Fri12152017

LAST_UPDATEFri, 15 Dec 2017 5pm

Hartalega To Invest RM300m-RM400m Each On Remaining Three NCG Plants

KUALA LUMPUR: Hartalega Holdings Bhd will spend between RM300 million and RM400 million capital expenditure (capex) each on the remaining three plants at its the Next Generation Integrated Glove Manufacturing Complex (NGC) in Sepang over the next three years.

Its managing director Kuan Mun Leong said the capex is required to fully complete its RM2.2 billion NGC complex.

"To date, we have spent RM1.2 billion in the NGC project and it will have a total of six manufacturing plants including workers quarters, research and development centre, sports complex as well as learning centre," he said at a press conference after Hartalega's annual general meeting in Kuala Lumpur, today.

In 2014, Hartalega embarked on the NGC to boost its annual capacity from 14 billion to 42 billion pieces progressively.

To date, 36 lines have started running since its first commission in early 2015.

"We have three plants in NGC that are fully commissioned. Each plant houses 12 production lines," he said.

Kuan said the first production line of Plant 4 started running in August, 2017. Subsequently, it will have one production commissioned every month, with a total of 12 lines.

Kuan said it is working on plants 4, 5 and 6. Plant 4 will provide an additional of 4.7 billion pieces of gloves in annual capacity.

"In total we have 37 of production lines currently operating in NGC. The total target of the production line after full completion would be 72 production lines by 2021," he said.

Kuan pointed out Plant 5 has just started piling works in July this year and it expects the first production line in NGC would start its operation by April 2018.

"We have a timeframe of one year to fully commission all 12 lines at plant 5. Hopefully by April 2019, all the production lines in Plant 5 will be running," he said.

Kuan said for the first-quarter of 2017, the export of rubber glove from Malaysia grew by 26 per cent.

Hartalega group executive chairman Kuan Kam Hon said the company does not plan to venture into condom manufacturing.

"Our company is very focused on glove. There are still plenty of opportunities for rubber glove. There is no necessity to diversify and we will continue to focus on something that we can do very well," he said.

- NST