La Opala RG Limited announced the suspension of operations at its Madhupur Opal Glass Plant, in Jharkhand, effective July 7, 2024. The decision, approved by the Board of Directors in their meeting held on July 6, 2024, was driven by the aging of the plant, outdated machinery, and obsolete semi-automatic technology, resulting in lower efficiency, and higher production costs.
The Madhupur Opal Glass Plant, located in Deoghar District, Jharkhand, was established in 1987.
The plant’s aging infrastructure, outdated machinery, and obsolete semi-automatic technology have made it non-viable to continue operations due to lower efficiency and higher production costs.
The suspension will not have a material or adverse effect on the company’s operations. The excess capacity at the state-of-the-art Sitarganj plant in Uttarakhand will absorb market demand, ensuring no loss in turnover or financial impact.
The company will explore various options for the utilisation of the land parcel, buildings, and plant machinery in the best interest of the company.
The company said that they were developing a Voluntary Retirement Scheme (VRS) package for the displaced employees.