KUALA LUMPUR: Top Glove Corp Bhd plans to spend about RM80 million this year on expanding its nitrile glove business, including production of special products, said its chairman Tan Sri Lim Wee-Chai.
Speaking to analysts, fund managers and the press at the company's 1QFY11 briefing here today, Lim said nitrile gloves and special products such as coloured products and different-sized gloves will be its area of focus this year on the back of increasing latex prices, which have gone up by 57% year-on-year and 3% quarter-on-quarter.
Meanwhile, he said the industry was expected to grow up to 10% this year, while demand was expected to continue to average 8% growth.
When asked about possible M&As in the industry, Lim said with the company's strong cash levels of more than RM300 million, it was "on standby" to acquire companies that may have synergies with Top Glove.
"We had a number of willing sellers last year, but we waited, because this year valuations will come into play," said managing director KM Lee. "We want to look for the most cost-effective option for us."
Speaking to analysts, fund managers and the press at the company's 1QFY11 briefing here today, Lim said nitrile gloves and special products such as coloured products and different-sized gloves will be its area of focus this year on the back of increasing latex prices, which have gone up by 57% year-on-year and 3% quarter-on-quarter.
Meanwhile, he said the industry was expected to grow up to 10% this year, while demand was expected to continue to average 8% growth.
When asked about possible M&As in the industry, Lim said with the company's strong cash levels of more than RM300 million, it was "on standby" to acquire companies that may have synergies with Top Glove.
"We had a number of willing sellers last year, but we waited, because this year valuations will come into play," said managing director KM Lee. "We want to look for the most cost-effective option for us."
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