KTG to kickstart glove biz
26 Mar 2021
KTG Bhd with its core business in the ceramics industry today announced that its wholly-owned subsidiary APPI Sdn Bhd has appointed Howellcare Industries Sdn Bhd as a turnkey contractor to plan, design, supply, install and commission two units of nitrile butadiene rubber (NBR) double former glove dipping production line for RM39.8 million cash, which is to be set up at the existing factory of KTG Group located at Kamunting, Perak.
In a previous announcement made in December 2020, KTG has entered into a memorandum of understanding with Howellcare following the group’s intention to venture into glove manufacturing to complement its existing businesses in ceramics, property investment, development, constructions and moneylending sectors.
Meanwhile, Howellcare is a company that has been providing total solution and consultation on turnkey projects such as design and build services for clients in the glove manufacturing industry, supply of glove industry related equipment and machineries, and trading of latex and nitrile examination gloves. The director and founder Francis Ho has more than 20 years of experience in the glove manufacturing industry. He provides extensive network and knowledge in almost all aspects of the industry particularly in setting up glove manufacturing plants and is a known figure amongst the prominent players in this industry.
“We are further convinced that glove industry is still on the uptrend and KTG believes that it is still timely for the group to enter into glove manufacturing business as it is expected to generate positive income once the business commences. In addition, we are confident that our partnership with Howellcare who has proven track record in the glove industry will help us drive exciting growth for KTG and we look forward to generating sustainable value for our stakeholders.” said KTG executive director Sim Chiun Wee.
More importantly, the group aims to reduce the cost of its glove manufacturing since the group will also be producing its own ceramic glove hand formers. With competitive pricing and high quality end products, the board envisages that the glove business will be beneficial to the group and the future expansion cost for the glove production lines will be lower.
“In addition, there are also many companies in other countries which are now venturing into the glove manufacturing business and they will need to source for glove hand formers, the market which APPI has the ability to enter into,” added Sim.
Through the Bursa announcement made, it was revealed that the initial plan of the turnkey project consisted of the installation of two production lines for nitrile gloves are expected to produce up to 40.32 million pieces of gloves per month, amounting to almost 483.84 million pieces per annum.
Source: The Sun Daily
