Amreli Steels Limited (PSX: ASTL) has decided to temporarily suspend operations at its oldest Karachi-based manufacturing facility, SITE Rolling Mill (SRM), which represents 30 percent of the company’s total production capacity.
In a notice to the Pakistan Stock Exchange (PSX) on Tuesday, Amreli said in Tuesday’s meeting, the company’s Board of Directors discussed the significant economic challenges facing the documented steel sector.
The notice said these challenges have been aggravated by various economic and political factors, including declining demand for steel rebars, rising utility costs (particularly electricity), high interest rates, an unbalanced tariff structure, heavy tax burdens, smuggling, and increased undocumented activities, all of which contribute to unfair competition and severely disrupt market equilibrium.
It added that considering the unprecedented macroeconomic conditions, the Board has decided to temporarily suspend operations at SRM.
The company said the situation will be reviewed in six months, and the facility may reopen if conditions improve. During this period, the company will continue operating its Dhabeji facility, which accounts for 70 percent of its production capacity, to meet current and future steel demand, it added.
It is pertinent to mention here that the company reported a loss of Rs. 6.11 billion during the fiscal year 2024.
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