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SEE: Malaysian glove maker UG Healthcare wins for overall sector
The warns that the MCO restrictions in Malaysia till Feb 18 is inevitably slowed down the construction of its new factory for the additional capacity of 1.2 billion pieces of gloves per year. However, it expects to commission the production lines in the 3Q2021, which will up the group’s total manufacturing capacity to 4.6 billion pieces of gloves per year. “Our OBM model comprising both upstream manufacturing and downstream distribution with our own ‘Unigloves’ brand, allows the group to manage our supply chain efficiently to ensure all our customers receive their required inventory of gloves,” says Lee Jun Yih, executive director and finance director of UG Healthcare. “With the shortage in the supply of gloves likely to persist, arising from challenges such as delays in capacity expansion and shipment of goods, we will continue to balance the increasing average selling prices of gloves and the rising costs across the supply chain to make it palatable to our customers,” Lee adds. “While we continue to experience demand outstripping supply across our markets, we are also mindful of new challenges caused by the pandemic and uneven global economic recovery. We are studying and planning the possibility of further capacity expansion beyond 4.6 billion pieces of gloves per annum, and will continue to invest in building and expanding our distribution network, local warehousing and logistics infrastructure, as well as marketing to further entrench and enhance the brand awareness of our proprietary ‘Unigloves’ brand.”