Al-Haj Textile Mills, listed on Bangladesh’s stock exchanges, has shut down its factory for an indefinite period after extension of lay-off period for 5 times, as per media reports.
It may be mentioned here that incorporated as a Private Limited Company in 1962, Al-Haj Textile Mills Ltd. is one of the oldest manufacturers of cotton yarn in Bangladesh. It was converted to a Public Limited Company in 1967 and is one of the oldest public Limited Companies in operation.
However, Al-Haj Textile Mills had to shut its factory for 30 days between 25 June and 24 July for a severe fall in the volume of sales as a result of lack of demand in the market and shortage of storage facilities for holding stock of finished goods in the warehouse and also severe blockage of working capital.
After that, the textile company extended the lay-off 4 times in 15 days each, which ended on 7 October.
Overall, the factory of the company remained shut for 115 days in total.
Recently, the management of Al-Haj Textile Mills decided to close the factory again from 8 October due to non-improvement of market situation of yarn sales while informing the Dhaka Stock Exchange and the Chittagong Stock Exchange about this decision.
The company also informed that the mill would reopen subject to improvement of the market situation.