Sitara Peroxide extends shutdown for 30 days

Sitara Peroxide Limited (SPL), Pakistan’s chemical manufacturer, announced on Friday that it is extending its plant shutdown by another 30 days.

The company, engaged in the manufacturing and sale of hydrogen peroxide, announced the development in its notice to the Pakistan Stock Exchange (PSX).

“We would like to inform that the management has decided to extend the suspension of plant operation for another 30 days,” read the notice.

“Moreover, the management is hopeful that the current situation will get better, enabling the company to resume its production activities after 30 days,” it added.

Last month, SPL had announced to shut operations for three weeks citing non-availability of raw materials/chemicals.

The company, which has remained non-operational for months now, back then also said that is looking for other avenues to generate funds.

The company, while presenting its quarterly financial statement for the quarter ending 31 March 2023, had stated that it is facing the challenge of an unprecedented rise in tariff of Regasified Liquid Natural Gas (RLNG).

Businesses in Pakistan have been facing challenges on several fronts, including high energy costs and an inability to secure letters of credit for imports amid a severe dollar shortage.

A programme with the International Monetary Fund (IMF) provided some breathing space, but experts say economic woes will continue until structural issues behind the constant boom-and-bust cycles are addressed.

While some restrictions, including the opening of Letters of Credit (LCs), have eased owing to improvement in foreign exchange reserves, industrialists have expressed concerns that they are finding it difficult to obtain import permits for their manufacturing needs.