Business Desk
Aug 09, 2024
Owing to significant challenges in obtaining completely knocked down (CKD) kits, Pak Suzuki Motor Company Limited (PSMCL), one of Pakistan’s leading automobile manufacturers, has shut down its production plant indefinitely.
Pak Suzuki Head of Corporate Affairs, Shafiq Ahmed Shaikh, told The News: “Pak Suzuki Motor Co Ltd closed and shut down its plant due to no approval of CKD, whereas its CKD is lying at the port for the last 45 days. Due to this, Pak Suzuki is not only paying billions of rupees in detention and demurrages, but the government is also losing out on taxes and duties due to the halt in production and sales.”
The company has been struggling with heavy penalties due to the prolonged storage of the CKD kits, which have been stranded at the port for the past 45 days, resulting in a standstill in production. According to Shaikh, the plant will remain closed until the CKD kits are released. Pak Suzuki Motors has urged the government to address the issue urgently to prevent further economic losses.
This is the first closure of the plant this year. The shutdown of Pak Suzuki’s plant has also had a cascading effect on the local supply chain. Several local parts manufacturers, who rely on steady orders from auto manufacturers, have already been forced to lay off thousands of workers due to the decline in production.
It is worth noting that this is not the first time Pak Suzuki has faced such challenges. The company has endured several temporary shutdowns in recent years due to similar issues with the import of CKD kits.
