KUALA LUMPUR: Mah Sing Group Bhd targets to produce gloves by April next year to meet the pent-up demand due to the on-going Covid-19 pandemic.
The property company said on Wednesday it has started piling at its factory in Kapar, Klang to accommodate 12 new, high speed glove dipping machines.
Once the piling is completed by November, this will be followed by installation of the machinery.
“These 12 production lines are phase one of Mah Sing’s ambitious diversification into gloves and has a maximum production capacity of up to 3.68 billion pieces of gloves per annum,” it said.
Mah Sing’s founder and group managing director, Tan Sri Leong Hoy Kum said, “Similar to our property development’s fast-turnaround business model, we are fast-tracking our diversification into gloves”.
He said the first glove factory will be ultra long to accommodate modern, high speed machines which can run at a speed of 38,000 pieces of gloves per production line per hour.
“We have also secured supply of both nitrile-butadiene rubber and latex raw materials, and should be able to quickly meet demand of our customers. We are targeting production by as early as April 2021,” he said.
While Mah Sing has 40 years of experience in plastic manufacturing and exports to 45 countries, the gloves business will be primarily be managed by a professional team with experience in glove manufacturing.
Mah Sing would be able to tap onto its expertise and know-how of its regional plastics business in order to synergise with the gloves business.
With a built-up of about228,800 sq ft, the factory is phase one of Mah Sing’s foray into glove manufacturing.
Fabrication for the new machinery has already started at the equipment supplier’s factory, and installation of the initial lines are expected to start in November.
The first six production lines are expected to be ready as early as the second quarter and the additional six lines by 3Q.
Mah Sing’s second phase of the expansion plan includes exercising the option to take up the other portion of the Kapar factory which has a built-up of about 287,500 square feet.
This could accommodate another 12 new production lines and increase the capacity up to another 3.68 billion pieces of gloves per annum.
“If demand permits, Mah Sing Healthcare will gradually expand up to 100 production lines as part of future expansion plans. These 100 production lines could potentially produce up to 30billion pieces of gloves per annum,” it said.
As the Kapar factory is expected to start its operation with 6 production lines as early as 2Q2021, the Group is in a good position to take advantage of the high spot price of gloves. Mah Sing expects the glove manufacturing business to be able to generate revenue for the group relatively quickly with the projected contribution estimated to come in as early as 2Q 2021.
The new gloves business will be for the export market and it will allow Mah Sing to ride on the booming glove-manufacturing segment and further strengthen its manufacturing division, which focuses on plastics business.