Tuticorin Alkali Chemicals and Fertilisers (TAC), which manufactures ammonium chloride, soda ash and other chemicals, said the non-availability of basic raw materials and severe cash crunch had led the company to lock out its manufacturing facility in Tuticorin.
In a statement issued on Monday, the company said: "Scarcity of basic raw materials like carbon di-oxide and ammonia, and the future non-availability of CO2 had led the company to stop production."
The entire plant was under shut down from March 1, 2013, due to shortage of CO2. Prior to the closure, the plant was receiving CO2 gas from the adjacent SPIC fertiliser plant, which itself was shutdown from the same date for want of raw material - naphtha.
"With great difficulty, though there was no production from March 2013, the company managed to paysalaries tothe workmen for the months of March, April and May 2013. The plant had frequent interruptions in its functioning in the last two years," it added.
TAC was declared a sick industry by BIFR. The networth of the company has completely eroded and the current accumulated losses stand at Rs 148.93-crore, up from Rs 127.76-crore in 2011-12.
