Saritow Spinning Mills to permanently close spinning operations

October 30, 2025 (MLN): The Board of Directors of Saritow Spinning Mills Limited (SSML) has decided to permanently close the company’s spinning mill operations, which had already been suspended in 2024 due to continued losses.

According to a notice issued to the Pakistan Stock Exchange (PSX), the Board has also approved a plan to sell the company’s entire plant and machinery, with an independent valuation estimating the market worth at around PKR 411.93 million.

In a major strategic shift, the Board approved an Alternate/Revised Business Plan under which SSML’s factory buildings will be converted into warehouses (godowns) to generate rental income.

The proceeds from the sale of plant and machinery will be utilized to:

Partially refurbish the premises for warehousing use,

Retire a portion of the company’s liabilities, and

Support working capital needs for the new business line.

This move marks SSML’s exit from the textile spinning business and entry into a real estate-based revenue model, aiming for more sustainable cash flows.

The Board’s decisions are subject to shareholder approval at an Extraordinary General Meeting (EOGM) scheduled for November 28, 2025.

The Board has authorized the calling of the EOGM and the dispatch of the notice to shareholders, including a Statement of Material Facts under Section 134(3), which details the revised business plan.

The company will submit a copy of the EOGM notice and supporting documents to the Exchange separately for dissemination among TRE Certificate Holders.

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