21 October, KUALA LUMPUR – Mah Sing Group Berhad (Mah Sing) has commenced additional piling works to accommodate 12 units of new, high speed glove dipping machines at its glove manufacturing factory in Kapar, Klang, to meet its targeted production date of April 2021 to meet strong pent-up demand.
The piling works are expected to be completed by November 2020, to be immediately followed by installation of the machinery. These 12 production lines are Phase 1 of Mah Sing’s ambitious diversification into gloves and has a maximum production capacity of up to 3.68 billion pieces of gloves per annum.
Mah Sing’s Founder and Group Managing Director, Tan Sri Dato’ Sri Leong Hoy Kum said, “Similar to our property development’s fast-turnaround business model, we are fast-tracking our diversification into gloves. Our first glove factory ready, and is ultra-long to accommodate modern, high speed machines which can run at a speed of 38,000 pieces of gloves per production line per hour. The factory also has a suitable roof height to house these mega machines. We have also secured supply of both Nitrile-butadiene rubber and latex raw materials, and should be able to quickly meet demand of our customers. We are targeting production by as early as April 2021.”
While Mah Sing has 40 years of experience in plastic manufacturing and exports to 45 countries, the gloves business will be primarily be managed by a professional team with experience in glove manufacturing. Mah Sing would be able to tap onto its expertise and know-how of its regional plastics business in order to synergize with the gloves business.
With a build-up of approximately 228,800 sq ft, the current factory is Phase 1 of Mah Sing’s new foray into glove manufacturing. Fabrication works for the new machineries has already started at the equipment supplier’s factory, and installation of the initial lines are expected to commence in November 2020; the first 6 production lines are expected to be ready for operation as early as 2Q 2021, followed by another 6 production lines expected to be ready by 3Q 2021.
Mah Sing is targeting a second phase of the expansion plan, which includes exercising the option to take up the other portion of the Kapar factory (build-up of approximately 287,500 square feet). This could accommodate another 12 new production lines and increase the capacity up to another 3.68 billion pieces of gloves per annum. The Phase 2 expansion is targeted to happen when demand outstrips supply for Phase 1. At this juncture, Mah Sing Healthcare has secured letters of intent from several prospective customers and the cumulative indicative orders have already exceeded the estimated maximum capacity for both phases of the Kapar factory. If demand permits, Mah Sing Healthcare will gradually expand up to 100 production lines as part of future expansion plans. These 100 production lines could potentially produce up to 30billion pieces of gloves per annum.
As the Kapar factory is expected to start its operation with 6 production lines as early as 2Q 2021, the Group is in a good position to take advantage of the high spot price of gloves. Mah Sing expects the glove manufacturing business to be able to generate revenue for the Group relatively quickly with the projected contribution estimated to come in as early as 2Q 2021.
The new gloves business, which predominantly is targeting the export market, will allow Mah Sing to ride on the booming glove-manufacturing segment and further strengthen its manufacturing division, which is currently focusing on plastics business. It is expected to provide the Group access to the global market and generate more recurring and steady income for the Group. It will be a good complement to the property business which focused on the domestic market, and more cyclical in nature.