Another company shuts down production plant
Indus Motor Company Limited (INDU), the assembler and seller of Toyota-brand vehicles in Pakistan, has decided to temporarily shut down its plant from February 1 to February 14, citing inventory shortage, ARY News reported on Tuesday.
In a statement, Indus Motor said the company and its vendors continue to face major hurdles in import of raw materials and receiving clearance of their consignments from commercial banks.
The company, in a notice sent to the Pakistan Stock Exchange (PSX), revealed that when the company restarts production on February 15, it will do so on a single-shift basis until further notice.
“In light of the recently introduced mechanism vide EPD Circular No. 20 of 2022 dated December 27, 2022, (effective from 2nd January, 2023), commercial banks are advised to prioritize/facilitate the imports to specified sectors only, which does not include auto sector,” read the notice.
“This has disrupted the entire supply chain and the vendors are unable to supply raw materials and components to the company. Accordingly, the company has insufficient inventory levels, therefore, the company is unable to continue its production activities,” it added.
It should be noted that the IMC had announced a temporary shutdown of its production plant from December 20 to December 30 on insufficient inventory levels.
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