Citing a reduced demand, the Baluchistan Wheels Limited (BWHL) on Friday extended the date for closure of production till December 30.
The company is facing a drop in sales orders from the original equipment manufacturers, said the Baluchistan Wheels Limited.
The production activities of Baluchistan Wheels Ltd – the makers of steel wheel rims for cars, heavy vehicles and farm tractors – had informed the Pakistan Stock Exchange on Dec 9 that production would remain suspended temporarily from Dec 12 to 23.
Earlier, the company’s revenue had dipped 26 percent to Rs403 million in the first quarter from Rs547 million in the same period last fiscal year.
However, the Baluchistan Wheels Ltd issued a new notification about keeping the plant shut for another seven days as market has also seen the Indus Motor Company Limited shutting down production of Toyota vehicles for 11 days, as it faced shortage of raw material and components.
Simultaneously with the BWHL, the Bolan Castings Ltd – the makers of various auto parts of tractors and commercial vehicles – had also informed the Pakistan Stock Exchange about suspending the production activities from Dec 5 to Dec 23. It mentioned the drop in sales due to a drastic fall in orders from its assemblers as the reason.
Its revenue had plunged to Rs474 million during the first three months of the current financial year from Rs621 million when compared with the last fiscal year.
The closure of these plants represents a general trend faced by the auto industry amid a reduced demand thanks to higher inflation and reduced purchasing power.
Current share price
As of Friday, the share price of Baluchistan Wheels Ltd stands at Rs71.72, which is increased by Rs4.48 or 6.66 percent when compared with Thursday.