Written by The Banking Post
Tamijuddin Textile Mills has indefinitely suspended production at its Gazipur factory following labour unrest but has yet to inform the country’s stock exchanges, raising concerns over compliance with securities disclosure requirements.
The company issued an urgent notice on July 13, announcing the factory’s closure under Section 13(1) of the Bangladesh Labour Act, 2006, which allows employers to suspend operations during an illegal strike under the “no work, no pay” provision.
Despite the complete production shutdown, no disclosure had been made to either the Dhaka Stock Exchange (DSE) or the Chittagong Stock Exchange (CSE) as of Thursday.
Market analysts said an indefinite factory closure is a material event that should be disclosed promptly under stock exchange listing regulations and securities rules, as it may significantly affect investors’ decisions and the company’s financial outlook.
Officials of the Department of Inspection for Factories and Establishments (DIFE) said the factory employs around 1,400 workers. They added that employees had submitted several demands, some of which are in line with labour laws, while others fall outside the legal framework. Discussions between management and workers’ representatives are ongoing to resolve the dispute.
According to Industrial Police, the unrest was triggered by workers’ demands for additional arrears, bonuses and other financial benefits.
In its closure notice, the company alleged that workers had illegally halted production, staged demonstrations at the factory gate and created a situation that threatened the safety of life and property. Operations will remain suspended until a “favourable environment” is restored, it said.
Bangladesh Textile Mills Association Joint Secretary Mohammad Ziaur Rahman confirmed the factory closure, saying management had invoked the relevant provision of the Labour Act.
“The management has followed the legal provision. We hope the factory will resume operations soon,” he said.
Located at the BSCIC Industrial Estate in Konabari, Gazipur, the mill has 70,728 spindles and an annual yarn production capacity of 13.8 million kilograms.
The shutdown comes as the company’s operating performance has already weakened. During the first nine months of FY2025–26, revenue declined 9 percent year-on-year to Tk 2.75 billion, while net profit edged up to Tk 134.9 million, with earnings per share standing at Tk 4.08.
Analysts warned that if production remains suspended for an extended period, the company’s fourth-quarter earnings and overall financial performance could come under pressure.
Tamijuddin Textile returned to the DSE’s main board in 2021 after years in the over-the-counter market. Since then, its share price has surged from Tk 13.20 to Tk 135 as of July 16, 2026, making it one of the best-performing textile stocks in the market.
