MALAYSIA: Top Glove targets 30% sales growth in 2016

Rubber glove manufacturer Top Glove Corp Bhd is targeting a 20% to 30% growth in sales for the financial year ending 31 Aug 2016.

Top Glove chairman Tan Sri Lim Wee Chai said the company has a good chance of achieving its sales targets despite the challenging economic environment. “Even in the first half of 2016, we have recorded a 31.1% increase in sales growth from the first half of 2015. As a whole, I think we are doing very well,” he said during a teleconference briefing on 16 Mar 2016.

The company will continue focusing on automating its operations, and also place emphasis on research and development as well as bring its cost down.

Although it expects challenges within the industry to intensify, Lim said it could also present opportunities as the more efficient players will stand out from the rest, of which the latter might have to consider scaling down. “When there is too much capacity, some might consider slowing down expansion or not running their lines. That itself also will be good for us to match current demand.”

Top Glove is looking at an additional capacity of 7.8 billion pieces per annum through 56 new production lines by February 2017. This will bring its total number of factories to 26 with 540 lines with a capacity of 52.4 billion pieces per annum.

“Whether it is a good time or bad time, our practice is to add factories. … We will not slow down because demands will continue to grow,” Lim said referring to the one month delay in the expansion of its factory in Lukut, Port Dickson.

Meanwhile, the company is in talks with several parties for potential merger and acquisition opportunities. Lim targets to acquire between one to two glove companies by December 2016.

Source: Daily “The Star”, Kuala Lumpur; 17 Mar 2016
(Syed Rashid Ali, Karachi, Pakistan)