Mah Sing to begin glove operations

The property group anticipates its 1st shipment of gloves to be made by June at the latest

by ASILA JALIL / Pic by BLOOMBERG

MAH Sing Group Bhd’s new business of rubber glove manufacturing and trading is expected to begin operations in May after it successfully completed the testing and commissioning of its first two glove production lines at its factory in Kapar, Klang.

The property group anticipates its first shipment of gloves to be made by June at the latest, to markets in Europe, China, the US, the Middle East, Japan and Korea.

Mah Sing expects to commission another four production lines in the second quarter of 2021 (2Q21) followed by another six production lines in the 3Q21.

The 12 double former lines are part of Mah Sing’s Phase 1 of glove manufacturing business and is capable of producing 38,000 pieces of gloves per hour per line or a maximum capacity of up to 3.68 billion pieces of gloves per annum.

Mah Sing’s founder and group MD Tan Sri Leong Hoy Kum said the group is targeting to expand capacity further under Phase 2 if demand for rubber gloves continues to outstrip supply from Phase 1.

“The orders are coming in strong and we are looking forward to the first shipment in May,” he told reporters at Mah Sing’s glove factory in Klang yesterday.

He said the company has secured orders till September and the average selling price ranges between US$85 (RM349.56) and US$115 per 1,000 glove pieces.

“We are focusing on spot orders as the prices are still encouraging. All orders we secured until September are on spot pricing,” he said.

On the profit margin for the glove operations, Leong said the costs are based on current raw materials which ranges between US$36 and US$40 for 1,000 pieces.

Mah Sing’s CEO Datuk Ho Hon Sang said Phase 2 expansion could accommodate another 12 new production lines and increase the capacity by another 3.68 billion pieces of gloves per annum.

“We believe this is just a start and we will continue to deliver commendable results and progress as weaimtobeoneofthetopfive glove producers in Malaysia,” Ho said.

Mah Sing’s glove manufacturing factory sits on six acres (2.43ha) of land and is fitted with automated processes designed for higher efficiency and cost-effective systems.

It is equipped with an enterprise resource planning system and an advanced supervisory control and data acquisition system to support the operations.

The system includes real time monitoring of the glove production, management of the machines and equipment, order completion and delivery tracking.

“We will continuously invest in research and development and explore more automation features as part of our sustainable effort to enhance product competitiveness and efficiency,” Ho said.

Mah Sing’s share price closed five sen or 5.62% higher at 94 sen, bringing its market capitalisation to RM2.28 billion.