Bangladesh garment makers turn virus gloom into boom

PPE production has been a lifesaver for Beximco workers in Savar. (AFP)
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Updated 27 June 2020
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Bangladesh garment makers turn virus gloom into boom

SAVAR, Bangladesh: Facing ruin as orders from Western brands collapsed in the coronavirus pandemic, many Bangladeshi garment factories have been given a lifeline with orders to make protective masks, gloves and gowns for export.

Nonetheless, hundreds of thousands of workers who used to work in export-oriented apparel factories in the South Asian country remain jobless.

At factories in Savar just north of Dhaka, thousands of workers are working eight-hour shifts, six days a week, making personal protective equipment (PPE).

“We saw the opportunity in February and immediately we switched to PPE manufacturing,” said Syed Naved Husain, chief executive of Beximco, a major supplier to the owners of brands such as Zara and Calvin Klein.

Beximco last month exported 6.5 million medical gowns to US brand Hanes and it expects to export some $250 million worth of protective gear this year.

“Now some 60 percent of our 40,000 workers are engaged in PPE making,” he said. “Coronavirus has changed the world.”

Sumaiya Akter and Rubel Miah, who lost their jobs making apparel for Western retailers, were among the workers making final amendments to the robes.

“I feel lucky for getting work in this factory while many others lost jobs and are now facing difficulties,” 34-year-old mother Akhter said. “At least I can feed my family and parents.”

Bangladesh over the past two decades became the world’s second-largest ready-made garment exporter after China, making clothes for the likes of Primark and H&M.

Before the pandemic, it accounted for around 80 percent of the country’s $40 billion annual exports and employed more than four million people, many of them women from poor rural villages.

But when the world started to go into lockdown, shipments plunge by a staggering 84 percent in April.

About $3.2 million of orders were either canceled or withheld, according to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

The resumption of work in Bangladesh — which is reeling from its own COVID-19 outbreak — means extra safety measures.One factory owner said, however, that “distancing is almost impossible in the factories because of the nature of the job.”

Now, the BGMEA said, many manufacturers were becoming hopeful again as they pivot toward medical wear.

At least 30 factories have started manufacturing PPE since the start of the pandemic and the “number is growing,” Shuvo said.


Closing Bell: Saudi main index climbs to 10,485 

Updated 6 sec ago
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Closing Bell: Saudi main index climbs to 10,485 

RIYADH: Saudi Arabia’s Tadawul All Share Index edged up on Sunday, gaining 34.32 points, or 0.33 percent, to close at 10,484.59. 

The total trading turnover of the benchmark index stood at SR2.59 billion ($690 million), with 168 listed stocks advancing and 87 declining. 

The Kingdom’s parallel market Nomu also gained 100.37 points to close at 23,454.65. 

The MSCI Tadawul Index advanced by 0.13 points to 1,377.44. 

The best-performing stock on the main market was Nama Chemicals Co., whose share price increased by 9.98 percent to SR22.38. 

The share price of Al Masar Al Shamil Education Co. rose by 9.15 percent to SR23.85. 

Saudi Paper Manufacturing Co. also saw its stock price climb by 8.42 percent to SR57.95. 

Conversely, the share price of Canadian Medical Center Co. dropped by 6.37 percent to SR6.03. 

The stock price of Kingdom Holding Co. also declined by 3.16 percent to SR8.28. 

In the parallel market, Alfakhera for Mens Tailoring Co. was the top performer, with its share price advancing by 16.40 percent to SR8.80. 

On the announcements front, Theeb Rent a Car Co. said it had signed a long-term vehicle leasing services contract valued at SR110.4 million with Hungerstation Co. 

Under the deal, Theeb will lease 2,000 vehicles to HungerStation for a period of four years starting from 2026, according to a Tadawul statement. 

The statement added that the vehicles will be delivered in batches within the first six months from the contract start date, taking into consideration global logistical circumstances and procedures beyond the control of both the agents and the company. 

The contract is expected to have a positive impact on the company’s financials from the first quarter of 2026. 

The share price of Theeb Rent a Car Co. declined by 0.79 percent to SR37.80.