- Suraj Cotton Mills Limited says measure is temporary, will keep reviewing situation
The ongoing economic slowdown continued to tighten its grip on Pakistan’s industrial sector, as Suraj Cotton Mills Limited (SURC), a textile manufacturer, on Friday announced to curtail its productions by 40%.
SURC announced the development in its notice to the Pakistan Stock Exchange (PSX).
“We would like to inform you that due to the worldwide economic recession and low demand, it is not feasible to continue with full production in our plants.
“Our operational feasibility is further affected by the high cost of doing business. Part of the curtailment of spinning operations is also due to BMR activities in line with our policy of adopting the latest technologies.
“Keeping in view these factors, the company has decided to curtail production in all its facilities by upto 40%,” the company said.
SURC, which is engaged in the manufacturing, sale and trading of yarn, cloth and processing of cloth, said that the said measure is temporary, adding that it will keep reviewing the situation.
“We hope that the situation will improve in the first quarter of 2023 at which will enable us to restart,” it said.
The announcement comes as Pakistan faces multiple challenges, including rising debt, low foreign exchange reserves, and an energy shortage, pushing companies to either shut down or limit their operations.
The textile sector, which remains Pakistan’s largest generator of export receipts, is feeling the heat of economic slowdown as well.
On Wednesday, textile giant Nishat Chunian Limited (NCL) announced that it will partially shut down its spindles from January, citing market conditions.
The textile manufacturer informed the bourse that the spindles would restart operations after improvement in market conditions.
“The company has an installed capacity of 219,528 spindles and 2,880 rotors in its spinning division. The company has decided to temporarily close 51,360 spindles after one month, due to current market conditions,” said Nishat.
“However, the remaining units are operating normally,” it said. “The company will restart these spindles as soon as market conditions improve.”