Suzuki Motor announces further plant shutdown in Pakistan

Suzuki Motor announces further plant shutdown in Pakistan

KARACHI: Pak Suzuki Motor Company Limited has announced further plant shut down due to shortage of raw material following restriction imposed by the central bank.

The company in a communication sent to Pakistan Stock Exchange (PSX) on September 06, 2022, stated that the State Bank of Pakistan (SBP) had introduced a mechanism for prior approval for import under HS Code 8703 category including CKD through a circular No. 09 of 2022 dated May 2022.

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Restriction had adversely impacted clearance of import consignment which resultantly affected the inventory levels, the company added.

Therefore, due to shortage of inventory level, the management of the company has decided to shut down period of automobile plant till September 09, 2022.

“However, due to continued shortage of CKD raw material, management decided to extend the shutdown of automobile plant from September 12, 2022 to September 16, 2022,” the company said, added that the motorcycle plant will remain operative.

READ MORE: Suzuki Motors extends plant shutdown in Pakistan

“Further, in lieu of periodic maintenance, the automobile plant will also be shut down from September 19, 2022 to September 23, 2022. However, motorcycle plant will remain operative,” it added.

Pak Suzuki Motor Company Limited is facing severe shortage of raw material for the past couple of months. Previously, the company announced a temporary shutdown of its production plant due restriction on imports imposed by the government.

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It stated that State Bank of Pakistan (SBP) had introduced a mechanism for prior approval for import under HS Code 8703 category (including CKDs) vide Circular No. 09 of 2022 dated May 20, 2022. “Restriction had adversely impacted clearance of import consignment which resultantly affected the inventory levels,” it added.

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The company further stated that due to shortage of inventory level, the senior management of the company had decided to temporarily shut down its production plant of automobile products from August 18, 2022 to August 19, 2022.

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