KTG appoints Howellcare as turnkey contractor for RM54 mln glove factory
24 Dec 2020
KTG Bhd’s wholly-owned subsidiary, APPI Sdn Bhd, has appointed Howellcare Industries Sdn Bhd as the turnkey contractor for its glove factory costing RM54.8 million, to be build at its existing factory in Kamunting, Perak.
In a statement today, it said Howellcare would plan, design, supply, instal and commission four units of nitrile butadiene rubber double former glove dipping production line and four lines utilities support system for the glove factory.
“As the demand for examination gloves has been overwhelming with an order waiting list of more than a year for major glove players since COVID-19 outbreak earlier this year, the company believes the MoU will enable us to tap into the shortage of the gloves supplies and capture the excess orders in the market,” KTG executive director Sim Chiun Wee said.
He said the demand-supply imbalances in the glove industry is only expected to normalise after 2022 although the average selling prices (ASPs) are expected to decline.
“Even then, with the rising global awareness on pandemic and diseases, the consumption of gloves is expected to increase post COVID-19,” he added.
Sim said the expected production capacity and output for each production line is approximately 241.92 million pieces of gloves per annum, bringing the total expected production capacity and output for all four production lines at about 967.68 million pieces of gloves per annum.
Meanwhile, he said the target production capacity of the ceramics glove hand former is up to 2.4 million pieces per month.
Formerly known as DWL Resources Bhd, KTG is one of the oldest ceramic companies in the country with revenue mainly derived from trading, manufacturing, and exporting and marketing of planters and pots.