CE Technology plans $12m glove production expansion

The company is also planning to increase its cleanroom post-processing capacity

Cleanroom glove manufacturer and exporter, CE Technology, has planned a major capacity expansion.

The company intends to increase its raw nitrile glove capacity to a total of approximately 70.5 million pieces per month via three additional double former glove-dipping lines. The company is also planning to increase its cleanroom post-processing capacity to a total of approximately 83 million pieces per month via the addition of two new cleanroom post-processing facilities.

In a recent interview, MD and CEO, Mr SS Teoh mentioned that the existing production capacity is currently running at its maximum. Almost all of its existing customers as well as new customers have significantly increased their regular orders with the company, with its major customers committing to medium and long term contracts.

The installation and commissioning of the glove dipping lines as well as the new cleanroom facilities will cost around RM50m ($12m) and is expected to be fully operational in 1.5 years. This new investment will be financed through a combination of internally generated funds and/or bank borrowings.

In June 2019, in conjunction with its listing on the LEAP Market of Bursa Malaysia, the company raised RM12.48 via an excluded issue, which was mainly channelled towards an expansion of both its dipping lines and cleanroom post-processing capacity.

Teoh added that upon full completion, the company's monthly dipping capacity and cleanroom post-processing capacity is expected to increase fourfold, and this increase is expected to add to the company's sales revenue going forward.

Taiping-based 2018 winner of the Export Excellence Award was also recently awarded a financial grant of RM472,020 ($112,492) by the Malaysia Rubber Export Promotion Council (MREPC). The grant is to partly fund the company's installation of solar photovoltaic panels for its manufacturing facilities, which is expected to bring down electricity costs.

Companies