Anzo Holdings Bhd (Anzo) is rumoured to have received orders for medical gloves worth in the region of US$200 million from the United States and Europe and is expected to start the supply towards the end of this year.
The orders are to supply more than 1 billion pieces of medical gloves/nitrile gloves. Anzo is new player in the glove manufacturing industry and it is a milestone for the company to be able to secure a US$200 million order to supply the medical gloves in less than a week after announcing that it is acquiring a glove manufacturing company with assets that include land, factory and machinery in Manjung, Perak.
The factory has 9 production lines that can produce up to 1.2 billion pieces of medical gloves/nitrile gloves a year. Depending on the orders, Anzo may increase the production lines to 12 or 15 lines to make more than 2 billion pieces a year.
The orders from the United States may have come in because of the recent spike in coronavirus cases. The United States recorded 39,379 new coronavirus cases in 24 hours on Sunday (Monday in Malaysia), the fourth consecutive day of surging numbers of new infections, including a high of 57,683 on Friday.
The total number of cases in the US is 2,876,143 and infections continue to inch up in the country. The US also recorded 234 new fatalities, bringing the total death toll in the country to 129,891.
Several other countries around the world are also hit hard by the global pandemic such as South America, Europe, Russia, and India.
Countries around the world are placing orders in Malaysia for medical gloves. This is because Malaysia is home to some of the world’s largest glove makers and they are currently running at full capacity.
Meanwhile, with the US$200 million medical glove orders from the United States and Europe, it surely will improve Anzo’s earnings moving forward.
As it is, Anzo has also started to supply copper scrap to a South Korean steel maker effective July 1. It won a RM1.3 billion contract last month to supply the copper over a period of 40 months.
No wonder the company’s share price surged to a new high today (July 6) to close 23 sen. It is expect to hit limit-up this week and I am quite certained the stock will achieve the target.