KUALA LUMPUR: Inix Technologies Holdings Bhd is likely to receive orders from Hong Kong customers for at least 240 million boxes of pure nitrile medical gloves for the next two years.
Within days after Inix completed the acquisition of the shares of L&S Gloves Sdn Bhd (L&S Glove), the company's glove factory was visited by a representative of two Hong Kong buyers to negotiate new orders.
The price is expected to be set at US$9 per box.
Inix had completed the acquisition of a 51 per cent stake in L&S Glove two weeks ago, making it officially commencing its new glove business division.
In a statement, Inix said the representative of two listed companies in Hong Kong had personally made a surprise site visit to L&S Glove's factory in Beranang, Selangor today to understand the progress of the production lines.
The management of glove division of Inix welcomed the visiting Hong Kong representative, Hoo Ching Han, and both parties conduct in-depth negotiations on the orders after a tour of the factory.
According to the mandate issued by Hong Kong's Sunrise Progression Global Holdings Ltd (Sunrise) and Seng Hoi Ltd, they intend to sign a contract with Inix to order at least 240 million boxes of pure nitrile medical gloves for the next two years from March 1, 2021 to February 28, 2023.
"If these orders are accepted and filled, the two companies which I represent would also like to invest through Inix another 20 production lines for nitrile medical gloves to fill our orders exclusively. We would like Inix to be our associate company and this would ensure continuous supply of nitrite gloves to our group," said Hoo in the statement.
Hoo is appointed by Sunrise and Seng Hoi Ltd to negotiate with Inix in relation to the ordering of pure nitrile medical gloves.
The parent company of Sunrise Group is Hong Kong Four Seas Group.
Founded in 1971, Four Seas Group is now the largest food company in Hong Kong of large scale and mainly engages in the supply of food raw materials, food manufacturing, food sales, restaurant chain operation and investment holding business.
Sunrise and Seng Hoi are sister companies.
The two companies cooperate in the oil and gas trading business in Hong Kong, and they are listed companies with strong financial backing.
Seng Hoi's core business is the import and export of energy apparel and electrical appliances, involving crude oil, refined oil, fuel oil and natural gas with operations in Hong Kong, major cities in China, Canada, Japan and Russia.
L&S Gloves director Teo Yoek Leong said Hoo had expressed strong interest after completing the inspection of the factory.
The key person who led the site factory tour was Datuk Seri Clement Lee Keat, who is also Win Sky Group chairman said,
"If this business deal is sealed and the selling price can be set at US$9 per box, Inix would easily make US$2 of profit per box," he said.
L&S Glove has two existing production lines in Beranang, Selangor which can contribute profit to Inix immediately.
L&S Glove will be adding 12 additional production lines, which are estimated to be completed by August this year.
Based on the annual production capacity of 1.4 billion gloves, it is expected to yield Inix an annual turnover of at least RM300 million.
Among them, six production lines will produce pure nitrile medical gloves.
L&S Glove director Teo Xiong Sheng said human's awareness of hygiene would have changed significantly for the better after the Covid-19 pandemic is over.
"Although vaccines have made great progress recently, existing glove manufacturers have expanded their production capacity and new glove manufacturers have emerged, the demand for gloves has increased permanently and it will not be less than before the pandemic started," he said.