MQTech inks JV agreement with HK company to acquire medical rubber glove factory

MQTech inks JV agreement with HK company to acquire medical rubber glove factory

Malaysian investing holding company MQ Technology Bhd. (MQTech) is partnering with Hong Kong-based JD Resources International (JD Resources)to buy a company involved in the manufacturing and marketing of medical rubber gloves.

According to a statement, MQTech and JD Resources would form a 30:70 joint venture (JV) company: “The new company will enjoy the synergistic effect from the joint venture of MQTech and JD Resources, such as business contacts in Malaysia and international market especially in Europe, procurement of raw materials and equipment, ensuring credit facilities in Malaysia, personnel recruitment, administrative, fiscal and legal services and sales, distribution, marketing and servicing infrastructure at the most favourable terms.”

JD Resources has dealt in the trading business with revenue of around US$ 150 million (MYR 639 million) to US$ 300 million (MYR 1.28 billion) annually in recent years. It has extensive know-how and technical information concerning the manufacturing of personal safety apparels, including nitrile rubber gloves.

Datuk Muzamir Mustafa, Chairman, JD Resources, said the company has flown in more than 350 tonnes of rubber gloves, sourced from local and European manufacturers, in the past few months. It is currently negotiating with four glove companies before concluding the acquisition in one or two weeks.

Meanwhile, MQTech Executive director Terence Cheah Eu Lee said the negotiation for the acquisition of the glove company was at an advanced stage at the moment.Both parties have also mutually agreed that MQTech is entitled to increase its participation in the JV company by acquiring a 30% stake from JD Resources at fair market value in due course.