KUALA LUMPUR: Hartalega Holdings Bhd
has earmarked around RM200mil to RM300mil as capital expenditure per plant for the next three years.
The world's largest nitrile glove producer said that the allocated capex would be used to complete the construction of its Next Generation Integrated Glove Manufacturing Complex (NGC).
“The capex is RM200mil to RM300mil per plant for the next three years,” Hartalega executive chairman Kuan Kam Hon said at a press briefing here on Tuesday.
In its annual report, Hartalega said prospects remained bright for the glove manufacturing industry, with global demand expected to grow between 8% and 10% pet annum. It said nitrile glovesin particular would continue to see an upward trend in both developed and emerging markets.
"Pressure on prices has eased as capacity growth in the glove manufacturing sector has been tempered to maintain the supply and demand equilibrium," Hartalega said.
With the NGC, Hartalega said it would be well prepared to meet rising demand growth.
"We have commenced Phase 2 of the NGC and eight out of 12 lines at Plant 3 are already operational. The remaining lines at Plants 3 and 4 are expected to be operational by 2018," the group said.
"We will be able to expand our capacity with an additional four billion pieces of gloves this year. However, we will continue to manage our capacity growth in a sustainable manner," it added.
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