IPOH: Cleanroom gloves manufacturer CE Technology Bhd (CE) is undergoing an expansion to increase its production capability.
CE managing director and chief executive officer SS Teoh said its current facility was running at its maximum and was expanding to meet with the growing demand.
Teoh said the RM50mil expansion project would allow it to manufacture about 70.5 million pieces of raw nitrile gloves and post-processing capacity of 83 million pieces of cleanroom gloves every month.
“Almost all of our existing and new customers have significantly increased their regular orders with the company, with major customers committing to medium and long-term contracts.
“The expansion includes three additional double former glove-dipping lines and two new cleanroom post processing facilities, ” Teoh (pic below) told The Star.
“These are expected to be fully operational in one and a half years’ time, ” he said.
“Upon full completion, the company’s monthly dipping and cleanroom post-processing capacities are expected to increase by about four-fold and is expected to contribute significantly to the company’s sales revenue going forward, ” he added.
Teoh said the new investment would be financed through a combination of internally generated funds and bank borrowings.
“In June 2019, in conjunction with our listing on the LEAP Market of Bursa Malaysia, we raised RM12.48mil via an excluded issue which was mainly channeled towards an expansion of both its dipping capacity and cleanroom post-processing capacity.
“We were also recently awarded with a financial grant of RM472,020 by the Malaysia Rubber Export Promotion Council (MREPC), ” he said.
“The grant is to partly fund the company’s installation of solar photovoltaic panels for its manufacturing facilities, which is expected to bring down the electricity costs, ” he added. Founded on July 15 2002, CE is based in Taiping and is a winner of the Export Excellence Award - SME Category from MREPC in 2018.
Did you find this article insightful?
100% readers found this article insightful