(From left) MSCM executive director Jeff Chong Koon Meng, Teoh and Ho posing for photos at the signing ceremony.
KUCHING: Bursa Malaysia Main Market-listed MSCM Holdings Bhad (MSCM) has appointed Howellcare Industries Sdn Bhd as its new turnkey project partner to kickstart its glove business.
The signing ceremony between MSCM’s subsidiary Hong Seng Gloves Sdn Bhd and Howellcare Industries Sdn Bhd to cement the new business venture was held at Sheraton Petaling Jaya Hotel today.
MSCM is a company that is currently involved in the business of investment holding, search & advertising, information technology, supply chain management and moneylending business.
On 7 August 2020, MSCM Holdings had announced that it has incorporated a new subsidiary called Hong Seng Gloves Sdn Bhd, and subsequently entered into a conditional tenancy agreement to set up a glove manufacturing plant in Sungai Petani, Kedah.
Howellcare Industries Sdn Bhd is a company that is involved in the trading of all kinds of Latex and Nitrile Examination Gloves as well as management and supply of glove industry related equipment and machinery, amongst others.
Howellcare Industries is headed by director and founder Francis Ho, who has more than 20 years of experience in the glove manufacturing industry. He provides an extensive network and knowledge in almost all aspects of the industry particularly in setting up glove manufacturing plants and is a known figure amongst the prominent players in this industry.
MSCM executive chairman Datuk Teoh Hai Hin said during the event: “We aim to transform MSCM into a formidable listed company by expanding into various new pillars of business namely – Hire Purchase and Leasing, Manufacturing and Healthcare.
“We, the management of MSCM Holdings, have identified that these new ventures will not only contribute positively towards the earnings of the group, but also complement our existing core segments extremely well.”
“We feel confident that our glove business venture with turnkey project partner Howellcare Industries will help us drive exciting growth for MSCM Holdings for years to come.
The healthcare and glove industry remains poised for massive growth, and with all of our combined efforts, we look forward to generating value for each other as well as seek new opportunities for expansion together,” added Teoh, who is also the Managing Director of Hong Seng Gloves Sdn Bhd.
During the event, it was revealed that the initial plan of the turnkey project consisted of the installation of 6 production lines for nitrile gloves, with an estimated cost of RM59 million. The expected output for each double former glove production dipping line is 240 million pieces per annum.
Thus, the total expected output for the 6 production lines amounts to almost 1.5 billion pieces per annum. The first two production lines are targeted to go live in about 6 months from site deployment, with one additional production line added every month or so.
MSCM also noted that, being a new player, Hong Seng Gloves will not be tied down to supply and sale contracts with pricing set pre-pandemic.
On 10 August 2020, MSCM had entered into a conditional tenancy agreement to rent 4 blocks of single-storey factory buildings, a single-storey office building and a single-storey canteen erected on a parcel of leasehold land measuring approximately 217,800 square feet. The glove manufacturing facility is located at Sungai Petani, Kedah.