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400 Bangla textile, RMG factories shut operations in 3 yrs

Mar '20
Pic: Shutterstock
Pic: Shutterstock
Nearly 400 textile and readymade garment (RMG) factories in Bangladesh closed operations during the last three years, leaving more than 0.11 million workers jobless in different industrial zones. In contrast, a total of 259 new units were set up during the period, Industrial Police data shows. About 60,636 have been employed in the new factories.

Out of the 400 closed factories, some 318 units were members of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), 71 were registered with the Bangladesh Knitwear Manufacturers and Exporter Association (BKMEA), while 13 were associated with the Bangladesh Textile Mills Association (BTMA), according to the data.

The data was collected from industrial zones like Ashulia, Gazipur, Narayanganj and Chattogram.

As entrepreneurs are making fresh investments in setting up new units with safety compliance, modern and green technology, older small and non-compliant ones are failing to sustain in the competitive market, according to a report in a Bangla newspaper.

Industry insiders also attributed insolvency of the owners followed by rising production cost, failure to maintain the strict compliance and the wage structure for the shut-down.

In 2018, Gazipur witnessed the highest number of factory closure, followed by 97 in Ashulia, 57 in Narayanganj and 28 in Chattogram. On the other hand, 118 new textile and garment factories have been set up in Ashulia zone.

During the period, 72 factories registered with the BGMEA and the BKMEA were established in Gazipur in Chattogram and nine in Narayanganj.

The BGMEA has presently around 4,500 member factories. Around 40 per cent of BGMEA member factories are knitwear and sweater manufacturers, and the remaining 60 per cent are woven garment manufacturers.

On the other hand, some 1,100 factories are registered with the BKMEA and the BTMA has 1,500 members.

Fibre2Fashion News Desk (DS)

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