RENOWNED Melaka-based property developer and property tourism specialist Sheng Tai International Sdn Bhd has entered into an exclusive memorandum of agreement (MoA) with Malaysia’s leading latex and nitrile gloves manufacturer KenTeam Asia Glove Hub Sdn Bhd to get a piece of the pie in the latter’s RM38.7 bil industry.
The agreement is for Sheng Tai to off-take 110 production lines from KenTeam’s 90-acre Glove Hub in Jasin (Melaka) which Sheng Tai was appointed to design, construct and build.
When completed, the expected production capacity for each production line is 3 million boxes per annum, hence the yearly total production capacity for all 110 productions lines amounts to 330 million boxes.
Yesterday, Minister in the Prime Minister’s Office (Special Duties) Datuk Seri Mohd Redzuan Md Yusof witnessed a virtual signing ceremony between Sheng Tai’s founder and chairman Datuk Leong Sir Ley and KenTeam’s CEO Datuk Seri Justin Lim to cement the partnership.
“This provides an entry point for Sheng Tai into the nitrile glove manufacturing industry that is growing rapidly due to COVID-19 and other infections,” commented Leong.
“The rising prevalence of chronic diseases as well as the increasing awareness of health protection especially among the elder generation will continue to trigger the demand for nitrile gloves.”
According to Precedence Research’s Nitrile Gloves Market Size, Share, Growth Outlook, Trends, Analysis, Segment Forecasts, Regional Insights and Forecast 2020-2027 report, the nitrile glove industry is forecasted to reach US$9.41 bil (RM38.7 bil) by 2027 with a compound annual growth rate (CAGR) of 13.8% during the 2020- 2027 period.
Leong expects Sheng Tai’s entry into nitrile glove industry will not only bring positive revenue but also further strengthen the group’s commitment to boosting Melaka’s economic and health sectors.
For the past year, Sheng Tai has brought in multiple international brands like IWG, Memorigin and FashionTV to invest in Melaka through its establishments – Metrasquare and The Sail.
A RM6.5 bil mixed development project, The Sail which is currently under construction is located in the heart of the 33-km Melaka Waterfront Economic Zone (M-Wez).
Phase 1 of the project is due for completion this year, making it the perfect partner for international anchor brands to enjoy business opportunities that are available within the development as well as M-Wez.
Recently, Sheng Tai has announced its plans to elevate The Sail Melaka Phase 2 and 3 as an international financial centre and possibly a duty-free hub.
As a partner of Ken Team International, Sheng Tai International has also extended invitation to companies to collaborate or take up production line at its Jasin Glove Hub. – June 12, 2021