BATU KAWAN – Iconic Worldwide Bhd aims to become a leading global glove maker following its investment of RM155 million in a new personal protective equipment (PPE) manufacturing plant here in Penang.
Its managing director, Datuk Tan Kean Tet, said the group’s wholly-owned subsidiary, Iconic Medicare Sdn Bhd, intends to manufacture and trade latex and nitrile gloves for household, industrial and medical use, as well as two main types of disposable face masks.
“According to the Malaysian Rubber Glove Manufacturers Association, the world demand for gloves is estimated to be 330 billion pieces a year, and after the completion of our new manufacturing facility, we will be able to produce 3.3 billion pieces of gloves, which is equivalent to 1% of the global demand.
“The demand for gloves was 10% per annum pre-Covid-19, but it is expected to rise over 30% per annum due to the pandemic. We have set our sights on producing 17 billion pieces of gloves, which commands a global share of approximately 5%,” he said at the groundbreaking ceremony of Iconic Medicare’s PPE manufacturing facility by Chief Minister Chow Kon Yeow here today.
Tan said the new facility will install and commission gloves and disposable face mask production lines, which are expected to yield a minimum production capacity of approximately 3.3 billion pieces of gloves and 220 million pieces of face masks per annum.
“We expect the glove production to generate potential revenue of RM1 billion a year, while the production of disposable masks is expected to generate potential revenue of RM100 million per annum once it’s fully operational.
“In total, Iconic Worldwide is expected to generate a potential gross profit of RM450 million a year.”
He said the 2.2ha manufacturing facility is scheduled to be completed in July next year and operational in September of the same year.
Through the business diversification, Tan said the group hopes to reduce its dependency on tourism and hospitality segments, while generating more jobs and contributing to the economy of Penang and Malaysia. – Bernama, December 12, 2020
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