Following the nearly 50% power shortage faced by industries in the state, city-based Rs 400 crore Precot Meridian has decided to stop production at Meridian unit-C located near Pollachi. The company informed stock exchanges it will take up structural repairs in the building.
The unit has an installed capacity of 32,256 spindles. A top official told ET that since A&B and C units are located nearby, no production loss is expected. Due to the power crisis , all the three units were running at only 50% capacity since October 2008. “Since all the units produce blended and cotton yarns, we would offset the production loss from unit C by operating the A&B units to their full potential,” he said.
On the deployment of labour, the official said, “in all 700 workers are working in the three units and it would not lead to any layoff.” Also, the roof of the unit C required some repair and thus the company decided to utilise the opportunity to strengthen columns and trusses. “We hope the repair works would be over in 4 to 5 months,” the official added. Further, the company can also re-allocate the power to its other units in Tamil Nadu and operate them at over 90% utilisation.