PETALING JAYA: Iconic Worldwide Bhd is looking to diversify its existing core businesses to include manufacturing and trading of personal protective equipment, as well as disposable face masks and gloves (PPE business), with a total investment of RM155.51 million.
A filing with Bursa Malaysia shows that the group plans to install and commission glove and disposable face mask production lines which are expected to yield a minimum production capacity of 3.1 billion pieces of gloves a year and 222.7 million pieces of face masks a year.
The RM155.51 million investment will be used for land acquisition, construction of a manufacturing facility, installation and commission of production lines, other equipment and working capital. It will be financed via a combination of internally generated funds, bank borrowings, and/or fundraising exercise.
Iconic has identified and plans to acquire a parcel of land measuring 6 acres in Batu Kawan, Penang, for the construction of the new manufacturing facility.
A total of 22 production lines comprising 12 glove-dipping lines and 10 mask production lines will be installed and commissioned over 12 months, at a total cost of RM78.2 million.
The exercise is expected to be completed by second half of 2020. Furthermore, the new factory is expected to be completed within 12 months from the commencement of construction and operate by second half of 2021.
Iconic Worldwide managing director Datuk Tan Kean Tet (pix) expects demand for PPE to be sustainable even after the Covid-19 pandemic due to prevailing public awareness of the need for self-protection and hygienic practices.
“Therefore, it is timely to capture the rising demand for the product offerings under the PPE business. We will also be targeting countries with high Covid-19 infection rates such as European & US as principal export markets for the PPE business.”
He added that the proposed diversification will provide an alternative income stream to the group, and will also provide an opportunity for the group to grow its revenue and enhance its business portfolio.