A factory in Uttara EPZ announced to be closed due to purchase order and raw material crisis

A factory named Magen (Bangladesh) Industries Limited, a Chinese manufacturer of spectacles and optical frames, has been announced to lay-off at Uttara EPZ in Nilphamari. This decision has been taken due to the shortage of raw materials and reduced purchase orders from customers.
This was announced in a notice signed by Eren Lee, the plant’s director of operations, on Wednesday afternoon. The notice mentions that due to the impact of the current global situation, it is not possible to continue the regular production activities due to disruption in the supply of raw materials and reduced purchase orders. In this situation, the factory will remain closed from April 30 till further orders.
The notice said that during the lay-off period, workers, employees and officials will be paid salary as per Section 15 of Bangladesh EPZ Act, 2019. At this time there will be no need for factory presence or daily attendance. However, subject to the supply of raw materials and receipt of new orders, if necessary, the concerned will be instructed to join the work.
Confirming the matter, the executive director of Uttara EPZ Mohammad Abdul Jabbar told Prothom Alo that due to the shortage of purchase orders and raw materials, there is no situation to give work to the workers. Attempts are being made to normalize the situation by communicating with the buyers. Once the raw materials and purchase orders are available, the factory will resume production operations.
Abdul Jabbar also said that 4 thousand 361 local workers are working in the factory. Apart from this, 96 Chinese nationals and experts are working. They said that their current month’s salary will be paid by May 7 and Eid bonus by May 14. They are giving their necessary guidelines for re-opening the factory soon.