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KUALA LUMPUR: Hartalega Holdings Bhd
says the demand for rubber gloves will not be affected by the Covid-19 coronavirus vaccines and will continue to outstrip supply for the next three to four years.
The pandemic has changed user behavior, prompting demand for gloves, President Kuan Kam Hon told reporters. Demand for use in developed countries has increased by 30%, while in developing countries , usage has more than doubled, he says.
The industry cannot meet the 120b of additional demand for gloves. This demand can only be met in three years, he adds.
Glove spot prices are up 30% this quarter and are expected to rise 40-50% in the coming quarters, he says.
Glove prices are now three times higher than before covid-19.
Hartalega allocated an investment of 1.5 billion ringgit to build four plants, of which the first two lines will be operational in October 2021.
Another RM3bil is for its next expansion phase, its so-called NGC2, which will be fully completed in seven years. – Bloomberg
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