Aspen (Group) Holdings Ltd, which is diversifying from property into glove making, has secured a glove sales and distribution contract worth US$100 million. In a statement today, Aspen said its subsidiary Aspen Glove Sdn Bhd (AGSB) had entered into a sales and distribution agreement with a distributor for the offtake of its entire 2021 production.
ACE Market-listed INIX Technologies Holdings Bhd and L&S Gloves Sdn Bhd will start commissioning an additional two latex glove production lines by February to complement the existing two lines which are in production.INIX executive director Siva Kumar Kalugasalam said the company’s wholly owned subsidiary, INIX Glove Manufacturing Sdn Bhd (iNix Glove), has signed a 10-year lease agreement (renewable for another 10 years) for a 0.91ha glove factory site in Beranang, Selangor.
Glove makers are set to continue recording stronger earnings in 2021, on the back of higher average selling prices, increase in production capacity and better economies of scale. An analyst with a local bank-backed brokerage said demand for rubber gloves will continue to be strong next year, mainly due to the impact of the Covid-19 pandemic and distribution of the vaccine across the globe.
The growing global medical-grade silicone rubber market is providing fresh opportunities for rubber medical component manufacturers to expand. Silcotech Industry Sdn Bhd, a rubber component producer based in Sungai Petani, Kedah, is one of the companies looking to leverage this surge in demand. “Three years ago, we ventured into the production of rubber medical parts, a diversification from our core business which was supplying silicone components to the consumer electronics industry.