Virus outbreak at glove maker may raise prices
KUALA LUMPUR, Malaysia — Malaysia’s Top Glove, the world’s largest maker of rubber gloves, said Wednesday that supply disruptions at its factories due to an outbreak of the coronavirus may push glove prices up.
The company said it shuttered 20 of its factories in an area outside Kuala Lumpur in stages since Nov. 17 after nearly 3,000 workers tested positive for the virus. Another eight facilities in the same area are currently running below 20% of capacity, and will also be closed to screen and quarantine workers.
“Of course, there is some shortage as Top Glove is a big supplier in the world. Supply will definitely be affected somehow. There is a possibility that glove prices will go up,” executive chairman Lim Wee Chai told a virtual news conference.
The company, which accounts for about a quarter of global supply, has said it expects between two and four weeks of delays in some deliveries and estimated a 3% impact on projected annual sales for the 2021 financial year.
Managing director Lee Kim Meow told the news conference that there have been no order cancellations so far. He said priority will be given to hospitals and essential services amid the shortage, and voiced confidence that the issue will be resolved quickly. Top Glove produces about 90 billion rubber gloves a year.
The area in Klang where Top Glove factories and workers’ hostels are located is currently the most active in the country, with 4,036 coronavirus cases.
The health ministry said cases have spread from the factories to the wider community. Malaysia has reported a total 59,817 cases, including 345 deaths.
The company said some 6,000 workers have been screened, with a few thousands more to undergo testing by the end of this week.