WORLD’s largest condom manufacturer by export, Karex Bhd, has its way to buffer the impact of fluctuating rubber and packaging price.
This was revealed by its CEO Goh Miah Kiat, who says that the company has a price hedging mechanism for such eventuality.
Rubber price gain has minimal impact to Karex, he says, and the price hedging mechanism will push additional costs to their customers.
The Malaysia-based condom producer is targeting to raise RM75 million, with a portion of it to be used for capital expenditure, the CEO informs.
With the scheme for expansion, it aims to build its largest factory in Pontian, Johor – a new addition to its other plants in Klang, Selangor, Hat Yai and Thailand. The construction of the new 7.28 ha factory site will begin by early next year and be completed by end of 2014.
The new plant is expected to raise Karex’s total annual production capacity from 3 billion pieces to 6 billion by end of 2015.