Top Glove aims to be biggest nitrile glove producer


PETALING JAYA: Top Glove Corp Bhd is targeting to be the biggest nitrile glove producer in the world by the end of this year with total production of between 25 billion and 30 billion gloves per year.

The largest glove manufacturer in the world has been busy ramping up its nitrile gloves output in the past two years.

“If we work very hard, we would be able to achieve that goal by the end of this year,” said Top Glove executive chairman Tan Sri Lim Wee Chai during a conference call here yesterday.

Additionally, he said the company is expected to increase its nitrile glove production by 15.8 billion more next year.

In total, Top Glove would increase its production capacity to 83.3 billion gloves per year in 2020.

Lim said the company has been spending on average RM400mil per year in capital expenditure for the expansion of its manufacturing plants.

“Top Glove’s nitrile export growth had grown almost 36% or 4.9 billion gloves year-on-year in 2018, which was faster than the Malaysia’s nitrile export growth of 18% or 15.8 billion gloves y-o-y,” Lim said.

On the trade war between China and the United States, Lim said that the glove industry would not be affected.

“Any war is not good. We expect that the trade war would not have a big impact on us and the glove industry as a whole,” he pointed out.

CIMB Research had earlier said the trade war would increase the prices of all China glove exports that could benefit Malaysian glove makers.

For the third quarter ended May 31, Top Glove’s net profit fell 36.5% y-o-y to RM74.67mil from RM117.57mil a year ago, due to a surge in the price of natural rubber latex.

This was despite higher revenue recorded during the quarter, which grew 8.1% y-o-y to RM1.19bil from RM1.10bil thanks to higher sales of nitrile gloves.

Cumulatively, for the first nine-month of FY19, Top Glove posted a 12.5% decline in net profit to RM290.5mil compared to RM332.03mil a year earlier.

Revenue for the period rose 20.5% to RM3.61bil from RM3bil previously.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Top Glove , nitrile , Lim Wee Chai , biggest , world , producer ,

   

Next In Business News

Lucid to start deliveries of electric cars with range exceeding Tesla's in October
Saudi launches $13 bln plan to turn coastal region into tourism hub
Brent oil dips after topping US$80 a barrel, highest in nearly three years
BlackRock says it is dipping its toes back in to China after rout
GLOBAL MARKETS-Stocks fall, bond yields jump as rate hikes loom
Vote of confidence
Indonesia’s massive 2022 budget gets key approval
12MP: No short-term market excitement
PAAB may face cash flow deficit of up to RM235mil
China's power crunch dwarfs Evergrande's troubles in investors' eyes

Stories You'll Enjoy


Vouchers