Textile giant Nishat Chunian decision to partially close operations

Textile giant Nishat Chunian Group decision to partially close operations.

So far: Many major companies in the country have-been forced to partially shut down their operations.

Textile giant Nishat Chunian decision to partially close operations

Pakistan textile giant Nishat Chunian Limited NCL on Wednesday announced that it will partially shut down its spindles plants from January. citing market conditions.

The development comes at a time when Pakistan is facing a number of challenges. including mounting debt. Low foreign exchange reserves & energy shortages. which have forced companies to either shut down or curtail their operations. What is it.

Textile manufacturer NCL told Pakistan Stock Exchange PSX in a statement that the spindles will resume operations after the market conditions improve.

Nishat Group said: The company has an installation capacity of 219528 spindles & 2880 rotors in the spinning division. The company has decided to temporarily shut down 51360 spindles after one month. Due to current market conditions.

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However the rest of the units are functioning as normal.

The Nishat company will relaunch these spindles as soon as market conditions improve.

NCL is a public limited company incorporated in Pakistan under the repealed Companies Ordinance 1984.

The company is engaged in the business of spinning, , dyeing, weaving, printing, doubling,sewing, sizing, trading and dealing of yarn, raw cotton, fabric, synthetic fiber & textile goods.

The company also produces distributes supplies and sells electricity.

The textile industry which generates Pakistan largest export. Is feeling the heat of the economic slowdown.

A few days ago the All Pakistan Textile Mills Association APTMA warned that the country's textile exports could fall below $1 billion a month from  next 2023 onwards. highlighting a range of problems facing the sector. which is currently operating at less than 50% capacity utilization.

In a letter to PM Shehbaz Sharif dated 23 December 2022. APTMA chief Gohar Ijaz attributed the supply chain slowdown to liquidity constraints  energy shortages & lack of work on new projects.

Earlier this month. Koh Noor Spinning Mills Limited KOSM a manufacturer and exporter of yarn. fabric & stitched fabric. Decided to temporarily shut down its production facility & announced the closure period. I refrained from giving a timeline.

The textile company had said at the time that it is not possible to operate the production facility plant due to the current global & economic downturn. excessive plant maintenance. High cost of production and low demand. Therefore the management has decided to temporarily shut down suspend the production activities of the company with immediate effect.

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Last month: The Pakistan Hosiery Manufacturers & Exporters Association PHMEA expressed serious concern over the declining trend in textile exports and the Duty Drawback of Local Taxes & Levies (DLTL) scheme to ensure growth in the country exports. He insisted on continuing