Siddiqsons Tin Plate Limited has announced the closure of its tin plate manufacturing plant located in Winder, Balochistan.
“As per the decision of the Board of Directors recorded on 04th September 2024, the Company has initiated the formal process for the closure of the tinplate plant located at Winder, Balochistan,” the company said in a notification sent to the Pakistan Stock Exchange (PSX).
The decision is attributed to several factors affecting the business, including tax exemptions in the ex-FATA/PATA region, a market shift towards using Galvalume in food packaging, and an illegal strike by retrenched workers preventing the plant’s re-opening.
The company stated that the decline in sales due to tax-free tin-plate imports in ex-FATA/PATA has severely impacted its business. Additionally, the increased use of Galvalume for food packaging in place of tin plates has further reduced demand.
Siddiqsons Tin Plate Limited said that it will review the position after the government takes action against the health hazards of the use of Galvalume in food packaging and establishes effective control over sales tax and income tax exempted tinplate imports in ex-FATA/PATA which is sold to the Pakistani market.
As required under the Industrial and Commercial Employment (Standing Orders) of 1968, the company will seek approval from the Labour Court before finalising the closure, while updating the PSX on any further developments, it added.
Siddiqsons Tin Plate Limited, established in 1999 in partnership with SOLLAC of France and MITSUBISHI CORPORATION of Japan, is Pakistan’s first and only tin plate manufacturer. The company produces 120,000 tons of tin plates annually, primarily used for packaging cooking oil, food, beverages, and other products.
