Pecca Group Bhd intends to spend a further RM5 million in capital expenditure to expand its healthcare segment on the back of increasing market demand, and enhance its product range to include advanced face mask models.
The expansion, undertaken by wholly-owned subsidiary Pecca Leather Sdn Bhd (PLSB), involves the purchase of five new face mask production lines amounting to RM3 million, while the balance RM2 million is for building renovations. The expansion is expected to be completed in the third quarter of 2021.
Kelvin Teoh, Group Managing Director of Pecca Group Bhd said, “As the Covid-19 pandemic increases in severity in Malaysia, the expansion will help us better serve the increasing demand for our high-quality face masks among the medical, corporate, and retail segments.”
“Our initial 3-ply and 4-ply face masks offerings, which are made to international standards, have been well-received by the market. Through the latest expansion, we aim to introduce a greater variety of advanced face masks models such as
KF94, KN95, and N95 duckbill, as well as launch more premium and fashionable face mask offerings to cater to all lifestyle needs.”
“We foresee our healthcare segment to grow into a sizable contributor to the Group in the long run, as we move towards a dual-core business model driven by both the automotive leather and healthcare segments.”
The Group’s healthcare segment currently has 7 face masks production lines, mainly catering to 3-ply and 4-ply face masks.
The segment contributed in increasing measure to the Group’s revenue since its commencement in August 2020 – RM4.8 million or 12.3% of group revenue in the second quarter ended 31 December 2020 (2Q21), and RM5.9 million or 13.8% of group revenue in 3Q21.
PLSB is registered with the U.S. Food and Drug Administration (FDA) and certified to comply with the European Union’s CE marking requirements, enabling Pecca to export its face masks to Asia, Europe and the U.S. Moreover, the Group’s facility is registered with the Medical Device Authority Malaysia and certified to meet ISO 13485:2016 Quality Management System requirements for the design, development and manufacturing of Personal
Protective Equipment including 3-ply and N95 masks for surgical/medical and general use. The Group’s face masks are also manufactured in ISO Class 8 cleanroom manufacturing facility, which is certified to meet ISO 14644-1 requirements for air
cleanliness and airborne particulate count. The expansion plan will be funded entirely by internally generated funds.