Medtecs International has partnered its supplier for face mask filters, Mytrex Health Technologies, to explore strategic collaborations to expand their presence in the international market.
Mytrex, which is listed on the Taiwan Exchange’s Emerging Stock Board, produces special medical supplies and non-woven materials to be used as a filter in face masks. It is also Taiwan’s largest manufacturer of face mask filters.
Under the terms of the agreement, both companies will look at opportunities to collaborate in Taiwan, the Philippines, the US and other regions, which include co-locating their plants to facilitate the vertical integration of personal protective equipment (PPE) production operations to ensure product quality and to minimise supply chain disruption.
The agreement, according to Medtecs, is in line with various governments’ policies of localising supply chains to facilitate the local production of PPE to cater to demand in their respective markets.
Medtecs will also be co-locating its production lines in its production facilities in the Philippines.
In addition, Medtecs has also entered into a supply agreement for Mytrex’s face mask filters for 12 months.
The agreement is not expected to have any material impact on Medtecs’ consolidated earnings per share and net tangible assets per share for the current FY ending Dec 31.
Shares in Medtecs closed flat at 92.5 cents on Dec 4.
