Komarkcorp unit receives letter of intent for 48 million face masks worth US$4.8m from Robayu Corp

KUALA LUMPUR, March 9 — Komarkcorp Bhd’s subsidiary, Komark Mask (M) Sdn Bhd, has received a Letter of Intent (LOI) from Poland-based Robayu Corporation for a total of 48 million pieces of three-ply medical grade masks valued at US$4.8 million (RM19.8 million).

The definitive agreement and purchase order are expected to be finalised and confirmed within 60 days, with the initial delivery slated to commence in the third quarter of this year.

This is following the United States (US) Food and Drug Administration (FDA) certification received by Komark Mask for its three-ply disposable medical masks, which is now fully certified and listed on the FDA website last week.

Komarkcorp group chief executive officer Koh Chie Jooi said through its engagement overseas and export discussions, potential clients are reluctant to rely on Chinese-made products due to the leftover angst from the trade war during former US president Donald Trump’s regime.

“As such, being locally manufactured in Malaysia, with internationally authenticated registration and certification, and priced attractively to supplant the US’ own manufacturing of N‐95 and three‐ply masks, we are expecting more and more export orders to the western economies,” he said in a statement to Bursa Malaysia today.

The Letter of Intent is subject to various commercial conditions to be finalised such as logistics, payment terms, deliverables, and regulatory export approvals to the US.

Koh also said there are immediate plans to revamp its manufacturing sites in Thailand, Indonesia and Malaysia (Johor) to cater for additional input as the company expects demand to scale higher over the next 12 months. 

“Due to travel restrictions, we have to compact our production into one factory at this point, but as  our export business grows, in order to remain competitive, we will have to mobilise our other silos  to cater for regional demand,” he said.

Komarkcorp has also invested in new machines capable of producing children’s masks and will be submitting it for certification approvals to ensure its children’s masks are of the highest standard possible. — Bernama