GIIB launches glove manufacturing plant
16 May 2022
Rubber compound provider GIIB Holdings Bhd said it launched its first glove manufacturing plant in Nilai, Negeri Sembilan on Monday.
“The launch of our first glove manufacturing plant today marks the group’s successful foray into the glove making scene,” said GIIB’s chief executive officer and executive chairman Tai Boon Wee.
“In fact, we have already secured strong sales order for the year, showcasing the quality of our products and we expect the glove business to start contributing to our financial year ending June 30, 2023,” he added in a statement.
GIIB said the manufacturing plant, operated by its 51%-owned subsidiary GIIB Healthcare Products Sdn Bhd, has five double former glove-dipping production lines with a production capacity of 1.05 billion pieces of glove per annum.
The production lines are interchangeable to produce latex or nitrile gloves, the group said.
“GIIB will manufacture the latex gloves under its own brand ‘GIIB Healthcare’ and serve as an original equipment manufacturer for local and international clients.
“Under a ‘maximum scenario’, producing at full capacity and given the current average selling price of approximately RM90 per 1,000 latex gloves, revenue contribution from this plant can reach about RM94 million per annum.
“For comparison, the group reported a revenue of RM36.6 million for the 12-month period ended Dec 31, 2021,” said GIIB.
Tai said GIIB expects the exports of rubber gloves to remain robust, with growth in the double digit region.
“Overall, even into the post-Covid era, we believe demand for gloves will remain strong, in light of the heightened health awareness brought about by this pandemic.
“We are optimistic that this foray will provide the group with a sustainable recurring income stream and enhance the group’s bottomline, going forward,” he added.
Last month, GIIB said it has engaged an independent consulting firm to assist its investigative committee in the probe against suspended executive director Wong Weng Yew’s management and handling of the group’s glove business and accounts.
Wong has been suspended since March 28 to facilitate the probe into alleged suspicious transactions.
Wong, on his part, has lodged a police report in respect of the contentious matters involving the group.
On May 10, GIIB said it has further extended the employment suspension of Wong for a period of 14 days, pending the finalisation of the probe review report.
Source: The Edge Markets