Top Glove eyes condom manufacturing

SHAH ALAM: Top Glove Corp Bhd, world’s largest rubber glove manufacturer, is looking to diversi fy into condom manufacturing with an initial capital injection of RM30 million by next year.

Executive chairman, Tan Sri Dr Lim Wee Chai, said production was slated to start within a year and it targeted to produce one billion pieces annually to cater to international market.

The initial investment was to establish a factory in Klang with about 20 production lines, he said.

“We need to diversify into other latex- related products and condom is similar to rubber gloves and many of our customers also buy gloves and condoms,” he told reporters after announcing the company’s third- quarter results for the financial year 2017.

Lim said in order to continue and expand the business, the company needed to diversify.

“Glove production is still our main product which we will continue to expand with the establishment of one or two factories every year,” he said.

He said Top Glove has the confidence and the capability although the initial investment was not that big.

On capital expenditure (capex), Lim said, an additional RM50 million to RM100 million might be spent, making total capex of between RM350 million and RM400 million for the financial year 2017.

Lim said the RM30 million capital injection was part of the RM300 million capex that has been used in the first nine months.

“It is for building the factory and machinery but does not include land acquisition,” Lim said. — Bernama