Nishat Chunian Limited (PSX: NCL) is partially shutting down spindles in January 2023 amid precarious market conditions.
According to a stock filing, the textile manufacturer has decided to shut down 51,360 spindles after one month due to current market conditions. However, the remaining units (total: 219,528 spindles and 2,880 rotors) in its spinning division are operating normally.
“The Company will restart these spindles as soon as market conditions improve,” the filing stated.
The closure comes just days after the All Pakistan Textile Mills Association (APTMA) said the country’s textile exports are expected to decline below $1 billion per month from January 2023 due to issues including supply chain disruptions, liquidity blockades, and rising energy expenses.
The textile sector is now operating at a capacity utilization of less than 50 percent across the country. A substantial number of jobs have already been lost and many more are to follow if remedial measures are not urgently undertaken.
NCL is a public limited company constituted in Pakistan under the now-defunct Companies Ordinance of 1984.
Spinning, weaving, dyeing, printing, stitching, processing, doubling, sizing, trading, and dealing in yarn, fabric, and made-ups from raw cotton, synthetic fiber, and cloth are all part of the company’s business. It also produces, distributes, and thus provides and sells electricity.
At the time of filing, NCL’s scrip at the bourse was Rs. 21.85, down Rs. 1.02 or 4.46 percent on Wednesday.
