VIP Gloves to expand glove production capacity via acquisition - MIDA | Malaysian Investment Development Authority
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VIP Gloves to expand glove production capacity via acquisition

VIP Gloves to expand glove production capacity via acquisition

11 Feb 2022

Nitrile glove manufacturer, VIP Gloves Ltd (VIP), has entered into a heads of agreement with Ammorium Resources Sdn Bhd’s major shareholder, Julian Foo Kuan Lin, to acquire 100% equity interest in Ammorium.

VIP said the acquisition of Ammorium will allow the company to oversee the construction of a 60-line double-former medical examination glove integrated facility on 21.45 hectares of land in Tronoh, Perak.

“Each line is expected to have a production capacity of 15 million pieces of gloves per month or a total of 900 million pieces per month, and an annual production of over 10.8 billion gloves,” it said in a statement today.

Group managing director Jimmy Yang said the acquisition will boost VIP’s total output capacity to 13.46 billion pieces per annum when all the lines are fully commissioned.

“We are also constructing a second factory in Semenyih, Selangor, which would have eight production lines and an annual production capacity of 1.6 billion pieces of gloves,” he said, adding that the factory is expected to be fully operational in 2023.

VIP currently has six glove production lines in operation, with another two lines expected to be commissioned in the next two months.

“The additional eight lines in the new Semenyih factory and 60 lines from the Tronoh factories are expected to contribute to VIP’s revenue starting from financial year 2023,” said Yang.

Moving forward, he believes that demand for gloves would remain resilient, given the rise of Covid-19 cases due to the Omicron variant.

“This is sustaining demand for personal protective equipment such as medical gloves among healthcare workers.

“Glove makers are also getting orders from new users such as airlines, restaurants, retail apparel chains and hotel operators looking to protect their workers,” he added.

Source: Bernama