Sitara Peroxide extends one-month long shutdown

Sitara Peroxide, a manufacturer of hydrogen peroxide, said its management has decided to extend the shutdown of the plant for 10 more days.

The company, in a notice to the Pakistan Stock Exchange (PSX), said on Tuesday that it would resume production from February 24.

“We would like to inform you that the management of the company has decided to extend the suspension of plant operation and production activities for 10 more days.”

Earlier on January 13, Sitara had said that its management had decided to shut its production for a month amid a global economic slowdown.

“Due to prevailing global and economic downturn, overdue plant maintenance and non-clearance of letter of credit of necessary raw materials, it is not possible to operate the production facility. Therefore, the management of the company has to temporarily stop the production activities of the company with immediate effect,” the company had said back then.

In recent months, dozens of companies representing different sectors, especially textiles and automobiles, have announced complete or partial shutdowns citing issues ranging from inventory shortage, economic slowdown and inability to secure Letters of Credit (LCs) for imports.

Days ago, Khalid Siraj Textile Mills Limited, a manufacturer and seller of yarn, decided to shut mill operations until March 31, citing issues ranging from flash floods devastation to import restrictions.

Ghandhara Tyre and Rubber Company Limited (GTYR) also announced it was going to temporarily shut down its production activities.

Pakistan’s economy is in dire straits, stricken by a balance-of-payments crisis as it attempts to service high levels of external debt amid political chaos and deteriorating security.