S Alam shuts 11 factories in Chattogram, 4,000 workers jobless

S Alam Refined Sugar Industries Ltd. Photo : Collected

S Alam Group has shut down at least 11 factories in Chattogram, citing a severe financial crisis and a shortage of raw materials, leaving more than 4,000 workers and employees without jobs.

According to workers, the closure took effect on Thursday. Factory authorities have also begun the process of paying outstanding salaries, allowances and other 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, effective from 1 August.

The sudden announcement triggered frustration and anger among workers.

An official of S Alam Refined Sugar Industries said the sugar refinery employed around 500 permanent workers and 200 temporary workers. Altogether, about 4,500 workers and employees had been employed across the 11 factories in Karnaphuli before the closures.

Following the political change on 5 August 2024, the group reportedly faced difficulties in obtaining bank financing and importing raw materials, resulting in successive rounds of layoffs. Although some workers had previously been dismissed, factory operations had continued. This is the first time all the affected industrial units have been shut down completely 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 said around 100 to 150 employees had been laid off several months ago after receiving their full financial entitlements. Depending on their length of service, some received Tk700,000, others Tk1.5 million, while some were paid between Tk1.7 million and Tk2 million, including gratuity and other 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, an animal feed factory and several other industrial units. However, the group’s power plant remains operational.

Attempts to contact senior officials of S Alam Group for comments on the factory closures and layoffs were unsuccessful.