PNE PCB Berhad, a Malaysian printed circuit board manufacturer, said on January 7, 2021 that it would join a diversified business group and enter the rubber glove manufacturing industry. PNE Glove Sdn Bhd, a subsidiary of the group, plans to establish 5 glove production lines, each producing approximately 300 million pieces per year;once the nitrile glove production lines are fully operational, PNE is expected to produce approximately 1.5 billion gloves per year. It is reported that the surge in demand for medical gloves stimulated by the new crown pandemic is the main reason for the group's entry into glove manufacturing.
The latest research report shows that by 2027, the global rubber glove market is expected to reach US$22.1 billion. The market is expected to grow at a compound annual growth rate; from 2020 to 2027, it will grow by 14.7%.
PNE Glove has signed an agreement to lease an industrial building in Klang, Malaysia, where the factory will build a production base and is currently looking for suppliers/distributors of raw materials for rubber gloves production. "Constrained by site preparation, the installation of new dipping production lines and the lead time of raw material supply, it is expected that the production of rubber gloves will begin in stages in the fourth quarter of 2021."
PNE hopes to raise capital, bank borrowings and/or own funds for the new enterprise's operating expenditure capital expenditures and any additional capital needs.
The initial investment of $15 million is expected to cover the cost of installing and commissioning all five glove dipping production lines in related facilities. This includes setting up an automatic glove dipping production line, purchasing equipment and components (such as molding machines and molds), and other necessary systems and certifications. As the glove business may result in the transfer of 25% or more of the group’s net assets and contribute more than 25% of the net profit, the company will seek shareholder approval for the project.