Shield Corporation Limited to Halt Diaper Production

Shield Corporation Limited (SCL), a Pakistani manufacturer specializing in baby care and hygiene products, has resolved to cease its diaper production line while maintaining its focus on other business segments.

The publicly listed entity communicated this development to the Pakistan Stock Exchange (PSX) through an official notification on Wednesday.

“The Board of Directors (BoD) has resolved to discontinue the manufacturing of diapers, opting to concentrate on its remaining product lines,” the notification stated.

The BoD has empowered the Chief Executive Officer (CEO) to manage the structured cessation of diaper manufacturing operations by June 15, 2025, or potentially earlier, contingent upon operational and financial considerations.

“The company will explore and implement the disposal of diaper manufacturing machinery and associated assets, alongside undertaking essential preparatory tasks,” Shield conveyed.

Shield clarified that this decision stemmed from a thorough evaluation of the product’s operational and financial results, prevailing market conditions, and anticipated future prospects.

The corporation anticipates that this discontinuation will positively impact the overall financial performance.

“The cessation is specifically limited to the diaper product line; the company will persist with its other business activities, including the production of additional baby care items such as baby feeders, bottle nipples, pacifiers, teethers, and training cups,” it elaborated.

SCL was officially established in Pakistan as a public limited company in 1975.

The corporation’s core business involves the production, commerce, and distribution of both oral hygiene and baby care products. SCL caters to the requirements of more than 300 cities and towns throughout Pakistan and maintains a presence in markets across Europe, Asia, and Africa.

On Wednesday, SCL’s share price concluded at Rs260.73, reflecting a decrease of Rs4.28, equivalent to 1.62%.