KUALA LUMPUR: GIIB Holdings Bhd's subsidiary GIIB Healthcare Products Sdn Bhd has started operations of its latex glove manufacturing facility in Nilai, Negri Sembilan.
The technical rubber compound provider said the facility boasted five double former glove-dipping production lines with a production capacity of 1.05 billion pieces of glove per annum.
The production lines are interchangeable to produce latex or nitrile gloves.
"GIIB will manufacture the latex gloves under its own brand 'GIIB Healthcare' and serve as an original equipment manufacturer for local and international clients.
"Under a maximum scenario, producing at full capacity and given the current average selling price of about RM90 per 1,000 latex gloves, revenue contribution from this plant can reach about RM94 million per annum," it said.
GIIB Holdings chief executive officer and executive chairman Tai Boon Wee said the launch of its first glove manufacturing plant today marked its foray into glove making.
Tai said GIIB Holdings had secured a strong sales order for the year, showcasing the quality of its products.
It expects the glove business to start contributing to its financial year ending June 30, 2023.
"We expect the exports for rubber gloves to remain robust, with growth in the double digit region.
"Overall, even into the post-Covid-19 era, we believe demand for gloves will remain strong in light of the heightened health awareness brought about by this pandemic.
"We are optimistic that this foray will provide the company with a sustainable recurring income stream and enhance its bottomline going forward," he said.