Kuala Lumpur – Malaysian precision engineering and automation systems AT Systematization Berhad (ATS) is venturing into rubber gloves business, as part of its diversification strategy and in light of increased demand in the wake of the Covid-19 pandemic.
In a 16 July filing with the Kuala Lumpur Stock Exchange, ATS said it was pursuing a “three-pronged” approach towards its expansion into the gloves business.
As part of move, the group will include gloves and rubber machinery in its engineering portfolio.
In addition, ATS is aiming to acquire Malaysia-based Pearl Glove by the end of the third quarter of 2020, while planning to build new production capacity elsewhere.
The group said it planned to commission up to 20 production lines in 36 months to manufacture 3.2 million pieces of medical grade nitrile rubber gloves per year.
In the initial stage, the group’s wholly owned subsidiary AT Glove Engineering Sdn Bhd (AGESB) is investing Rm36.1 million (€7.2 million) in six glove dipping lines, in an unspecified location, which will come online by April 2021.
The six lines, ATS said, will manufacture 928 million pieces of gloves per year, including 103 million pieces from the single former dipping line and 825 million pieces from the double former dipping lines.
