Dunlop’s West Bengal unit reopens, production in one month (Lead)

March 6th, 2009 - 8:57 pm ICT by IANS  

Kolkata, March 6 (IANS) Tyre maker Dunlop India’s Sahaganj unit in West Bengal reopened Friday after remaining shut for over three months, with the company saying production could start in 30 days.
The Dunlop management informed employees Tuesday through a notice at the factory gate about the resumption of operation, and said production will commence once the repairing and refurbishing of the plant was completed.

However, Dunlop India chairman Pawan Kumar Ruia Friday said: “On a primary assessment of the condition of the plant, it seems that regular production in some of the divisions can start pretty soon, possibly within next 30 days.”

Around 100 workers reported for duty, a company statement said.

The management had earlier asked 229 workers of the maintenance and engineering division, out of a total workforce of over 1,200, to join duty.

Rest of the 229 workers are expected to join in the next couple of days, the company statement said Friday.

The company suspended production at the unit located in Hooghly district Nov 17, citing lack of demand due to the global economic downturn.

The management has said banks have assured it of the working capital needed for running the plant in a sustained manner. The state government is also “actively considering” giving some relief and incentives Dunlop had asked for, the management said.

Earlier, the company sought a Rs.1-billion (Rs.100-crore) loan from the West Bengal Industrial Development Corp (WBIDC).

Kolkata-based Ruia group chairman Pawan Kumar Ruia ventured into the tyre manufacturing industry in 2005 after acquiring Dunlop from the late businessman Manohar Rajaram Chhabria’s family.

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