PETALING JAYA: GIIB Holdings Bhd, a rubber compound and technical compound provider, has started its latex glove manufacturing facility in Nilai, Negri Sembilan.
The group’s foray into the glove-making sector is through its 51%-owned subsidiary, GIIB Healthcare Products Sdn Bhd.
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 company said in a statement yesterday.
Under a “maximum scenario”, producing at full capacity and given the current average selling price of approximately RM90 per 1,000 latex gloves, revenue contribution from this plant can reach about RM94mil per annum.
For comparison, the group reported a revenue of RM36.6mil for the 12-month period ended Dec 31, 2021.
GIIB chief executive officer and executive chairman Tai Boon Wee said that the launch of the group’s first glove-manufacturing plant marked its 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 June 30, 2023.
“We expect exports for rubber gloves to remain robust, with growth in the double-digit region. Even into the post-Covid era, we believe demand for gloves will remain strong in light of the heightened health awareness brought about by this pandemic,” he added.