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Hartalega To Build RM1.9b Factory
Posted Date : 12th June, 2013
Written by Ho Wah Foon of theedgemalaysia.com
KUALA LUMPUR (12th June): HARTALEGA HOLDINGS BHD (Hartalega) announced that it is buying a piece of land and investing RM1.9 billion to raise its annual production capacity of nitrile gloves by an additional 28.5 billion pieces of 200% over eight years.
In a late press statement today, the company said its wholly-owned subsidiary, Hartalega NGC Sdn Bhd, has signed an agreement to acquire 112 acres of land in Sepang, worth RM96.9 million, for this purpose.
"The company has moved closer to the realisation of its Next Generation Integrated Glove Manufacturing Complex (NGC) today as it sealed the conditional sales and purchase agreement to acquire 112 acres of land located in Sepang," said the statement.
Kuan Mun Leong, managing director of Hartalega, was quoted in the statement as saying: "This marks our single largest undertaking ensuring that Hartalega will be able to remain ahead in the glove manufacturing sector, particularly in the nitrile segment."
The project to raise capacity will be implemented in two 4-year phases.
"With a total cost of RM1.9 billion, the first phase of the NGC from 2013 to 2017 will see Hartalega commissioning 42 production lines with a total annual installed capacity of 16.5 billion pieces per annum.
The second phase from 2018 to 2021 will see an additional 30 production lines come on-stream with a total annual installed capacity of 12 billion pieces per annum," said the statement.
Once the NGC is completed, the group's total installed production capacity will increase to over 42 billion pieces per annum.
The NGC was accorded Entry Point Project status under the government's Economic Transformation Programme due to its high impact on Gross National Income, said the statement.
"The NGC will also include facilities to train a large pool of skilled employees to manage our cutting-edge TECHNOLOGY and modernised manufacturing facilities. These efforts will certainly push Malaysia's glove manufacturing sector to a much higher level. All in all, we are indeed bullish on our prospects for the many financial years ahead," said Kuan.