Anzo buys glove manufacturing plant in Perak for RM55m

KUALA LUMPUR: Anzo Holdings Bhd has acquired a factory manufacturing medical and nitrile gloves in Manjung, Perak, for RM55 million, marking its entry into the glove industry.

In a filing with Bursa Malaysia yesterday, Anzo said it bought the assets of Wintrade World Sdn Bhd, including land, building, machineries and equipment.

The assets are ready to be mobilised and commissioned to produce 1.2 billion pieces of medical and nitrile gloves a year.

This confirms an earlier report by the New Straits Times that Anzo had bought a manufacturing plant to export medical gloves.

Anzo is expected to start exporting the gloves from next month to countries such as Canada and the United Kingdom.

It was also reported that the return on investment for Anzo should be in six to 12 months as it might sell the gloves at the current market price of US$70 to US$75 per box of 1,000 pieces.

This means the potential net profit for Anzo from this business is expected to be in the region of RM150 million or more.

Anzo, which a week ago had secured a RM1.3 billion contract to supply millberry/candy copper scrap over 40 months indirectly to a steelmaker in South Korea, entered into a term sheet with Wintrade yesterday morning.

Anzo said it had paid two per cent of the purchase price to Wintrade’s solicitors as part payment of the purchase consideration.

The company is expected to pay the balance of eight per cent of deposit upon the signing of the definitive assets sale agreement.

The remainder of the purchase consideration amounting to RM49.5 million will be paid in three months from the date of the executed definitive assets sale agreement, with an extension of one month subject to payment of interest rate at eight per cent per annum.

Anzo’s shares closed 1.5 sen higher to 18 sen yesterday.