Hartalega Chairman says Glove Demand is Backed Up 3 Years
According to Hartalega chairman Kuan Kam Hon there is serious shortage of nitrile gloves on the market. It is estimated that over 120 billion gloves will be needed over the next 3 years to help meet safety regulations during the worldwide pandemic.
Kuan Kam Hon also stated that the current output of PPE gloves is approximately 38 billion per year. That leaves for billions of gloves needed across various industries such as culinary, hospitality, retail, medical and much more.
Glove usage in many third world countries was low prior to the pandemic. Glove usage in developing nations has more than doubled according to the chairman. As a result, Hartalega and other large glove manufacturers are expanding their production facilities at an aggressive speed.
Hartalega has stated that the are looking to expand their production by over 20% year over year in order to create a PPE glove surplus to supply private and public organizations. The corporation plans to produce over 95 billion gloves annually by 2027, making them an enormous player in the PPE industry.
According to the original Edge Markets Reports: “Hartalega reported a 134% year-on-year surge in its net profit for the first quarter ended June 30, 2020 (1QFY21) to a record RM219.72 million from RM94.06 million, as revenue jumped 44% to RM920.09 million from RM640.1 million, as it sold more rubber gloves with higher average selling prices (ASPs).” Thats a lot of money and a lot of growth.
And this is just the beginning as the pandemic does not have a clear end in sight. Polls indicate that even after there is a return to “normalcy” many citizens will continue to elect to wear PPE gloves and facemasks even if not mandated by local and federal governments.
Hartalega plans to acquire land surrounding their current #6 & #7 plants. The largest manufacturer of nitrile gloves plans to have 12 fully functional assembly lines by 2027 and hopes to single-handedly supply the world of a PPE glove surplus!
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