30 Dec 2020 . News
AT Systematization kicks off glove production

AT SYSTEMATIZATION Bhd kicked off its glove production venture following the trial runs in the weekend, making it the first among new glove players to start production.

AT Systematization MD Choong Lee Aun said the group obtained the CE marking, enabling it to tap into the export market following the commencement of production.

“We are proud of the speed of our progress to get the production off the ground. It shows that we are committed to deliver gloves to meet the shortages amid the ravaging pandemic,” he said in a press release yesterday.

The company’s glove factory in Chemor, Perak, now has one line, and it targets to see the commencement of the second line in the coming weeks while it begins work on the manufacturing plants’ second phase.

By June 2021, AT Systematization expects to reach a glove production capacity of 2.6 billion pieces per annum based on the assumption 24 hours per day and 30 days per month.

AT Systematization’s factory took slightly over four months for building, which the group said is the shortest time taken for a glove manufacturing plant to be set up, and the facility will be made “future-ready” for IR4.0 ecosystem, which is equipped with manufacturing execution system to provide real-time production monitoring and control, output control and monitoring, and record retention to comply with standard regulations.

The Covid-19 pandemic has fuelled a boom in demand for rubber gloves, which has attracted fresh capital into new production capacity from many local companies like AT Systematization.

Choong added that the group has invested money and high-skilled technicians in order to ensure its glove division can withstand future challenges, such as when the demand-supply normalises.

“The group is interested in the long-term growth potential for the glove industry and not just on the supernormal cycle.

“As we believe demand for gloves is inelastic despite the positive development of the vaccine against Covid-19 recently, we have invested into the best technology to help our glove division grow,” he said.

AT Systematization’s share price gained 1.5 sen or 8.11% to close at 20 sen yesterday.

Meanwhile, another newcomer to the glovemaking scene, Hong Seng Consolidated Bhd, announced via its subsidiary, Hong Seng Industries Sdn Bhd (HS Industries), that it will be acquiring a 105-acre (42.5ha) federal land in Kedah Rubber City for RM45.74 million for setting up its nitrile butadiene latex (NBL) manufacturing plant.

Hong Seng chairman Datuk Teoh Hai Hin said HS Industries was incorporated with the intention to engage in the manufacturing and trading of NBL.

“By setting up our own NBL plant, it will provide a timely opportunity to secure constant internal supply for our subsidiary, Hong Seng Gloves Sdn Bhd’s plant in Kedah and at the same time, filling the vacuum in the NBL shortage to capture the market.

“Ideally, this will enable us to be an integrated glove and NBL manufacturer in Malaysia by having both upstream and downstream segments of the glove manufacturing supply chain,” he said in a press release yesterday.

According to a filing to Bursa Malaysia yesterday, there is no upfront payment required to be made by HS Industries for the land with the offer letter to be issued by the Northern Corridor Implementation Authority.

Hong Seng obtained shareholders’ approval to diversify its business to include manufacturing and trading of gloves and other personal private equipment products, healthcare products, services supply and hire purchase as of Dec 15.

It also received shareholders’ approval for the turnkey agreement, which entails engaging Howellcare Industries Sdn Bhd to plan, design, supply, instal and commission the glove production plant and undertake all marketing and sales of the nitrile butadiene rubber gloves for the initial stage.

The contract value of the turnkey project is set at RM59.4 million.


Source: The Malaysian Reserve – 29 December 2020 (Tuesday)