GIIB's glove manufacturing plant expected to enhance bottomline

KUALA LUMPUR: GIIB Holdings Bhd's 51%-owned subsidiary GIIB Healthcare Products Sdn Bhd has started a latex glove manufacturing facility in Nilai, Negeri Sembilan.

In a statement, the group said the glove manufacturing outfit has five double former glove-dipping production lines with a production capacity of 1.05 billion pieces of glove per annum.

The production lines are interchangeable to produce latex or nitrile gloves.

GIIB will manufacture the latex gloves under its own brand GIIB Healthcare and serve as an original equipment manufacturer for local and international clients.

The group said that at full capacity and given the current average selling price of about RM90 per 1,000 latex gloves, revenue contribution from this plant could reach about RM94mil per annum.

For comparison, the group reported a revenue of RM36.6mil for the 12-month period ended Dec 31, 2021.

"The launch of our first glove manufacturing plant today marks the Group’s successful foray into the glove making scene.

"In fact, we have already secured strong sales order for the year, showcasing the quality of our products and we expect the glove business to start contributing to our financial year ending 30 June 2023," said GIIB CEO and executive chairman Tai Boon Wee in a statement.

He added that exports for rubber gloves is expected to be robust with growth in the double-digit region.

Post-Covid-era, he said demand for gloves will remain strong in light of the heightened health awareness brought about by the pandemic.

"We are optimistic that this foray will provide the Group with a sustainable recurring income stream and enhance the Group’s bottomline going forward,” he added.