KUALA LUMPUR: Inix Technologies Holding Bhd is acquiring a 51 per cent stake in glove manufacturer World Gloves International Group Sdn Bhd (WGI), making it an international glove supplier instantly.
In a statement today, Inix said the latex gloves, produced by WGI Group factory in Petaling Jaya, were sold to the US, Europe, the Middle East, India, Japan and South Korea.
Through the acquisition, Inix had been directly promoted to be an international gloves supplier, it added.
Inix chairman Tan Sri Syed Mohd Yusof Tun Syed Nasir said as Covid-19 pandemic had caused a significant increase in global glove demand, entering the glove industry could create sustained and stable profits for the company.
"It is a forward-looking and meaningful investment," he said.
Inix vice chairman Datuk Tan Choon Hwa said it would pay for the acquisition in cash and new shares.
"More details of the acquisition will be announced in the near future," he said.
Inix executive director Siva Kumar Kalugasalam said it believed that the acquisition would improve its margin.
WGI Group chief operation officer Goh Poh Seng said it has advanced equipment and perfect international sales channels.
"The three main glove products produced by the group, namely latex gloves, nitrile gloves and surgical gloves, sell well in many countries. Our turnover is RM10 million per month," he said.
Last Friday, Inix inked a Memorandum of Agreement with L&S Gloves Sdn Bhd (L&S Glove) to buy a 51 per cent stake in the latter.
This would be Inix's latest manoeuvre to penetrate into the lucrative rubber glove industry.
Inix reported to Bursa Malaysia today that L&S Gloves has two production lines in its factory in Beranang, Selangor.
Inix said it planned to expand own production up to 14 line in the next one year.
Inix's total investment into the project was estimated to be no less than RM50 million, it said.
