Chemical manufacturer Sitara Peroxide Limited (SPL) announced on Tuesday it is extending its plant suspension by another 30 days.
The company, engaged in the manufacturing and sale of hydrogen peroxide, announced the development in a notice to the Pakistan Stock Exchange (PSX).
“In pursuant to our letter dated October 13, 2023 with respect to suspension of production due to repair work and replacement of heavy cables…, we would like to inform that the management has decided the suspension of plant operations for another 30 days,” read the notice.
Back in September, the chemical maker announced a month-long suspension of its plant operations. “The management is hopeful that the current situation will get better, enabling the company to resume its production activities after 30 days,” SPL had said at the time.
The company has remained non-operational for months now, shutting down plants on several occasions this year, citing the non-availability of raw materials/chemicals. It has said is looking for other avenues to generate funds.
Businesses in Pakistan have been facing challenges on several fronts, including high energy costs and an inability to secure letters of credit for imports amid a severe dollar shortage.
A programme with the International Monetary Fund (IMF) provided some breathing space, but experts say economic woes will continue until structural issues behind the constant boom-and-bust cycles are addressed.
As per SPL’s latest financial results, the company registered losses to the tune of Rs792.78 million during fiscal year 2022-23, as compared to losses of Rs341.21 million recorded in the same period of the previous year. The losses come on account of a drop in sales, which declined by 53% on a year-on-year basis.