KUALA LUMPUR: Iconic Worldwide Bhd's (IWB) wholly-owned subsidiary Iconic Medicare Sdn Bhd (IMSB) today signed a memorandum of understanding (MoU) with Hong Kong Limmas Corporation Ltd (HKLC) for the sale and purchase of Iconic powder free nitrile examination gloves.
According to a filing with Bursa Malaysia, HKLC intends to purchase 100 million pieces of the gloves in various available sizes each month for a period of twelve months.
HKLC is involved in international trading of medical products and personal protective equipment.
Meanwhile, the principal activities of IMSB is to manufacture, distribute and dealing of personal protective equipment (PPE) products and related services.
IWB managing director Datuk Tan Kean Tet said the rationale of IMSB entering into the MoU is to enable the company to take leverage on the future demand pattern of the customer for its glove products and provide a strong indication on the future output requirements.
"The MoU will also provide valuable data for the manufacturing and financial planning processes. This will also enable IWB to offer new business opportunities that will expand its revenue base and enhance shareholders' value, as well as reduce the reliance on existing business segments," he said in a statement today.
Tan said the new orders when combined with the existing orders in hand, all 12 production lines which have a capacity to produce 3.5 billion gloves per annum have been fully taken up.
"We are currently looking for more land to further expand our production capacity," he said.
On 2 April 2021, IWB announced that IMSB has successfully registered under US Food & Drug Administration (FDA) for its polymer patient examination glove – iconic nitrile glove and latex patient examination glove.
IWB had previously already obtained the CE and ISO certifications for its three-ply face mask and nitrile gloves, all of which will enable the company to export its products overseas.
With this, IWB and IMSB are now in the position to help transform Malaysia into an established exporter of PPE emblazoned with a proud 'Made in Malaysia' symbol.
IWB's PPE manufacturing facility for gloves and face masks has reached 70 per cent completion after only 100 days of construction, further stating that the construction progress of the factory is ahead of schedule and that the company has already started installation of its glove production machinery.
Based on current average selling prices, the company estimates the output of gloves and face masks could translate into a revenue of RM1 billion and RM100 million each in the financial year ending March 31, 2023 (FY23).