PETALING JAYA: ACE Market-listed K-Star Sports Limited will partner AT Systematization Bhd to promote, market and sell the latter’s production of medical gloves in China and Taiwan.
K-Star’s wholly owned subsidiary KSTAR Healthcare Sdn Bhd yesterday signed a provisional offtake agreement with AT Glove Engineering Sdn Bhd, a wholly owned subsidiary of AT Systematization.
Under the agreement, AT Glove will assist K-Star in obtaining any required export or import license or other authorisation necessary for the export from Malaysia to China and/or Taiwan.
Its filing with Bursa Malaysia notes that the extensive base and sales network of K-Star in China and Taiwan as well as the availability of medical gloves by AT Systemization, could form a synergy that benefit both companies. The faster lead time for delivery under AT Systematization as compared to the incumbent players also give the two companies an advantage to tap into the Chinese market.
K-Star executive chairman Ding Jianping said the demand for medical gloves is still strong despite the availability of Covid-19 vaccine, as the escalation of infected cases is not showing any signs of abating.
“Aside from that, the mass deployment of vaccine and the effect of the vaccine would take time. Premised on this, we feel this is a good time to lock in the supply of medical gloves to our potential customers, which is why we entered this offtake agreement,” he said in a statement.
AT Systematization managing director Choong Lee An said being a new player in this industry means that it has a faster lead time for delivery, compared to the incumbent players.
