Top Glove Glove 28 Factories Closed In Batches, Chinese Rubber Glove Companies May Usher In Opportunities For Further Development

- Nov 26, 2020-

A few days ago, a senior Malaysian minister said on Monday that after the number of people infected with the new crown virus has increased significantly, Malaysia will close some factories in the world's largest latex glove manufacturer Top Glove in stages to check whether employees are infected with the coronavirus. The Director of the Department of Health of the Ministry of Health of Malaysia Nuo Xi Shan said that in the current test, 5,767 workers confirmed 2,453, and all confirmed personnel have been hospitalized and have been in close contact and entered isolation.

Top Glove is the world's largest manufacturer of latex gloves. Affected by the new crown pneumonia epidemic, Top Glove achieved record profits this year. Top Glove gloves' annual financial report released on September 17 stated that the demand for gloves will increase at an average annual growth rate of 20% in 2020, 25% in 2021, and 15% in the post-epidemic period. The company's monthly orders have increased by 150% compared to before the outbreak, and the delivery time has increased from 40 days to the current 400 days.

From the perspective of industrial distribution, the production of nitrile and natural rubber gloves is mainly concentrated in Southeast Asian countries such as Malaysia and Thailand; while the production of PVC gloves is mainly distributed in China. According to data from the Malaysian Glove Industry Association, in 2019, the global demand for disposable protective gloves was nearly 500 billion pieces, of which the market size of medical grade gloves reached 306 billion pieces, and the market size of non-medical grade gloves reached 189 billion pieces.

Top Glove predicts that industry demand growth will increase from 8-10% to around 12-15% after the epidemic in 2020. Top Glove gloves account for one-fifth of the global production. At present, the second wave of epidemics in Europe and the United States is spreading, and the demand for gloves is already strong. The closure of the company's 28 factories will accelerate the shortage of gloves. Analysts said that the current lockdown will not affect the company's revenue expectations, but if factory infections increase significantly and the government lockdown is extended, the company will reconsider the company's expectations.

Incorporated Medical is the main domestic manufacturer of nitrile gloves. In 2017, the company produced 11 billion PVC and nitrile gloves annually; Blue Sail Medical is the world's largest manufacturer of PVC gloves, with a global market share of 4% ; Kanglongda specializes in the research and development, production and sales of special and ordinary labor protection gloves, and is committed to providing customers with a full range of hand labor protection solutions. The current suspension of production of Top Glove gloves due to the new crown pandemic will provide new opportunities for the development of gloves in my country.