Troubling economic conditions have forced Diamond Industries Limited (DIIL), maker of the famous Diamond supreme foams, to temporarily suspend its production. The foam maker made the announcement to the Pakistan Stock Exchange (PSX) on Monday.
The notification read, “Due to adverse economic conditions in the country and non-availability of imported raw material, the company has suspended its manufacturing operations for a short term with effect from Tuesday, January 10, 2023, till further notice subject to the availability of imported raw material in the country.”
The announcement comes after various manufacturers in the country have announced suspension of operations due to lack of demand and high cost of raw materials. Last Friday, Millat Tractors closed production indefinitely, and last month, Fauji Fertilizer closed its Diammonium Phosphate (DAP) Plant temporarily. Next on the list are Suzuki, which announced its first plant shutdown for 2023 after a string of nonoperational days last year, and Toyota, which shut down production in December for the remainder of the year. Also, KSB Pumps, a major producer of industrial pumps, closed its main hasanabdal factory plant due to a lack of demand.
The textile industry has been facing one of the worst crises in the country’s history. Inflation, lack of demand, and tough economic conditions have forced many textile businesses in the country to either reduce production or close down completely. Last week, Crescent Fibres reduced production by 50%. Suraj Cotton Mills also reduced its production by 40% due to economic downturn. Earlier last month, Kohinoor Spinning Mills temporarily shut down, citing the worst crisis faced by the textile industry, and Nishat Chunian, another leading textile company, also announced its decision to partially close production around the same time.
Company profile
Diamond Industries Limited was incorporated as a Private Limited Company on June 18, 1989. It commenced its commercial production on November 11, 1989. The principal activity of the company is the manufacture and sale of foam products and PVA products consumed in industry and domestically. High initial turnover and profits of the company made the owners convert it into a public limited company on August 03, 1994.
The manufacturing facility of the company is located at Gadoon Amazai Industrial Estate, Swabi, Khyber Pakhtunkhwa because of the various incentives offered by the government vis-à-vis low cost availability of raw material, infrastructure and various tax concessions in the company’s earlier history. It was established with the latest, high-tech plant available in the world. The installed capacity of the plant is over 12,000 M. Tonnes per annum.
DIIL captures over 25% of the total market share. The company offered its shares for sale to the general public on February 26, 1995 and the issue was oversubscribed by more than six times.
Ab khoob karein aaraam…
