ATS’s first glove line estimates RM860 mil turnover

AT Systematisation Bhd’s (ATS) Line 1 glove production factory in Chemor, Perak is set to release its first batch of medical-grade nitrile gloves in December 2020, with an estimate annual turnover of RM860 mil from the new venture.

The glove manufacturing facility will be made “future-ready” for Industrial 4.0 ecosystem, equipped with manufacturing executive system (MES) to provide real-time production monitoring and control, output control and monitoring, record retention to comply with standard regulations.

In a statement today, ATS said this represents more than 40 times compared with the group’s annual turnover of around RM20 mil in its financial year ended March 31, 2020 (FY2020).

So far, it said the facility has been 80% completed and production would commence in early December, enabling revenue contribution from the new glove business to begin in the current FY2021.

By mid-2021, ATS will be fully ready to tap into the huge global demand for medical-grade gloves, underpinned by its one single former and twelve double former glove dipping lines.

“In every subsequent month, two new glove dipping lines will be installed,” it said.

By June 2021, the group expects to reach a glove production capacity of 2.6 billion glove pieces per annum, based on the assumption of 24 hours per day and 30 days per month.

The group also said the initial target was to build six glove dipping lines under phase one and another six lines under phase two, and currently ATS has been working on its 13th line as it sees stronger-than-expected demand ahead of production.

According to ATS managing director Choong Lee Aun, the group would invest RM120 mil for the installation of the 13 glove dipping lines, together with related facilities and a new building.

“Ultimately, ATS plans to have a total of 20 glove dipping lines, with lines 14 to 20 to be installed in a new plant to be decided later,” he added.

However, Chong is cautious that the demand for gloves may reduce once the COVID-19 vaccine is developed. Keeping that in mind, he mentioned that the group’s strategy for the post-COVID-19 era is to implement digital manufacturing technologies such as plant equipment automation, advanced robotics and additive manufacturing.

“This is in line with our core business of designing and manufacturing industrial systems and precision engineering solutions,” he added.

Chong said the Group plans to venture into the provision of design, engineering and technology works, fabrication as well as installation of machines for the manufacturing of gloves and other rubber related products in the medium term (two to three years). – Oct 28, 2020

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