Siddiqsons shuts down tinplate plant in Balochistan

KARACHI: Siddiqsons Tin Plate Limited has announced to shut down its tinplate plant located in Winder, Balochistan.

In a statement to the Pakistan Stock Exchange (PSX), the company said that as per the decision of the board of directors, it has initiated the formal process for the closure of the Winder tinplate plant.

It gave three reasons for the closure of the plant: reduction in sales due to a result of tax exemptions in the Fata/Pata region; increase in use of Galvalume for food packaging instead of tinplate; and ‘illegal strike’ by retrenched workers preventing the Winder plant from re-opening.

“The company will review the position after the government takes action against the health hazardous use of Galvalume in food packaging and establishes effective control over sales tax/income tax-exempted tinplate imports in Fata/pata which is sold to the Pakistani market,” it said.

“As per the procedure laid down in the Industrial and Commercial Employment (standing orders) of 1968 for closure, the company will obtain permission from the Labour Court, and intimate the Exchange of further developments in due course.”