Shield Corporation Limited (SCL), a Pakistani manufacturer of baby care and hygiene products, has decided to discontinue producing diapers, while continuing operations in its other lines of business.
The listed company announced the development in a notice to the Pakistan Stock Exchange (PSX) on Wednesday.
“The Board of Directors (BoD) has made the decision to discontinue the production of diapers while continuing other lines of business,” read the notice.
The BoD has authorised the Chief Executive Officer (CEO) to oversee the orderly discontinuation of diaper manufacturing by June 15, 2025, or earlier, based on operational and financial considerations.
“Explore and execute disposal of diaper machines and other assets related to production of diapers and carryout necessary enabling tasks,” the company said.
Shield informed that the decision has been taken after a comprehensive review of the operational and financial performance, market dynamics, and future outlook of the product.
The company believes that the discontinuation is expected to contribute to the improvement of the bottom line.
“The discontinuation is limited to the diaper product and the company continues its business, including manufacturing of its other baby care products such as baby feeder, baby nipple, soother, teethers, training cup, etc,” it added.
SCL was incorporated in Pakistan as a public limited company in 1975.
The company’s principal business activity is the manufacturing, trading, and sale of oral hygiene and baby care products. SCL caters to the needs of over 300 towns and cities in Pakistan. Besides, the company has a presence in Europe, Asia, and Africa.
On Wednesday, the share price of SCL closed at Rs260.73, a decrease of Rs4.28 or 1.62%.
