The Next Transformation: Proposed Gloves Manufacturing
08 Nov 2020
“41 years ago we started our plastics business and today we are one of the biggest high-tech plastics product manufacturer, one of the largest plastic pallets producer in Malaysia. 26 years ago we started our first property project and now we are a well-established property player with 50 projects. In 2020, we start our new venture into gloves and we target to be one of the top 5 producers in Malaysia in the future. Now, Mah Sing has its presence in property, plastics and glove manufacturing businesses.” – Mah Sing’s Founder and Group Managing Director, Tan Sri Dato’ Sri Leong Hoy Kum
Mah Sing Plastics in Numbers:
- Incepted in 1979, 41 years of manufacturing experience.
- 4 factories; 2 in Malaysia, 2 in Indonesia.
- Largest clamping force machines in South East Asia; 75 injection machines with up to 4,000 tonnes clamping force.
- RM16.5million invested in automation of production lines in Malaysia.
- Export market of 45 countries; 40% of Malaysian sales & revenue derived from export.
- MNC clientele in key industries including food & beverages, electronic & electrical, automotive, healthcare, petrochemical industries, plantation & oleochemicals and pharmaceutical.
Mah Sing Property in Numbers:
- 50 projects in Greater KL, Klang Valley, Penang Island, Johor, as well as Sabah.
- Well-known for its quick turnaround and nimble business model, coupled with fast execution and financial prudence.
- Strong balance sheet with cash and bank balances at approximately RM1.13billion (As at 30 June 2020) – well-positioned to maintain selective balance sheet expansion with Greater KL and Klang Valley being the focus.
- Remaining landbank of 2,005 acres with remaining gross development value and unbilled sales totaling approximately RM24.64billion (As at 30 June 2020).
- Continue to focus on providing affodably priced homes of good quality with 91% of the Group’s target sales in 2020 from residential properties priced below RM700,000.
Mah Sing Enters New Period of Growth in Proposed Glove Manufacturing and Other Medical Device Products
Plan To Start Proposed Glove Production in April 2021 With Ready Factory For Installation of Glove Dipping Machinery
Mah Sing Gloves in Numbers:
- First gloves manufacturing factory in Kapar, Klang – 12 new production lines with maximum production capacity up to 3.68billion pieces of gloves per annum in Phase 1.
- Plan to start proposed glove production in April 2021 with ready factory for installation of glove dipping machinery.
- Targets expansion of 12 additional new production lines in Phase 2 to increase capacity up to another 3.68billion pieces of gloves per annum if demand exceeds supply.
- Aims to be the top 5 producer in Malaysia, targets gradual expansion up to 100 lines, potentially producing up to 30 billion pieces if demand permits.
Mah Sing’s entry into proposed gloves manufacturing via Mah Sing Healthcare has a speed advantage, as its first glove manufacturing factory in Kapar, Klang has already commenced piling works to accommodate 12 units of new, high speed glove dipping machines. These 12 production lines are Phase 1 of Mah Sing’s proposed diversification into gloves and has a maximum production capacity of up to 3.68billion pieces of gloves per annum.
The piling works are expected to be completed by November 2020, to be immediately followed by installation of the machineries in order to meet its targeted production date of April 2021 to meet the pent-up demand. Fabrication works for the new machineries has already started at the equipment supplier’s factory, and installation of the initial lines is expected to commence in November 2020. The first 6 production lines are expected to be ready for operation as early as 2Q 2021, followed by another 6 production lines expected to be ready by 3Q 2021.
Mah Sing is targeting a second phase of the proposed expansion plan, which includes exercising the option to take up the other portion of the Kapar factory. This could accommodate another 12 new production lines and increase the capacity up to another 3.68billion pieces of gloves per annum. The Phase 2 expansion is targeted to happen when demand outstrips supply for Phase 1. At this juncture, Mah Sing Healthcare has secured letters of intent from several prospective customers and the cumulative indicative orders have already exceeded the estimated maximum capacity for both phases of the Kapar factory. If demand permits, Mah Sing Healthcare will gradually expand up to 100 production lines as part of future expansion plans. These 100 production lines could potentially produce approximately 30+ billion pieces of gloves per annum.
As the Kapar factory is expected to start its operation with 6 production lines as early as 2Q2021, the Group is in a good position to take advantage of the high spot price of gloves. Mah Sing expects the proposed glove manufacturing business to be able to generate sales for the Group relatively quickly with the projected contribution estimated to come in as early as 2Q 2021.
The new proposed gloves business, which predominantly is targeting the export market, will allow Mah Sing to ride on the booming glove-manufacturing segment and further strengthen its manufacturing division, which is currently focusing on plastics business. This is expected to provide the Group access to the global market and generate more recurring and steady income for the Group. This will be a good complement to the property business which focused on the domestic market, and more cyclical in nature.
Source: The Edge Markets Posted on : 08 November 2020