Shield Corporation pulls the plug on diaper production

Shield Corporation Limited (PSX: SCL) will shutter its loss-making diaper line next month in a sweeping reset of corporate priorities aimed at stabilising earnings and conserving cash.

In a notice to the Pakistan Stock Exchange issued on 21 May, the Karachi-based consumer-goods maker said its board had “authorised the Chief Executive Officer to initiate all necessary steps for discontinuing diaper production by 15 June 2025 or earlier” and to dispose of related machinery “in an orderly manner.” The communiqué added that the move follows “a comprehensive review of the segment’s operational performance, market dynamics and future outlook” and is “expected to contribute to an improvement in the company’s bottom line.”

Shield entered the disposable-diaper arena in 2014 with its Shield Premium range, positioning the brand on an affordability-plus-quality plank against multinational heavyweights. A 2020 brochure described “three-times more absorbency” and vitamin-E-infused inner sheets as value-added selling points — evidence of the company’s early ambition to own a slice of the fast-growing hygiene segment.