Top Glove Predicts 3% Impact on Fiscal Year 21 Sales Due to Production Discontinuation



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KUALA LUMPUR: Top Glove Corp Bhd It said that some deliveries of the facilities in Klang, Selangor affected by the temporary closure would be delayed for two to four weeks and forecast a 3% impact on their annual sales for the current year.

The company’s 28 facilities in Meru, accounting for 50% of the company’s total production capacity, are affected by the two-week motion control order (EMCO) upgrade that began on November 17.

16 facilities have stopped operating since November 17, while the remaining 12 facilities are operating at 20% of their capacity.

The temporary stoppages facilitated Covid-19 screenings for all of its workers on site.

“Each facility will be able to resume operations in stages after the scale employees at that facility have been cleaned or examined and the site has been disinfected,” top Glove said today.

“We are now working with the relevant authorities for an orderly selection process to ensure the reopening of the facilities with the health safety of our employees paramount,” he said.

As a mitigation measure, the Company has rescheduled the production plan for those unaffected facilities to produce such urgent orders.

“However, we do not anticipate penalties for this delay in delivery,” Top Glove said.



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