Kanger sets up JV for glovemaking venture

by TMR/ pic credit: ANNUAL REPORT

KANGER International Bhd has set up Kanger Glove Manufacturing Sdn Bhd to venture into the rubber glove manufacturing business in partnership with Constellation Holdings Ltd (CHL) of the United Arab Emirates.

Kanger and CHL inked a heads of agreement on Aug 13 with CHL set to buy a 49% equity stake in Kanger Glove for RM49,000 cash, according to Kanger’s filing to the exchange last Friday.

Kanger Glove has identified and planned to acquire three lots of land measuring five acres (2.02ha) in Ijok, Selangor, for RM6.8 million from undisclosed vendor(s).

The company intends to build a factory there and instal eight production lines to produce medical examination gloves for Middle Eastern markets, Kanger stated.

The factory investment is estimated at RM70 million. The partners are also considering buying equity in any existing glove manufacturing concern that is deemed suitable.

The proposed output not sold in the Middle East will be sold to other market channels in Asia and Europe, Kanger added.

The announcement by Kanger is among a host of such move announced by new entrants into the glove manufacturing business over the past few weeks on the back of the high demand globally for rubber gloves triggered by the Covid-19 pandemic.

Companies like AT Systematization Bhd, CE Technology Bhd, Inix Technologies Holdings Bhd and Titijaya Resources Bhd announced their own proposed ventures into the glove, medical products and personal protective equipment space.

Clean room gloves manufacturer CE Technology intends to invest some RM50 million to increase its raw nitrile gloves manufacturing capacity to 70.5 million pieces per month.

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

AT Systemization stated it plans to spend up to RM150 million to buy and instal up to 20 glove-dipping lines at a facility in Kedah.