Sign of consolidation in gloves industry

Kenanga Research said producers are taking the opportunity to shut down older plants or production lines that are no longer efficient and speed up industry consolidation.

PETALING JAYA: Amid the overcapacity environment, Kenanga Research says the glove industry is showing the first sign of transitioning into a rationalisation and consolidation phase.

The research house said indications were pointing towards an improvement in supply-demand equilibrium as players take the opportunity to shut down older plants or production lines that are no longer efficient and speed up the industry consolidation.