KUALA LUMPUR – Top Glove Corporation Bhd is expected to resume operations at all 28 of its glove manufacturing plants in Meru, Klang, within the next two to three weeks, said chairman Tan Sri Dr Lim Wee Chai.
He said seven plants had resumed operations during the first stage of reopening which began yesterday, while the second stage would see another seven plants restart operations by the upcoming weekend.
“Hopefully, all (28) factories would be running and everything will be back to normal within the next two to three weeks,” he said at a virtual briefing on the company’s results for the first quarter ended November 30, 2021 (Q1 FY21) here today.
Top Glove had temporarily closed 28 of its factories in Klang due to the spike of Covid-19 infections among its workers there. These 28 plants represent about 50% of the company’s production capacity.
However, Lim said the closure of factories in Klang since November this year was anticipated to affect only 4% of the company’s revenue for this financial year ending Aug 31, 2021 (FY21).
To lessen the dependence on foreign workers and create job opportunities for the locals, managing director Datuk Lee Kim Meow said, Top Glove aims to recruit 7,000 local employees in FY21 from close to 5,000 in FY20.
Asked about the penalty from the government following the company’s violation of the Workers’ Minimum Standards of Housing and Amenities Act 1990 (Act 446), Lee said thus far, Top Glove had yet to receive any news from the relevant authority.
The Labour Department has opened 19 investigation papers against six companies related to Top Glove, mainly for failure to provide adequate accommodation for its workers.
“But we wish to appeal to the government to help us, and to let them know that we are a serious company and we want to comply (with the regulations),” he said.
On how the Covid-19 vaccine would affect the company’s growth next year, Lim expressed confidence that global demand for gloves would remain firm despite the availability of the vaccine.
“Judging from our order book, with the capacity for next year having been fully booked, it shows that vaccine would not affect demand for gloves globally,” he said.
Demand for Top Glove’s products remained strong in Q1 FY21. This was driven by Asia excluding Japan, which surged 72.9% year-on-year (y-o-y), and Western Europe, which soared 70.2% y-o-y.
However, demand from North America slid 2% in Q1 FY21 from a year earlier, mainly affected by the import ban imposed by the United States Customs and Border Protection. – Bernama, December 9, 2020
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