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PETALING JAYA: AT Systematization Bhd’s Line 1 glove dip facility is 80% complete and the first batch of medical grade nitrile gloves will be produced in less than two months.
Its ‘plant within a plant’ approach has sped up the installation process at the Chemor, Perak facility, which began five months ago in mid-July this year, compared to the usual year for new entrants to the glove business to complete its manufacture. installations.
The group said the facility will be made compliant with the Industrial 4.0 (IR4.0) ecosystem, equipped with Manufacturing Executive System (MES) to provide real-time production monitoring and control, production control and monitoring, record retention to meet with standard regulations.
Its managing director, Choong Lee Aun, said his goal is to have a “smart and high-tech” glove production business, for which there are plans to build an additional three-story office building with IT room, production control and office workplace for your team. .
Production of Line 1 will begin in early December 2020, allowing the revenue contribution for the new glove business to begin in FY2021 and two new glove dip lines will be installed for every two months thereafter.
AT estimated its glove production capacity to reach 2.6 billion glove pieces per year by June 2021, based on 24-hour production.
It revealed that each of its single-former production lines can run at a speed of 15,000 pieces of gloves per hour, while each double-former production line can run at a speed of 24,000 pieces of gloves per hour, which the makes it a powerful representative of the robust global demand for gloves.
The group estimated an annual turnover of RM860 million for the company based on its maximum capacity and an assumption of average sales price of US $ 80 (RM333) per 1000 nitrile gloves.
This represents an increase of more than 40 times over its annual turnover of approximately RM20 million for the financial year ended March 31, 2020.
By mid-2021, AT is expected to have a single and double 12 glove dip line, and is currently working on line 13 due to stronger demand than expected prior to production.
It will invest a total of RM120 million for the 13 dip lines, along with the related facilities and the new building.
In short, the group aims to have a total of 20 lines, which will be installed on a new line in a new plant.
Choong stated that he is confident that the new glove manufacturing business will break even in less than a year.
“We have already received overwhelming responses and inquiries about orders from local and foreign buyers, even before production started. The tremendous demand far exceeds our expectations and we are working fast to meet this huge demand. “
The managing director acknowledged that the rising price of gloves might not be sustainable once a Covid-19 vaccine is developed, he believes that long-term growth prospects remain intact, given the increased awareness of the importance of gloves. after the pandemic.
However, AT’s strategy after the pandemic is to implement digital manufacturing technologies such as plant equipment automation, advanced robotics, and additive manufacturing.
“This initiative is in line with our core business of designing and manufacturing industrial automation systems and precision engineering solutions.”
Choong said the group aims to foray into the provision of design, engineering and technology, manufacturing and installation of machines for making gloves and other rubber-related products in two to three years.
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