[ad_1]
KUALA LUMPUR (October 21): Mah Sing Group Bhd is scheduled to start glove production in April 2021.
In a statement today, Mah Sing said it has started additional stacking work to accommodate 12 units of new high-speed glove dipping machines at its glove manufacturing factory in Kapar, Klang, to meet the planned production date. .
He said the piling works are expected to be completed in November 2020, to be followed immediately by the installation of the machinery.
These 12 production lines are Phase 1 of Mah Sing’s diversification into gloves and have a maximum production capacity of up to 3.68 billion pieces of gloves per year.
Mah Sing’s founder and managing director, Tan Sri Leong Hoy Kum, said that similar to the fast-changing business model of its real estate development, the company is accelerating its diversification into gloves.
He said the factory has an adequate ceiling height to house mega machines.
“We have also secured the supply of nitrile-butadiene rubber and latex raw materials, and we should be able to quickly deliver [the] demand of our clients.
“We are targeting production for April 2021,” Leong said.
Leong said that Mah Sing’s glove business will be mainly managed by a professional team with experience in glove making.
He said Mah Sing will be able to leverage the experience and knowledge of its regional plastics business to create synergies with the glove business.
At approximately 228,800 square feet of construction, the current factory is Phase 1 of Mah Sing’s new foray into glove making.
Manufacturing work on the new machinery has already started at the equipment supplier’s factory and installation of the initial lines is expected to begin in November 2020; The first six production lines are expected to be ready to operate from the second quarter of 2021 (2Q21), followed by another six production lines for 3Q21.
Mah Sing is targeting a second phase of the expansion plan, which includes exercising the option to occupy the other part of the Kapar factory (construction of approximately 287,500 square feet).
This could accommodate another 12 new production lines and increase capacity to another 3.68 billion pieces of gloves per year. Phase 2 expansion is expected to occur when demand exceeds supply for Phase 1.
The developer said that at this juncture, Mah Sing Healthcare Sdn Bhd has obtained letters of intent from several potential clients and cumulative indicative orders have already exceeded the estimated maximum capacity for both phases of the Kapar factory.
If demand permits, Mah Sing Healthcare will gradually expand up to 100 production lines as part of future expansion plans, he said.
These 100 production lines could potentially produce up to 30 billion pieces of gloves per year.
Mah Sing said that since the Kapar factory is expected to start operations with six production lines from 2Q21, the group is in a good position to take advantage of the high spot price of the gloves.
Mah Sing expects the glove manufacturing business to be able to generate revenue for the group relatively quickly and the projected contribution is estimated to come in 2Q21.
At 12:06 pm today, Mah Sing’s stock fell 5.09% or 6 sen to RM1.12, for a market capitalization of RM2.72 billion.
Read also:
Property developer Mah Sing becomes a manufacturer of rubber gloves
[ad_2]
