AEM looks at turnkey solutions in business turnaround

KUALA LUMPUR: Main Marketlisted AE Multi Holdings Bhd (AEM) is confident of achieving an accelerated business turnaround in 2021.

To this end, its new engineering, procurement, construction and commissioning (EPCC) business is banking to provide turnkey solutions to the growing number of new entrants into glove manufacturing.

In a statement, it said the group expects the EPCC segment to deliver a significant order book in the financial year of 2021 (FY2021), allowing AEM to leap back into profitability following losses for the last three financial years since 2017.

“With global demand for gloves expected to remain high throughout 2021-2022 amid the increasing Covid-19 vaccination programmes globally, many companies have been venturing into glove manufacturing to meet the shortage in glove supply,” it said.

AEM via its unit, AE Multi Industries Sdn Bhd (AEMI) is capitalising on this new business opportunity by working with the new glove makers to set up their production facilities.

A filing with Bursa Malaysia indicated that AEM has won a contract from PNE PCB Bhd.

This follows another contract secured by the group on Dec 2, 2020 from Fintec Global Bhd’s unit, Fintec Glove Sdn Bhd.

For perspective, AEMI was awarded with a contract to design, build and deliver on a turnkey basis a glovemanufacturing factory of up to 10,000 square metre, with the capacity to house up to 14 glove-dipping lines for the manufacturing of medical grade nitrile gloves.

AEM’s principal activities consist of investment holding and the provision of management services to its group of companies.

Its subsidiaries are primarily engaged in manufacture and sale of printed circuit boards (PCBs) and related products; sourcing and reselling of the PCBs and related products, electronic and telecommunication components; and manufacture of cartridge ink and related products.