Lotte Chemical Pakistan Limited (LOTCHEM), a manufacturer and seller of Pure Terephthalic Acid (PTA), announced that it will suspend plant operations on a temporary basis, citing lower demand.

The chemical maker shared the development in a notice to the Pakistan Stock Exchange (PSX) on Tuesday.

“Due to lower downstream demand and to efficiently manage inventory and production, the management of the company has decided to temporarily suspend the plant operations from 18 October 2023 to 29 October 2023 (both days inclusive),” read the notice.

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 the ongoing month alone, companies from various sectors including Agriauto Industries Limited, Indus Motor Company, Shahzad Textile Mills Limited, and Elahi Cotton Mills Limited have announced temporary closure.

On Monday, Indus Motor Company, the assembler of Toyota vehicles in Pakistan, announced a month-long shutdown of production, citing inventory shortages.

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.