Categories: BusinessNews

Iconic Worldwide banks on RM200m new factory to boost sales

The factory’s opening puts the company on the right track to become a major player in the global market within 5 years

by TMR / pic source: Sense Consultancy

ICONIC Worldwide Bhd has opened its RM200 million manufacturing facility for gloves and face masks in Batu Kawan, Penang, less than a month after securing a 510(k) premarket notification approval from the US Food and Drug Administration (FDA) to distribute its medical-grade gloves throughout the US.

The factory, which is built on a 2.23ha land, is expected to yield a minimum production capacity of 3.3 billion pieces of gloves and 220 million pieces of disposable face masks per annum.

Six double former glove dipping lines have started running at the factory, and by March 2022, a total of 12 double former glove dipping lines and 20 medical face mask production lines will be installed and commissioned.

The group said that the factory’s opening puts Iconic Worldwide on the right track to become a major player in the global market within five years.

“The continued Covid-19 viral evolution that led to the emergence of variants such as Omicron, despite the extensive vaccinations globally, is expected to sustain the demand for gloves and face masks,” Iconic Worldwide MD Datuk Tan Kean Tet said in a statement after the factory’s launch on Saturday.

“While Iconic Worldwide is relatively new in the personal protective equipment (PPE) manufacturing market, our international recognition — including from the US FDA — and the overwhelming enquiries from potential customers, makes us one of the leading beneficiaries of this continued demand for PPE,” he added.

Tan noted that a report by Arizton Advisory and Intelligence forcasted that the medical glove market size is expected to reach US$18.56 billion (RM77.58 billion) by 2026, up from US$9.58 billion in 2020.

“Once our 12 glove production lines and 20 face mask production lines are fully operational, we expect to generate a potential revenue and profit to the company for years to come,” he said.

On Dec 14, 2021, Iconic Worldwide obtained the 510(k) premarket notification approval from the US FDA. A 510(k) is a premarket submission made to FDA to demonstrate that the device to be marketed is safe and effective.

The group has also obtained International Organisation for Standardisation and European Union’s CE certifications for its nitrile gloves and medical face masks, all of which will enable the group to export its products worldwide.

The group is expected to ship out approximately 500 million pieces of nitrile gloves to the US, Europe, Africa, Middle East and South-East Asia in the third and fourth quarter of 2022.

The sales will be partially factored into the group’s financial year 2022 accounts and fully realised in the financial year 2023.

Zukri

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