The world’s largest medical glove manufacturer said it had temporarily stopped production in 16 of its facilities in Meru between Nov 17 and today, “with the balance 12 facilities operating at a much-reduced capacity”.
“As such, we expect delays in some deliveries by about two to four weeks, as well as a longer lead time for orders,” Top Glove said in a statement today.
“(We) estimate a possible 3% impact on projected annual sales for the financial year 2021.
“To minimise the impact on our customers, we are allocating sales orders to unaffected factories and rescheduling deliveries where possible.”
Yesterday, Senior Minister for Security Ismail Sabri Yaakob said that Top Glove had been ordered to temporarily close all 28 of its factories in Klang, Selangor.
“On the advice of the health ministry, the national security council (MKN) have agreed to close these factories in stages,” he said.
Previously, MKN had implemented an enhanced movement control order (EMCO) at the Top Glove workers’ dormitory from Nov 17 until Nov 30.
Following a spike in demand for rubber gloves amid the Covid-19 pandemic, Top Glove said in June that its lead time had increased from 40 days to around 400 days. This meant that orders could only be delivered more than a year after they were placed.
Top Glove, which has 41 factories in Malaysia, posted its highest-ever net profit of RM1.29 billion for the quarter ended Aug 31. The company has more than 21,000 employees and produces 90 billion gloves annually at 750 production lines.
The Teratai cluster, which is linked to Top Glove’s factories in Meru, today recorded 1,511 new cases. It has a total of 4,036 cases and is currently the cluster with the most active cases in the country.
Top Glove said it is working closely with the authorities to ensure the continued safety and well-being of its employees and local community, adding that disinfection exercises at its premises and accommodation are being conducted regularly with all the necessary precautionary measures strictly in place.
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