Sheng Tai, Kenteam Collaborate to Develop RM1.5B glove Hub in Melaka
11 Jun 2021
Property developer Sheng Tai International Sdn Bhd (STI) has been appointed by latex and nitrile gloves manufacturer KenTeam International Sdn Bhd to design, construct and build a RM1.5 billion glove hub in Jasin, Melaka.
Under a memorandum of agreement (MoA) inked today between STI and KenTeam Asia Glove Hub Sdn Bhd, a special vehicle of KenTeam International, STI will offtake 110 production lines from the 38.45-hectare (ha) glove hub.
STI said each production line was expected to have a production capacity of three million boxes per annum, or 330 million boxes for all the lines.
In a virtual media briefing following the MoA signing ceremony today, KenTeam International chief executive officer Datuk Seri Justin Lim said out of the 38.45ha project, 12.14ha would be used to build nitrile butadiene rubber (NBR) manufacturing facilities, which would produce 100,000 metric tonnes of NBR annually.
“About 2.02ha will be used to set up a gamma sterilisation factory and the remaining 24.28ha will be used to build 110 production lines,” he said.
Lim added that construction was expected to begin early next month and be completed in about 18 months.
“Most of the products will be for the export market, as rubber glove demand is high in the United States, Canada and Europe,” he said, adding that the glove hub was likely to generate about 7,500 jobs and the company would be recruiting as many locals as possible.
STI founder and chairman Datuk Leong Sir Ley said she expected demand for nitrile gloves to continue growing post-COVID-19.
“We are investing in manpower, knowledge, and technology together with KenTeam.
“We believe our entry into the nitrile glove industry will not only bring positive revenue to our company but also strengthen our commitment to upholding the nation’s, especially Melaka’s, economy and health,” she said.
The virtual signing ceremony was witnessed by Minister in the Prime Minister’s Department (Special Functions) Datuk Seri Mohd Redzuan Md Yusof.
Source: Bernama
