GOING beyond the current COVID-19 situation and taking a long-term perspective towards the structural step-up in global demand, Hartalega Holdings Bhd is accelerating its production capacity.
The world’s largest nitrile glove producer through its wholly-owned subsidiary Hartalega NSM Sdn Bhd has inked a sales and purchase agreement with Northern Gateway Free Zone Sdn Bhd for the acquisition of about 250 acres of land in Bukit Kayu Hitam, Kedah.
Concurrently, both parties also signed an option agreement for Hartalega to purchase another 130 acres of land in the same location. Northern Gateway is a wholly owned entity of Minister of Finance Incorporated (MOF Inc).
This acquisition marks Hartalega’s latest phase of growth with an investment of RM7 bil to build 16 new manufacturing facilities over the next 20 years.
With endorsement from the Government, this will see the group expanding its presence in the Northern region over the long-term.
Also, the area earmarked for the Hartalega’s expansion in Kota Perdana Special Border Economic Zone (SBEZ) is highly conducive for business due to its free industrial and commercial zone status. In addition, this area houses an inland port, thus facilitating logistics and operations.
“Our growth strategy remains focused on Malaysia, given its comprehensive ecosystem and supply chain for the glove sector,” CEO of Hartalega Kuan Mun Leong said.
“This expansion plan will further solidify Malaysia’s positioning as the largest glove manufacturer globally.”
Kuan added that this domestic direct investment will contribute to the nation’s economic growth.
“Our aim is to cultivate a robust supply chain as well as upskilling local talents and vendors, to transform the region into an integrated industrial park for medical devices in the future, establishing the region as an attractive destination for both foreign and domestic direct investment,” Kuan elaborated.
This expansion plan will not only create 12,000 jobs Hartalega estimates with the completion of this plant to contribute more than 5% of Kedah’s total gross development product (GDP).
With the first plant set to be completed by 2024, this longer-term expansion plan in Kedah will add another 80 billion pieces per year, bringing Hartalega’s total capacity to 143 billion pieces of gloves per annum once fully completed.
At 2.30pm, Hartalega was up 18 sen or 1.85% to RM9.90 with 1.82 million shares traded, thus valuing the company at RM33.93 bil. – March 10, 2021