DPL’s stalled gloves production to resume in April
View(s):Dipped Products Ltd (DPL), backs to the wall with a loss in foreign exchange exceeding a billion rupees due to the Rathupaswala factory crisis, is hoping to recover with a phased resumption in production at the new facility at Biyagama.
Officials said the need for a new marketing campaign to capture or recapture customers was under discussion.
The company has been losing Rs. 250 million a month since July 2013 after the forced closure of the Rathupaswala latex glove manufacturing factory in the Gampaha district due to residents’ protests.
DPL Managing Director Mahesha Ranasoma said the factory, currently on a 20-25 acre property, is being relocated to a 5-acre property the Biyagama Free Trade Zone. Plant and machinery is being moved to the new location and the first phase of production is due to resume around April this year.
“We will start production in phases as we move the machines to the new location,” he told the Business Times.
The company has strenuously denied allegations that the factory waste had contaminated the ground water resources in the area, saying there is no scientific evidence or proof.
Dr. Ranasoma said one of the benefits at Biyagama for a quick start-up was the infrastructure already in place at the zone. The company has retained its permanent staff despite the absence of production while contract staff has been discontinued.
He agreed that it was tough times for the company which has a backlog of orders. “We are hoping to retain customers but it’s anybody’s guess (because we have not been able to supply in the past few months.”