The management of Kajaria Yarn & Twines Ltd has put up an indefinite lockout notice at its Sibpur mill in Howrah district.
The management cited poor productivity and financial condition as the main reason of the lockout.
A union leader alleged that the management was trying to stop production since December 28 last year and had finally put up a lockout notice.
The mill, which employs about 1,000 workers, was closed in 2009 and reopened in April 2010.
Arup Roy, minister and MLA of the area, said he had asked the management, with which he held talks, to reopen the mill.
According to the company, it was a 100 per cent export-oriented unit with production capacity of 18 tonne a day.