George Kent to build a glove plant for RM624.1mil
08 Jun 2021
George Kent (Malaysia) Bhd will design and build a glove manufacturing plant in Lumut Port Industrial Park, Perak, for RM624.1 million after receiving a nod from its shareholders.
In an exchange filing today, the company said the plant would have a production capacity of about 12 billion pieces of examination and surgical gloves per annum.
The engineering and metering company said commercial production of its first production line is expected to commence in August 2021.
A total of six production lines to be fully operational by December 2021.
The remaining 36 production lines will be commissioned and operationalised in stages from 2022 and 2023.
The company’s expansion into the glove manufacturing construction business locally and internationally would also cater for strong demand from existing and new glove manufacturing players wishing to expand their production capacity in the coming years.
George Kent will also work with experienced glove-dipping-line technology providers to deliver high-capacity, fully automated production lines.
Previously, shareholders approved the subscription of a 40 per cent stake in Dynacare Sdn Bhd (Dynacare), a wholly-owned subsidiary of Johan Holdings Bhd, at an issue price of RM1 per share.
Chairman Tan Sri Tan Kay Hock said the contract to design and build Dynacare’s glove manufacturing plant is an exciting opportunity for George Kent.
“The contract will boost our construction order book significantly. It also marks our entry into the glove manufacturing construction space. Demand for such facilities remains strong,” Tan said in a statement today.
Tan said the company’s investment in Dynacare would also provide a significant new stream of sustainable and recurring long-term income for its shareholders.
George Kent will undertake the works including civil and structural building works, mechanical and electrical works, and the construction of utility connections such as electricity, gas and water supply, and wastewater treatment and water recycling facilities.
The company will also design, install, test and commission 42 double-former glove-dipping lines and all ancillary systems at the plant over 24 months.
The design and build contract will bolster George Kent’s construction order book when construction contracts are scarce.
“The contract is timely and will immediately contribute to the group’s bottom line over the next two years,” it added.
Source: NST
