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Company Response

21 Mar 2025

LPP's response to Beximco Group factory closures

In 2023 and 2024 LPP cooperated on a small scale with 3 factories of Beximco Group. Last orders were placed in the beginning of 2024 and were delivered in November 2024. The reason for ending cooperation in September 2024 was the Group’s inability to handle our production. As they were not able to open the Letter of Credit, we were adviced by Beximco itself to move the production to another supplier. Monitoring the impact our business activities have on the surrounding environment, particularly in the context of working conditions in developing countries, has become an integral part of our operations. LPP's financial obligations towards the supplier were settled according to the contract.

The case of Beximco was widely discussed in the local media. According to the most recent information:

https://www.dhakatribune.com/bangladesh/376810/beximco-pays-wages-to-33-085-workers (published March 20, 2025)

The Beximco Industrial Park Ltd has been paying the dues of its employees with support from the Ministry of Labour and Employment and the Ministry of Finance in phases. The remaining workers and employees will receive their payments by March 25, 2025.

Part of the following timelines

Bangladesh: Beximco Group closes down 16 textile factories, laying off 40,000 workers; incl. co. responses

Bangladesh: Beximco Group closes down 16 textile factories, laying off 40,000 workers; incl. co. responses

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