Six factories under the industrial conglomerate S Alam Group have been shut down, leaving hundreds of workers in distress.The abrupt decision prompted protests by the affected workforce.
A notice announcing the closures was issued on Wednesday afternoon, signed by Mohammad Borhan Uddin, head of the group's human resources and administration department.
The factories closed include S Alam Refined Sugar Industries Ltd, S Alam Power Plant Ltd, S Alam Cold Rolled Steels Ltd, S Alam Cold Rolled Steels Ltd-NOF, S Alam Power Generation Ltd, and Infinity CR Strips Industries Ltd.
The notice read: "This is to inform all workers, officers, and employees of the factories that, as per the instructions of the authorities, the factories will remain closed from December 25 until further notice due to unavoidable circumstances. However, the security department, delivery section, and emergency services (as determined by the management) will remain operational."
The notice further mentioned that the reopening date will be communicated through a subsequent notice.
Two of these are located in the Kalarpul area of Karnaphuli upazila, three in Ichanagar, and one in Banshkhali upazila, all within Chittagong district.
According to police, while six factories have been declared closed, workers have gathered at two factories located in Karnaphuli area. However, no reports of protests have emerged from the S Alam-owned factories in Banshkhali upazila.
Karnaphuli Police Station Officer-in-Charge (OC) Mohammad Sharif said: "Our team visited two factories where workers had gathered. The authorities addressed the workers and spoke with them, after which they dispersed. The situation is currently under control."
An official of S Alam Group, speaking on condition of anonymity, said that at least 12,000 permanent and casual employees are employed across the six closed factories.
“Some factories reliant on imported raw materials have been forced to shut down as we are unable to open Letters of Credit (LCs),”they said.
“This is primarily due to a lack of cooperation from banks. Without importing raw materials, there is no way to resume factory operations,” they added.
The abrupt closure has thrown workers into uncertainty. Upon receiving the notice, workers staged protests in front of the factories, demanding explanations and solutions.
Nasir Uddin, a worker protesting at S Alam Cold Rolled Ltd, expressed his frustration, saying: "Our factory was operating normally, yet we suddenly received a closure notice. We have no idea why this happened. How are we supposed to support our families in this situation?"
According to sources, S Alam Group has already shut down several factories due to mounting financial pressure. Over the past few months, a significant number of employees have been laid off as the company struggles to maintain its previous levels of productivity and financial stability.
S Alam Group's Chairman, Saiful Alam, is reportedly a close associate of former prime minister Sheikh Hasina. In 2017, the group acquired Islami Bank, followed by several other banks and insurance companies.
Substantial sums of money were allegedly withdrawn anonymously, and loans were approved under the names of various entities tied to S Alam Group's interests.
The banks reportedly under the group's control included National Bank, Islami Bank, First Security Islami Bank, Social Islami Bank, Union Bank, Global Islami Bank, and Bangladesh Commerce Bank.
Following the fall of the Awami League government, Bangladesh Bank reportedly removed these financial institutions from S Alam Group's influence.
Since the ouster of Sheikh Hasina, S Alam group has been finding it hard to keep its factories running as banks have been wary and extremely cautious when dealing with the group.
