Bandwagon of new glovemakers

by FARA AISYAH & NG MIN SHEN/ pic by TMR FILE

SEVERAL more companies are jumping on the glovemaking bandwagon, with four Bursa Malaysia-listed firms announcing yesterday their plans to produce gloves as demand swells amid the Covid-19 pandemic.

Cleanroom gloves manufacturer CE Technology Bhd intends to increase its raw nitrile gloves manufacturing capacity to 70.5 million pieces per month via three additional double former glove-dipping lines.

The group also aims to increase its cleanroom post-processing capacity to 83 million pieces of cleanroom gloves monthly through two new cleanroom post-processing facilities.

“The installation and commissioning of the glove-dipping lines, as well as new cleanroom processing facilities will cost RM50 million and is expected to be fully operational in one and a half years,” CE Technology said in a statement to the exchange yesterday.

The investment will be financed through internally generated funds and/or bank borrowings.

CE Technology MD and CEO SS Teoh previously said the existing production capacity is currently running at its maximum, while its customers have significantly increased their regular orders with the company.

In a statement yesterday, Kanger International Bhd said it had received a formal expression of interest (EOI) letter from Dubai firm Constellation Holdings Ltd to set up medical examination gloves operations in Malaysia.

Constellation is the appointed procurement agent for personal protective equipment (PPE), medical equipment and supplies for the United Arab Emirates’ Ministry of Health and Prevention, as well as other Middle Eastern countries.

The group proposes to collaborate via direct equity participation in a joint-venture (JV) entity and/or indirect equity holding in the glove manufacturing operations via investment into Kanger through a private placement exercise, whereby Constellation will seek to become a substantial shareholder of Kanger.

Kanger ED Joseph Wu Wai Kong said the medical gloves factory will be established locally due to easy access to raw materials, manpower, technical know-how and management experience.

“By collaborating with a major medical buyer representing governments in the Middle Eastern region, we would be able to tap into their wide customer network to secure long-term supply agreements,” he added.

Kanger is considering the proposals set forth in the EOI and will continue to engage with Constellation on the matter.

Meanwhile, Inix Technology Bhd inked a letter of intent with Lyglan Properties Sdn Bhd to acquire a factory building in Negri Sembilan for RM35 million.

The agreement is the maiden step to establish a JV for a medical rubber gloves production business, its ED Lee Han Keat said.

“A JV company would be formed, where Inix will invest RM22.75 million, accounting for 65% of the company’s equity, and Lyglan will invest RM12.25 million, accounting for 35% of the company’s equity,” he said in a statement yesterday.

Inix recently appointed Macau tycoon Wan Kuok Koi as its chairman in a move aimed at turning the firm around and deploying Wan’s rubber glove business in Malaysia.

Separately, industrial automation systems and precision engineering firm AT Systemization Bhd stated that it expects to commence production of its first glove-dipping line in November 2020.

This was in response to queries from Bursa Malaysia, after the firm announced on Monday its plans to diversify into the glovemaking business.

It intends to acquire, instal and commission up to 20 glove-dipping lines, comprising one single former and 19 double former glove-dipping lines. Capital expenditure to instal the lines is estimated at RM150 million.

The group is also liaising with relevant authorities to obtain approval for its glove business, and expects to obtain the approvals by November 2020.

Property developer Titijaya Land Bhd noted that it is tabling a proposal to diversify into healthcare products, including glove supply.

It’s in talks with a local producer for the venture, the firm said in an exchange filing yesterday in response to a Bursa Malaysia unusual market activity query.

In April, the group signed a strategic collaboration agreement with China-based Sinopharm Medical Equipment QuanZhou Co Ltd to develop medical and hospital equipment-related and real estate businesses.

It signed another agreement in June with China Sinomach Heavy Industry Corp to develop a facility to produce PPE fabric.