Aspen Group subsidiary secures glove sales deal

Aspen Group president and ceo M. Murly: said the agreement relieves the group of the need to manage sales and negotiate with various parties as it could now focus on accelerating its expansion plans.

GEORGE TOWN: Aspen (Group) Holdings Ltd’s subsidiary, Aspen Glove Sdn Bhd has entered into a US$100mil medical-grade examination glove sales and distribution agreement with an unnamed third-party distributor.

In a statement yesterday, the Penang-based property group said the distributor will offtake its entire 2021 production of approximately one billion pieces of nitrile and/or natural rubber medical-grade examination gloves to be produced from May 1 to Dec 3,2021.

“With the agreement, Aspen Glove has secured US$100mil in sales value on the assumption of a provisional average selling price of US$100 per 1,000 pieces of gloves.

“The distributor has paid the group a cash deposit amounting to US$2mil or 2% of the secured sales value. The agreement is for the year 2021 production and renewable thereafter, ” it said.

Aspen Group, which is listed on the Catalist board of the Singapore Exchange, said the agreement would allow it to penetrate the United States and European markets, as well as expand its customer base globally.

Group president and chief executive officer Datuk M. Murly said the agreement relieves the group of the need to manage sales and negotiate with various parties as it could now focus on accelerating its expansion plans. — Bernama