The world's largest rubber glove manufacturer-Malaysia's top glove company said it will invest 3 billion ringgit ($700 million) to modernize its production facilities in order to reduce its dependence on migrant workers. It is expected that by 2026, 3 billion ringgit will be used to add 450 new production lines, and the annual production capacity of top-level gloves will increase by nearly 80% from 78.7 billion to 140 billion. Artificial intelligence used for quality control can reduce the number of defective products and significantly increase production capacity.
It is understood that the current top glove workers produce an average of 16,000 pairs of gloves per day. The new crown pandemic resulted in orders for top gloves from China and Brazil nearly quadrupling, while orders from the US surged by 150%. From March to May this year, the sales of top gloves reached 1.688832 billion ringgits (approximately RMB 2.788 billion), an increase of 42% year-on-year; the net profit was 3.4789 billion ringgits (approximately RMB574 million), which was the same period last year 4.7 times, breaking the highest level in the history of the year.
Of the 13,000 factory workers employed by top gloves, 11,000 are foreigners. To prevent the continued spread of the New Coronary Pneumonia epidemic, Malaysia imposed travel restrictions. Minister of Human Resources Sarawanan said: “No foreign workers can be hired before the end of the year,” raising concerns about labor shortages; top glove companies cannot bring in more migrant workers To help increase production. Gained a competitive advantage in terms of the ability to purchase rubber and cheap labor costs in domestic or nearby countries.
Top glove companies expect that with the increase in global sanitation protection awareness, the rubber glove market will continue to grow at a rate of more than 10% per year. Founder and Chairman Lim Wee Chai said, "Strengthening automation and digitization in all aspects of our operations remains our top priority. We have invested in advanced technologies and projects that combine artificial intelligence and robotic process automation."