Siddiqsons Tin Plate Ltd (STPL) has announced the closure of its factory in Winder, Balochistan, citing heavy taxation, declining sales, and a workers’ strike as the primary reasons for the decision. The company has formally initiated the shutdown process, as disclosed in a notice to the Pakistan Stock Exchange.

STPL has been struggling with reduced sales, largely due to tax exemptions in the FATA/PATA regions, which have disrupted the competitive balance in the market. The increasing use of Galvalume, a material considered hazardous to health, for food packaging has further diminished the demand for traditional tinplate products. Additionally, an illegal strike by retrenched workers has halted operations at the Winder plant, making continued production untenable.

The company stated that it may reconsider its position if the government addresses the health risks associated with Galvalume in food packaging and enforces stricter controls on tax-exempted tinplate imports in FATA/PATA that are sold in the Pakistani market.

According to the notice, STPL will follow the procedure outlined in the Industrial and Commercial Employment (Standing Orders) of 1968 for the closure of an establishment, which includes obtaining permission from the Labour Court. The company will keep the Pakistan Stock Exchange informed of any further developments.

Founded on January 29, 1996, as a public limited company under the Companies Ordinance 1984, STPL is involved in the manufacturing and sale of tin plates, cans, and other steel products used for packaging cooking oil, fruits, vegetables, seafood, lubricants, and more.