Citing lower demand, Lotte Chemical Pakistan Limited (LOTCHEM) announced it will extend the shutdown of its plant operations.
The chemical maker, a manufacturer and seller of pure terephthalic acid, shared the development in its notice to the Pakistan Stock Exchange (PSX) on Monday.
“Due to lower downstream demand as notified vide our letter dated 17 October 2023, the management of the company has decided to extend suspension of plant operations till November 12,” read the notice.
Earlier, the company said that it was going to temporarily suspend the plant operations from 18 October 2023 to 29 October 2023 due to lower downstream demand and in order to efficiently manage inventory and production.
The announcement comes as Pakistan’s manufacturing sector continues to remain engulfed in issues including a decline in demand, resulting in companies either shutting temporarily or rolling back operations.
In October alone, companies from various sectors including Agriauto Industries Limited, Indus Motor Company, Shahzad Textile Mills Limited, and Elahi Cotton Mills Limited have announced temporary closures.
Last week, Pak Suzuki Motor Company (PSMC) announced another temporary shutdown of its automobile and motorcycle plants amid inventory shortage.
As per LOTCHEM’s latest financial results, the company’s profit after tax clocked in at Rs1.99 billion during the first quarter of FY24, a plunge of over 26%, as compared to Rs2.7 billion recorded in the same period of last year (SPLY).
As a result, the company’s earnings per share (EPS) was recorded at Rs1.31 per share in 1QFY24, as compared to Rs1.79 per share in SPLY.
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