ID :
19000
Thu, 09/11/2008 - 22:41
Auther :
Shortlink :
http://m.oananews.org//node/19000
The shortlink copeid
HARTALEGA EYES MARKET EXPANSION INTO CHINA, INDIA, SOUTH AMERICA & RUSSIA
KUALA LUMPUR, Sept 11 (Bernama) -- Rubber glove manufacturer, Hartalega Holdings Bhd, aims to penetrate into new markets in China, India, South America and Russia to strengthen its presence overseas.
Managing Director Kuan Kam Hon said Hartalega's 99 percent products are
currently exported to 23 countries across five continents mainly Asia, Europe,
Australia, Africa and America.
The company also planned to expand its market in Europe due to increasing
demand in that region, he said.
"We are placing more focus on Europe right now as Europe is very interested
with our nitrile gloves. Generally, what happened in the US market is also
happening in Europe.
"They're switching from natural rubber gloves to nitrile," he told
reporters
after the company's annual general meeting.
At present, nine percent of Hartalega productions are going to Europe, he
said, adding that the US remained its largest market, accounting for two-thirds
of its exports.
"We are actually very strong in North America. There are a lot of
switching.
The natural rubber prices are still resilient and this benefits nitrile as
well," he said.
As the demand for nitrile gloves surpasses supply, the company planned to
increase production to 6.3 billion pieces per annum by year-end from about five
billion, he said.
"Currently we produce 30,000 nitrile gloves per hour and about 31,000 to
32,000 latex gloves. We are targeting to increase our nitrile production to
33,000 per hour," he said.
Asked if the company planned to raise prices, he said: "We are happy with
our margin. It's double the industry average. We don't need to raise prices.
We are profitable."
The company recorded a pre-tax profit of RM14.8 million for its first
quarter ended June 30,2008, a 40.9 percent increase compared with RM10.5 million
in its preceding quarter.
This was achieved on the back of a turnover of RM87.8 million, signalling
an
increase of 20.7 percent or RM15 million from RM72.8 million.
"Because of the technology that we have, we are able to consistently
deliver
the margin that is higher than the industry average," he added.
Managing Director Kuan Kam Hon said Hartalega's 99 percent products are
currently exported to 23 countries across five continents mainly Asia, Europe,
Australia, Africa and America.
The company also planned to expand its market in Europe due to increasing
demand in that region, he said.
"We are placing more focus on Europe right now as Europe is very interested
with our nitrile gloves. Generally, what happened in the US market is also
happening in Europe.
"They're switching from natural rubber gloves to nitrile," he told
reporters
after the company's annual general meeting.
At present, nine percent of Hartalega productions are going to Europe, he
said, adding that the US remained its largest market, accounting for two-thirds
of its exports.
"We are actually very strong in North America. There are a lot of
switching.
The natural rubber prices are still resilient and this benefits nitrile as
well," he said.
As the demand for nitrile gloves surpasses supply, the company planned to
increase production to 6.3 billion pieces per annum by year-end from about five
billion, he said.
"Currently we produce 30,000 nitrile gloves per hour and about 31,000 to
32,000 latex gloves. We are targeting to increase our nitrile production to
33,000 per hour," he said.
Asked if the company planned to raise prices, he said: "We are happy with
our margin. It's double the industry average. We don't need to raise prices.
We are profitable."
The company recorded a pre-tax profit of RM14.8 million for its first
quarter ended June 30,2008, a 40.9 percent increase compared with RM10.5 million
in its preceding quarter.
This was achieved on the back of a turnover of RM87.8 million, signalling
an
increase of 20.7 percent or RM15 million from RM72.8 million.
"Because of the technology that we have, we are able to consistently
deliver
the margin that is higher than the industry average," he added.
