Apex Weaving laid-off for gas supply crunch
Tuesday, 13 April 2010
Jasim Uddin Haroon
The board of directors of the Apex Weaving Ltd Monday laid-off the factory with effect from today (Tuesday) due to serious gas crisis.
Harun-Ar-Rashid, chairman of the company told the FE, "We've been forced to lay-off our factory under Section 12 of Bangladesh Labour Law-2006 due to severe gas crisis."
According to officials of the company, the weaving plant has been suffering from severe gas crisis for the past one year leading to fall in production by 20 per cent.
"We've incurred losses amounting to Tk 10 million every month to defray workers' salary and other operational costs," Mr Rashid said.
The Apex Weaving, one of the largest textile plants in the country, has the production capacity of 100,000 metres of cloth every day employing more than 2000 workers.
Apex Weaving was listed with the country's bourses in 1995 and its trade closed at 138.50 Monday.
The average monthly export of the plant is US$ 2.5 million, officials told the FE.
Officials said the company has adequate export orders amid the global economic crisis.
The weaving factory, established 15 years back, needs 2.0 megawatt of electricity to run production.
The chairman of the company, however, said that the factory would be reopened after improvement of the gas supply situation.
"I'm also thinking about setting up diesel-run generators to keep the factory moving. But it is not economically viable," the chairman added.
At least Tk 10 million will be required to produce electricity by using diesel-run generator.
The board of directors of the Apex Weaving Ltd Monday laid-off the factory with effect from today (Tuesday) due to serious gas crisis.
Harun-Ar-Rashid, chairman of the company told the FE, "We've been forced to lay-off our factory under Section 12 of Bangladesh Labour Law-2006 due to severe gas crisis."
According to officials of the company, the weaving plant has been suffering from severe gas crisis for the past one year leading to fall in production by 20 per cent.
"We've incurred losses amounting to Tk 10 million every month to defray workers' salary and other operational costs," Mr Rashid said.
The Apex Weaving, one of the largest textile plants in the country, has the production capacity of 100,000 metres of cloth every day employing more than 2000 workers.
Apex Weaving was listed with the country's bourses in 1995 and its trade closed at 138.50 Monday.
The average monthly export of the plant is US$ 2.5 million, officials told the FE.
Officials said the company has adequate export orders amid the global economic crisis.
The weaving factory, established 15 years back, needs 2.0 megawatt of electricity to run production.
The chairman of the company, however, said that the factory would be reopened after improvement of the gas supply situation.
"I'm also thinking about setting up diesel-run generators to keep the factory moving. But it is not economically viable," the chairman added.
At least Tk 10 million will be required to produce electricity by using diesel-run generator.