Hartalega sees no glove oversupply, unaffected by vaccine

(From left) Hartalega Holdings chief commercial officer Kuan Mun Keng, executive chairman Kuan Kam Hon and chief executive officer Kuan Mun Leong at the AGM on Tuesday, Sept 15, 2020.

KUALA LUMPUR: Hartalega Holdings Bhd says demand for rubber gloves won’t be affected by vaccines for the Covid-19 coronavirus and will continue to outstrip supply in the next three to four years.

The pandemic has changed users’ behavior, that has resulted in the demand for gloves, chairman Kuan Kam Hon told reporters. Demand for usage in developed countries have increased 30% while in developing countries, usage has more than doubled, he says.

The industry cannot meet the 120b of additional demand for gloves. This demand can only be fulfilled in three years, he adds.

Spot prices for gloves have jumped 30% this quarter and he expects them to increase 40-50% in coming quarters, he says.

Glove prices are now three times higher compared to those during pre-covid-19.

Hartalega earmarked RM1.5bil investment to build four plants, of which first two lines will be operational by October 2021.

Another RM3bil is for its next expansion phase, its so-called NGC2, which will be fully completed in seven years. - Bloomberg

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

Hartalega. vaccine , gloves , Kuan Kam Hon


Next In Business News

Moody’s: Sustainable bonds issuance to top US$850bil
Public Mutual declares gross distributions of RM235m for 13 funds
Central banks go big on gold buying
Earnings bounce, bond-yield drop help keep party going for US stocks
Bitcoin rallies past key $40,000
PBOC: China will maintain prudent, flexible monetary policy
Bank Rakyat launches entrepreneur programme
CPO futures seen trading with upward bias next week
As scrutiny mounts, crypto exchange Binance to wind down derivatives in Europe
Oil price climbs, notches fourth monthly gain on growing demand

Stories You'll Enjoy