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HIL stops operations of AAC Blocks manufacturing unit at Chennai

16 Oct 2013 Evaluate

HIL has stopped its operations of the AAC Blocks manufacturing unit at Chennai with effect from October 14, 2013 onwards. This is done in view of the unfair labour practices being initiated by the company’s contract workmen by resorting to go slow practices from September 23, 2013 onwards and subsequently denying adhering to the advices of the Assistant Commissioner of Labour (Conciliation) after several rounds of conciliation meetings. The conciliation proceedings are pending before the Assistant Commissioner of Labour (Conciliation) and the company shall commence the operations of the said plant immediately on reconciliation of the same.

Besides, the company has also stopped its operations of the sheeting manufacturing unit at Wada, Maharashtra in view of the sluggish demand in western market.

Further, the operations at the company’s sheeting manufacturing unit at Balasore, Orrisa have been affected due to breakdown of power transmission lines due to the cyclone Phailin that hit Orissa on October 12, 2013. There has been water logging inside the plant resulting in minor damage of equipment and small quantities of Finished Goods and Raw material have also been damaged. The entire fixed assets, Finished Goods and Raw material are completely insured and company has initiated the process of insurance claim. The operations at the said unit are expected to commence in a day or two immediately on restoration of power transmission lines.

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