Hamid Fabrics running at moderate efficiency, says MD after report on ‘production halt’

Hamid Fabrics is running at moderate efficiency and is struggling to maintain adequate service levels to its customers, said its managing director Abdullah Al Mahmud amid reports of production halt due to a gas crisis.

The Hamid Fabrics officials made the clarification to The Business Standard on Monday (8 July) following a report titled “Hamid Fabrics ‘halts production’ due to gas crisis, capital shortage” published by TBS on Sunday (7 July).

Mahmud also clarified that the company is facing challenges to run its production at full capacity due to the gas crisis over the last couple of months.

TBS published the report on Hamid Fabrics after Mohammad Ali Khokon, president of the Bangladesh Textile Mills Association on Saturday said textile millers are facing challenges as a severe gas crisis has pushed them to run their factories at low capacity.

“Hamid Fabrics has already stopped production in this given situation,” he said at a press conference.

However, speaking to TBS on Monday, Abdullah Al Mahmud said “Production and service levels in Hamid Fabrics PLC are uninterrupted and ongoing, despite the current utilities crisis in the country.”

Speaking about Mohammad Ali Khokon’s statement, Mahmud said the BTMA president “made the statement mistakenly”.

“As we all know, a fall in productivity may well have an impact on working capital as well,” added Mahmud.

“The entire Narayanganj-Narsingdi region is affected by the gas crisis, and that is where the Hamid Fabrics factory is located,” Mahmud said.

He continued that the present gas pressure in the mills does not go beyond 2.0 PSI.;

“We had to invest in and activate alternate energy sources like LPG, which costs them at least Tk10 lakh every 36-48 hours,” said the Hamid Fabrics MD.

Hamid is paying these bills from current cash flow to maintain and service its customer orders, he stated.