KUALA LUMPUR: LKL International Bhd and AT Systematization Bhd have today signed a distribution agreement to market, sell and distribute the latter's natural rubber latex gloves and nitrile gloves.
The deal has been signed specifically between LKL's wholly-owned LKL Advance Metaltech Sdn Bhd and AT Systemization's wholly-owned ATS Glove Engineering Sdn Bhd (ATS Glove).
The agreement is for an initial period of one year from the agreement date and renewable thereafter, in line with the expected commencement of ATS Glove's glove manufacturing production early next month.
The gloves will be mainly distributed to hospitals and healthcare providers with a targeted volume of up to 2.6
billion pieces annually.
LKL managing director Lim Kon Lian said the distributorship agreement was part of the company's belief in helping medical and healthcare-related providers target customers precisely and quickly.
"AT Systemization will be able to tap into our extensive distribution network within the healthcare industry, both in Malaysia and internationally.
"This is also timely as it enhances our capabilities in fulfilling urgent market requirements for gloves, as we
continue to receive increasing enquiries from existing and potential customers.
"We look forward to growing with innovative players like AT Systemization and extending their reach within both the domestic and global markets. To this end, we aim to form collaborations to bring healthcare solutions that better equip healthcare providers and ultimately raise the bar in the quality of medical services for the population," he said in a statement today.
The partnership follows on the heels of LKL's product portfolio expansion to include gloves, in addition to its maiden supply to a major customer in China.
On September 1 this year, LKL secured a US$19.0 million (about RM78.5 million) sales contract to supply nitrile gloves to Weihai Textile Group Import and Export Co Ltd.
The sales contract will enhance export contributions and overall financial performance in the financial year ending April 30 2021.
AT Systemization executive director Mak Siew Wei said the company's aggressive venture into the "smart-tech" driven medical-grade glove manufacturing business was a step in the right direction to capitalise on the massive demand for gloves globally.
"Our strategic partnership with LKL will bolster our pursuit to become a leading glove player, given LKL's
experience in distribution and a good client base.
"We are on track to reach a production capacity of 2.6 billion glove pieces per annum. On top of these, we have begun preliminary planning works for additional glove production lines that would further raise our production capacity to facilitate additional demand," Mak said.
He added that this would pave the way for a greater collaboration with LKL in the near future.