Friday, 03 September 2010
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Berger locks down Karachi factory, cuts 600 jobs
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Shiraz Ahmed
KARACHI: Berger, the largest paint company in the country, has closed down its factory in Karachi, sources told The Financial Daily on Thursday. They said Berger Group has decided to close down production in Karachi. It may be recalled here that few weeks back the factory situated in SITE industrial area was gutted in a fire as a result the company suffered huge losses.
The company was, later on, compensated by its insurer M/s Adamjee Insurance but despite this it transferred Oxyplast to Lahore and did not resume operation in Karachi.
The company has cut down at least 600 jobs before shifting business to Lahore however the higher level management team has already been transferred there.
The company, however, has denied such reports saying it has adopted 3-prong strategy to increase its production that included industrial sale, auto sale and decorative sale but this brought no fruition piling up huge loss. In "industrial sale" the company planned to approach the big companies while "auto sale" plan included marketing the products to various automobile companies like ENO, Suzuki etc, whereas the "decorative sale" plan designed to approach home consumers and builders. Facing heavy losses in all three sales plans, the company decided to move to Lahore.
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