Non-availability of raw material forces Diamond Industries to suspend operations

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admin 11 January, 2023
Updated 2023/01/11 at 6:48 AM
3 Min Read
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Decision taken for short-term with effect from January 10 till further notice

In but any other casualty of the economic disaster, Diamond Industries Tuesday introduced it became postponing its manufacturing operations for a quick time period because of the “non-availability of imported uncooked material.”

The agency informed the Pakistan Stock Exchange (PSX) about the development via a observe.

“Due to negative financial conditions in the country and non-availability of imported raw material, the business enterprise has suspended its production operations for a short-time period with impact from (Tuesday) January 10, 2023, until similarly note challenge to availability of imported raw material inside the united states of america,” the attention examine.

The organization — incorporated beneath the Companies Ordinance, 1984 as a personal confined corporation on June 18, 1989 — is engaged within the manufacture and sale of froth merchandise and PVA products ate up in industry and domestically.

Diamond Industries’ change has come to a standstill on the PSX as its percentage rate decreased 0.18%, or Re0.07, to shut at Rs38.50 as of December 6, 2022. None of its stocks has changed hands for the reason that then elevating concerns for analysts and economic experts.

The deepening financial disaster has thrown spanners in the works of many industries till recently, bringing their productions to a halt and in some instances causing huge layoffs.

Diamond Industries is not the primary company that has decided to droop its operations to store it from in addition losses as a number of others have also absolutely or partially cease operations due to demand, inventory, electricity, and supply chain constraints.

The authorities moved to scale back imports within the face of speedy-depleting overseas reserves, a declining foreign money, and a widening current account deficit, which has had a cascading effect on industries that depend on imports to finish finished items.

Last week, Millat Tractors Limited, announced it became shutting down manufacturing for an indefinite length starting January 6, arguing they could not plough in advance with their operations amid low demand and seriously compromised coins float.

Meanwhile, Pak Suzuki Motor Company Limited (PSMC) and Baluchistan Wheels Limited also announced plant closure.

Earlier, Crescent Fibres Limited, engaged within the manufacture and sale of yarn, announced to curtail production via as much as 50% on a brief basis.

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