KUALA LUMPUR: The world’s largest condom maker (pic) Karex Bhd is venturing into the business of making medical gloves.
The company said its wholly owned unit Innolatex (Thailand) Ltd (ITL) planned to set up a manufacturing facility at its existing plant in Hatyai with the capacity to produce 2.5 billion gloves a year.
“Karex intends to manufacture and sell medical gloves that are typically worn by healthcare professionals and workers in the medical field as a safeguard against infection and exposure to potential viruses, bacteria and other contaminants, ” it said in a filing with Bursa Malaysia.
“The medical gloves are intended to be made from nitrile, natural rubber and any other new materials that may be developed by Karex’s research and development efforts, ” it added.
ITL is currently manufacturing condoms, personal lubricants and other rubber products including catheters.
The glove manufacturing business will have its own production lines.
Karex is planning to set up two production lines within 12 months that will have an annual production capacity of up to 500 million gloves. “The remaining production lines are to be gradually set up over the next 48 months, ” it said.
Karex estimated the initial production phase will require a capital expenditure of around RM40mil.
Meanwhile, Karex announced that it has returned to the black with a net profit of RM1.43mil in the fourth quarter of financial year 2020, as compared to a net loss of RM1.01mil a year ago. This came on the back of stronger sales of its products in the Americas.
Revenue rose 3.91% to RM91.09mil, from RM87.66mil in the same period previously.