Mah Sing Group Bhd aims to venture into glove manufacturing via Mah Sing Healthcare Sdn Bhd by converting a warehouse in Kapar, Klang, into a manufacturing facility and the new business is expected to contribute over 25% of its profit in future.
According to group CEO Datuk Ho Hon Sang, production will start with six lines which are expected to be in operation in the second quarter of next year, followed by another six production lines which will be ready by third-quarter 2021 .“We have already received several letters of intent from prospective customers for our glove products and we are confident about this new venture,” Ho told the media at a virtual press conference today.
Mah Sing founder and group managing director, Tan Sri Leong Hoy Kum highlighted that there is excess demand for gloves as the top four producers’ supply lines are booked solid into 2021 and even early 2022. For the healthcare expansion, the group has allocated a capital expenditure of RM150 million to set up the first phase glove manufacturing via a RM100 million convertible bond already in the pipeline. Alternatively, it could use its cash reserves of RM1.13 billion as at June 30, 2020.
Asked about the rationale for the move into the increasingly crowded glove sector, the group’s executive director, Datuk Ng Poh Seng, said demand will continue to grow, underpinned by an aging population, more stringent guidelines and low per capita usage in some markets.
Singapore Singapore Latest News, Singapore Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: staronline - 🏆 4. / 75 Read more »