Shield Corporation Limited (PSX: SCL) has announced its decision to discontinue the production of diapers while maintaining all other lines of business. The company’s Board of Directors approved the move following a detailed evaluation of the diaper segment’s operational and financial performance, market trends, and future prospects.
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The Board has authorized the Chief Executive to oversee the wind-down process, with operations related to diaper production set to cease by June 15, 2025, or earlier based on operational and financial considerations. The CEO has also been directed to explore the sale of diaper manufacturing equipment and related assets, and to carry out any associated tasks required for the transition.
This strategic shift is expected to enhance the company’s overall profitability by shedding a product line that no longer aligns with its performance objectives. According to the official statement issued to the Pakistan Stock Exchange, the move is aimed at improving Shield Corporation’s bottom line.
The company clarified that this decision applies exclusively to diaper production. Shield will continue to manufacture and market its range of baby care products, including baby feeders, nipples, soothers, teethers, training cups, and related items.
