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Hartalega Targets Emerging Markets

Posted Date : 28^th August, 2013

KUALA LUMPUR: Hartalega Holdings Bhd (Hartalega), the world's largest synthetic glove manufacturer, is eyeing emerging markets such as China and India to fuel its growth.

Managing director Kuan Mun Leong said the group has set up two subsidiaries in the two countries as it believes that there is a good chance that there will be an increase in the per capita consumption of gloves in these countries.

"Currently, the per capita consumption of gloves in emerging markets are quite small compared to developed nations," he said after the group's 7 annual general meeting yesterday.

Hartalega also targets to increase its production capacity of gloves to 28.5 billion per year from 14 billion with its Next Generation Integrated Glove Manufacturing Complex (NGC).

Currently, 95 per cent of the group's capacity is in the production of nitrile gloves.

The group has allocated some RM1.9 billion, mostly via internally generated funds, for the development of the complex on a 3.84ha land in Sepang.

In June, Hartalega announced that it has sealed a conditional sale and purchase agreement with Kumpulan Tanjung Balai Sdn Bhd via its unit Hartalega NGC Sdn Bhd to acquire the land with a purchase consideration of RM96.9 million.

Kuan said the land will be used to build six high-capacity manufacturing plant that will house 72 production lines.

"With the completion of NGC, we foresee a 15 per cent increase in our capacity for the next eight years," he said.

Hartalega is targeting to start construction next month so that it could have its first line in operation by September next year, said Kuan.

Source: http://www.btimes.com.my/Current_News/BTIMES/articles/BHARTA27/Article/#ixzz2dLmiqO13