Canada Global (Web News) Toyota car manufacturer Indus Motor Company (IMC) has chosen to “totally” shut down its production facility in Pakistan from February 1 until February 14 due to “insufficient inventory levels.”
In response to the recently implemented mechanism via EPD Circular No. 20 of 2022 dated December 27, 2022, the IMC management stated in a letter to the general manager of the Pakistan Stock Exchange that commercial banks were advised to prioritize/facilitate the imports to specific sectors only, which do not include auto (effective from January 2).
In order to import raw materials and get their consignments cleared by commercial banks, the letter said that “the company and its vendors continue to face severe impediments.”
The manufacturer of Toyota claimed that these challenges had affected the whole supply chain and prevented the suppliers from supplying the company with components and raw materials.
Accordingly, the Company has insufficient inventory levels and cannot continue its production activities, the notice noted.
The carmaker announced that from February 1 through February 14, it would be completely closed. In addition, the company has decided to start producing on a “single shift” basis starting on February 15 and continuing until further notice.
The IMC earlier on December 19 announced a 10-day plant halt due to “hurdles in import and clearing of consignments” for the third time in 2022.
The company informed the PSX that the production facility would be shut down entirely from December 20 to December 30, 2022. (both days inclusive).
It should be mentioned that the IMC declared a temporary halt of its manufacturing facility from September 1 to September 15, 2022, citing a lack of inventory levels to support production as well as a delay in SBP clearances for the import of CKD kits and passenger car components.