IPOH (May 5): A glove manufacturing factory is being planned in Batu Gajah that involves an investment of RM800 million over 10 years and it is expected to create 4,000 job opportunities.
Perak Menteri Besar Datuk Saarani Mohamad said the joint venture between the Perak State Development Corporation (PKNPk) and Kamunting-based Professional Latex Sdn Bhd was expected to offer continuous benefits in the form of long-term economic growth, job creation, skills development and a catalyst for cultivating innovation.
He described it as a strategic investment, given that the Covid-19 pandemic had increased the demand for products from the rubber-based industry, as well as healthcare-related sector.
“The country’s rubber glove production for the export market is estimated to hit 220 billion units this year, or 67% of global demand.
“The demand at the international level is expected to rise to 420 billion this year from 380 billion in 2020 and is expected to remain high, following several factors, including better awareness of rubber glove usage, the change in how companies operate, and the mandatory usage for various economic and business activities,” he said after witnessing the signing ceremony between PKNPk and Professional Latex today.
PKNPk chief executive Datuk Redza Rafiq Abdul Razak signed on behalf of the agency, while Professional Latex was represented by its chief executive officer Kok Yoon Lim.
The glove factory will be built in five phases over a period of 10 years on 18.3 hectares at the Bemban II Industrial Estate in Sungai Terap, Batu Gajah. The first phase, scheduled from 2023 to 2024, will involve an investment of RM160 million.
Saarani said the factory, when fully completed, would have 80 production lines that were expected to produce about 24 billion gloves per year.
“The estimate is based on the compliance with the new normal standard operating procedures for activities outlined by the Health Ministry and the International Trade and Industry Ministry, apart from the social compliance guidelines that are set at the international level.
“This initiative is in line with the Perak Sejahtera Development Plan 2030 that will make smart partnerships as one of the state’s key methods to drive the state’s economic growth through active private sector involvement and to create job opportunities as well as increase economic activities among the locals,” he said.
Saarani added that more local and foreign companies were expected to set up base in Perak, due to the various incentives offered.
Source : The Edge Markets – 5 May 2021 (Wednesday)