Karachi: One of Pakistan’s leading textile companies, Nishat Chinian Limited (NCL), has announced a partial suspension of operations due to the “current market conditions”.
In a letter written to the Pakistan Stock Exchange, the NCL Tuesday stated that the company has an installed capacity of 219,528 spindles and 2,880 rotors in its spinning division. However, it further said that the company has decided to “temporarily close 51,360 spindles after one month due to market conditions”.
It added that the remaining units are operating normally and that the company will restart these spindles as soon as market conditions improve.
The NCL is a public limited company incorporated in Pakistan under the repealed Companies Ordinance of 1984.
The company is engaged in the business of spinning, weaving, dyeing, printing, stitching, processing, doubling, sizing, trading, and dealing in yarn, fabric, and made-ups from raw cotton, synthetic fiber, and cloth. It also generates, distributes, and thus, supplies and sells electricity.
NCL’s closure is the latest in a line of companies that have temporarily suspended operations. Others include Indus Motor Company, the maker of Toyota vehicles, Pak Suzuki Motor Company Ltd, Bolan Castings Limited, and Baluchistan Wheels Ltd. Millat Tractors Limited has been observing non-production days since Dec 16.
According to a report, industries in Pakistan have been hurt badly this year as large-scale manufacturing declined by 7.75% year-on-year in October, with the textile, machinery, equipment, and automobiles sectors shrinking by 30.56%, 24.62%, and 38.01%, respectively.