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Hartalega’s RM7b plan in Kedah to create 12,000 jobs

Hartalega’s RM7b plan in Kedah to create 12,000 jobs

11 Mar 2021

The land acquisition marks Hartalega’s latest growth phase of building 16 new manufacturing facilities over the next 20 years

Hartalega Holdings Bhd’s RM7 billion expansion plan in Kedah over the next two decades is expected to drive economic development and create 12,000 jobs in the state.

Hartalega’s wholly-owned subsidiary, Hartalega NSM Sdn Bhd, has inked a sales and purchase agreement with Northern Gateway Free Zone Sdn Bhd, a wholly-owned subsidiary of Northern Gateway Sdn Bhd, for the acquisition of 250 acres (101.2ha) of land in Bukit Kayu Hitam, Kedah.

Both parties also signed an option agreement for Hartalega to purchase another 130 acres of land in the same location.

Northern Gateway is a wholly-owned entity of the Minister of Finance Inc and the master developer of the Kota Perdana Special Border Economic Zone (SBEZ).

With endorsement from the government, this will see Hartalega expand its presence in the Northern region over the long term.

The land acquisition marks Hartalega’s latest growth phase as the company looks to invest RM7 billion over the next 20 years to build 16 new manufacturing facilities.

Finance Minister Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz said the strategic investment decision by Hartalega, being the world’s largest nitrile glove producer, is an endorsement of Kota Perdana SBEZ’s rising status as a new and preferred investment destination.

“It has always been the government’s strategy to encourage growth and innovation-focused industry players who can raise productivity and contribute to the nation’s economy. We are, therefore, very pleased to support Hartalega’s expansion in Kota Perdana SBEZ.

“This will also drive economic development in Kedah, with a huge, positive impact for the northern region. Most significantly, the project is expected to generate more than 12,000 jobs and help upskill local talents and vendors while supporting infrastructure development,” he said in a statement yesterday.

Kota Perdana SBEZ is poised to enhance further its position and reputation in attracting other high-end and export-oriented industries, leveraging its competitive advantages, such as proximity to the Malaysia-Thailand border and the Penang Port.

Hartalega CEO Kuan Mun Leong said the group must accelerate its production capacity while its growth strategy focuses on Malaysia, given its comprehensive ecosystem and supply chain for the glove sector.

“This expansion plan will further solidify Malaysia’s positioning as the largest glove manufacturer globally,” he said.

Upon completion, Hartalega is estimated to contribute more than 5% of Kedah’s total GDP. Hartalega is currently the world’s leading nitrile glove manufacturer, producing 43 billion pieces of gloves per year.

Its expansion plans include the Next Generation Integrated Glove Manufacturing Complex 1.5, which will increase the group’s capacity to 63 billion pieces of gloves per year upon completion.

The longer-term expansion plan in Kedah will add another 80 billion pieces per year, bringing Hartalega’s total capacity to 143 billion pieces of gloves per annum once fully completed.

With the first plant set to be completed by 2024, this charts a course for the group to progress to new heights to meet rising global demand over the long run.

Source: The Malaysian Reserve