Rubberex Corp (M) Bhd is embarking on an expansion plan in anticipation of growth in the rubber gloves market, said chairman Datuk Mohamed Hamzah.
The company would install an additional production line at its plant in Ipoh by the fourth quarter of the year, he said.
We anticipate growth in the world economy, especially in the groups major markets in Europe and the United States. In this respect, we are well positioned to benefit from this development as over 98% of our products cater to the export market, he said at the companys AGM in Ipoh on Monday.
Mohamed said that for the financial year ended Dec 31, 2003, the group showed mixed results due to uncertainties in the world economy last year, including the war in Iraq and the Severe Acute Respiratory Syndrome outbreak. Turnover for the year increased substantially by 20.6% to RM98.5mil in 2003 from RM81.7mil in 2002, while operating profit was maintained at RM20mil, largely due to rising raw materials, chemicals and fuel costs. Group pre-tax profit rose marginally by 4.3% to RM9.8mil from RM9.4mil previously, while profit after tax rose to RM7.6mil from RM6.5mil in 2002.
He said the cost of raw materials was particularly high at RM4.90 per kilo in December 2003, compared with RM3.12 per kilo in late 2002. Since its listing in 1997, the company had paid total net cash dividends of RM41.4mil to its shareholders, he said. Bernama