Keya Group announces closure of 4 factories

Keya Group has announced the closure of at least four ready-made garment (RMG) factories from May 1 as they suffer from raw material shortages and inadequate production capacity.

It made the announcement of closure on Thursday through notices hung at the factories in the Juran area of Gazipur.

The factories are Keya Cosmetics Ltd (Neat Composite Garments Division, Knitting Division, Spinning Division, and Cotton Division) and Keya Yarn Mills.

A top official of Keya Cosmetics said the business group had decided to close the factories considering the overall situation, which is not in favour of operations for now.

"We will pay all dues of the workers before closing the factories as per the labour law," the official said, adding the factories could be re-opened in future if there is a favourable situation.

The official also said their management would sit with the authorities of the capital market as the listed company Keya Cosmetics is merged with the factories that would face closure. "Around 4,000 workers are employed in the four factories."

Insiders said the workers of the factories had been demonstrating since December 29 last year demanding their November salaries.