Siddiqsons rolls back tin mill project due to economic challenges

Siddiqsons Tin Plate Limited has announced the rollback of its Tin Mill Black Plate (TMBP) project, citing challenging economic conditions. 

The decision was formally communicated to the Pakistan Stock Exchange (PSX) on Tuesday, as per Section 15D of the Securities & Exchange Ordinance 1969 and Clause 5.19.13 (c) of the Code of Corporate Governance.

The board of Siddiqsons Tin Plate highlighted key reasons for this decision, including high inflation, increased markup rates, and significant fluctuations in the Pakistani rupee (PKR) to US dollar (USD) exchange rate. The company stated that the current economic environment has made it financially unfeasible to continue with the TMBP project.

Rising costs of materials and equipment, coupled with higher capital costs, have negatively impacted the project’s projected returns, making it difficult for the company to proceed as originally planned.