As of the 24th, more than 2,000 workers of Top Glove Malaysia have been confirmed to be infected with the new crown virus. The Malaysian government ordered the world’s largest rubber glove supplier to close its 28 factories and affiliated dormitory areas in steps to implement isolation and virus screening.
The government last week ordered travel restrictions about 40km west of the capital Kuala Lumpur, where the Top Glove factory is located, according to a recent surge in Top Glove cases reported by Malaysia’s Health Ministry, with 2,453 of the 5,767 workers screened testing positive. The order will last for 14 days and end on November 30. Top Glove has a total of 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 transaction on the 23rd The statement of the stock exchange wrote that operations in Malaysia will be suspended from the 18th of this month. The remaining 12 of the 16 factories in China have also significantly reduced production. According to the analysis, the official action will reduce the production capacity of Top Glove by 50%. If the official business is two weeks and the current average selling price is maintained, the net income in fiscal year 2021 will be reduced by 4%. However, the tight supply may push up the market price to offset the impact of the production reduction on the revenue.
According to data from 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-fourth of the global market.
Malaysia has announced the closure of most top glove factories, and its closed production capacity accounts for 11% of the world’s total. Will this lead to a shortage of disposable nitrile gloves again next month, causing prices to rise?
Malaysia is one of the major exporters of disposable gloves in the world. TOP GLOVE is by far the world’s largest manufacturer of disposable medical gloves. The closure of some factories due to the epidemic will make the market for disposable nitrile gloves already out of balance between supply and demand. Further intensification, the price of disposable nitrile gloves will continue to rise, and some overseas customer orders will be shifted from Malaysia to domestic glove manufacturers. Lanho Medical’s nitrile glove factory has been in a normal production state, with both production and sales booming, and has been coordinating resources from all parties. The newly constructed nitrile glove production line is also being finalized to meet the rapidly growing market demand for disposable protective gloves.
Post time: Apr-07-2022