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Lack of orders forces BGMEA, BKMEA to close 419 RMG factories

Around 419 RMG factories in Bangladesh have remained closed for the last two months as the global buyers halted placing orders.

Of these 419 factories, nearly one hundred units went for permanent closure and the rest are waiting for work orders to resume production. Production in 348 member factories of the Bangladesh Garment Manufacturers and Exporters Association and 71 factories registered with the Bangladesh Knitwear Manufacturers and Exporters Association had remained suspended since the last week of March.

Of the 348 factories, 91 are located in Gazipur, 79 at Ashulia in Dhaka, 70 in Narayanganj, 67 in Chattogram and 40 units are located in the Dhaka city. BKMEA leaders said that 71 of their member factories had remained closed for the last two months due to lack of work orders and a few of them went for permanent closure.

The country’s apparel sectors’ trade bodies on March 25 announced production closure in the RMG factories in line with the general holidays announced by the government to contain the coronavirus outbreak in the country.

The factory owners started reopening the factories from April 26 with the consent from the government amid the surge of infection of coronavirus. According to BGMEA data, a total of 1,150 member factories of the trade body reported that the global buyers cancelled orders worth $3.18 billion due to the coronavirus pandemic.