Technical textile maker SRF Ltd today said that it is closing down its manufacturing operations in Dubai due to sustained downturn in the European market and high fixed costs.
SRF would relocate the plant and machinery from its Dubai plant to one of the company’s units in India.
“Board of directors of SRF Overseas Ltd (a wholly owned subsidiary of the company) has decided to close its manufacturing operations in Jebel AN Free Zone, Dubai due to sustained downturn in the European market and high fixed costs,” the company said in a filing with BSE.
The company manufactures nylon tyre cord fabric at its Dubai plant.
“The plant and machinery of SRF Overseas Ltd in Jebel Ali Free Zone, Dubai would be relocated to one of the units of SRF Ltd in India subject to necessary approvals,” it added.
SRF claims to be the world’s second largest manufacturer of both the Nylon 6 tyre cord as well as belting fabrics.
Earlier this month, SRF Ltd had announced top management rejig with the induction of six new Chief Executive Officers to its corporate leadership team. With these changes, the strength of SFR’s leadership team has increased from seven to 13.
Shares of SRF Ltd were trading at Rs 134.75 apiece, down 1.64 per cent from their previous close on the BSE.