PETALING JAYA: Malaysian rubber glove maker WRP Asia Pacific Sdn Bhd will begin winding down its operations this month, citing “severe disruptions across global energy and petrochemical supply chains” triggered by the conflict in the Middle East.
In a letter to customers dated March 31, and reviewed by Bloomberg News, the company said it had faced “significant” increases in the cost of petrochemical‑derived raw materials and chemicals, alongside growing uncertainty over procurement timelines and suppliers increasingly demanding advance payments.
“These unforeseen circumstances have forced us to make the difficult but necessary decision to begin the process of winding down business operations with effect from April 15,” the letter said.
The move came as the United States and Israel‑led war delivered the largest oil supply shock in decades, fuelling inflation, unsettling financial markets and driving up costs for everything from food to fuel.
Glove manufacturers are particularly exposed because they rely on imports of nitrile latex – a synthetic rubber whose pricing is closely tied to global energy markets.
The letter and the planned wind‑down were confirmed by Nadarajah Swaminathan, general manager of operations, who added that the company is awaiting feedback from shareholders and that potential buyers may emerge.
It remained unclear how much relief the sector might gain from the recently announced two‑week ceasefire and Tehran’s agreement to reopen the Strait of Hormuz.
Just days before WRP issued its notice, the Malaysian Rubber Glove Manufacturers Association (Margma) warned that the blockade of the strait had caused a shortage of a key raw material, placing “immense financial strain on local manufacturers” and threatening global medical‑glove supply.
Disruptions to crude and refinery operations have pushed raw material costs up by more than 50%, prompting Top Glove Corp Bhd
, the world’s largest glove maker, to raise prices, the company said in a statement to Bloomberg.
It is also encouraging customers to consider natural rubber gloves as an alternative. The price of butadiene, a colourless gas that is a core ingredient in disposable gloves, has surged nearly 70% since the war began, according to Bloomberg data.
Butadiene can account for more than half of nitrile‑latex costs.
“Shortages and soaring input prices are amplifying the already unfavourable cost structures of Malaysian glove makers relative to regional competitors,” said Margma former chief executive Chan Wone Fu.
“Those glove companies which do not have nitrile butadiene rubber latex in their inventory would have to reschedule their production.”
Malaysia produces roughly 45% of the world’s rubber gloves and exports to 195 countries, the association said in a statement on March 26.
WRP, a privately held company, manufactures surgical, examination and speciality gloves for the healthcare, food‑processing and beauty industries.
It enjoyed a surge in sales and profits during the pandemic but has struggled since, posting a RM78mil loss on RM204.6mil in revenue in the year to June 2024, according to regulatory filings. — Bloomberg
