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Gazipur RMG units go back to production

Owners upbeat on achieving export targets

Refayet Ullah Mirdha
The Gazipur based garment factory owners, some of whom were affected by the month-long labour unrest in August, are now upbeat on fulfilling this year’s export target of their produces, expressing their satisfaction over the government measures to keep law and order situation under control.
However, the industry insiders have linked the political stability and smooth supply of gas and power to such achievement.
According to them, normalcy returned in Gazipur and adjacent areas like Maona and Savar, where 60 percent of the country's garment factories are located, as the unrest-hit factories have started production on the strict security measures taken by the government in association with the sector's trade body leaders.
Meanwhile, in a bid to further stabilise the law and order, garments owners attended a crucial meeting at the Deputy Commissioner's office in Gazipur yesterday where representatives from Police, Rapid Action Battalion (RAB) and other law enforcement agencies reviewed the latest law and order in the area.
Earlier, these factory owners threatened to close their units in the trouble-torn district for an indefinite period from the 25th of this month if the government fails to provide security for the industry within this stipulated time.
Most of the garment factory owners have expressed their hope that they will be able to make up for the loss they faced because of the latest spell of labour unrest.
They think the rate of inflow of orders from foreign buyers is
still very high when the country can manufacture fine clothing with cheaper labour cost.
At the beginning of the year almost all garment owners expected to surpass the export target, but the unrest hindered production, said Salam Murshedy, managing director of the Envoy Group.
This group stopped production at its sweater factory for a few days in the first week of August when a section of agitated workers vandalised some factories at Ashulia demanding hike of their wages.
"Though it will be tough, we are optimistic of reaching our targeted export of US$100 million this calendar year. Our export was $90 million in 2007," said Murshedy.
Lauding the government's step for appeasing the unrest in the garment sector, which accounts for more than three quarters of the total exports, he said stable law and order situation, political stability and proper supply of energy are the main
factors for achieving the targeL
"The amount of loss we faced for the labour unrest will stand at Tk 15crore. But I am confident that I can recover the loss as the production started again," said Mizanur Rahman Chowdhury, managing director of Mim Sweater, the factory that was burnt by its workers during the August 10 unrest.
I exported US$ 15 million in 2007 and for this year my target of export is $18million,” the confident Chowdhury maintained.
Echoing Chowdhury's optimism about RMG exports, Rezaul Hasanat, managing director of Viycllatex Group, a state-of-the art garment factory in Gazipur, also pointed to the fact that the work stoppage during the unrest would cost the production more.
"But the fulfillment of export target is possible under the current congenial business atmosphere," he said. The total turnover of Viyellatex Group was $125 million in 2007 and
this year the target is $135 million and it is possible to achieve, he added.
Iqbal Ahmed Quereshi Adnan, managing director of Titas Sweater, an affected garment, said anticipating Titas' failure to timely deliver the export of sweater during the labour unrest, a major buyer from Spain cancelled his purchase order for 4 lakh pieces.
"But I am very optimistic about the achievement of export target of $7million this year, which was $6.5million last year," he said, adding that the cost doubles when exporters have to make air shipment to maintain the lead-time.
When asked, Vice President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Shahidul Islam said the situation seems normal, which is a pre-requisite to achieving export target.
"Stable law and order is a must for the recovery of the loss," he said.
reefat@thedailyslar.net