Top Glove estimates three per cent of FY21 revenue to be impacted

Top Glove workers wait in line outside the staff dormitories in Klang before being transported to the Sungai Buloh and Kuala Lumpur General Hospital November 24, 2020. — Picture by Yusof Mat Isa
Top Glove workers wait in line outside the staff dormitories in Klang before being transported to the Sungai Buloh and Kuala Lumpur General Hospital November 24, 2020. — Picture by Yusof Mat Isa
KUALA LUMPUR, Nov 24 — Top Glove Corporation Bhd expects its revenue for the current financial year ending August 31, 2021 to be impacted by three per cent following the temporary suspension of manufacturing facilities in Klang, Selangor.

However, the world’s biggest rubber glove manufacturer, in a reply to Bursa Malaysia, said it does not anticipate a penalty from the delay in delivery.

“The impact from this temporary disruption is expected to cause some delay in our delivery schedule by about two to four weeks for those facilities affected,” it said.

Moreover, the company is also diverse in location and countries with business continuity plans as part of its risk management strategy.

Yesterday, it announced the suspension of its said facilities to allow further Covid-19 screening and quarantine of its workers following a surge in Covid-19 cases among them.

Its 16 facilities in Meru, Klang have temporarily stopped production since November 17 and each facility would be able to resume operations in stages after the employees have been swabbed or tested and the sites sanitised.

Twelve other facilities are currently operating at about 20 per cent capacity and will be temporarily closed in stages for employee testing and full site sanitisation before re-opening.

In terms of impact on total production capacity of about 14 days, based on the enhanced movement control order period from November 17 to November 30, the 28 affected facilities in Meru represent about 50 per cent of the company’s total production capacity.

“As a mitigation measure, the company has rescheduled its production plan for those non-affected facilities to produce very urgent orders,” it said.

Top Glove shed 55 sen to RM6.80 at the close of Bursa Malaysia trading today. — Bernama

 

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