Vizione confident of venture into glove making

KUALA LUMPUR (Sept 12): Vizione Holdings is not worried about an “oversupply” in the glove making segment even as numerous “new players” enter “a highly saturated and competitive” market.

“I don’t foresee an oversupply situation for the next two years. New ventures going into gloves may need time to build their lines.

“The difference is that Vizione is acquiring an existing and operating glove factory in a time where demand will stay high for the next two years. We have to catch this wave while it lasts as it wouldn’t be the same by 2024 or 2025,” Vizione managing director Datuk Ng Aun Hooi said in an interview with The Edge Malaysia.

Earlier reports stated that Vizione’s VIP Index Sdn Bhd signed a deal to purchase a 51% stake in SSN Medical Products Sdn Bhd for RM5 million.

SSN manufactures both latex and nitrile medical gloves, latex condoms, as well as specialty gloves such as elbow length medical gloves.

Ng told the weekly that the acquisition is part of the construction player’s “strategy to beef up its recurring income”… “instead of concentrating on construction projects where there is no further income once the works are completed”.

With an operating capacity of 500 million gloves per year, SSN has available space to add two more lines to produce 750 million pieces per annum but needed the necessary capital expenditure (capex) and property for its expansion plans, The Edge revealed.

“The parallels between Vizione and SSN make the tie-up beneficial for both parties,” Ng explained.

Vizione will inject up to RM25 million to RM30 million into SSN, expanding its nine manufacturing lines to 15.

Vizione executive director Chan Chee Weng said the glove segment is a “fairly safe industry to venture into”.

“Together, Vizione and SSN will not be that big [a glove maker] but a respectable size once we hit the one billion mark in production capacity,” he explained.

As for the construction industry, Vizione has an order book of about RM2 billion which will last till 2024

“The construction and property industries were badly hit during the MCO (Movement Control Order). But the release of more projects by the government has been keeping us occupied in these segments,” Ng said.

He added that Vizione’s “focus is to attain government concessions as well as to build affordable homes”.

“With the ongoing pandemic, affordable homes priced at about RM350,000 per unit are in demand. We are going back into that,” he added.

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Read the full report in this week’s The Edge Malaysia