Malaysian glove maker UG Healthcare announced that its manufacturing operations have temporarily halted in compliance with Malaysia's Enhanced Movement Control Order (EMCO) from July 9 to July 22 in Seremban, where the group's manufacturing division is located in.
The temporary closure will result in a further reduction in productivity by approximately 80 million pieces of gloves or 2.35% of the group’s annual production capacity.
This is on top of the estimated productivity loss the group previously announced, bringing the total reduction in productivity to approximately 165 million pieces of gloves or 4.85% of the group’s annual production capacity of 3.4 billion pieces of gloves.
To recap, the group previously announced on June 28 that it has 18 positive Covid-19 cases among its employees. It has since taken action to screen test the rest of its employees. Those who tested positive were isolated in a quarantine and treatment centre with adequate healthcare facilities provided.
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The temporary closure of the group’s manufacturing operations in Malaysia, coupled with the limit on workforce capacity to 60% as mandated by the Malaysian government as at June 28, would result in a reduction in capacity of approximately 85 million pieces of gloves or 2.5% of the group’s total annual production capacity of 3.4 billion pieces of gloves.
The group operates an integrated business comprising of an upstream manufacturing division and a downstream distribution division to market and sell disposable gloves under its proprietary “Unigloves” brand. Therefore, it has better control and management on the fulfilment of orders to its customer base.
During the financial year ended June 30, the group has expanded production capacity from 2.9 billion pieces of gloves to 3.4 billion pieces of gloves, which acts as a natural buffer during this time. The group remains committed to ensure that its customers have the required inventory to meet their needs.
Shares in UG Healthcare closed at 56 cents on July 12.
Photo: UG Healthcare
