Welding products maker Ador Welding Ltd today said it has decided to suspend manufacturing activities at its Chennai plant with immediate effect and will re-locate certain plant and machineries from Chennai to Silvassa and Raipur to improve operational efficiencies.
"In order to derive economies of scale and to have optimum utilisation of plant capacities and available resources, the Board of Directors of the company has decided to suspend its manufacturing activities at Chennai with immediate effect," Ador Welding said in a BSE filing.
The company further said: "It has also decided to re-locate certain plant and machineries from Chennai to Silvassa and Raipur which will help the company enhance its overall operational efficiencies."
Ador Welding said the employees at Chennai plant will also be relocated to Silvassa and Raipur Plants.
"The company does not anticipate any disruption in supply of its products, due to this relocation/ consolidation of operations, as the company has adequate production capacities at Raipur and Silvassa," the company added.
Shares of Ador Welding closed at Rs 211.50 apiece, up 0.71 per cent from their previous close on the BSE.