UG Healthcare to set up third manufacturing facility in Negeri Sembilan

GLOVE manufacturer UG Healthcare Corporation has started work on a new manufacturing facility in Malaysia that will boost its production capacity by 1.2 billion pieces of gloves per annum.

In filings to the Singapore Exchange on Tuesday, the group said it acquired the land for the facility through its acquisition of UG Engineering, a company incorporated for the purpose of buying the property.

UG Engineering bought the property in January for RM5 million (S$1.65 million) and remained dormant until UG Healthcare purchased both the subsidiary and property.

The property is a vacant leasehold industrial plot measuring approximately 17,233 square metres. It is located near UG Healthcare's two manufacturing plants in Seremban in the state of Negeri Sembilan, which the company said would boost its economies of scale.

UG Healthcare executive director and finance director Lee Jun Yih said work has started on the new facility, which is expected to be completed by the end of June 2021.

With the additional production capacity of 1.2 billion pieces per annum, UG Healthcare's total anticipated production capacity will increase to 4.6 billion pieces of gloves per annum, a 59 per cent increase from the current capacity of 2.9 billion pieces of gloves per annum.

"Having invested and strengthened our distribution network in key strategic markets over the last few years, we believe it is timely for us to expand our production capacity to narrow the gap between our upstream manufacturing supply and downstream distribution market demand," Mr Lee said.