VIETNAM: Top Glove sets up Vietnam subsidiary for glove manufacturing

Top Gloves Corp Bhd, which said earlier this year (2018) it would be investing MYR 100 million to set up a new plant to produce vinyl gloves in Vietnam, announced it has incorporated a subsidiary there for the purpose of manufacturing gloves and other products. The subsidiary that was incorporated on 19 December 2018 as a one-member limited liability company has a charter capital of VND 136.70 billion (about MYR 24.42 million), Top Glove said in a stock exchange filing on 21 December 2018. The subsidiary is known as Top Glove Vietnam Company Ltd.

In March 2018, Top Glove executive chairman Tan Sri Dr Lim Wee Chai said the group was adding MYR 100 million to its capital spending for the current financial year to expand its vinyl glove production to Vietnam instead of to China, as the cost of production in the latter was getting expensive. The manufacturing expansion will potentially include latex gloves as well. Lim said the Vietnam factory, to be developed on a 20-acre plot, will feature 10 production lines in the initial stage to produce at least 1.5 billion pieces of vinyl gloves annually. Currently, the group produces 2.2 billion pieces per annum.

Source: theedgemarkets.com, Kuala Lumpur; 21 Dec 2018
(Syed Rashid Ali, Karachi, Pakistan)