PETALING JAYA: XiDeLang Holdings Ltd (XDL) has inked an exclusive distribution agreement to Seacera Group Bhd’s wholly owned subsidiary Seacera Polymer Sdn Bhd to resell and distribute protective clothing products in all states of Malaysia.
XDL managing director cum CEO Ding PengPeng said its protective clothing products are classified as personal protective equipment (PPE) in the protective equipment industry.
“The World Health Organisation (WHO) has warned that severe and mounting disruption to the global supply of PPE – caused by rising demand, panic buying, hoarding and misuse – is putting lives at risk from the new coronavirus and other infectious diseases. We are responding to WHO’s calls on industries and governments to increase manufacturing by 40% to meet rising global demand,” Ding said in a joint statement today.
The global protective clothing market size is projected to reach a huge US$11.9 billion (RM50.77 billion) by 2024 from US$8.8 billion in 2019, at a compound annual growth rate of 6.3%.
Seacera group CEO Zulkarnin Ariffin said since the start of the Covid-19 outbreak, prices of all PPE have surged. Supplies for some PPE products can take months to deliver and market manipulation is widespread, with stocks frequently sold to the highest bidder.
“We’re grateful that XDL supplies us with these high-in-demand protective clothing products at a reasonable price during these critical months since the outbreak of Covid-19 pandemic. With the supply, Seacera could help to fulfill the shortage of these products among the front-liners of Malaysian hospitals and laboratories,“ said Zulkarnin.
Under the agreement, Seacera may incorporate, combine, integrate or modify the products; sell them either alone or in combination with other products; and/or sell them under its own label.
No franchise is granted in this agreement. Seacera also has the full right to decide on the methods of marketing, pricing, naming, packaging, labelling and advertising, and the terms and conditions of any sale.
“[The] Next plan is for us to capitalise on the trade war between US and China. If the market conditions continue to be favourable, we may start our own production lines in Malaysia to export these PPE to the US and other countries which are badly hit by Covid-19,” said Zulkarnin.
