Top Glove halts operations in Klang due to EMCO, awaits clarification from MKN

Top Glove halts operations in Klang due to EMCO, awaits clarification from MKN
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KUALA LUMPUR (July 6): Top Glove Corp Bhd said it is temporarily halting the operations of its medical glove factories in Klang following the imposition of the enhanced movement control order (EMCO) in the district.

The world’s largest glove manufacturer added that it is awaiting clarification from the National Security Council (MKN) on the matter, but did not give further details.

Both of Klang’s sub-districts are among 34 sub-districts in Selangor — along with 14 localities in Kuala Lumpur — that have been placed under the EMCO for 14 days from July 3 to 16.

In an email reply today to The Edge, Top Glove said: “The company looks forward to safely resuming operations at the appropriate time and continuing to produce its much needed medical gloves for frontliners and healthcare workers in Malaysia and globally.

“The company continues to maintain strict adherence to the relevant rules and regulations, as well as Covid preventive standard operating procedures, and is committed to safeguarding the health and safety of its workforce and the communities in which it operates.”

Top Glove did not state the number of its factories affected by the temporary closure.

Last year, the group had shut down 28 factories in Klang from Nov 17 to Dec 14 when its foreign workers' dormitories in Meru were placed under the EMCO following an insurgence of Covid-19 cases among the workers.  

At that time, Top Glove said the total production capacity of its factories in Klang accounted for up to 50% of its total capacity.

On Sunday (July 4), the Malaysian Rubber Glove Manufacturers Association (MARGMA) urged the government to allow glove factories in Selangor to operate under the EMCO.

"Since the government's announcement on the imposed EMCO on the state of Selangor, global customers of our manufacturers have been calling with great concern on shortage of production and delivery of gloves to them.

"Our members are under tremendous pressure from global hospitals and healthcare workers as the pandemic has now evolved into another variant," said MARGMA president Dr Supramaniam Shanmugam in a statement.

Top Glove’s share price continued to decline today, closing one sen or 0.25% lower at RM3.94, giving the group a market capitalisation of RM32.33 billion. The counter saw 18.85 million shares traded.

Year to date, the stock has lost 36% in value from RM6.12.

S Kanagaraju