WHILE the Big Four glove makers found their stock value coming under tremendous pressure, their small counterparts are looking beyond the Malaysian shores to ply their trade.
ACE Market listed K-Star Sports Ltd has teamed up with AT Systematization Bhd to promote, market and sell the latter’s production of medical gloves in China and Taiwan – a move reminiscent of the Look East Policy once propagated by former premier Tun Dr Mahathir Mohamad in the 1980s.
KSTAR Healthcare Sdn Bhd, a wholly-owned subsidiary of K-Star, has today signed a provisional offtake agreement with AT Glove Engineering Sdn Bhd, a wholly-owned subsidiary of AT Systematization.
A Bursa Malaysia filing today noted that the extensive base and sales network of K-Star in China and Taiwan as well as the availability of medical gloves by ATS could form a synergy that benefit both companies.
The faster lead time for delivery under AT Systematization as compared to the incumbent players also give the two companies an advantage to tap into the Chinese market.
“The demand for medical gloves is still very strong despite the availability of COVID-19 vaccine,” K-Star executive chairman Ding Jianping pointed out. “This is as the escalation of infected cases is not showing any signs of abating.”
Aside from that, Ding rationalised that the mass deployment of vaccine and the effect of the vaccine would take time.
“Gloves would still be needed for testing and administrating the vaccine as well,” he noted.
“Premise on this, we feel this is the good timing to lock in the supply of medical gloves to our potential customers which is why we entered this offtake agreement with AT Systematization.”
Meanwhile, AT Glove shall assist K-Star in obtaining any required export or import license or other authorisation necessary for the export from Malaysia to China and/or Taiwan.
AT Systematization managing director Choong Lee An said the company has received a lot of enquiries for its products since the opening of its glove production factory at the end of December last year.
“Being a new player in this industry means that we have faster lead time for our delivery as compared to getting from the incumbent players,” he projected.
“Besides that, our products are certified by European CE Certification which shall give the confidence to our customers.” – Jan 4, 2021
