Sweden and Malaysia Continue to Work Hand in Glove - MIDA | Malaysian Investment Development Authority
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Sweden and Malaysia Continue to Work Hand in Glove

>Why Malaysia Series>Sweden and Malaysia Continue to Work Hand in Glove

Sweden and Malaysia Continue to Work Hand in Glove

Mölnlycke launches new €50 million plant in Kulim, Kedah

World-leading medical products and solutions company Mölnlycke Health Care (Mölnlycke) on 20 September saw the ground-breaking ceremony for its new €50 million (RM233 million) surgical glove plant in Kulim Hi-Tech Park, Kedah.


The plant was officiated by Menteri Besar Kedah, YAB Dato’ Seri Haji Muhammad Sanusi Md Nor, along with Sweden’s Ambassador to Malaysia, H.E. Dr. Joachim Bergström, and Mölnlycke CEO, Zlatko Rihter. Also present at the official launch were MIDA CEO, YBhg. Datuk Wira Arham Abdul Rahman, Senior State EXCO Member for Industry and Investment, Higher Education, Science, Technology and Education, Dato’ Wira Dr. Ku Abd Rahman Ku Ismail, Northern Corridor Implementation Authority (NCIA) CEO, Mohammad Haris Kader Sultan, and Mölnlycke Board Chair, Karl-Henrik Sundström.


The new production site – which is spread across a 29,164sqm lot with a building footprint of 14,620 sqm – is fully equipped with the cutting-edge automated glove production and packaging line for its famous Biogel gloves. The Swedish industry giant says the new facility is a major milestone of its sustainability roadmap WeCare, and is complimenting Malaysia’s sustainable industrialisation goals while aiming to create new job opportunities within the state.


In his opening speech, Mölnlycke Health Care Sdn. Bhd.’s General Manager, JC Guillou said: “This is a great milestone for Mölnlycke Health Care. This significant investment shows the board’s support and confidence in the future of the gloves franchise business and in our execution capability. This new plant will show Mölnlycke as a modern, responsible, and attractive company and help retain and attract new talents. This is more than ever a great time to be part of the Mölnlycke family.”

The Menteri Besar of Kedah said: “The state of Kedah is very proud to be the host of Mölnlycke’s new state-of-the-art factory, and to be recognised as a state that provides the right prerequisites for sustainable production of high-quality surgical gloves; in that respect, we are pleased to play a role in enabling Mölnlycke to live its vision to improve hand performance for health care professionals across the globe.” 


Meanwhile, MIDA CEO, Datuk Wira Arham Abdul Rahman remarked that Mölnlycke’s new production facility in Malaysia is a mark of confidence in the continuous sustainable growth of the Malaysian economy and will be a boon for Malaysia to maintain its leadership position in the glove manufacturing sector. “We are committed to supporting industry leaders like Mölnlycke and we hope to see the company grow to greater heights in the years ahead.” 


The manufacturing plant was constructed in partnership with global sustainability solutions providers ENGIE and Veolia Water Technologies. Veolia will be assisting in improving the plant’s wastewater management, effectively recycling water, and further improving the discharge quality. 


Mölnlycke reiterated that sustainability has always been a key aspect of the company’s core strategy, as it sets out to build a sustainable healthcare manufacturing ecosystem that would effectively meet the industry’s demand for high-quality surgical gloves, with minimal environmental impact.

The Group has several decades worth of good relations with Malaysia, where its first surgical gloves plant started operating in the country in 1990. At present, Mölnlycke – which has both manufacturing and sales of high quality surgical and diagnostics gloves locally – employs some 2,900 people, and the new plant is expected to see an additional 450 local jobs created in 2022 and 2023. 


Mölnlycke – whose company headquarters is located in Gothenburg, Sweden employs around 8,000 people globally, and operates in more than 100 countries worldwide. Since 2007, the company has been a part of Investor AB, an engaged owner of high-quality, global companies which was founded by the Wallenberg family in 1916. 


As the Government’s principal investment promotion and development agency under the Ministry of International Trade and Industry (MITI), MIDA is encouraged to see the addition of this new plant, which is distinctly designed to build a sustainable healthcare manufacturing ecosystem for high-quality surgical gloves in a cutting-edge automated glove production and packaging line. 


MIDA believes that Malaysia is core to Mölnlycke’s surgical gloves business, and the continued support of this Swedish industrial conglomerate reinforces our goal of being a strategic partner for every investor, in addition to strengthening the local infrastructure and ecosystem that will enhance Malaysia’s status as an attractive and important investment destination.