S Alam shuts all factories in Ctg's Karnaphuli

S Alam Group has shut down all its factories in Karnaphuli upazila of Chattogram, halting operations in 11 industrial units and leaving more than 5,000 workers without jobs, according to company insiders.

The shutdown came into effect on July 31, a day after the company published lists of terminated employees on factory notice boards.

Tap here to add The Daily Star as a trusted source

The move marks the latest phase of workforce reductions, with more than 5,000 workers and employees losing their jobs over the past two years, company sources said.

The affected factories are S Alam Refined Sugar Industries, S Alam Steel, S Alam Cold Rolled Steels, S Alam Cold Rolled Steels (NOF), Galco Steel, Chemon Ispat, S Alam Cement, S Alam Vegetable Oil Ltd., S Alam Super Edible Oil, Infinity CR Strips Industries, and S Alam Bag.

The notice issued on July 30 said the services of the listed employees would stand terminated with effect from August 1.

Company insiders said the factories had employed over 5,000 workers and staffers before the closure. Only a small number of personnel, mainly assigned to security duties, will remain at the industrial units, while further staff reductions are planned in the coming months.

The group's factories have remained largely idle because it has been unable to import raw materials, said Rafiqul Alam, deputy general manager of S Alam Refined Sugar Industries.

The company has been unable to open letters of credit (LCs) since the political transition in August 2024, resulting in a prolonged shortage of raw materials and, eventually, the suspension of production, he said.

Despite the production halt, workers and employees had continued to receive their salaries and festival bonuses, Rafiqul added.

The group's business operations have come under increasing pressure since the political transition in August 2024.

Following the fall of the Hasina-led Awami League government, S Alam Group reportedly lost control of banks linked to its business interests, while the Anti-Corruption Commission and other agencies launched several investigations into alleged financial irregularities involving the group and its chairman, Saiful Alam Masud.

The allegations remain under investigation.