GEORGE TOWN, Aug 2 (Bernama) — Top Glove Corp Bhd, the world’s biggest rubber glove manufacturer, is eyeing a revenue of RM2.5 billion this year, supported by higher sales.
Chairman Tan Sri Lim Wee Chai said the group’s annual growth rate was about 27 per cent and he was optimistic the target will be achieved.
He said the group will continue to invest in automation to increase production capacity.
“We will allocate about RM200 million a year as capital expenditure (capex) to improve and increase production efficiency,” he told Bernama on the sidelines of the CEO Forum 2015 organised by the Penang Federation of Malaysian Manufacturers here.
He said the group also aimed to increase its global market share from 25 per cent now to 30 per cent by 2020.
“We intend to continue expand the company and achieve the 30 per cent global market share,” he said.
Lim said part of the group’s capex will be to boost production capacity.
The group will open a new factory in Klang by end-2016, he said.
“Apart from additional factory in Klang with the production capacity of 4.4 billion pieces of glove per annum, we are also expanding our current facilities in Port Dickson and Phuket, Thailand,” he said.
He said the Port Dickson factory’s expansion project will be completed by January next year while the Phuket’s by June next year.
“Once the three projects are completed, our production capacity per annum from our 26 factories will be increase to 52.4 billion pieces from current 44.6 billion,” he said.
Currently, Top Glove has 27 manufacturing factories in Malaysia, Thailand and China with 484 production lines that produce 44.6 billion glove per annum.
Top Glove’s products are exported to over 200 countries worldwide with 31 per cent to North America, Europe (28 per cent), Asia (18 per cent), Latin America (11 per cent), Middle East (seven per cent) and the rest to Africa.
Top Glove’s pre-tax profit for the third quarter ended May 31, 2015 rose to an all-time high of RM100.58 million from RM55.11 million in the corresponding period last year.
Its revenue increased RM661.19 million from RM573.99 million previously.
