Siddiqsons Tin Plate Limited (STPL) said on Thursday that it has initiated the formal process to shut down its plant located in Balochistan, owing to sales decline and labour strike.
The listed company shared the development in a notice to the Pakistan Stock Exchange (PSX) on Thursday
“As per the decision of the Board of Directors recorded on 04th September 2024, the company has initiated the formal process for the closure of the tinplate plant located at Winder, Balochistan,” read the notice.
STPL attributed the decision to “reduction in sales due to a result of tax exemptions in the FATA/PATA region, increase in use of Galvalume for food packaging instead of tinplate, and illegal strike by retrenched workmen preventing the winder plant from re-opening”.
The listed company informed that it will review the position “after the government takes action against the health hazardous use of Galvalume in food packaging and establishes effective control over sales tax/income tax exempted tinplate imports in FATA/PATA which is sold to the Pakistani market”.
“As per the procedure laid down in the Industrial and Commercial Employment (Standing Orders) of 1968 for closure of establishment, the company shall obtain permission from the Labour Court, and intimate the Exchange of further developments in due course,” read the notice.
Incorporated in Pakistan on January 29, 1996 as a public limited company by shares under the Companies Ordinance 1984, the company is engaged in the manufacturing and sale of tin plates, cans, and other steel products for the packaging of cooking oil, fruits, vegetables, seafood, lubricants, etc.
As per the company’s latest financial results, the company posted a loss of Rs173.8 million during the nine months of fiscal year 2023-2024.
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