[ad_1]
KUALA LUMPUR (September 17): Top Glove Corp Bhd said it expects to resolve the arrest warrant imposed by US Customs on its subsidiaries by the end of this year.
The group is currently still engaging with the U.S. Customs and Border Protection (CBP) to lift the Withholding of Release Order (WRO) that was imposed in mid-July, following allegations of forced labor and that the matter is progressing well, Top Glove said. Executive Chairman Tan Sri Dr. Lim Wee Chai.
“We believe it will be resolved very soon. We estimate that it may be before the end of the year. [In fact] We believe it should be resolved within a month, but this is only our estimate, ”Lim said at a virtual press conference held in conjunction with today’s group announcement of its latest quarterly and annual financial results.
The North American market remains the group’s largest market, accounting for 22% of its sales volume for the financial year ended August 31, 2020 (FY20), although the volume of sales to the market has fallen 6.5% in FY20 Compared to FY19, due to the import ban.
However, the group said there has been no impact on its overall revenue and profits due to strong global demand for its products and the long lead time for delivery of orders it received from other countries.
For example, he said that the amount of sales in Asia, except Japan, increased 53.8% year-on-year, followed by the 29.5% year-on-year increase of the Eastern European market and the 29.1% year-on-year growth of the market. Japanese.
The import ban was imposed on Top Glove subsidiaries Top Glove Sdn Bhd and TG Medical Sdn Bhd on July 15.
On September 7, Top Glove said that it had submitted an audit report to the US CBP regarding the alleged forced labor issue brought against the glove manufacturer. The report, according to the group, was produced by an independent consultant and included virtual interviews of around 1,100 of the company’s migrant and local workers in various locations.
Last month, the group said it would pay an estimated remediation sum of 53 million ringgit to its foreign workers, subject to termination with the US CBP, to resolve the matter.
Today, Top Glove said it has made two remediation payments of RM4.4 million each to migrant workers who were employed by the group prior to 2019, on August 10 and September 10.
Read also:
Top Glove posts RM1.29b net profit in Q4, strongest set of results ever
[ad_2]
