Bangladesh garment factories face energy crisis as 78% halt production

  • Bangladesh’s garment makers face gas and power shortages disrupting production, orders and shipments.
  • 134 factories reported that 55% lost orders and 78% partially halted production.
  • 4A Yarn Dyeing plans an industrial battery system after maintaining operations through self-generated electricity.

Bangladesh’s garment industry is facing worsening gas and electricity shortages that have disrupted production, shipments and buyer orders. A survey of 134 knitwear factories found that 55% had experienced order cancellations or reductions since late August and 78% had partially halted production. 4A Yarn Dyeing, a supplier to Walmart, Gap and Next, has avoided disruptions so far by generating its own electricity: solar provides about 40% of its needs, with gas and diesel generators supplying most of the remainder. The factory employs nearly 7,500 workers, but higher diesel prices have lifted production costs by 2% to 3% and added up to 5 million taka ($40,950) to its monthly fuel bill. Bangladesh’s decision to raise fuel prices by as much as 17.4% is adding pressure to an industry that accounts for more than 80% of export earnings, employs about 4 million people and contributes around 10% of gross domestic product. 4A plans to install an industrial-scale battery system to maintain operations for several hours during power-source failures, while manufacturers warn that rising energy and transport costs could weaken Bangladesh’s competitiveness against Vietnam and India.

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