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Hartalega Invests RM2bil To Boost Capacity To 13 Billion Gloves A Year

Posted Date : 13^th June, 2013

SEPANG: Hartalega Holdings Bhd plans to invest RM1.9bil for the development of its next-generation glove manufacturing complex (NGC) that will boost its production capacity to over 42 billion pieces from the current 13 billion pieces per annum. The NGC will be located at its newly-purchased land in Sepang.

The first phase of the NGC from 2013 to 2017 would see Hartalega commissioning 42 production lines, with a total annual installed capacity of 16.5 billion pieces. The second phase from 2018 to 2021 will see an additional 30 production lines coming onstream, with a total annual installed capacity of 12 billion pieces.

The NGC was accorded entry point project status under the Government's Economic Transformation Programme due to its high impact on gross national income.

Managing director Kuan Mun Leong said in a statement that this marked the company's single largest undertaking, ensuring that it would be able to remain ahead in the glove manufacturing sector, particularly in the nitrile segment.

"Rolled out in two four-year phases, once the NGC is completed, the group's total installed production capacity will increase to over 42 billion pieces per annum via the addition of 72 technologically advanced production lines," he said in the statement yesterday.

Hartalega sealed a conditional sale and purchase agreement with Kumpulan Tanjung Balai Sdn Bhd to acquire 45.32ha located in Sepang on a purchase consideration of RM96.9mil yesterday.

The land will be acquired via its wholly-owned subsidiary Hartalega NGC Sdn Bhd.

The acquisition will be funded by internally generated funds and bank borrowings.

"Along with boosting the group's capacity, the NGC project will enhance productivity and efficiencies as well as reduce costs through greater automation and technological innovation.

"The NGC will also include facilities to train a large pool of skilled employees as we deploy them 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. The Hartalega group has been manufacturing premium latex gloves since 1988 and currently operates in Bestari Jaya, Selangor.

Source: http://biz.thestar.com.my/news/story.asp?file=/2013/6/13/business/13233958&sec=business