Permaju Industries Bhd (Permaju) and Anzo Holdings Bhd (Anzo) will form a joint venture to refurbish and to expand a medical glove manufacturing plant in Manjung, Perak, which is expected to cost around RM25 million.
Anzo recently announced that it is paying RM55 million to acquire the factory. It has entered into a term sheet with Wintrade World Sdn Bhd to acquire the company’s assets, including land, building, machineries and equipment in Manjung.
The factory, which has been operating for about 18 years currently has 9 production lines producing 1.2 billion pieces of medical and/or nitrile gloves a year, worth in the region of US$100 million.
Permaju, which makes high-quality timber doors, and is involved in construction and property development will refurbish and expand the factory together with Anzo to have at least 15 production lines running in the factory.
With the expansion, the factory is expected to produce over 3 billion pieces of the medical gloves per annum, generating a revenue of about US$300 million to US$400 million every year for Anzo.
Anzo is in a rush to expand and refurbish the factory as it is getting more orders for medical gloves from the United States and Europe.
We have said earlier that Anzo has secured an order each from the United States and Europe to supply over 2 billion pieces of medical gloves, worth an estimated US$200 million.
The number of coronavirus cases around the world as at July 12, 2020, is at a staggering 12.39 million while total deaths are 557,395 and the numbers are rising drastically.
The total number of cases in the United States is 3.22 million and infections continue to inch up in the country. The United States also recorded a total death toll of 135,822.
Several other countries around the world are also hit hard by the global pandemic, including Europe and India.
Both Anzo and Permaju have traded actively in the last few weeks. Investors, especially, are keeping a close watch on Anzo after it said it was venturing into the glove manufacturing business.
The stock has moved up from the 2 to 5 sen level more than a month ago to exceed 20 sen this week.
The highest the stock went up to this week was 26 sen, and it traded in heavy volume. We have been expecting the stock to hit limit-up this week but the world market has slowed, including trading of counters on Bursa Malaysia.
We can expect some shows next week with both Anzo and Permaju.
