Flexidynamic: Storage, process tanks new growth pillar - MIDA | Malaysian Investment Development Authority
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Flexidynamic: Storage, process tanks new growth pillar

Flexidynamic: Storage, process tanks new growth pillar

18 May 2021

Glove chlorination specialist Flexidynamic Holdings Bhd, which made an impressive debut on the ACE Market recently, is ready to further grow its storage and process tanks segment to be its other business pillar after ramping up its online glove chlorination system.

General manager Ben Sin said design and engineering of customised online glove chlorination systems accounted for 58.21% of its revenue while the storage and process tanks segment accounted for 21.25%.

 “This has been a strong pillar of growth for Flexidynamic as it has been on an upward trajectory from 6.56% in the financial year 2017. It has strong potential as not all of our existing customers have taken up these products from us, and we can leverage on our existing networking to grow it,” he told Bernama.

The company made its debut on Bursa Malaysia in March, rising by as much as 52 sen for a 260% premium over its issue price of 20 sen a share, which strengthened its profile as one of the leading players in the glove manufacturing industry.

In its initial public offering prospectus, Flexidynamic stated that it would acquire two semi-detached plants to assist its expansion while lowering reliance on third-party subcontractors, eventually mitigating risks for the business.

The additional factories would also house storage tanks, scrubber towers, chimneys and ducting, which Flexidynamic currently outsources to its subcontractors.

Sin said the acquisition would enhance its in-house manufacturing capacity to cater to both local and overseas clients as the company continues to grow and expand its business.

Asked on its presence regionally, particularly in Vietnam, Thailand, Indonesia and Sri Lanka, he said 40% of the company’s revenue was derived from the overseas market and Flexidynamic aimed to grow its glove chlorination business in Vietnam and Thailand by securing glove manufacturers as its new clients and supporting existing clients as they set up or expand their production plants overseas.

Source: Bernama