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Hartalega aims to ramp up its total installed capacity to 76 billion glove pieces per annum

Hartalega aims to ramp up its total installed capacity to 76 billion glove pieces per annum

30 Jul 2020

Hartalega Holdings Bhd said it has acquired a 95-acre parcel of land located in Banting, Selangor intended to serve as the future site for its next phase of expansion, Hartalega Next Generation Complex (NGC) 2.0.

In its 2020 annual report released today, Hartalega executive chairman Kuan Kam Hon said: “As we continue to ramp up capacity, we are cognisant of the fact that the baseline for global demand has shifted and this is expected to be the new normal.

“Premised on this and as a group which adopts a longer-term perspective, our strategic growth plans are aligned with the anticipated long-term needs of the global healthcare industry.”

Kuan said preliminary plans for NGC 2.0 entail seven production plants, comprising 82 production lines with an installed capacity of 32 billion pieces of gloves.

Once completed, he said this will bring the group’s total installed capacity to 76 billion pieces per annum.

“For the short term, given this critical period for the world, we are steadfast in fulfilling our role and responsibility in the healthcare value chain.

“Going beyond this and looking ahead, we intend to leverage on our strong foundation and technological edge to maintain our positive trajectory in the years to come,” he said.

For the financial year ended March 31, 2020, Hartalega recorded RM434.78 million in net profit, underpinned by a record RM2.9 billion in revenue.

Kuan said the group’s performance was supported by higher sales volume, which increased by 8.8% to 31 billion pieces during this year as a result of the Covid-19 pandemic.

At 3.35pm, Hartalega shed 14 sen or 0.7% to RM19.98, with a market capitalisation of RM69.24 billion. The stock saw some 6.59 million shares traded.

Source: The Edge Markets