Glove manufacturer and supplier, Hartalega Holdings (Hartalega) will invest RM7 billion for a period of 20 years to build a Next Generation Integrated Glove Manufacturing Complex in the Kota Perdana Special Border Economic Zone (SBEZ), Bukit Kayu Hitam, Kedah.
Hartalega will be looking to make investments in the construction of 16 manufacturing facilities in two phases on 101.17 hectares of land in SBEZ and is expected to create 12,000 jobs.
“Each phase will see eight manufacturing facilities and Hartalega’s target is for the first phase to be completed in 2024. The agreement is for the acquisition of land in the SBEZ for RM228.69 million,” Hartalega Chief Executive Officer (CEO) Kuan Mun Leong said.
Finance Minister, Tengku Zafrul Abdul Aziz and Kedah’s State Minister, Muhammad Sanusi Md Nor was present during the signing of a sale and purchase agreement between Hartalega NSM Sdn Bhd and Northern Gateway Free Zone Sdn Bhd here yesterday [March 10].
“The operational expansion was important for Hartalega to accelerate production capacity while taking into account the long-term perspective towards structural increase in global demand.
This domestic direct investment will also contribute to the country’s economic development, as well as drive economic development in the northern region,” Kuan said.
Kuan reiterated that the facility in Kedah is expected to contribute almost five percent to the state’s total gross domestic product (GDP) upon completion.
Additionally, Hartalega does not see any worries about oversupply of gloves as increasing glove consumption was due to the Covid-19 outbreak in 2021.
“Despite a reduction in new Covid-19 cases in Malaysia, most countries are still fighting against the virus,” he concluded.
Hartalega produces 43 billion pieces of gloves per year and the company’s expansion plans include the NGC 1.5 in Sepang, which will boost the capacity to 63 billion pieces per year once it is completed.
