S Alam Cold Rolled Steels has attributed its production shutdown to frozen bank accounts, restrictions on opening letters of credit and shortages of raw materials and skilled workers, warning that a prolonged suspension could have a significant financial impact on the company.
The explanation came in a clarification to the Dhaka Stock Exchange after media reports said all S Alam Group factories in Chattogram had shut down and workers had been laid off.
In a filing dated 4 August, the listed steel manufacturer said it had been facing “significant challenges” arising from circumstances beyond its control, making it impossible to continue regular production.
The company said its bank accounts were frozen immediately after 5 August 2024 without prior notice, while banks also imposed restrictions on opening letters of credit.
Those constraints disrupted the company’s ability to import chemicals and raw materials, while many skilled workers gradually left their jobs, creating acute labour shortages that ultimately forced it to suspend production, according to the filing.
With production halted, the company said it is working to resolve the issues and hopes to resume operations as soon as the constraints are removed.
“Upon resolving the issues and getting opportunity for regular operation of the same, we are hopeful we can start production immediately,” the company said in the disclosure.
It also cautioned investors that failure to restart operations within a short period could have a significant financial impact on the business.
The clarification was issued in response to a Dhaka Stock Exchange query dated 2 August seeking the company’s comments on media reports regarding the shutdown of S Alam Group’s factories in Chattogram.
The disclosure comes days after reports emerged that multiple industrial units of the S Alam Group had suspended operations, leading to widespread layoffs as the conglomerate continued to grapple with financial and operational disruptions.
The company shares closed 2.31 per cent lower at Tk12.70 on the DSE on Thursday.
