Pastel Gloves – in which the Singapore Exchange (SGX)-listed Enviro-Hub has a 25% stake in – has obtained approval from Malaysia’s Ministry of International Trade and Industry to produce nitrile medical grade examination gloves and natural rubber medical grade gloves.
To match the increase in output, the glove manufacturer has installed and commissioned its first automated glove-dipping line, also known as a single former glove-dipping line.
This is expected to an annual production capacity of 132 million pieces of gloves.
For more stories about where the money flows, click here for our Capital section
Going forward, Pastel Gloves will commission an additional glove-dipping line monthly, from this month. All its six production lines are slated to be operational by September.
Collectively, the company's six glove-dipping production lines are expected to give it an annual production capacity of 1.42 billion pieces of gloves.
Raymond Ng, executive chairman of Enviro-Hub believes that Pastel Gloves is “well-positioned to benefit from the current buoyant demand, as well as the elevated spot prices for gloves”.
Data from market research consultancy Frost & Sullivan shows that the global disposable glove market is slated to grow from US$8.7 billion ($11.7 billion) in 2019 to US$24.9 billion in 2025.
This represents a compound annual growth rate or CAGR of 19.1%, driven in part by the surge in demand for the personal protective gear following the coronavirus pandemic.
To this end, Ng is “confident that Pastel Gloves will add a recurrent revenue stream to the Group, allowing us to leverage on sustained demand for healthcare products.”
As at 2.03pm on Mar 16, shares of Enviro-Hub were up 11.3% or 0.8 cents to 80 cents.
See also: Enviro-Hub to invest in Pastel Glove for US$5 mil, to become 25% subsidiary after
