AT Systematization Bhd’s rapid-fire entry into the glove sector may seem too good to be true, especially given the company has embarked on an expansion plan just five months into its plunge into what would seem like an alien industry.
With its Chemor plant now in full expansionary production with an estimated 63,000 pieces per hour capacity by end-January, the company has today sealed a sale and purchase agreement (SPA) with Seacera Porcelain Sdn Bhd for an 18-acre industrial plot in the District of Larut & Matang, Perak for RM10.5 mil.
To be funded fully by cash, the deal which is to be completed within 60 days reinforces AT Systematization’s aspiration to be a formidable contender in the glove industry amid unprecedented demand.
From its initial investment into its maiden glove factory in Chemor – by building the entire operation from scratch – to the production of its first batch of gloves on Christmas Eve 2020, the company has been focused on breaking the barriers of what is traditionally a high level for entry.
Not resting on its laurels, AT Systematization’s managing director Choong Lee Aun has sanctioned the purchase of the new industrial plot with the vision of establishing a new factory with the same zest and efficiency as its maiden Chemor plant.
“We have the desire, motivation and resources to be a serious proposition in what is evidently a supply choke point in terms of global accessibility of quality Malaysian made gloves,” he enthused.
“To that extent, our plans for this new factory will reflect our seriousness and ambition to penetrate the global market and be part of the whole ecosystem contributing to the strength and quality of Malaysian led exports.”
The new factory which spans almost 800,000 sq ft will house up to 60 double former lines which are capable to churn out 35,000 pieces of gloves per hour each line.
The production capacity – once fully mobilised and operating at peak efficiency – will be able to provide an output of 18 billion pieces per annum.
This will enable AT Systematization to produce 20% of the quantity rolled out by Top Glove Corp Bhd (which is reputed as the world’s largest glove maker) at 85.5 billion pieces in 2020.
“We see the demand for gloves to last longer as the world struggles to cope with the COVID-19 pandemic,” Choong justified.
“With new strains and mutations affecting the global economy – and a general increase in awareness for hygiene and protection – the global demand will likely last a while longer before reaching a plateau.”
Having received its CE Certification recently, AT has been inundated with enquiries on contract orders which far outstrip its current demand.
“With the current third COVID-19 wave hitting Malaysian shores, glove production across the industry is being hampered by stop/start orders of key production lines, thus causing supply disruption,” observed Choong.
“With further supply disruptions on the horizon, AT Systematization will look to take advantage of spot prices in the short-term while it builds production capacity to handle the enquiries.” – Jan 15, 2021
