As of the 24th, Malaysia's top glove company has more than 2,000 workers diagnosed with the new crown virus. The Malaysian government ordered the closure of 28 factories and affiliated dormitories of the world's largest supplier of rubber gloves step by step for isolation and virus screening.
According to the Malaysian Ministry of Health, the top glove company has recently seen a surge in new crown cases. Of the 5767 workers who have been screened, 2,453 have tested positive. The government last week ordered the implementation of a travel restriction order in the area where the top glove factory is located about 40 kilometers west of the capital Kuala Lumpur, for a period of 14 days and ending on November 30.
Reuters reported that Top Gloves has 47 factories in Malaysia and other Asian countries, of which 36 factories produce rubber gloves. Europe and North America are the largest markets. The company's statement submitted to the stock exchange on the 23rd stated that the operation of 16 factories in Malaysia will be suspended from the 18th of this month, and the remaining 12 factories have also substantially reduced production.
The Malaysian government has not announced the timetable for closing the factory. MIDF research company analyst Wu Baishan (transliteration) said that the closure of the factory will reduce the production capacity of top gloves by 50%. If the factory is closed for two weeks and the current average selling price is maintained, net income in fiscal 2021 will be reduced by 4%. However, tight supply may push up market prices and offset the impact of production cuts on revenue.
According to the Malaysian Rubber Glove Manufacturers Association, nearly two-thirds of global medical gloves are supplied by Malaysian manufacturers, and top glove companies account for one-quarter of the global market.