KUALA LUMPUR (May 24): Comfort Gloves Bhd (CGB) plans to dismantle 20 dipping lines and rebuild 22 new dipping lines at its facilities, which are capable of producing 3.9 billion gloves per annum, up 57% from the group’s existing capacity of 6.8 billion gloves.
The group also plans to build a production facility in Bemban, Batu Gajah, Perak, which when completed will be capable of producing up to 14.5 billion gloves per annum.
“Upon completion of the two expansion plans, the group’s total production capacity is expected to grow from 6.8 billion gloves per annum to 25.2 billion gloves per annum, a 270% increase from its current production capacity,” CGB said in its Annual Report 2021 released here, today.
The company said it was noticing an increase of segmentation and differentiation in the rubber gloves market leading to an increased demand for speciality gloves.
“CGB Group believes that there is potential to grow its speciality glove segment as consumers' focus and emphasis on hygiene and sanitation has increased due to the Covid-19 pandemic.”
To recap, it said since the global outbreak of the Covid-19 pandemic in early 2020, the demand for personal protective equipment, particularly medical gloves, to curb the pandemic has surged.
In order to meet the increase in demand, CGB Group has streamlined its operations to increase productivity and output.
As a result, the Group managed to increase its production output by approximately 30% based on the financial year ended Jan 31, 2021 (FY21).
For FY21, its profit jumped to RM287.33 million from RM33.18 million in FY20, due to higher revenue generated and better profit margin.
Revenue almost touched a billion mark at RM946.44 million versus RM510.73 million previously.