iNix-L&S Glove starts commissioning additional 2 latex glove production

By ANIS FARHANAH MALEK
anisfarhanah@dagangnews.com

KUALA LUMPUR 11 Jan. - iNix Technologies Holdings Berhad's wholly-owned subsidiary, INix Glove Manufacturing Sdn. Bhd.  has signed a 10-year lease agreement (renewable for another 10 years) for a glove factory site measuring 2.25 acres in Beranang, Selangor in preparation for its venture into glove manufacturing with the acquisition of a glove manufacturing company.

The Executive Director of iNix, Siva Kumar Kalugasalam said, earlier last month, with the full support of the board members, iNix has entered into a Memorandum of Agreement (MoA).

"....And has paid 45% deposit to acquire L&S Gloves Sdn. Bhd. (L&S Glove), in which the definitive agreement for the acquisition is at advanced stage and pending finalisation," said him in a statement.

Currently, L&S Glove has two existing production lines.

According to director of L&S Gloves, Teo Yoek Leong, with the new tenancy agreement, L&S Gloves and iNix Glove will be able to add two more production lines next month.

Thereafter, INix would add two production lines every three months until a total of 14 production lines are commissioned.

The Chairman of iNix ,Tan Sri Syed Mohd Yusof Syed Nasir said, iNix's move to lease the factory and the commissioning the two out of the 12 additional production lines demonstrates their firm commitment and determination to venture into glove manufacturing and expansion of 14 lines within 12 months.

Daily production of gloves are sold out in advance and delivery to their customers are done on daily basis.

L&S Glove has sufficient orders to sustain for the next two years for the planned 14 production lines which has a production capacity of over 110 million pieces of latex gloves a month.

On 7th December last year, iNix has inked a MoA with L&S Gloves to acquire 51% equity interest of the latter, which is currently in production.

This would be iNix's latest manoeuvre to penetrate into the lucrative rubber glove industry.

Director of L&S Gloves, Teo Xiong Sheng said, total Inix’s investment into this project is estimated to be no less than RM50 million.

“97% of the production would be exported to China and India and the remaining for domestic consumption.

"The company is also eyeing new markets such as Europe," said him. - DagangNews.com