Overview of RMKH nitrile glove production line - Youtube

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NEWS RELEASE Medtecs RMKH Glove Factory Officially Opened on 30 September 2022 -

Medtecs Group' s glove manufacturing facility, RMKH Glove Factory, celebrated its production commissioning with an opening ceremony on 30 September 2022 in Cambodia - The ceremony was officiated by HE. Dr. Hun Manet, Deputy Commander in Chief of Royal Cambodian Armed Forces and Commander in Chief of the Cambodian Army, High Representative of Samdech Prime Minster, with other senior members of the Cambodia government in attendance - RMKH Glove Factory is Cambodia' s first automated manufacturing facility capable of producing medical-grade nitrile gloves -  Mass production started in September 2022 with a projected monthly output of 50 million gloves or about 600 million pieces per year -  Medtecs had already invested US$20 million as its first-stage investment Singapore, 5 October 2022.

Medtecs International Corporation Limited (Medtecs and together with its subsidiaries, the  Group) (美 德 向 邦 医 疗 国 际 股 份 有 限 公 司 ), a leading personal protective equipment (" PPE" ) and hospital service provider, is pleased to announce that its glove manufacturing facility (the RMKH Glove Factory) located in Cambodia, has officially opened on 30 September 2022. RMKH Glove Factory is Cambodia' s first fully-automated medical-grade nitrile manufacturing facility.

The RMKH Glove Factory is a result of the joint venture between Medtecs' whollyowned subsidiary, Medtecs (Asia Pacific) Pte. Ltd., and ACO International Limited. Mr Clement Yang, founder and chairman of the Group, presided over the opening ceremony for RMKH Glove Factory, last Friday, 30 September 2022. The ceremony was officiated and presided over by HE. Dr. Hun Manet, Deputy Commander in Chief of Royal Cambodian Armed Forces and Commander in Chief of the Cambodian Army, High Representative of Samdech Prime Minster. Also in attendance were, among others, Senior Minister Dr. Ly Thuch, Minister attached to Prime Minister and Secretary General of Council for the Development of Cambodia, HE. Sok Sophea Chenda, ,Governor of Svay Rieng Province and other high-ranking officials from the government of Cambodia. Together with local businessmen and workers, some 1,000 people attended the ceremony celebrating the RMKH Glove Factory' s successful mass production and the Group' s foray into the glove market.

Located in the Manhattan Special Economic Zone (MSEZ) in Bavet City, Svay Rieng Province, RMKH Glove Factory is the first and largest of its kind to manufacture medical-grade nitrile gloves in Cambodia.  It is designed to accommodate up to 10 high-speed double-former dipping lines. Currently it houses 2 lines with the production capacity of 50 million gloves per month, or 600 million pieces per year. The Company has spent US$20 million as its first-stage investment, and plans to  add more production lines as and when there is a demand for more nitrile gloves.  Last year, Cambodia imported about 200 million pieces of gloves from overseas. With RMKH Glove Factory now in operation, the Group will be able to fulfil local needs as well as demands from abroad. The gloves will complement the Group' s other products such as isolation gowns, coveralls, bouffant caps and shoe covers.

Mr Clement Yang, founder and chairman of the Group, commented, We are grateful for the support of our clients, business associates and other stakeholders on the official opening of RMKH Glove Factory. We can now confidently say that Medtecs is truly the go-to provider of head-to-toe personal protection. The gloves will broaden the Group' s product range and the official opening of RMKH Glove Factory marks the start of our future expansion strategy to become the first multi-national group purchasing organisation in Asia with a fully vertically integrated product development, manufacturing, sales and distribution platform.

Follow the link for an overview of the production lines inside the Factory.

The endemic will still linger around the world for the next few years before totally eradicated. This translate to the need for Healthcare Industries to continue with current preventive measures and to maintain a stockpile of PPE inventories.

The operations of the Cambodia nitrile gloves factory with the capacity of 50 millions peices of gloves per month will significantly add on to the recurring income, as the Group cut out the middleman and priced the selling price of their gloves competitively.

With the investment into renewal energy and its storage devices in sight, the Group is moving into the right direction of sustainable energy and seek to reap recurring profit from the one time investment for the next 25 to 30 years.

If the above investment fall through, Shareholders can still look forward to the generous dividend payout from the huge cash piles.

 

GLOVEMAKERS in Singapore and Malaysia, as well as personal protective equipment maker Medtecs International : 546 -3.51%, have suffered hits in terms of profitability and market values amid the easing of the coronavirus pandemic. 

 

These counters booked record-high profit and revenue figures during the height of the pandemic. Their share prices rose as new virus variants were discovered and investors piled into the stocks.

 

But with the roll-out of vaccines and easing of restrictions on capacity limits and group sizes, the prospects for these companies are dimming.

 

&ldquo Pandemic darlings are not going back to their glory days&rdquo barring any new &ldquo super pandemics&rdquo , said Justin Tang, head of research for Asia at United First Partners. 

 

Top Glove Corporation : BVA -3.66% and Medtecs reported losses for their fourth fiscal quarter and first half of the fiscal year, respectively. Top Glove booked a 52.3 per cent decline in revenue, while Medtecs&rsquo top line sank 63 per cent. 

 

Top Glove, which consistently saw net profit and revenue figures hit historical highs during the pandemic, has also deferred capacity expansion plans and put a planned Hong Kong listing on hold.

 

Other local glovemakers, meanwhile, have been hit by lower average selling prices (ASPs) and stiffer competition, due in part to the willingness of newer entrants and Chinese glovemakers to lower their prices for greater market share. 

 

Higher energy and raw material costs have further crimped margins for glovemakers.

 

SAC analysts noted that UG Healthcare&rsquo s &ldquo excess channel inventory&rdquo for end-users and distributors might take up to 2 quarters to normalise, which would exert pressure on glove ASPs but helps the company&rsquo s trading business.

 

The analysts noted that UG Healthcare&rsquo s plant utilisation had fallen in H2 due to a shortage of workers. The company&rsquo s new facility for the additional annual capacity of 1.2 billion pieces of gloves has also been delayed till October. 

 

After 2 years of aggressive ordering and stockpiling habits, a number of countries around the world have also scaled back on glove orders. 

 

Phillip Securities analyst Terence Chua said the fall in these companies&rsquo financials has been worse than he expected. And, tougher times could still be ahead for glove companies that ramped up capacity aggressively during Covid-19.

 

&ldquo We are bearish on the outlook for the gloves sector for the next 2 years,&rdquo Chua added. 

 

Malaysia&rsquo s glovemakers &ndash Hartalega, Kossan Rubber and Supermax &ndash also saw net profits and revenues fall in the latest quarter. 

 

Although analysts expected the weaker financials, they said the rate at which the declines are taking place is alarming. Companies did not buffer themselves sufficiently during their heyday. 

 

&ldquo There was no diversification nor innovation when the going was good,&rdquo said Tang of United First. &ldquo Instead, all managers (of these companies) were doing was mistaking luck for skill.&rdquo

 

Phillip Securities&rsquo Chua reckoned these pandemic beneficiaries could not sufficiently buffer themselves due to the &ldquo fluid and uncertain trajectory of the Covid-19 pandemic&rdquo , which made for &ldquo difficult forecasting and planning&rdquo .