B Mirror Report: Production at listed steel manufacturer S Alam Cold Rolled Steels Limited has come to a complete halt due to frozen bank accounts and restrictions on opening letters of credit (LCs), the company has informed the Dhaka Stock Exchange (DSE).

The disclosure came on Thursday in response to a DSE query following media reports published on Aug. 2 regarding the closure of S Alam Group factories in Chattogram and worker layoffs.

In its reply, the company said regular production could not be maintained due to several unforeseen circumstances beyond its control.

According to the company, its bank accounts were frozen without prior notice after Aug. 5, 2024. At the same time, banks imposed restrictions on opening LCs, disrupting the import of essential raw materials and chemicals required for production.

The company also said that the gradual departure of most of its skilled workers ultimately led to a complete suspension of manufacturing operations.

S Alam Cold Rolled Steels said it plans to resume production as soon as the ongoing issues are resolved and normal business operations can be restored. It added that the DSE will be informed of any significant developments.

The company, however, warned that if production cannot be restarted in the near future, the prolonged shutdown could have a significant adverse financial impact on its business.