INIX Technologies Holdings Bhd and L&S Gloves Sdn Bhd will start commissioning an additional two latex glove production lines to complement the existing two lines which are already in production.
With that in mind, iNix Technology through its wholly-owned subsidiary of iNix Glove Manufacturing Sdn Bhd has signed a 10-year lease agreement for a 2.25-acre glove factory site in Beranang, Selangor.
The decade-long agreement is open for another 10-year renewal.
“Early last month, iNix entered into a memorandum of agreement (MoA) and has paid 45% deposit to acquire L&S Gloves Sdn Bhd,” iNix executive director Siva Kumar Kalugasalam pointed out in a media release issued late yesterday (Jan 9).
“The agreement for the acquisition is at advance stage and pending finalisation.”
As of now, L&S Gloves has two production lines. According to its director Teo Yoek Leong, both L&S Gloves and iNix Glove will be able to add two more production lines next month with the new tenancy agreement.
“From there, iNix would add two production lines – every three months – until a total of 14 production lines are commissioned,” he noted.
Teo added that L&S Gloves’ daily production of gloves are sold out in advance and delivery to their customers are done on a daily basis.
In addition, L&S Gloves said it has sufficient orders to sustain for the next two years – for the planned 14 production lines – with a production capacity of over 110 million pieces of latex gloves a month.
Commenting on the venture, iNix chairman Tan Sri Syed Mohd Yusof Syed Nasir said: “My company’s move to lease the factory and the commissioning the two out of the 12 additional production lines shows our commitment to venture into glove manufacturing and expansion of 14 lines within 12 months.”
On Dec 7 last year, iNix signed a deal L&S Gloves to acquire 51% equity interest of the latter.
Back then, L&S Gloves fellow director, Teo Xiong Sheng said that iNix’s investment into the project is estimated to be worth “no less than RM50 mil”.
“97% of the production would be exported to China and India, and the remaining for domestic consumption. The company is also eyeing new markets such as Europe,” he added. – Jan 10, 2021.
