Developer turns into glove maker - MIDA | Malaysian Investment Development Authority
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Developer turns into glove maker

Developer turns into glove maker

09 Jun 2020

Property developer Permaju Industries Industries Bhd is venturing into the glove manufacturing business as demand for rubber gloves continues to advance worldwide amid the Covid-19 pandemic.

Sabah-based Permaju plans to set up a production facility in Seremban, Negri Sembilan, investing between RM150 million and RM200 million, sources said.

The company owns 121.4 hectares of land in Seremban.

It is understood that Permaju expects to start construction this year, subject to approvals from the relevant authorities.

For the first year, the company was targeting to produce more than one billion pieces of rubber gloves per annum, said the source.

“The Covid-19 pandemic may be over by the time it starts production but Permaju is looking at long-term business prospects.

The demand for rubber gloves picked up even before the pandemic started. There is always a need for rubber gloves worldwide,” the source added.

Local glove makers including Top Glove Glove Corp Bhd, Supermax Corp Bhd, Kossan Rubber Industries Bhd and Hartalega Holdings Bhd have seen a surge in demand from both developed and developing countries alike to combat the spread of Covid-19.

Malaysia is one of the world’s leading producers of high-quality latex, rubber gloves and other rubber-related products which are supplied widely to various countries overseas.

Permaju wants to be in this market for long-term prospects, said the source.

“Permaju intends to manufacture gloves among other rubber-related products for the export market and also to sell in Malaysia,” said the source.

In a filing with Bursa Malaysia on Friday, Permaju said it had incorporated Permaju Glove Sdn Bhd (PGSB), a new wholly-owned subsidiary on June 5.

It said the intended principal activity of PGSB is to manufacture, distribute, buy, sell and generally deal in rubber goods for industrial and commercial purposes.

Permaju, which is also involved in the dealership of Volkswagen and Ford vehicles, said the rationale of PGSB incorporation was to facilitate the expansion of the business activities of the group and its subsidiaries.

Source: NST

Posted on : 09 June 2020