Hala Enterprises Limited (HAEL) has opened a $217,600 Letter of Credit (LC) to import new Air Jet Terry Towel weaving machines from China— a move expected to boost the company’s weaving production capacity by nearly 75%.
The company, in its notice to the Pakistan Stock Exchange (PSX), released on Wednesday, shared that the weaving machines will be purchased from Shandong Rifa Textile Machinery Co., Ltd., China.
“The import of the machinery shall also be complemented by the installation of an air conditioning plant, and a newly designated weaving shed which shall be run through a centralised compressor room.
“The acquisition will result in an approximate 75% increase in the Company’s current weaving production capacity,” the company informed its stakeholders.
The company shared that it has arranged the required funds for the retirement of the LC through internal sources, without availing any external financing.
“The arrangement has been made by a director of the company in his personal capacity, who has extended financial support to ensure the timely import and installation of the machinery,” HAEL informed.
It shared that following this approach, the company has been able to avoid additional borrowing costs and financial charges, while supporting its expansion plan without creating external liabilities.
“The repayment of this internal arrangement will be managed in line with mutually agreed terms, without affecting the company’s ongoing operations and working capital requirements,” HAEL said.
Hala Enterprises Limited was incorporated in Pakistan as a private limited company and was subsequently converted into a public limited company. The company began its operations in 1974. The principal activity of the company is the manufacturing and sale of terry towels, kitchen towels, and terry cloth.
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