the existing restrictions lifted.
The company also appealed to the government to take immediate and effective measures, saying the livelihoods of thousands of workers depended on the revival of its factories.
It expressed confidence that, with government support, it would be able to restart production and continue contributing to the country's economy.
Last week, S Alam Group shut down all 11 of its factories in Chattogram, citing a shortage of imported raw materials, leaving around 6,000 workers jobless.
The closure affected thousands of workers and came amid mounting financial and operational challenges facing one of the country's largest industrial groups.
