S.Alam Group Shuts Down Six Factories and Power Plants in Chattogram

Economic Desk

S.Alam Group, a major industrial conglomerate based in Chattogram, has shut down six of its factories and power plants, including sugar and steel mills, citing a lack of raw materials.

The shutdown was announced on December 24, 2023, and workers expressed significant dissatisfaction. However, the management assured workers that salaries and benefits would continue despite the closures, urging them to maintain order.

The company issued a notice stating that the factories and power plants would remain closed starting December 25 until further notice.

The closed factories and power plants include:
– S Alam Refined Sugar Industries Limited
– S Alam Power Plant Limited
– S Alam Power Generation Limited
– Chemon Steel Limited
– S Alam Cold Rolled Steels Limited
– S Alam Cold Rolled Steels Limited-NOF

These plants, located in Chattogram’s Karnaphuli and Anwara upazilas, employ between 12,000 and 14,000 workers, staff, and officials.

S Alam Group’s Administration Manager, Mohammad Hossain, confirmed that the shutdown was due to the scarcity of raw materials. An anonymous company official claimed that the lack of raw materials was caused by the policies of the Yunus government and a lack of cooperation from banks. Some plants had already been facing material shortages for an extended period.

The group has faced financial difficulties since August 2023, allegedly due to sustained pressure and retaliation from certain influential parties within the interim government. These challenges have led to significant financial losses for the company.

Allegations of loan mismanagement and fraud have been raised against the conglomerate, and Saiful Alam Masud, the chairman of S Alam Group, has reportedly left the country. As a result, the company is facing challenges in securing new loans.

The company issued a notice on December 24, stating that the factories and power plants would remain closed starting December 25 until further notice. However, security, delivery, and emergency departments would remain operational.

S Alam Group assured its workers that their salaries and benefits would be paid during the shutdown. Some workers attempted to protest at the S Alam Cold Rolled Steels factory in Karnaphuli, but the situation was resolved after the management assured them of payment.