Siddiqsons Tin Plate to cut workforce amid economic downturn

June 20, 2024 (MLN): The Board of Directors of Siddiqsons Tin Plate Limited (PSX: STPL) has decided to retrench the excess workforce from the service with effect from June 15, 2024, the company's filing on PSX revealed today. 

This decision has been made in response to the ongoing economic downturn and several specific challenges faced by the company.

One significant issue is the increasing use of Galvalume as a substitute for Tinplate. Additionally, the sales have been adversely affected due to the impact on the competitive landscape of the Electrolytic Tinplate (ETP) market, resulting from Sales Tax/Income Tax exemptions in the FATA/PATA regions.

Moreover, there has been a continuous decline in capacity utilization over the past few years, with rates remaining at 7% for FY 2024, 9% for FY 2023, and 12% for FY 2022.

For the nine months ending March 31, 2024, the company reported a loss of Rs174 million, with further losses anticipated by the end of the fiscal year on June 30, 2024.

Following Section 13 of The Industrial and Commercial Employment (Standing Orders) Ordinance, 1968, the company will follow the legally mandated procedure of Last In, First Out (LIFO) for retrenchment. 

Any further updates regarding this matter will be communicated promptly.

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