All factories and affiliated industrial establishments of the S. Alam Group in Karnaphuli of Chattogram. This officially ceased operations, leaving several thousand workers and employees without jobs. According to company sources, the decision was driven by a prolonged shortage of raw materials, banking complications, the inability to open Letters of Credit (LCs), and an ongoing financial crisis.
Md. Hasmat Ali, Shift In-Charge of S. Alam Sugar Mill, told the media that the factory had remained without production for nearly two years due to a lack of raw materials. Despite the suspension of production, the company continued paying salaries and benefits to employees during that period. However, as financial losses mounted, the management was ultimately forced to terminate the workforce.
Sources at S. Alam Sugar Mill said that 386 employees have been laid off in the latest round. The company is reportedly paying all outstanding salaries, allowances, and retirement benefits to the affected workers. Earlier, several rounds of workforce reductions had already taken place, including layoffs of 15 and 40 employees. Although the company had hoped to resume production through cost-cutting measures, it officially announced the complete closure of the factory in July.
Several senior S. Alam Group officials, speaking on condition of anonymity, said the company had been unable to import essential raw materials because banks were unwilling to open LCs. They also noted that the freezing of the group's bank accounts had severely disrupted financial transactions, making it impossible to continue normal factory operations.
According to the officials, most of the group's factories had effectively remained idle for a considerable period due to the lack of banking support. A few plants continued operating for a limited time using existing raw material stocks, but those supplies were eventually exhausted. With operating costs continuing to rise, the company decided to shut down all factories and affiliated establishments in the Karnaphuli industrial area.
Industry insiders warn that the closure will have far-reaching economic consequences, affecting not only factory workers but also transport operators, raw material suppliers, contractors, and small local businesses that depend on the industrial operations. The shutdown is also expected to have a significant impact on the overall industrial and economic activities in the Karnaphuli region.