Islamabad, Sep 6: Siddiqsons Tin Plate Ltd (STPL) has decided to shut down its factory due to heavy taxation, low sales, and a workers’ strike.
The business announced that it has started the official process of closing its Winder, Balochistan, plant in a notice to the Pakistan Stock Exchange.
The FATA/PATA region’s tax exemptions had distorted the competitive landscape, which was the main cause of the company’s declining sales. In addition, the market for conventional tinplate has been further undermined by the growing usage of Galvalume, a substance thought to be harmful to health, for food packaging.
These difficulties were made worse by the fact that the Winder plant’s operations had come to a complete halt due to an illegal strike by laid-off workers, making it impossible to resume production.
If the government takes action against the use of Galvalume in food packaging, which poses health risks, and if it creates effective controls over sales tax/income tax-exempted tinplate imports in Fata/Pata that are sold to the Pakistani market, the company will reevaluate its current position.
“The company shall obtain permission from the Labour Court and notify the Pakistan Stock Exchange of further developments in due course, in accordance with the procedure laid down in the Industrial and Commercial Employment (Standing Orders) of 1968 for closure of an establishment,” the notice stated.
Founded in Pakistan on January 29, 1996, under the Companies Ordinance of 1984, STPL is a public limited company by shares that manufactures and sells tin plates, cans, and other steel products for use in packaging lubricants, fruits, vegetables, seafood, cooking oil, and other items.
