PECCA Group Bhd will be venturing into designing and manufacturing the entire range of personal protective equipment (PPE).
Its wholly owned subsidiary Pecca Leather Sdn Bhd (PLSB) would repurpose some of its existing production lines to produce face masks, face shields and PPE garments for both consumers and hospitals.
“PLSB will repurpose some of its existing production lines and leverage on its present pool of craftsmen as well as production facilities to pursue the PPE business,” the group said in a bourse filing today.
PLSB has set aside RM 2.2 mil in capital expenditure for the purchase of machinery and the setup of cleanroom facilities for the production of face masks.
The company is “in the midst of applying for the approvals and certifications from all the relevant authorities for the production of the PPE,” said the group.
Pecca is expecting production to commence within the first quarter for its financial year ending June 30, 2021.
The group said PLSB was in discussions with several key distributors to market and distribute its PPE products to their clientele “in the commercial and healthcare industry.”
The demand for PPE, said Pecca, would continue to be “well above normal” in the near term due to Covid-19.
“Furthermore, repurposing existing production lines is part of PLSB’s plans to fully utilise its present idle resources and to generate additional revenues,” Pecca said.
Pecca’s share price dipped 0.57% to 86 sen at the midday break. – June 29, 2020