PETALING JAYA: GIIB Holdings Bhd, via its 51% owned subsidiary GIIB Healthcare Products Sdn Bhd, has 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 RM90 per 1,000 latex gloves, revenue contribution from this plant can reach about RM94 million per annum. For comparison, the group reported a revenue of RM36.6 million for the 12-month period ended Dec 31, 2021.
GIIB CEO and executive chairman Tai Boon Wee (pix) said the launch of its first glove-manufacturing plant today marks the group’s successful foray into glove production.
“In fact, we have already secured strong sales order for the year and we expect the glove business to start contributing to our financial year ending June 30, 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
bottom line going forward,” Tai said in a statement today.