Unlike other Malaysian glove makers that are in search of greener pastures in countries abroad, medical glove maker YTY Industry is intent on staying at its home base. Not only is it building a new factory on 22 acres in Sitiawan, Perak, it is also adding on surgical gloves to its portfolio, with the intention of doubling its capacity to 18 billion pieces/year.
Speaking to RJA recently, Roger Moh, Group Executive Director, said, “Some companies are moving their production overseas to capitalise on the availability of cheaper labour or raw materials. But the respective governments may change their policies and this may prove to be unfavourable to foreign companies operating in the countries. We don’t want to get into this kind of dilemma.”
Set up in 1988 with six production lines, today the firm operates two manufacturing plants with over 50 production lines, generating a turnover of US$270 million, and is still growing, said Moh. “We are constructing a plant adjacent to where we are currently located. This will be ready by next year.” The new facility will be built in three phases, with the first phase to be completed in the first quarter of next year.
Furthermore, the firm has just refurbished one of its existing lines and is putting in new production lines, to double its current output from 9 to 18 billion pieces/year by 2013.
“Next year we are planning to introduce surgical gloves. We have been developing this line of product for nine years,” said Moh, adding that the expansion is based on customer demand.
Amongst its product lines are accelerator-free and powder-free nitrile examination gloves as well as gloves that are 2.5 mil thick. “We have undertaken a lot of research to develop the thin type of gloves. Not only are they thin but also strong,” said Moh, adding that all the gloves produced meet the US FDA and European EN standards.
The firm caters to the export markets and mainly exports to the US, UK, Germany, Italy, Norway, Japan, Singapore and South Korea.
“The demand in Malaysia is not sufficient, and it is because of this most companies export 100% of their output,” explained, Moh, adding that Malaysia utilises about 25 million pieces/month. He also went on to say that the demand in the country is mainly for B grade type of medical gloves, which are below par, “cosmetic wise”, adding that private hospitals are willing to fork out more for premium gloves. (PRA)