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March 11, 2021 02:42 PM

Nitrile glove maker Hartalega plans $1.7 billion expansion

European Rubber Journal Report
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    PUTRAJAYA, Malaysia—Hartalega Holdings Berhad has rolled out a $1.7 billion investment plan to build 16 new manufacturing facilities over the next 20 years, the company has announced.

    Subsidiary Hartalega NSM Sdn. Bhd. has acquired around 250 acres of land in Bukit Kayu Hitam, Kedah in a deal with Northern Gateway—developer of the Kota Perdana special border economic zone.

    The acquisition, which includes a purchase option on another 130 acres in the same location, marks a new phase of growth for Hartalega, according to its March 10 statement.

    Hartalega claims to be the world's leading nitrile glove manufacturer, producing 43 billion pieces of gloves per year, from manufacturing sites in Bestari Jaya and Sepang, Selangor.

    The Malaysian group expects capacity to reach 63 billion gloves per year upon completion of the current Next Generation Integrated Glove Manufacturing Complex (NGC 1.5). The first plant is set to come in stream by 2024.

    A longer-term expansion plan in Kedah will add another 80 billion gloves yearly, eventually bringing Hartalega's total annual capacity to 143 billion gloves.

    The company expects to leverage advantages of locating in Kedah in northern Malaysia, including its proximity to the Malaysia-Thailand border as well as to Penang Port.

    "Going beyond the current COVID-19 situation and taking a long-term perspective toward the structural step-up in global demand, it is evident that our production capacity must be accelerated," Hartalega Holdings CEO Kuan Mun Leong said.

    The expansion plan, he said, will solidify Malaysia as the world's largest glove manufacturer and help to establish the northern region as an attractive destination for both foreign and domestic direct investment.

    "Our aim is to cultivate a robust supply chain as well as up-skilling local talents and vendors to transform the region into an integrated industrial park for medical devices in the future," the CEO said.

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