Pacific Jeans Limited (Unit-1), one of Bangladesh's leading ready-made garment (RMG) manufacturers located in the Chittagong Export Processing Zone (CEPZ), has decided to stop production and demolish one of its factory buildings due to structural safety concerns.
In a statement on Sunday, the company clarified that the decision to stop production applies only to the particular factory building.
Production at other units of Pacific Jeans Limited and other factories under the Pacific Jeans Group continues at their existing capacities, the statement said.
A special structural safety audit conducted by the RMG Sustainability Council (RSC), followed by a Detailed Engineering Assessment (DEA), found a risk of potential structural failure in the approximately 34-year-old building.
Prioritising workers' lives and safety, the company decided to halt production in the affected building, it said.
In line with the Bangladesh EPZ Labour Act, 2019, the company began the phased termination of workers assigned to the building on October 31, 2026.
The company ensured full payment of all legally required compensation and benefits, including outstanding wages, overtime and other allowances, payment for unused earned leave, notice pay, service benefits and provident fund contributions, including accrued interest.
Final payments are being made directly into workers' individual bank accounts on their respective termination dates, it said.
The workers are also being provided with detailed pay slips, experience certificates and testimonials to help them secure future employment, the statement added.
New Factory Planned with Employment Opportunities for 10,000
Despite the need to halt production over safety concerns, Pacific Jeans Limited remains committed to its long-term industrial development plans and the welfare of its workers.
After production stops and the employment termination process is completed, the company plans to demolish the building, subject to directives from the RSC's Remediation Coordination Cell and approval from the relevant authorities.
Once the demolition is completed and all necessary clearances are obtained, the company plans to construct a new, environmentally friendly, state-of-the-art multi-storey factory on the same site.
The proposed factory is expected to create employment opportunities for 10,000 workers, contributing to industrial development, job creation and economic growth.
The company also plans to give priority to existing workers when recruiting for the new facility.
Pacific Jeans Limited expressed its gratitude to the Bangladesh Export Processing Zones Authority (BEPZA), relevant government authorities, business partners, buyers and other stakeholders for their continued cooperation, guidance and support.