Friday 29 Mar 2024
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SETIA ALAM (Jan 8): Rubber glove maker Top Glove Corp Bhd said it will take time to turn the operations of Aspion Sdn Bhd around, but the results will be obvious in between one and three years' time.

Top Glove executive chairman Tan Sri Lim Wee Chai said Aspion accounted for about 10% of its sales revenue per quarter, and the contribution from the subsidiary for the financial year ending Aug 31, 2019, will remain relatively small.

"We have just acquired Aspion. It will take some time for us to improve the situation. Aspion is making a small profit now but not as much as what we expected.

"It will turn around. We have sent our team of engineers, chemists and managers to improve their quality standards and efficiency standards. They are very far behind," he said after the company's annual general meeting today.

Lim pointed out that the group has managed to turn the operations of many inefficient factories around in the past, adding that 14 out of its 40 factories were acquired inorganically.

These factories contributed about 30% of the group's annual profit, said Lim.

"This factory improvement takes time. Give us some time. The results will be very obvious in another one or three years," said Lim.

Overall, the group spends about RM400 million per year for capital expenditure, investing in plant and machinery, automation and digitalisation.

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