SEPANG (July 25): Hartalega Holdings Bhd will set aside RM745 million for capital expenditure (capex) for the next three years, mainly for capacity expansion and technological advancement.

Of the total capex, RM630 million will be for plant expansions and RM115 million for investment into industrial 4.0 technologies.

The plant expansion plan will see Hartalega's annual gloves production capacity increase to 42 billion pieces in the next three years, from 34 billion pieces currently, Hartalega managing director Kuan Mun Leong told the press during a factory visit here.

For investment into industrial 4.0 technologies, Kuan sees a need to propel the group' growth. He added that would help reduce dependency on foreign workers.

Kuan said the capex will be funded internally and via bank borrowings.

Meanwhile, Hartalega expects the surprise natural gas tariff hike earlier this month to have a minimal impact on its margin.

"In the glove business, we provide customers quotation on a monthly basis. (We have some) time lag of two to three months.

"It would help us to pass the cost increase to customers if (Gas Malaysia Bhd) gave an early notice," he said.

At the midday break today, Hartalega shares dipped 1.15% or 6 sen to RM5.16 for a market capitalisation of RM17.29 billion.