Kossan Rubber plans to up production volume by 10%

SETIA ALAM: Kossan Rubber Industries Bhd plans to increase its production volume by 10% this year to 29.5 billion pieces of gloves a year.

The group has a production volume of 25 billion pieces annually.

Speaking at the group’s AGM here yesterday, Kossan group managing director and CEO Tan Sri Lim Kuang Sia said plant 17 and plant 18, in Klang, are expected to commence production by this year.

“Plant 17 is due to run in two to three months, while plant 18 should commence operations by year-end or early next year. As for the new plant 19, construction is expected to commence in 2019.

“Kossan’s production volume is estimated to grow by 16% next year,” he said, adding that plant 17 has an annual production volume of 1.5 billion pieces, while plant 18 would have a production volume of three billion pieces per year.

Kossan is also set to meet Perak Investment Management Centre soon to obtain the necessary approvals to set up an integrated glove factory in Bidor.

The group had in March, purchased two pieces of land in Bidor, measuring a total 824.11 acres, for a total cash consideration of RM82.42mil. It is expected to receive the halal certification for its second glove plant in Klang by year-end.

It received the halal certificate for the WSM plant in Klang last November, making it the first halal glove manufacturer in the world.

The WSM plant has a production volume of 2.4 billion pieces of halal-certified gloves annually, while the second plant is expected to produce 1.2 billion pieces a year.

Lim said the certification provided an additional recognised system of quality assurance, akin to the HACCP system. “Users will have greater confidence in the hygiene and safety assurance as provided by the certification.

“Gloves are widely used in the food industry, being the first point of contact in food preparation.

“Hence, we believe there is much growth potential and opportunity for halal-certified gloves going forward,” he said.

The halal assurance system mandates stringent controls throughout the integrated supply chain system, from raw material sourcing, manufacturing, handling, packaging and storage of products until transportation for distribution.

The gloves are marketed under the brand name “Confidenz” and retails on the online platform E-Shirudo.

Watch the video