A right move by Permaju Industries Bhd since there are global demands for the gloves for the moment.
Permaju Industries Bhd has incorporated a wholly-owned subsidiary, Permaju Glove Sdn Bhd (PGSB) to venture into glove manufacturing riding on the global shortage of gloves.
In a filing with Bursa Malaysia last Friday, Permaju said PGSB, incorporated on June 5 2020 is 100 percent-owned by the group. The intended principal activity of PGSB is to manufacture, distribute, buy, sell and generally deal in rubber goods for industrial and commercial purposes.
“The rationale of the incorporation of PGSB is to facilitate the expansion of the business activities of the group and its subsidiaries.”
Permaju’s decision to incoporated PGSB since there are surge in demand because of the deadly novel coronavirus or Covid-19 in China that started last December 2019 and has since morphed into a global pandemic. More than 7 million people have been infected and the virus has now claimed over 400,000 lives worldwide.
Permaju is involved in the distribution of Volkswagen and Ford franchises, also property development and owns big parcels of land in Sabah and Seremban, Negeri Sembilan.
In Seremban, it has more than 300 acres of land that is suitable for property development or industrial activities. The group has been mulling to use the Seremban land to undertake various businesses, including property development projects but the plans did not materialise due to the challenging market conditions. They may use the land to construct a glove manufacturing plant for its new venture.
Currently in Malaysia, the glove manufacturing business is dominated by Top Glove Glove Corp Bhd, Supermax Corp Bhd, Hartalega Holdings Bhd and Kossan Rubber Industries Bhd.
Last year, global demand for gloves was 290 billion pieces, of which 187 billion were supplied by Malaysia. The current global demand for gloves is more than 300 billion pieces, owing to the pandemic.
Analysts who spoke on condition of anonymity said that Permaju may emerge as the next big player in the market as it has strong investors’ backing to take glove manufacturing to a higher scale. They also believe that demand for gloves will continue to rise because of a shortage of gloves in major markets worldwide.