Top Glove expects Covid factory closures to impact delivery times, 2021 sales

Shah Alam, Malaysia – Top Glove’s temporary closure of production factories due to a Covid cluster in Meru, Klang, Malaysia, is expected to impact annual sales next year, the Malaysian gloves maker has announced.

“We expect delays in some deliveries by about two to four weeks, as well as a longer lead time for orders,” the group said in a statement 24 Nov.

As a result, the gloves maker said it estimated a possible 3% impact on projected annual sales for financial year 2021, but did not give detailed figures.

To minimise the impact of the closures on customers, Top Glove said it was allocating sales orders to unaffected factories and rescheduling deliveries where possible. 

The Malaysian gloves manufacturer announced 23 Nov that it was temporarily stopping production, in stages, at its rubber gloves manufacturing facilities in Meru, Klang, to allow health authorities to carry out Covid screenings at the sites.

The group said it had stopped production at 16 facilities in the region since 18 Nov to enable Covid tests. The balance 12 facilities in the area have been operating at "much reduced capacities," it added.

Top Glove posted record high sales of RM7.2 billion (€1.4 billion) for the financial year ended 31 August, helped by higher volumes and average selling prices. 

In its annual financial report in September, the gloves maker said it projected a 25% growth in demand for rubber gloves in 2021.