Luster’s unit to start glove manufacturing contract in US after receiving RM50m deposit
08 Jun 2021
Luster Industries Bhd’s indirect unit Glovconcept Sdn Bhd has received a 50 per cent deposit payment of US$12.1 million (about RM50 million) from American Nitrile LLC for the initial six double former glove dipping lines.
This marks the start of Glovconcept’s contract to provide engineering, procurement, construction and commissioning (EPCC) services for the Ohio-based company’s glove manufacturing plants in the United States.
In a statement today, Luster said the deposit payment was received a month after Glovconcept, which is 60 per cent owned by Luster’s 56 per cent-owned subsidiary of Glovmaster Sdn Bhd, inked an agreement with American Nitrile to provide EPCC services as well as glove technology solutions for up to 12 glove production lines.
Luster deputy managing director Liang Wooi Gee said this was a positive development for the company as it showed the interest its clients had in escalating the start of the EPCC project.
“As indicated in our agreement, we will start to move forward with the orders for the machinery once we have received the first deposit payment. We also expect to see works for the initial six production lines to start and shipment to commence next year,” he said.
Liang said the deposit payment would help the group to mitigate the risk of its venture into North America.
“As this is our maiden foray into North America, the deposit payment is vital to safeguard some of the risks of our exposure. We are glad that we can move forward with the project now and are excited with the opportunities that it brings,” he added.