Pawan Ruia-controlled Dunlop India on Monday stopped its Sahagunj mother plant here, saying the global meltdown had affected operations of the ailing unit.
A company spokesman said there had been no retrenchment and the 1,172 workers continued to be on the company’s rolls although they would be paid a consolidated wage. The entire matter had been decided after discussions with the unions, the company said. The union representatives could not be contacted for their comments
While the Ambattur unit has been closed for long, the Sahagunj unit in Hooghly district was carrying on operations stabilising production, at about 40 tonnes against a capacity of 90 tonnes. The product-mix comprised OTR (off-the-road) tyres and truck tyres.
“The meltdown has affected Dunlop’s revival plans and the company would utilise this time to recast production and perhaps change the product-mix,” a company official said.
Group company Falcon Tyres, making two-wheeler tyres with its unit in Mysore, will carry on normal operations for now, sources said.
The management expects the resumption of the plant at an early date.
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