Suraj Cotton Mills Limited (SURC), a textile company, stated on Friday that it will reduce its production by 40% as the ongoing economic recession tightened its grip on Pakistan’s industrial sector.
The development was disclosed by SURC in its notice to the Pakistan Stock Exchange (PSX).
“We would like to let you know that it is not possible to maintain full production in our plants due to the global economic downturn and low demand.
“Our operational feasibility is further affected by the high cost of doing business. Part of the curtailment of spinning operations is also due to BMR activities in line with our policy of adopting the latest technologies.
“Keeping in view these factors, the company has decided to curtail production in all its facilities by upto 40%,” the company said.
The company SURC, which manufactures, sells, and trades yarn, cloth, and processed cloth, stated that the aforementioned step is just temporary and added that it will continue to be reviewed.
“We anticipate that things will get better in the first quarter of 2023, which will allow us to restart,” it says.
The statement comes at a time when Pakistan is dealing with a number of issues, such as rising debt, limited foreign exchange reserves, and a lack of electricity, which are pushing businesses to either shut down or scale back their operations.
The textile industry, which continues to be the main source of export revenue for Pakistan, is now feeling the effects of the global economic slowdown.
Nishat Chunian Limited (NCL), a major player in the textile industry, said on Wednesday that it will partially shut down its spindles beginning in January due to market conditions.
The textile manufacturer informed the stock exchange that after the market situation improved, the spindles will resume operating.
“The company has an installed capacity of 219,528 spindles and 2,880 rotors in its spinning division. The company has decided to temporarily close 51,360 spindles after one month, due to current market conditions,” said Nishat.
“However, the remaining units are operating normally,” it said. “The company will restart these spindles as soon as market conditions improve.”