KUALA LUMPUR – ACE market-listed Inix Technologies Holdings Bhd (Inix) and L&S Gloves Sdn Bhd will start commissioning an additional two latex glove production lines by February, to complement the existing two lines which are in production.
Inix executive director Siva Kumar Kalugasalam said the company’s wholly-owned subsidiary, INix Glove Manufacturing Sdn Bhd (iNix Glove) has signed a 10-year lease agreement (renewable for another 10 years) for a 0.91ha glove factory site in Beranang, Selangor.
“Earlier last month, with the full support of the board members, Inix entered into a memorandum of agreement (MoA) and has paid 45% deposit to acquire L&S Gloves, in which the definitive agreement for the acquisition is at an advanced stage and pending finalisation,” he said in a statement here today.
L&S Gloves director Teo Xiong Sheng said with the new tenancy agreement, the partnership 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,” he said.
According to Teo, L&S Gloves’ 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 have a production capacity of over 110 million pieces of latex gloves a month,” he added.
Meanwhile, Inix chairman 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 our firm commitment and determination to venture into glove manufacturing and expansion of 14 lines within 12 months.”
Inix inked an MoA with L&S Gloves on Dec 7 last year to acquire 51% equity interest of the latter, with an investment of RM50 million.
About 97% of the production would be exported to China and India and the remaining for domestic consumption. The partnership is also eyeing new markets such as Europe. – Bernama, January 10, 2021
