K K Birla Group company Birla Tyres today announced a temporary closure of its Balasore plant till January 31 in view of the global meltdown.
"This is a temporary closure of the Balasore unit due to recession", Manager (administration), R K Ray told PTI over the phone.
Birla Tyres, which employs nearly 4,500 people, including 2,200 regular employees, had undertaken a similar temporary closure for a fortnight last month, Ray pointed out.
The temporary closure, he said was aimed at decreasing production.
All employees would not be paid during the closure period, he said.
Birla Tyres, Balasore, had, emerged as a brand in the market by manufacturing tyres, tubes and flaps. The unit had also availed export license from the government for its quality products.
The employees unions, however, refuted the management's version by alleging that there was no shortfall in the sale of tyres manufactured from Balasore.
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"We do not understand how the company could reinvest Rs 850 crore and recruit more people at its Uttaranchal tyre unit during recession period," Union leader Rajendra Bal said.
The employees urged the government to intervene and ask the company to resume normal activities soon.