Hartalega to invest RM400m each in remaining 3 NCG plants
KUALA LUMPUR: Hartalega Holdings Bhd will spend between RM300 million and RM400 million each on the remaining three plants at its the Next Generation Integrated Glove Manufacturing Complex (NGC) in Sepang over the next three years.
Managing director Kuan Mun Leong said the capital expenditure was required to fully complete the RM2.2 billion complex.
“To date, we have spent RM1.2 billion on the NGC project and it will have a total of six manufacturing plants, including workers quarters, a research and development centre, a sports complex as well as a learning centre,” he said after Hartalega’s annual general meeting, here, yesterday.
In 2014, Hartalega embarked on the NGC project to boost its annual capacity to 42 billion pieces of gloves from 14 billion then.
To date, 36 lines have started running since its first commission in early 2015.
“We have three plants at NGC that are fully commissioned. Each plant houses 12 production lines,” he said.
Kuan said the first production line of Plant 4 started this month. Subsequently, it will have one line commissioned every month, with a total of 12 lines.
Kuan said Hartalega was currently working on Plant 4, 5 and 6. Plant 4 will provide an additional capacity of 4.7 billion pieces of gloves annually.
Meanwhile, Hartalega group executive chairman Kuan Kam Hon said the company did not plan to venture into condom manufacturing.
“There are still plenty of opportunities in the rubber glove market,” he said, adding that for the condom market, it only focused on the distribution side.
“We focus on building our distribution network such as Australia, China, Indonesia, India and the United States rather than acquire distribution companies,” added Kuan.
Hartalega posted a net profit of RM283 million and revenue of RM1.82 billion in the year ended March 31 2017.