Friday 29 Mar 2024
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KUALA LUMPUR (Oct 19): Luster Industries Bhd has become the latest company to branch out into rubber glove making.

Luster, in a bourse filing, said it is teaming up with Fortune Tac Sdn Bhd to set up a new firm called Glovmaster Sdn Bhd, with Luster holding a 56% stake and Fortune Tac controlling the rest. Luster is funding RM50 million for the new joint venture.

A 4,013 sq m piece of land in Banting, Selangor has been identified for the new venture.

The group is in the midst of finalising the layout plan of the manufacturing plant, which will have a built-up area of 60,000 sq ft.  For now, it is a four-storey building composed of a plant, storage area, as well as offices.

Luster said the new manufacturing plant will house seven double former glove production lines, with an annual production capacity of two billion pieces of nitrile gloves.

Operations are expected to start in the third quarter of 2021.

Luster said that under the agreement signed with Fortune Tac, total glove output within the first two years of the factory’s life will not be fewer than three billion pieces.  

Fortune Tac has given a guarantee that the aggregate profit before tax for the first two years of the operations will not be less than RM200 million.

In order to fund its share of Glovmaster, Luster will be launching a private placement involving 482.15 million shares, which at 12.5 sen a share would raise RM60.27 million.  

Among those purchasing the placement shares are Luster deputy managing director and executive director Liang Wooi Gee, executive directors Chuah Chong Ewe and Phuah Cheng Peng, and alternate director Chuah Chong San.

Luster was the second most actively traded stock today with a trading volume of 536.37 million shares. It was the fourth top percentage gainer, rising by 28.57% or five sen to 22.5 sen, valuing the group at RM542.42 million.

 

Edited ByS Kanagaraju
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