Karex to manufacture up to 2.5 bln medical gloves in Hatyai, Thailand
24 Aug 2020
Karex Bhd plans to establish a new manufacturing facility to supplement existing operations at its wholly-owned Innolatex (Thailand) Ltd (ITL) plant in Hat Yai, Thailand with an initial investment of RM40 million and planned capacity of up to 2.5 billion gloves annually.
In a filing with Bursa Malaysia, the world’s largest condom maker said its board made the decision today.
The medical gloves are intended to be made from nitrile, natural rubber and any other new materials that may be developed by Karex’s research and development efforts.
“ITL is currently manufacturing condoms, personal lubricants and other rubber products including catheters. The new manufacturing facility for the manufacturing of medical gloves will not affect the current production capacity of ITL,” it explained.
At the initial stage, Karex intends to set up two production lines within 12 months from the date of this announcement that is estimated to have a yearly production capacity of up to 500 million gloves (Phase 1) with the remaining production lines to be gradually set up over the course of the next 48 months.
For Phase 1, Karex will require a total estimated capital expenditure of RM40 million which will be funded through a combination of internally generated funds and/or bank borrowings.
“The remaining capital commitment will depend on, amongst others, the demand for gloves moving forward, the cost to acquire the additional machines and the success of Phase 1,” it said.
Karex said it is aiming to leverage its expertise and experience of more than 30 years in the medical device manufacturing sector to embark on the Manufacture and Sale of Gloves.
“Experience with regards to obtaining international medical registrations, rubber dipping technology as well as dealing with suppliers and customers from the healthcare industry is expected to enable Karex to quickly establish a foothold within the glove industry.”
It said the Manufacture and Sale of Gloves are expected to offer an additional complementary line of products within Karex’s existing medical business segment that currently consists of catheters, ultrasonic probe covers, test kits and hand sanitisers.
“An expanded product offering within the medical product portfolio is expected to put Karex in a more favourable position to capture sales from medical product customers,” it added.