MAH Sing Group Bhd is making significant headway in its proposed diversification plan into the gloves business with its targeted production being set for April 2021 to cater for the pent-up demand for gloves in both the domestic and export market.
A mere eight months into its initial planning date of August 2020, Mah Sing’s glove manufacturing plant which has a build-up of circa 228,800 sq ft is progressing according to schedule.
Its first six production lines will be on track to be operational as planned in 2Q 2021 followed by another six lines expected to be ready the following quarter (3Q 2021).
The 12 production lines are a part of Phase 1 of Mah Sing’s proposed diversification into gloves with a maximum capacity of 3.68 billion pieces per annum or 38,000 pieces per production line per hour.
The capital expenditure for Phase 1 of Mah Sing Healthcare’s glove business is estimated at RM160 mil. Mah Sing targets to roll out Phase 2 as an expansion plan when demand outstrips supply for Phase 1.
Phase 2 could accommodate another 12 new production lines and increase production capacity up to another 3.68 billion pieces of gloves per annum.
If further demand permits in the future, Mah Sing Healthcare will gradually expand up to 100 production lines as part of its future expansion plans.
“The proposed glove business will strengthen our manufacturing division and is expected to generate sales as early as 2Q 2021,” Mah Sing CEO Datuk Ho Hon Sang pointed out.
“This will allow us to take advantage of the high spot price for gloves. This business will still see sustained, strong demand in the future, generating more recurring and steady income for the group.”
Ho further projected that Mah Sing plans to venture into other healthcare and medical device-related ventures if the opportunity arises.
“We may explore the possibility of listing our manufacturing division separately from the Group to further unlock its value in the future,” he envisaged.
According to Malaysian Rubber Glove Manufacturers Association (MARGMA), global demand for gloves is estimated to reach 360 billion pieces this year, an increase of 21.62% from 296 billion pieces in 2019.
As at August this year, Malaysia’s total glove exports rose 59.0% year-on-year (yoy) in terms of value, while quantity increased 29% yoy. Malaysia’s export revenue is expected to hit RM29.8 bil this year on continued strong demand for gloves globally. – Dec 16, 2020
