VIENNA—Semperit A.G. will open a new glove production plant in Malaysia in 2016, the group announced on Aug. 26, adding that the initial costs of construction negatively impacted its medical sector's profitability.
Semperit announced in June 2014 that it was investing $56 million in a new facility, located on the site of the plant in Kamunting, Malaysia, where Semperit has been operating six production facilities for medical and protective gloves since its acquisition of Latexx Partners Berhad in 2012.
In its half-yearly financial report, the Austrian specialty rubber and plastics products group said it also was expecting to continue capacities expansion in the second half of 2015, in both the medical and industrial sectors, with $56 million earmarked for growth investments.
Semperflex hydraulic hoses, it said, performed well, and an expansion of the unit already was under way.
The group also said it expected a gradual ramping up of its industrial capacities in the second half of 2015.
“The recently added production capacities at the plant in Odry, Czech Republic, have been well utilized since the very beginning. Therefore, the next expansion phase is currently under way,” Semperit said in a statement.
The group reported that additional capacities in the conveyor belt plant in Bełchatow, Poland will be put into operation at the end of the third quarter of 2015.
“The Semperform segment achieved double-digit revenue and earnings growth despite weaker demand in key markets. This development is mainly resulting from the successful acquisition of the profile producer Leeser and the slow recovery of the handrail business in China,” the company claimed.