Tamijuddin Textile Mills has indefinitely suspended operations at its Gazipur factory following labour unrest, yet the listed company has failed to disclose the shutdown to the country's stock exchanges, raising concerns over possible non-compliance with securities disclosure requirements.
The company issued an 'Urgent Notice' on July 13 announcing the closure of the factory under Section 13(1) of the Bangladesh Labour Act, 2006, which allows an employer to suspend operations during an illegal strike under the "no work, no pay" provision.
Despite the complete halt in production, the company had not disclosed the shutdown to either the Dhaka Stock Exchange (DSE) or the Chittagong Stock Exchange (CSE) as of Thursday.
Market experts say that an indefinite factory closure constitutes "material information" that should be disclosed immediately under DSE Listing Regulations and the Bangladesh Securities and Exchange Commission's (BSEC) Prohibition of Insider Trading Rules. Such omissions deprive investors of price-sensitive data and undermine market transparency.
Attempts to reach the company for comment were unsuccessful. Neither Company Secretary Gazi Mohammad Ali Hossain nor Chief Financial Officer Shamimul Haque Shamim responded to repeated calls from The Financial Express.
Bangladesh Textile Mills Association (BTMA) Joint Secretary Mohammad Ziaur Rahman confirmed that the factory had been shut after labour unrest and said the management invoked Section 13(1) of the Labour Act in accordance with the law.
"The management has followed the legal provision. We hope the factory will resume operations soon," he said.
Officials of the Department of Inspection for Factories and Establishments (DIFE) said the mill employs around 1,400 workers.
According to them, the workers had submitted several demands, some of which are consistent with labour laws, while others fall outside the legal framework. Discussions between management and workers' representatives were going on to resolve the dispute.
Industrial Police officials said the unrest stemmed from workers' demands for additional arrears, bonuses and other financial benefits.
In the closure notice, the management alleged that workers had unlawfully halted production, staged demonstrations at the factory gate and created a situation threatening the safety of life and property.
The notice said operations would remain suspended until a "favourable environment" is restored.
The factory, located at the BSCIC Industrial Estate in Konabari, Gazipur, operates 70,728 spindles with an annual yarn production capacity of 13.8 million kilograms.
According to the company's latest annual report, Tamijuddin Textile employs 1,615 workers. Its chairman, Chowdhury Mohammed Hanif Shoeb, also serves as the chairman of Citizen Bank.
The shutdown comes at a time when the company's business performance has already weakened. In the first nine months of FY2025-26, turnover fell 9 per cent year-on-year to Tk 2.75 billion, while net profit rose slightly to Tk 134.9 million, resulting in earnings per share of Tk 4.08.
Analysts said a prolonged production halt could hurt fourth-quarter earnings and overall financial performance if operations do not resume soon.
Tamijuddin Textile was incorporated in 1971, nationalised in 1973 and returned to private ownership in 1985. After years on the over-the-counter market, it rejoined the DSE's main board in 2021.
Since then, its share price has climbed sharply from Tk 13.20 to Tk 135 as of July 16, 2026, making it one of the market's strongest-performing textile stocks.
