Diamond Industries halts operations for indefinite period

• Operations to remain suspended till further notice.
• Company is engaged in manufacture and sale of foam products.
• Millat Tractors, Pak Suzuki Motor also suspended operations.

The prevailing dearth of dollars in the country has claimed another manufacturer as Diamond Industries, the country’s top foam products makers, Tuesday announced suspending its operations for a short-term blaming “non-availability of imported raw material”.

“Due to adverse economic conditions in the country and non-availability of imported raw material, the company has suspended its manufacturing operations for a short-term with effect from (Tuesday) January 10, 2023 till further notice subject to availability of imported raw material in the country,” the company notice sent to the Pakistan Stock Exchange (PSX) read.

The company — incorporated under the Companies Ordinance, 1984 as a private limited company on June 18, 1989 — is engaged in the manufacture and sale of foam products and PVA products consumed in industry and domestically.

Diamond Industries’ trade has come to a standstill at the PSX as its share price decreased 0.18%, or Re0.07, to close at Rs38.50 as of December 6, 2022. None of its shares has changed hands since then raising concerns for analysts and financial experts.

The deepening economic crisis has thrown spanners in the works of many industries until recently, bringing their productions to a halt and in some cases causing massive layoffs.

Diamond Industries is not the first company that has decided to suspend its operations to save it from further losses as a number of others have also fully or partially quit operations because of demand, inventory, energy, and supply chain constraints.

The government moved to curb imports in the face of fast-depleting foreign reserves, a declining currency, and a widening current account deficit, which has had a cascading effect on industries that rely on imports to complete finished goods.

Last week, Millat Tractors Limited, announced it was shutting down production for an indefinite period starting January 6, arguing they could not plough ahead with their operations amid low demand and severely compromised cash flow.

Meanwhile, Pak Suzuki Motor Company Limited (PSMC) and Baluchistan Wheels Limited also announced plant closure.

Earlier, Crescent Fibres Limited, engaged in the manufacture and sale of yarn, announced to curtail production by up to 50% on a temporary basis.