KUALA LUMPUR, April 9 — Malaysian rubber glove manufacturer WRP Asia Pacific Sdn Bhd will begin winding down its operations this month, citing disruptions to global energy and petrochemical supply chains linked to the Middle East conflict.
In a letter dated March 31 to customers, the company said it has been hit by sharp increases in the cost of petrochemical-based raw materials and chemicals, alongside growing uncertainty over supply timelines and stricter payment demands from suppliers, Bloomberg reported.
“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 15 April,” the company said in the letter.
The move comes amid what has been described as one of the largest oil supply shocks in decades due to the US- and Israel-linked conflict, which has driven up costs across industries and unsettled global markets.
Glove manufacturers are particularly affected as they rely on nitrile latex, a synthetic rubber whose pricing is closely tied to energy markets.
WRP general manager of operations Nadarajah Swaminathan confirmed the planned wind-down, adding that the company is still awaiting feedback from shareholders and that potential buyers may emerge.
It remains unclear whether the recently announced two-week ceasefire and Iran’s agreement to reopen the Strait of Hormuz will ease pressures on the industry.
Prior to WRP’s announcement, the Malaysian Rubber Glove Manufacturers Association warned that disruptions linked to the Strait of Hormuz had led to shortages of key raw materials, placing significant financial strain on local producers and threatening global glove supply.
Rising crude oil and refining disruptions have pushed raw material costs up by more than 50 per cent, prompting Top Glove Corp Bhd to raise prices. The company said it is also encouraging customers to consider natural rubber gloves as an alternative.
“The primary raw material affected is nitrile latex, a key raw material used in the production of nitrile gloves,” Top Glove said, noting that supply disruptions have tightened availability of butadiene and acrylonitrile — chemicals essential for glove elasticity and durability.
Top Glove added that it has sufficient inventory for April and is securing additional supplies for May to maintain deliveries.
Data compiled by Bloomberg showed that prices of butadiene, a key component in disposable gloves, have surged nearly 70 per cent since the conflict began, accounting for more than half of nitrile latex costs.
Industry players without sufficient reserves of nitrile butadiene rubber latex may be forced to delay production, said Chan Wone Fu, a former chief executive officer of Smart Glove Holdings Sdn Bhd.
Malaysia accounts for about 45 per cent of global rubber glove production, exporting to 195 countries, according to the industry association.
WRP produces surgical, examination and specialty gloves used in healthcare, food processing and beauty sectors.
While it saw strong demand during the Covid-19 pandemic, the company has faced challenges in recent years, recording a loss of RM78 million on revenue of RM204.6 million for the financial year ended June 2024, based on regulatory filings.
