Over 350 Factories Shut Down in a Year Under Interim Government, Leaving Over 100,000 Jobless

Since Dr Muhammad Yunus assumed the role of Chief Adviser to the interim government, industrial unrest in Bangladesh appears to have intensified.
Over the past year, 353 factories have closed in Savar, Gazipur, Chattogram, Narayanganj and Narsingdi, resulting in 119,842 workers losing their jobs.
The information comes from the Department of Factory Inspection, the Industrial Police and other related sources.

Factory owners cite stricter conditions on bank loans, worker unrest, import hurdles, ongoing energy shortages, rising gas prices, unreliable power supply and continuous wage hikes as reasons for their inability to remain competitive.

Factory Closures by District

Savar: 214 Factories Shut in One Year

In the Savar-Ashulia industrial zone, 214 factories ceased operations in the past year—122 permanently and 92 temporarily—leaving around 31,000 workers unemployed.
Major temporarily closed units include Odyssey Craft PDP Ltd, Mascot Group, Fashion Knit Garments Ltd (Pride Group), Goldstar Garments Ltd and Singer Electronics.
Among the permanent closures is Chain Apparels Ltd in Kathgara Amtala, which shut indefinitely in February after failing to pay wages, displacing 1,765 workers.

Gazipur: 72 Factories Close, Over 73,000 Jobless

Gazipur saw 72 factory closures in a year, including Mahmud Jeans, Dard Composite, Polycon Ltd, Textile Fashion, Classic Fashion and La-Muni Apparels.
Notably, in February, Beximco Group permanently shut 13 export-oriented garment factories due to financial strain.
Many displaced workers have been unable to secure new jobs. In January alone, 43 factories closed, with the rest shutting over the subsequent six months.

Chattogram: 21 Closures Amid Decline in RMG & Shipbreaking Sectors

In the last year, 21 factories in Chattogram, including those in shipbreaking, shut down, leaving over 10,000 workers unemployed.
Since 2005, the region has seen 416 closures in these two industries.
Registered garment factories have fallen from 699 in 2005 to 350 today.
The shipbreaking industry is in worse shape: of 180 yards in Sitakunda, only 24 remain active, with 156 closed, displacing around 200,000 workers in previous years.
Stakeholders cite added VAT, steel price hikes, LC restrictions, dollar shortages and lack of energy connections for new ventures as major causes.

Narayanganj: 26 Permanent Closures in the Garment Sector

Narayanganj, home to over 1,800 garment factories, saw 26 permanently shut in a year, displacing 5,342 workers.
Large units such as Knit Garden, AK Fashion Ltd, La Maison Kochur Ltd and Molla Knit Fashion are among the closures, mostly due to financial strain and reduced orders.
Additionally, 19 factories were temporarily closed and several placed on lay-off status.
Many unemployed workers have turned to driving auto-rickshaws or returned to rural areas.

Narsingdi: 20 Small Factories Close

In Narsingdi, 20 small factories have closed, affecting about 500 workers.
Hamid Fabrics Ltd, one of the district’s cleanest and most modern facilities, announced a temporary closure 1.5 months ago due to gas shortages and unpaid wages, with the risk of a permanent shutdown looming.

Sources: Kaler Kantho