Manufacturing sector in crisis: Nishat Chunian goes for partial shutdown
Nishat Chunian has an installed capacity of 219,528 spindles and 2,880 rotors

Nishat Chunian Limited – one of the largest textile companies in Pakistan – announced a partial shutdown of operations from next month by closing nearly one-fourth of its spindles temporarily.

“Due to prevailing global and economic downturn, overdue plant maintenance, high cost of production and low price and demand, it is not feasible to operate the production facility,” a statement shared with the Pakistan Stock Exchange read.

The textile manufacturer said they would suspend operations until the market revamps. “The company has decided to temporarily close 51,360 spindles after one month due to market conditions. However, the remaining units are operating normally. Company will restart these spindles as soon as market conditions improve.”

Nishat Chunian – with an installed capacity of 219,528 spindles and 2,880 rotors – is the latest to announce operations suspension amid a prevailing economic downtrend in the country. Earlier this month, Kohinoor Spinning Mills Limited also had made suspension of production.

On Dec 14, the Kohinoor Spinning Mills Limited went for closing down production activities with immediate effect, citing similar reasons.

The decision rendered well over 2,500 workers jobless directly with many more being affected indirectly in a market where employment opportunities are scarce and purchasing power is shrinking even if you are employed. 

In this connection, the Kohinoor Spinning Mills Limited management notified the Pakistan Stock Exchange, saying it is no more viable to operate the production facility due to the prevailing global and economic downturn, overdue plant maintenance, high cost of production, and low price and demand.

Moreover, the period of suspending the production wasn’t mentioned but it is surely not for days or weeks as the Kohinoor Spinning Mills Limited expressed the hope that the situation would improve in the first quarter of 2023, enabling the company to restart the operations.

Later, the likes of Indus Motors and Pak Suzuki Motors too suspended their production with the import restrictions imposed by the State Bank of Pakistan (SBP) as the main reason coupled with the reduced demand.  

Last week, the All-Pakistan Textile Mills Association (APTMA) had warned that the country’s textile exports could fall below $1 billion a month from 2023 onwards.

“Across the country, the textile industry is currently using less than 50 percent of its capacity. If corrective action is not done quickly, a very significant number of jobs have already been lost and many more will do so,” APTMA said in a letter written to Prime Minister Shehbaz Sharif.

Pakistan Hosiery Manufacturers and Exporters Association (PHMEA) also expressed serious concerns over a declining trend in textile exports in a statement last month.

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