Property developer, Mah Sing Group Berhad (Mah Sing) has completed the testing and commissioning of its first two glove production lines in its first glove manufacturing factory located in Kapar, Klang.
The factory is expected to start operations in May this year with the first shipment of gloves to be delivered sometime in May and June.
Mah Sing’s Founder and Group Managing Director, Leong Hoy Kum said the glove manufacturing venture is part of Mah Sing’s plan to strengthen and expand its manufacturing division by venturing into the export-oriented, resilient healthcare sector.
“We will continue to look into various ways to enhance our business operations and meet our shareholders’ expectations. Having started our new venture into gloves, we target to expand further under Phase 2 should the glove demand continue to outstrip supply for Phase 1.
“Looking ahead, the group aims to be one of the top five glove producers in Malaysia in the future. The group will also be exploring listing of its manufacturing and healthcare division separately to better unlock value for Mah Sing shareholders,” he added.
An analysis curated by MIDF Research has shown that the glove production from Mah Sing can project a future profit of RM175 million for their FY2021.
Mah Sing is on track to see another four production lines to be operational in Q2 this year followed by another six production lines in Q3 2021.
These 12 double former lines are under the Group’s Phase 1 of glove manufacturing business, which can produce 38,000 pieces of gloves per hour per line and a maximum capacity of up to 3.68 billion pieces of gloves per annum.
Mah Sing’s Chief Executive Officer (CEO), Ho Hon Sang said that starting from scratch allowed the Group to put the best practices in place from the get-go.
“Our high-speed production lines are equipped with auto strip, auto stack and auto count features as well as auto dosing of solutions for higher efficiency. There are also plans for auto-boxing and the factory will also be ready to adopt the IR 4.0 ecosystem to improve our efficiencies and competitiveness,” he added.
According to a research report by Hong Leong Investment Bank, the Malaysian Rubber Glove Manufacturing Association (MARGMA) has estimated the global disposable glove supply to increase by 22 percent to 420 billion pieces in 2021.
The association has also noted that post pandemic average selling prices (ASPs) are expected to be 40 to 60 percent higher compared to pre-pandemic levels because of increased hygiene awareness worldwide and higher glove usage in general.
The Group is looking to import their products to the United States, Canada, Middle East, Europe, United Kingdom, Japan, China, Souh Korea, Singapore, Russia, and Latin America.
The Group is also optimistic on the potential long-term growth of the glove industry and will seek to fill up the current demand and supply gap through their production capabilities in both nitrile and latex gloves.
“Besides original brand manufacturer (OBM) gloves under our MS Glove brand, Mah Sing will also be producing original equipment manufacturer (OEM) gloves. The group will explore the possibility of manufacturing non-medical, industrial specialty and other gloves in the mid to long term,” he said.
If demand condition permits, Mah Sing could expand Phase 2 by exercising the option for the next portion of the existing plant or negotiate with the landowner on the adjacent land.
The group can accommodate another 12 new production lines and increase the capacity up to another 3.68 billion pieces of gloves per annum.
