HM Declares Suspension of Work at Uttarpara Plant
By PTI | Published: 24th May 2014 02:38 PM |
KOLKATA: The management of troubled Hindustan Motors (HM) today declared suspension of work at the company's Uttarpara plant in the state.
Sources in the company told PTI that the suspension notice was pasted on factory gates last night.
The Uttarpara plant had been facing severe cash crunch, and orders for manufacturing Ambassador passenger cars could not be executed, they added.
"The suspension of work will stop bleeding of the company. Things will improve once a strategic investor comes in with funds," the sources said.
The Uttarpara plant, which employs close to 2,500 workers and managerial staff, had been bifurcated from the Chennai facility which was brought under Hindustan Motors Finance Corporation Ltd.
All the employees of the Uttarpara plant would not be paid salary during the suspension of work period, the sources added.