Karex Bhd is venturing into the manufacturing and sale of gloves through its wholly owned subsidiary Innolatex Ltd.
“Karex intends to manufacture and sell medical gloves that are typically worn by healthcare professionals and workers in the medical field. The medical gloves are intended to be made from nitrile, natural rubber and any other new materials that may be developed by Karex’s research and development efforts,“ Karex said in a stock exchange filing today.
At the initial stage, Karex intends to set up two production lines within 12 months which is estimated to have a yearly production capacity of up to 500 million gloves with the remaining production lines to be gradually set up over the course of the next 48 months.Karex will require a total estimated capital expenditure of RM40 million in Phase 1 which will be funded through a combination of internally generated funds and/or bank borrowings.
Karex posted a net profit of RM1.43 million in its fourth quarter ended June 30, compared with a net loss of RM1.01 million a year ago, while revenue rose 3.9% to RM91.09 million from RM87.66 million sustained through an increased contribution from the sexual wellness segment.