GIIB Holdings Berhad, which is involved primarily in producing technical rubber compounds, has via its 51% owned subsidiary, GIIB Healthcare Products Sdn Bhd, officially started its latex glove manufacturing facility in Nilai, Negeri Sembilan.
The glove manufacturing outfit has five double former glove-dipping production lines with a production capacity of 1.05 billion pieces of glove per annum. The production lines are interchangeable to produce latex or nitrile gloves.
GIIB will manufacture the latex gloves under its own brand ‘GIIB Healthcare’ and serve as an original equipment manufacturer for local and international clients.
Under a ‘maximum scenario’, producing at full capacity and given the current average selling price of approximately RM90 per 1,000 latex gloves, revenue contribution from this plant can reach about RM94 million per annum. For comparison, the Group reported revenue of RM36.6 million for the 12-month period ended 31 December 2021.
Chief executive officer/executive chairman of GIIB Holdings Berhad, Tai Boon Wee said, “The launch of our first glove manufacturing plant today marks the Group’s successful foray into the glove-making scene. In fact, we have already secured strong sales orders for the year, showcasing the quality of our products and we expect the glove business to start contributing to our financial year ending 30 June 2023.
We expect the exports for rubber gloves to remain robust, with growth in the double-digit region. Overall, even into the post-Covid era, we believe demand for gloves will remain strong in light of the heightened health awareness brought about by this pandemic. We are optimistic that this foray will provide the Group with a sustainable recurring income stream and enhance the Group’s bottomline going forward.”
