Business

Friday February 27, 2009

Latexx to raise glove output

By DAVID TAN


KAMUNTING: Latexx Partners Bhd is allocating RM70mil next year to increase its production of latex and nitrile gloves to nine billion in 2011.

Group managing director Low Bok Tek told StarBiz that although the global economy had entered a recession, demand for the group’s medical gloves was still strong.

“Sales of our powder-free latex and nitrile gloves in January had also improved significantly over the previous corresponding period.

“This is why we expect the first quarter ending March 31 to chart better performance than the comparable quarter last year,” he said.

For this year, the group will install 16 more production lines, which would increase its production to six billion gloves a year from four billion currently.

“Next year, we will spend another RM70mil for our sixth facility in the Kamunting Industrial Estate (in Taiping).

“The plant is scheduled for completion in 2011 and will raise our annual production to nine billion pieces a year. It will also create over 2,000 jobs in Kamunting,” he said.

Low said the global economic crisis had affected the group’s sales to the food and beverage sector. “However, sales from the food and beverage, and general industry segments are less than 10% (of total revenue),” he said.

Low said the stronger US currency was favourable to the group’s financial position as it traded in US dollars.

Listed on Bursa Malaysia second board in 1996, Latexx Partners operates from a 20ha site in Kamunting Industrial Estate.

For the year ended Dec 31, the group posted a pre-tax profit of RM15.5mil on revenue of RM223mil compared with RM4.9mil and RM150mil respectively in 2007.


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