Permaju And Anzo To Jointly Expand Glove Factory In Perak




Permaju and Anzo to Jointly Expand Glove Factory in Perak
Anzo Holdings Bhd is forming a joint venture (JV) with Permaju Industries Bhd to get its glove factory in Manjung, Perak up and running in the current quarter of this year
  The JV is to refurbish and expand the factory, located on an 8-acre site, to produce more than 3 billion pieces of medical gloves or nitrile gloves a year, worth over US$400 million
  Anzo wants the factory up and running soon with more production lines because it has more orders coming in from the United States and Europe
  Already in hand it has an order book worth US$200 million to supply over 2 billion pieces of medical gloves or nitrile gloves to the United States and Europe starting this year.   Anzo is anticipating the orders to increase as there is a shortage of medical gloves around the world
  The number of coronavirus cases around the world as at July 12, 2020, is at a staggering 12.39 million while total deaths are 557,395 and the numbers are rising drastically
  The total number of cases in the United States is 3.22 million and infections continue to inch up in the country. The United States also recorded a total death toll of 135,822.


  Several other countries around the world are also hit hard by the global pandemic, including India, Canada, Russia and the UK
  Countries around the world have been looking at Malaysia, which is the world's biggest producer of medical gloves

Malaysian glove manufacturers, whose stocks have rallied since the beginning of the outbreak of the disease, are expecting more orders soon
  After the United States announced the new numbers in coronavirus cases this week, the stocks of Malaysian glove manufacturers like Top Glove, Supermax, Kossan and Hartalega jumped to a new high.   The shares of Anzo also leaped up after it announced that it was acquiring the glove factory
  To recap, Anzo is paying RM55 million to acquire the factory producing medical and/or nitrile gloves in Manjung.


  The company has entered into a term sheet with Wintrade World Sdn Bhd to acquire the company's assets, including land, building, machineries and equipment in Manjung
  We understand the company has been in business for over 18 years and operating with 9 production lines
  Anzo said the assets are ready to be mobilised and commissioned to produce 1.2 billion pieces of medical and/or nitrile gloves a year, or 100 million pieces a month.   While Anzo did not say how much in revenue it would generate from this business, we assume that 1.2 billion pieces of gloves would translate to about RM400 million in revenue for the group
  With the expansion, the factory will have 12-15 lines, which means it would be able to increase production to over 2 billion pieces per annum

THE END 

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