Mah Sing diversification into glove manufacturing on track
16 Dec 2020
Mah Sing Group Bhd’s diversification into glove manufacturing remains on track as it has made progress on physical works for its manufacturing facility and regulatory approvals for the venture.
The group reiterated that the targeted April 2021 production date is on schedule, as the installation of glove dipping lines framework and structure is under way.
It anticipates six production lines to be completed in second-quarter 2021 (Q2’21) with an additional six production lines to be completed in Q3’21, translating to a maximum capacity of up to 3.68 billion pieces of gloves per annum.
The group’s founder and group managing editor, Tan Sri Leong Hoy Kum, commented that the proposed glove business will strengthen its manufacturing division and is expected to generate sales as early as Q2’21.
He explained that this will allow it to take advantage of the high spot price for gloves.
“This business will still see sustained, strong demand in the future, generating more recurring and steady income for the group,” he said in a press release.
“We also plan to venture into other healthcare and medical device related ventures if the opportunity arises and explore the possibility of listing our manufacturing division separately from the group to further unlock its value in the future.”
On the regulatory front, Mah Sing revealed that it has obtained two certificates of registration for polymer (nitrile) and latex gloves by the US Food and Drug Administration.
Leong commented that the certification is timely as it enables the group to meet the global demand of gloves, as it is required for export of the gloves to the US and the demand for gloves is expected to remain elevated even post pandemic.
“Medical and non-medical usage is expected to remain high in the food and beverage, hospitality and travel sectors. We are cautiously optimistic that this will enhance the group’s financial performance moving forward as well.” he said.
In addition, the group is also currently in the process of obtaining the CE Marking Certification for the export of its glove to the European region.
It has also received a clearance letter from Malaysia’s department of environment, which confirms that its factory is located in an industrial zone, and there are no objections to the nature of business.
Source: The Sun Daily