S. Alam’s factories resume

After an eight-day shutdown, nine factories of S. Alam Group resumed production today (Thursday). A notice issued on Wednesday by Mohammad Borhan Uddin, head of the group’s Human Resources and Administration Department, directed factory managers to restart operations from Thursday. The factories were reopened on Wednesday.

The shutdown, which began on December 24, 2024 was reportedly due to a shortage of raw materials. The official notice did not specify the reason. S. Alam officials later confirmed that the factories had to close because they were unable to procure raw materials, citing issues with foreign Letters of Credit (LCs).

There have been instances where the group’s sudden operational decisions, such as factory closures, have caused distress among its workers. The recent eight-day shutdown of nine factories left many workers in uncertainty, raising questions about the group's planning and crisis management.

When asked about the sudden availability of raw materials within a week, Mohammad Borhan Uddin told The Daily Messenger, “Due to the continued unavailability of foreign LCs, we still cannot import raw materials. As of today, we have not received approval. For now, we are sourcing raw materials from the local market to restart operations.”

Mohammad Hossain, Manager (Administration) of S. Alam Group, told The Daily Messenger, “The news of the factory closures could negatively impact the market. Therefore, we are relying on the local market to resume production.”

A visit to the S. Alam Refined Sugar Industries Limited at Ichanagar in Karnaphuli upazila on Wednesday afternoon revealed trucks entering and leaving the premises, while workers were seen moving around. However, media personnel were not permitted inside the factory, as confirmed by Deputy General Manager Engineer Rafiqul Islam, who mentioned that production would restart as per instructions on Thursday.

An employee, requesting anonymity, shared that production could continue for a few days using raw materials already stored in the factory. However, as of 5:00 PM on Wednesday, no new raw materials had been delivered to the factories.

A similar scenario was observed at S. Alam Cold Rolled Steels Limited at Shikalbaha in Karnaphuli upazila, where workers spent an idle day on the first day of reopening on Wednesday, as production had not yet resumed.

Workers at the reopened factories expressed relief. A worker at S. Alam Refined Sugar Industries Limited told The Daily Messenger, “The sudden closure announcement left us anxious. We couldn’t sleep, worrying about when the factory would reopen and whether we would receive our salaries. Now that the factory has reopened, we feel reassured.”

The nine factories resuming production include S. Alam Refined Sugar Industries Limited, S. Alam Power Plant Limited, S. Alam Power Generation Limited, Infinity CR Strips Industries Limited, Cheman Steel Limited, S. Alam Cold Rolled Steels Limited, S. Alam Cold Rolled Steels Limited-NOF, S. Alam Steel, and S. Alam Bag. All these factories are located in various areas of Karnaphuli, according to S. Alam Group officials.

However, S. Alam Group has faced financial difficulties since the government’s fall on August 5, 2024. Reports of cash shortages have repeatedly surfaced, raising concerns about the sustainability of its operations.

The S. Alam Group has been criticized for its close ties to the former Awami League government, which many believe gave the company preferential treatment in securing loans and contracts. This has raised concerns about fairness and transparency in its business dealings.

The group has faced allegations of financial mismanagement, including defaulting on large loans from state-owned banks. Two of its entities, S. Alam Cold Rolled Steels Limited and S. Alam Refined Sugar Industries, have had their mortgaged properties put up for auction by the state-owned Janata Bank. The bank issued the auction notice in local newspapers on Monday, citing unpaid loans taken from its Chattogram General Insurance Bhaban Corporate Branch.

S. Alam Group, one of Bangladesh’s largest conglomerates, has built a diverse portfolio over the years, spanning industries such as steel, sugar, power generation, real estate, transportation, banking, and more. 

S. Alam Group has significantly contributed to the economic growth of Bangladesh by generating employment opportunities for thousands of workers across its various ventures. Its investments in the industrial and manufacturing sectors have supported the country’s push towards self-reliance in essential goods like sugar and steel.