Over 1,000 RMG factories back in production after 5 days

The wheels of garment factories started rolling after five days of complete shutdown and production loss. Around 1,000 factories, 50% of which in Chattogram zone, resumed operations on Tuesday, according to industry insiders.

The government is gradually relaxing the curfew imposed four days ago to contain the deadly violence and reopening its offices and banking services – a development that shows that normalcy is gradually returning to the country after a week-long dreadful situation that forced the government to cut off internet nationwide.

The RMG industry is the lifeline of Bangladesh's economy, accounting for around 85% of the country's total exports. Many businesses from banks to insurers, logistics and many more depend on this sector.

There are approximately 2,200 active apparel factories in the country, according to BGMEA and BKMEA data.

BGMEA sources said nearly 500 out of 600 apparel factories in Chattogram and some 365 factories in Narayangonj BSCIC resumed their operations at full capacity in a desperate move to retain their buyers. Another 100 factories in the Savar, Ashulia, Gazipur and Mymensingh areas resumed partial operations.

Speaking with The Business Standard, BGMEA Vice President Rakibul Alam Chowdhury said almost all of its member factories have resumed production at full capacity to meet their export lead time.

There is no imminent security threat as normalcy is coming back, he said.

Factories located in the Economic Processing Zones (EPZ) are expected to reopen today if the government does not extend general holidays further, Rakibul said.

Echoing Rakibul's sentiment, MB Knit Fashion's Managing Director Mohammad Hatem said all knitting factories and about 50% of garment factories in Narayangonj BSCIC started productions on Tuesday.

He expressed hope that rest of the factories will resume their operations by Wednesday.

Factories across the country are also willing to resume operations by Wednesday, said Hatem.

"We will sit with the home minister today [Tuesday] over security assurance from the government," Hatem, who is also the executive president of the BKMEA, said in the afternoon.

BGMEA officials said about 50 factories in Savar and Ashulia zone and 50 factories Gazipur and Mymensingh zones resumed partial production.

Reza Group Chairman AKM Shahid Reza told TBS, "I am aware of one factory, out of around 15, in my area which resumed partial operations on Tuesday."

The entrepreneur also mentioned that they are communicating with workers, who may have left their factory areas amid general holidays, to return as soon as possible as production in all factories expected to resume operations on Wednesday.

Reza Group employs about 3,500 people, he said, adding that the absence of workers might affect their production line.

Shamsher Knit Global Attire's AGM (Admin and Compliance) Md Nazmul Huda said, "Our factory managed to stay out of trouble during this and previous unrests as our workers are cordial and compliant."

He said the prime minister on Monday gave verbal approval to factory reopening as long as the owners bear responsibility, which encouraged many to resume operations.

"We have 1762 workers in our factory and less than 2% were absent yesterday," he said.

Industrial Police (Ashulia zone 1) SP Sarwar Alam said that owners have not informed them officially about factory opening.

Some factories working on a tight schedule resumed operations yesterday, the police official said, adding that security and surveillance have been heightened in the country's all industrial zones.

Factory owners fly abroad to assure buyers

Some factory owners had to go abroad to contact their buyers in persons as online communication remain off since last Thursday.

A leading denim textile miller told TBS, "I had to fly to Thailand to complete over corresponding work which could have been done online."

The entrepreneur also mentioned that he is not only one who had to visit foreign buyers in persons. Some factory owners sent their merchandisers to aboard – including India, UAE, Singapore, over corresponding issues.

RMG leaders meet home minister, ICT state minister

A group of BGMEA and BKMEA leaders met with State Minister for ICT Zunaid Ahmed Palak at 5pm yesterday, seeking the restoration of internet connectivity to industrial zones and ports.

Later in the evening, the leaders also met with Home Minister Asaduzzaman Khan Kamal at his residence, seeking security assurance for factories.

Emerging from the meeting with the home minister, BGMEA President SM Mannan Kochi said security issues were the main agenda in the meeting.

All RMG factories will resume operations on Wednesday. The minister assured us of a safe environment amid the curfew and workers ID cards will be considered as curfew pass, he added.

Kochi said, during the meeting, the home minister said factory owners and workers must distance themselves from the students involved in the quota reform movement.

The minister said government offices will remain open from 11am to 3pm today, he told TBS.

Mentioning that due to a halt in export shipments, the industry incurred losses amounting to around $640 million, the BGMEA president said that the home minister assured the resumption of export-import activities in ports, considering the negative impact on the economy.