KLANG (April 22): Mah Sing Group Bhd has completed the testing and commissioning of its two glove production lines in its first glove manufacturing factory. The manufacturing plant, located in Kapar, Klang, is expected to start production next month.
During the media visit to the plant, chief executive officer (CEO) Datuk Ho Hon Sang revealed that the indicative orders from more than 100 letters of intents received to date had well exceeded the group's capacity.
"On the whole, we expect the glove manufacturing business to generate more recurring and steady income for Mah Sing, complementing the same existing property and plastics businesses, and contributing positively to the group's financials going forward," he told the media.
The property developer anticipates the first shipment of gloves to be delivered in May and June.
Mah Sing expects an addition of four production lines to be operational in the second quarter this year (2Q21), followed by six more production lines in the 3Q21.
These 12 double former lines have a maximum annual capacity of up to 3.68 billion pieces of gloves.
"Being a new glove producer, we are not committed to any long-term contracts with lower pricing. As such, compared to existing players, we have more flexibility to lock in spot orders at higher spot prices," Ho said.
At 11am, Mah Sing's shares price was 1.5 sen or 1.69% higher at 90.5 sen, valuing it at RM2.2 billion.