Global financial crisis has created a tough situation for industry and it is adopting various measures to save itself from long term losses. The Pawan Ruia-controlled tyre major, Dunlop India, has decided to close production in its mother plant in Sahagunj at West Bengal, in line with its cost cutting measures. The company had resumed operations at the production plant in January, after five year closure.

The officials of company said that it would utilize the time to reshape its production strategy and revival of plans. Dunlop would work on making the brand more popular across the country.

However, the company ruled out retrenchment and said that it would continue to pay consolidated pay to all 1,172 workers. Slum in demand and credit problem forced it to take hard decision. It has directed all its workers not to come in the factory from tomorrow onwards.

All workers would be paid a monthly subsistence allowance of Rs 2,000, until production resumes. The workers opposed closure of factory and held demonstration before the plant. Mamata Banerjee's Trinamool Congress also supported the workers and raised slogans against company chairman Pawan Kumar Ruia.