Jamshedpur, Nov 24 (UNI) Around 600 small and medium ancillary units of Tata Motors are expected to be shut down during the second block closure of the country's largest auto manufacturer from tomorrow due to demand slump caused by the global economic recession.
President of Adityapur Small Industries Association, a body of hundreds of ancillary units situated in nearby Adityapur Industrial area, which directly or indirectly supplied various parts to the auto giant, Mr S N Thakur today told UNI here that the 600 odd units would have no option but to stop production because of the closure in Tata Motors plant.
'' The units have not yet recovered from the last block closure a few days back and will be forced to take a production rest from tomorrow, which will cause a business loss to the tune of Rs 500 crore. This is a very difficult situation. We cannot produce when there are no takers of our products,'' he added.
Tata Motors had officially announced to stop production in its Jamshedpur commercial vehicle plant for five days begining November 25. It will also remain closed on November 30 by virtue of it being a general holiday.
This is the fourth such closure of the plant in almost a decade and second in just one month as it had closed the plant recently between November 5-9 with three days announced block closure, one adjusted leave and a general holiday.
The production in the plant has dropped from almost 500 units per day in March to around 150 recently.
The auto giant has already disengaged almost all of its around 3,000 non-permanent workers due to production slump. It gave 'no work' notice to half of them on October 20, 23 and November 3. Half of such workers were ousted during the general monsoon slump and were not taken back.
Recently, the plant had brought down the number of production shifts to one from normal three.
Due to the Tata Motors demand downturn hundres of ancillaries in neighbouring Adityapur Industrial area are also facing crisis with more than fifty already shut.
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