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REFILE-UPDATE 1-Key Bangladesh garments factory destroyed in blaze

Fri, 29th Nov 2013 11:19

By Serajul Quadir

DHAKA, Nov 29 (Reuters) - A devastating fire ripped througha Bangladesh garment factory supplying major Western retailers,police and industry officials said on Friday, in a blaze set byworkers angered over rumours of a colleague's death in policefiring.

Garments are a vital sector for the South Asian nation,whose low wages and duty-free access to Western markets havehelped make it the world's largest apparel exporter after China.

But a series of deadly incidents, including a buildingcollapse that killed more than 1,100 people in April, hassparked global concern over weak safety standards in thecountry's $22-billion garment industry.

There were no reports of casualties in Friday's fire, whichgutted a ten-storey building at Gazipur, 40 km (25 miles) northof the capital, Dhaka.

But fire fighters were still battling to douse the fire infour nearby buildings, more than 15 hours after it had begunaround midnight on Thursday, after workers finished for the day.

"We are still struggling to control the flames," said fireofficial Mahbubur Rahman, adding that 22 fire service and civildefence units been thrown into the fire-fighting operation.

At the scene, a Reuters photographer said burnt garmentsstrewn on the floors bore brand names from U.S. retailers suchas American Eagle Outfitters Inc, Gap Inc andWal-Mart Stores Inc.

Other brands on the clothes included Li and Fung Ltd, Marks and Spencer Group PLC, Sears Canada Inc, Fast Retailing Co Ltd's Uniqlo andInditex S.A. brand Zara.

Nur-e-Alam, a senior manager of Standard Group, said thefactory had stored the next six months of its supplies for topglobal retailers, including Gap and Wal-Mart.

"We were the biggest supplier of Gap in Bangladesh," hesaid, adding "Our cargoes were ready for shipment and all thatwas burnt up."

The loss to the firm could run into more than $100 million,estimated another group official, who asked not to beidentified, saying the final tally could exceed his figure.

The factory was among the ten biggest in the country, said Mohammad Atiqul Islam, president of industry body theBangladesh Garment Manufacturers and Exporters Association,adding that the destruction could cost workers their jobs.

"Now all the workers are at risk of becoming jobless," hesaid.

As many as 18,000 people worked at the factory, its owner,Mosharraf Hossain, told Reuters.

A local police official dismissed as baseless the claim thata worker had died in the firing, adding that a group of workersassisted by nearby residents had set the fire.

"We are investigating to find out the reason for thisheinous act," said Mohammad Kamruzzaman, the officer in chargeof the Joydevpur police station that guards the area.

Police and witnesses said tempers flared following a mosqueloudspeaker announcement of a worker's death after police firedin the air to break up a road blockade by workers who hadearlier vandalized the factory and set two buildings on fire.

Police had to fire shots in the air to scatter the workersand let in fire fighters, Mushfiqur Rahman, another manager atStandard Group, told reporters.

The recent string of accidents in Bangladesh has put thegovernment, industrialists and the global brands that use thefactories under pressure to reform an industry that employs fourmillion people and generates 80 percent of export earnings.

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