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KUALA LUMPUR, August 18 (Bernama) -- Hartalega Holdings Bhd, which
manufactures nitrile gloves, expects to grow by 15 to 25 per cent for the next
three years, driven by strong demand in the global healthcare industry.
Executive chairman and managing director Kuan Kam Hon said strong demand is
expected from the continuous conversion of natural rubber gloves to nitrile
gloves in the US healthcare industry.
"Nitrile conversion is still on, coupled with the completion of Plant 5 by
the end of this financial year ending March 31, 2011. The full operation of
Plant 5 will also contribute a total of RM260 million in terms of annual
turnover," he told reporters after the company's annual general meeting and
extraordinary general meeting here Wednesday.
Currently, the company commands 23 per cent market share of nitrile gloves in
the United States, he said.
Kuan said the company's annualised growth rates over the last three years
showed that it had embarked on the right strategy to remain focus on the nitrile
glove sector.
Hartalega recently posted a pre-tax profit of RM53.7 million for its first
quarter ended June 30, 2010, which represents a 64.4 per cent increase from
RM32.7 million in the preceding year's corresponding quarter.
Deputy managing director Kuan Mun Leong said apart from the US market, the
company was looking at strengthening its presence in developing countries, which
could be converting to using nitrile gloves from natural rubber gloves due to
cheaper pricing.
He said to enter these markets, the company was looking at expanding its
Plant 1 from the current production of 700 million pieces a year to 1.4 billion
pieces, with some of the extra capacity to be used in producing natural rubber
gloves.
"By doing this, we can have a better foothold in these emerging markets,
especially with many new players in the nitrile glove business stepping up
competition," he added. At the moment, about 75 per cent of the company's sales
came from the US market, with the emerging markets taking up less than five per
cent of the exports.
-- BERNAMA |
