by NUR HAZIQAH A MALEK / pic credit: ANNUAL REPORT
DIVERSIFIED Gateway Solutions Bhd stated that its diversification into glove manufacturing will begin operations in the first quarter of 2021 (1Q21).
In a filing to Bursa Malaysia yesterday, the information technology service management company noted that its unit — Duramitt Sdn Bhd which will head the venture — will instal and commission two single new nitrile examination glove production lines by early 2021.
“Another two double former nitrile examination gloves production lines will be installed and commissioned by 2Q21. As such, production is expected to commence in 1Q21,” Diversified Gateway noted in its exchange filing yesterday.
The company obtained the requisite business licence on Aug 28, 2020, and earlier acquired a manufacturing licence from the International Trade and Industry Ministry on Feb 12, 2014.
Its Custom licence and Malaysian Rubber Board licence were obtained on Jan 22, 2019, and April 1, 2020, respectively, with relevant approvals from the Health Ministry incoming.
Out of the RM30 million proceeds, Diversified Gateway’s unit, Duramitt, will be utilising RM12 million as working capital.
“RM18 million will be allocated for the purchase, installation and commissioning of two single former nitrile examination glove production lines at the current factory in Kulim, Kedah,” it said.
The gloves to be produced by Duramitt include the medical, services, hospitality, manufacturing and engineering industries.
On the payment details, the total amount to be contributed by Diversified Gateway based on its 60% shareholding in Paragon Spectrum Sdn Bhd (PSSB) is RM24 million.
“This will be funded by the internally generated funds, equity fundraising and/or bank borrowings of Diversified Gateway, the proportions of which will be determined at a later date after taking into consideration of Diversified Gateway’s gearing level, interest costs and cash reserves,” it said.
The investment in Duramitt was announced on Oct 30, whereby Diversified Gateway issued it acquired 1.29 million shares in Duramitt via its subsidiary PSSB.