PETALING JAYA: KTG Bhd, formerly DWL Resources Bhd with its core business in the ceramics industry today announced that its wholly-owned subsidiary APPI Sdn Bhd has entered into a memorandum of understanding (MOU) with Howellcare Industries Sdn Bhd to appoint Howellcare as a turnkey contractor to plan, design, supply, install and commissioning of four units of nitrile butadiene rubber (NBR) double former glove dipping production line and with four lines utilities support system for a new glove factory for RM54.8 million cash to be set up at the existing factory of KTG group in Kamunting, Perak.
KTG is one of the oldest ceramic companies in the country and its revenue is mainly derived from trading, manufacturing, exporting and marketing of planters and pots, which have been facing increasing challenges in the past few years and therefore, the froup has recently started its plan to expand its ceramic products selection to include manufacturing of ceramic hand moulds also known as ceramic glove hand former for the use of gloves production.
The ceramics glove hand formers are a vital tool for the glove manufacturing process whereby the moulds are dipped in a liquid latex, vinyl or PVC mass; the material then adheres evenly to the ceramic dipping former, dries and, following several other processing steps, the finished glove can be removed from the mould. Following the ceramics hand former expansion plan, the group saw the opportunity in glove manufacturing business which has led to the MOU with Howellcare to complement its core business.
It is predicted that the disposable gloves market size is expected to grow at a compound annual growth rate of over 14% during the period 2019-2025 according to a report by ResearchandMarkets.com and the high demand in gloves are directly implying a high demand in ceramics glove hand formers.
KTG executive director Sim Chiun Wee said as the demand for examination gloves has been overwhelming with an order waiting list of more than a year for major glove players since Covid-19 outbreak earlier this year, the group believes the MOU will enable us to tap on the shortage of the gloves supplies and capture the excess orders in the market.
“Besides that, the demand supply imbalances of the glove industry are only expected to normalise after 2022 despite average selling prices expected to decline. Even then, with the rising global awareness on pandemic and diseases, the consumption of gloves is expected to increase post Covid-19.
“Therefore, KTG believes that albeit on a smaller scale, the glove manufacturing venture and ceramics glove former expansion plan would bring positive revenue contribution to the group upon its commencement and KTG would also be able to play our role in upholding the nation’s health,“ said Sim.
Through the four new glove manufacturing production lines and the complementary ceramic hand former manufacturing business, KTG aims to reduce the cost of the gloves since it will also be producing its own glove former.
“With the competitive pricing and quality end products, we are confident that the new business will be fruitful and the expansion for our glove production lines will be even lower in the future. Besides that, there are also many other players in other countries who are venturing into glove manufacturing business and they will need to source for glove hand formers so APPI intends to capture these markets too,” he added.
The expected production capacity and output for each of the NBR double former glove dipping production line is 241.92 million pieces of gloves per annum hence the total expected production capacity and output for all four units of the NBR double former glove dipping production lines is 967.68 million pieces of gloves per annum. Meanwhile, the target production capacity of the ceramics glove hand former is up to 2.4 million pieces per month.
