KUALA LUMPUR, May 16 — GIIB Holdings Bhd (GIIB), a rubber compound and technical compound provider, has started its latex glove manufacturing facility in Nilai, Negri Sembilan.
GIIB said the plant 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, it said in a statement today.
GIIB chief executive officer/executive chairman Tai Boon Wee said the plant’s launch today marks the group’s foray into the glove making scene through its 51 per cent owned subsidiary, GIIB Healthcare Products Sdn Bhd.
“We have already secured strong sales orders for the year and we expect the glove business to start contributing to our financial year ending June 30, 2023,” he said.
Tai said under a “maximum scenario”, producing at total capacity, and given the current average selling price of approximately RM90 per 1,000 latex gloves, revenue contribution from this plant is projected to reach about RM94 million per annum.
For comparison, the group reported revenue of RM36.6 million for the 12-month period ended Dec 31, 2021.
“We expect the exports for rubber gloves to remain robust, with growth in the double-digit region.
“Overall, even into the post-Covid era, we believe demand for gloves will remain strong in light of the heightened health awareness brought about by the pandemic,” said Tai.
He noted that the foray would provide the group with a sustainable recurring income stream and enhance the group’s bottom line. — Bernama
