Kossan Clearing Land For Bidor Glove Factory in September
Kossan’s owned group’s land in Bidor, Perak, which measures 824 acres (333.5ha), will undergo land clearing in September.
The land is expected to be cleared by June 2020 and ready for the development of a new rubber glove manufacturing plant, which is targeted for completion in 2021.
Kossan Rubber Industries Bhd expects to see limited impact from the current US-China trade war, said group managing director and chief executive officer Tan Sri Lim Kuang Sia.
Speaking at a briefing after its annual general meeting, he said the group’s rubber glove business is resilient and recession proof and that there would be continued demand for its products.
“Market wise and sales wise there is no issue,” said Lim.
He added that the group’s technical rubber segment may even enjoy marginal positive impacts as it supplies rubber autoparts to the US.
When asked if the group is looking to boost its technical rubber and cleanroom product segments, Lim said for now, the group was not looking to boost its non-rubber glove segments.
He added that the group is looking to dispose of its land in Banting, Selangor, which measures 4.27 million sq ft and was purchased from a subsidiary of a company controlled by steel tycoon Tan Sri William Cheng for RM95.99 million or RM22.50 per sq ft on Aug 30, 2017.
Lim said at current market rates, the land was valued at RM30 to RM40 per sq ft.
Kossan’s glove division saw a 7.1% y-o-y increase in its revenue, to RM497 million this quarter. The growth was supported by higher glove sales (+18.8% y-o-y) and increased production capacity from Plant 17 (+1.5 billion pieces per annum) as it was fully commissioned in November 2018.
Source: The Edge Markets