September 05, 2024 (MLN): The board of directors of Siddiqsons Tin Plate Limited (PSX: STPL) has initiated the formal process for the closure of the tinplate plant located at Winder, Balochistan, the company said in a stock filing on Thursday.
This decision is based on reduction in sales due to a result of tax exemptions in the FATA/PATA region, an increase in use of Galvalume for food packaging instead of Tinplate, and an illegal strike by retrenched workmen preventing the Winder plant from re-opening.
The company said it 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.
"As per the procedure laid down in the Industrial and Commercial Employment (Standing Orders) of 1968 for closure of establishment, the company shall obtain permission from the Labour Court, and intimate the Exchange of further developments in due course," reads the notice.
