Selangor Journal
Hartalega Holdings Bhd (Hartalega)

Report: Glovemaker Hartalega acquires 95-acre land in Banting for future expansion

SHAH ALAM, Aug 3 — Hartalega Holdings Bhd (Hartalega) has acquired a 95-acre parcel of land located in Banting to be used as the future site for the glovemaker’s next phase of expansion, Hartalega Next Generation Complex (NGC) 2.0., The Edge Markets reported on Thursday.

NGC stands for Hartalega’ Next Generation Integrated Glove Manufacturing Complex in Sepang.

Citing Hartalega’s annual report released on July 30, the preliminary plans for NGC 2.0 include seven production plants, comprising 82 production lines with an installed capacity of 32 billion pieces of gloves.

“As we continue to ramp up capacity, we are cognizant of the fact that the baseline for global demand has shifted and this is expected to be the new normal.

“Premised on this and as a group which adopts a longer-term perspective, our strategic growth plans are aligned with the anticipated long-term needs of the global healthcare industry,” the report quoted Hartalega executive chairman Kuan Kam Hon.

Kuan said that the plan is expected to bring the group’s total installed capacity to 76 billion pieces per annum once the site is completed.

“For the short term, given this critical period for the world, we are steadfast in fulfilling our role and responsibility in the healthcare value chain.

“Going beyond this and looking ahead, we intend to leverage on our strong foundation and technological edge to maintain our positive trajectory in the years to come,” Kuan was quoted in the report.

For the financial year ended March 31, 2020, Hartalega recorded RM434.78 million in net profit with a record of RM2.9 billion in revenue.

Kuan said higher sales volume had supported the group’s performance, which increased by 8.8 per cent to 31 billion pieces in 2020 following the Covid-19 pandemic.

Meanwhile, in a separate report today, Hartalega was reported to have overtaken Public Bank Bhd to become Malaysia third most valuable listed company on July 2020’s final trading day on Thursday after its market capitalisation of about RM69.51 billion exceeded Public Bank’s estimated RM66 billion.

Hartalega’s share price had closed up 16 sen or 0.8 per cent on Thursday at RM20.28 while Public Bank shares fell 54 sen or 3.08 per cent to RM17.

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Editor Selangor Journal