Ranchi, Oct. 27: After 48 years, one of the oldest glass factories in the country set up with Japanese collaboration ? Indo-Asahi Glass Company Limited ? formally downed shutters.

Though the company sources cited labour unrest behind the closure, sources in the government said the move was, ?to some extent?, triggered by global recession in glass market. Following the development, the sword of retrenchment is hanging over at least 700 employees on the rolls.

Industries secretary of Jharkhand A.K. Chugh refused to comment on the matter. ?I do not want to talk about it,? said Chugh.

The chairman of the company, Laxmikant Khemka, who lives in Gujarat, too, could not be contacted.

Sources in his office said an official communiqu? would be issued tomorrow.

Located near Bhurkunda in Hazaribagh, the first glass company of its kind was incorporated with equity participation of world glass major Japan-based Messrs Asahi Glass Company Limited in 1956. The unit manufactured glass sheets and figured glass, which had a wide market, both in India and abroad. But since 1999, the Japanese sold their entire share to Gujarat-based Messrs Bharat Glass Tube Limited.

Sources said for the past few years one of its furnaces had developed a technical fault following which production was hampered.