PETALING JAYA: Aspen (Group) Holdings Ltd has obtained approval for a manufacturing licence from Malaysia’s Ministry of International Trade and Industry (Miti) for the production of nitrile medical grade examination gloves and natural rubber medical grade examination gloves, the company said in a statement today.
In August this year, the Singapore-listed property developer announced its diversification into the manufacturing and distribution of rubber gloves.
Its wholly owned subsidiary, Aspen Vision All Sdn Bhd, has agreed to participate in a joint venture arrangement with CMY Capital Sdn Bhd in which Aspen Glove Sdn Bhd (AGSB) will act as the special purpose vehicle for the operation of the proposed new business.
The initial investment of RM105 million for phase 1A is targeted to produce a total capacity of 1.1 billion pieces of gloves a year from third-quarter 2021.
CMY is founded by Malaysian businessman Tan Sri Chua Ma Yu.
The focus for phase 1 of the business will be on examination gloves which will cater solely for the export market.
For Phase 1B, AGSB intends to ramp up the capacity to 3.5 billion pieces of gloves a year by Q2’22. AGSB anticipates a further investment of RM40 million to complete Phase 1B.
Subsequently, depending on market demand, AGSB may complete another three phases within the next three years whereby upon completion of Phases 1, 2, 3 and 4, AGSB can expect to produce 14 billion pieces of gloves annually.
The initial investment of RM105 million required to complete Phase A is expected to be funded through capital injection by shareholders of AGSB.