ATS Line 1 glove production to begin December, sees estimate RM860 million annual turnover
28 Oct 2020
AT Systematization Bhd’s (ATS) Line 1 glove production factory in Chemor, Perak is set to release its first batch of medical-grade nitrile gloves in December 2020, with an estimate annual turnover of RM860 million from the new venture.
In a statement today, ATS said this represents more than 40 times compared with the group’s annual turnover of around RM20 million in its financial year ended March 31, 2020 (FY2020).
So far, it said the facility has been 80 per cent completed and production would commence in early December, enabling revenue contribution from the new glove business to begin in the current FY2021.
“In every subsequent month, two new glove dipping lines will be installed,” it said.
By June 2021, the group expects to reach a glove production capacity of 2.6 billion glove pieces per annum, based on the assumption of 24 hours per day and 30 days per month.
“Each single former production line can run at a speed of 15,000 pieces of gloves per hour whereas each double former production line can run at a speed of 24,000 pieces of gloves per hour,” it said.
The group also said the initial target was to build six glove dipping lines under phase one and another six lines under phase two, and currently ATS has been working on its 13th line as it sees stronger-than-expected demand ahead of production.
According to ATS managing director Choong Lee Aun, the group would invest RM120 million for the installation of the 13 glove dipping lines, together with related facilities and a new building.
“Ultimately, ATS plans to have a total of 20 glove dipping lines, with lines 14 to 20 to be installed in a new plant to be decided later,” he added.
Source: NST Posted on : 28 October 2020