Embattled Beximco appeals to govt for reconsidering decision to close factories
The Beximco Group has requested the government to reconsider its decision to close its factories in the textile sector, workers of which were subjected to layoffs.
Earlier on 30 January, a letter signed by Beximco Limited's Managing Director Osman Kaiser Chowdhury, was submitted to Labour Adviser Brig Gen (retd) M Sakhawat Hossain, also convener of the Advisory Council Committee formed to review the labour and business situation at Beximco Industrial Park.
In the letter, the group stated that at the committee meeting held on 28 January, a decision was made to close the companies in the Beximco Industrial Park that had laid-off workers.
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The government also decided to arrange the sale of Beximco's mortgaged shares in Beximco Pharmaceuticals and Shinepukur Ceramics to clear dues of workers from laid-off factories by February.
However, Beximco has requested a review of this decision, highlighting that as a result of the closure, about 35,000 workers and employees would become unemployed, leaving them with an uncertain future.
The letter continued, "If the factories are closed, the machinery installed there will gradually deteriorate, and the repayment of the related bank loans will be rendered impossible."
"On behalf of these institutions, which we have built over many years, with the aim of earning foreign exchange for the country and repaying bank loans, we sincerely request the government and all parties concerned to review the decision of closure," Beximco wrote, addressing Adviser Sakhawat.
Earlier on 16 January, Beximco Limited sought Tk400 crore in cash credit (CC) – short-term financing – from state-owned Janata Bank to cover operating expenses, along with the opportunity to open back-to-back letters of credit to keep its 15 embattled textile and apparel factories running. In exchange, the group offered land and shares valued at approximately Tk572 crore as collateral.
Additionally, it requested a 15-year rescheduling of all debts incurred until December 2024 at a 5% interest rate with a two-year moratorium, pledging to repay liabilities in the long term by sustaining employment and exports.
"If these facilities are granted," the company stated, "it would be able to continue factory operations, maintain export activities, and gradually repay the bank loans."
Speaking to The Business Standard today (6 February), Beximco Limited's Managing Director Osman Kaiser Chowdhury told The Business Standard, "If the factories are closed, we will have to pay about Tk550-600 crore to the workers. The closure will result in loss of jobs for the current 35,000 workers, halting of exports, and uncertainty in the repayment of bank loans. Therefore, we have requested the government to reconsider the decision to close down the factories."
He added that the factories among Beximco's textiles and apparels division have been the highest exporters among Janata Bank's customers for many years.
"Over the last six years, the average monthly export volume of these companies through Janata Bank has been $32 million.
"The government is making decisions without considering the issues centering significant export revenue and employment," he said, adding, "Similar decisions on factory layoffs were made in the advisory council committee's meeting on 15 December."
