SHAH ALAM, Malaysia—Top Glove's temporary closure of production factories due to a COVID-19 cluster in Meru, Malaysia, is expected to impact annual sales next year.
"We expect delays in some deliveries by about two to four weeks, as well as a longer lead time for orders," the Malaysian gloves maker said in a Nov. 24 statement.
The gloves maker estimated a possible 3 percent impact on projected annual sales for financial year 2021, but did not give detailed figures.
To minimize the impact of the closures on customers, Top Glove said it was allocating sales orders to unaffected factories and rescheduling deliveries where possible.
The Malaysian gloves manufacturer said Nov. 23 that it temporarily was stopping production, in stages, at its rubber gloves manufacturing facilities in Meru to allow health authorities to carry out COVID-19 screenings at the sites.
The group said it had stopped production at 16 facilities in the region since Nov.18 to enable COVID-19 tests. The other 12 facilities in the area have been operating at "much reduced capacities," it added.
Top Glove posted record-high sales of $1.8 billion for the financial year ended Aug. 31, helped by higher volumes and average selling prices.
In its annual financial report in September, the gloves maker said it projected a 25 percent growth in demand for rubber gloves in 2021.
