PETALING JAYA: Mah Sing Group Bhd has started additional piling works to accommodate 12 units of new, high-speed glove dipping machines at its glove manufacturing factory in Kapar, Klang, to meet its targeted production date of April 2021 to meet strong pent-up demand.
The piling works are expected to be completed by November 2020, to be immediately followed by installation of the machinery. These 12 production lines are Phase 1 of Mah Sing’s diversification into gloves and has a maximum production capacity of up to 3.68 billion pieces of gloves per annum.
Founder and group managing director Tan Sri Leong Hoy Kum said similar to the group’s property development fast-turnaround business model, it is fast-tracking its diversification into gloves.
“We have also secured supply of both Nitrile-butadiene rubber and latex raw materials, and should be able to quickly meet demand of our customers. We are targeting production by as early as April 2021,” he said.
As the Kapar factory is expected to start its operation with six production lines as early as 2Q’21, the group is in a good position to take advantage of the high spot price of gloves.
Mah Sing expects the glove manufacturing business to be able to generate revenue relatively quickly, with the projected contribution estimated to come in as early as 2Q’21.
Mah Sing is targeting a second phase of the expansion plan, which includes exercising the option to take up the other portion of the Kapar factory.
This could accommodate another 12 new production lines and increase the capacity up to another 3.68 billion pieces of gloves per annum. The Phase 2 expansion is targeted to happen when demand outstrips supply for Phase 1.
