Dunlop India has felt the worldwide pinch, reacting by closing its Sahagunj factory indefinitely from Nov. 18.

Its 1,200-strong workforce has been asked to stay at home. Web site IBNLive reports that company sources have reported that the company is running short of working capital and that it is in negotiations with the banks. It is believed that workers will be given 2,000 rupees a month until the factory reopens, though the Web site says that its sources believe that it could be some time before the factory resumes processing.

Meanwhile Sindh Today reports that a company spokesman told the paper: “The [economic] crisis has had a heavy impact on the tyre sector. We have a huge shortage of capital. So we called the union leaders Saturday for a bi-partite and told them since there is almost no demand, the company would be incurring heavy losses if production continued. And they agreed.” The spokesman added that he didn’t know how long the situation would remain the same: “We may get the funds in 15 days, or it may be three months even. We don’t know. But we are hopeful that we will be able to solve the problem fast.”