Worlds largest glove maker plans 100 billion pieces by end-2021 due to overwhelming demand

COVID-19 has spread so far and so fast that glove manufacturers around the world are scrambling to meet growing demand now seen as far exceeding last years 290 billion pieces.

To meet this strong demand, the worlds largest glove manufacturer, Top Glove Corporation Berhad (KLSE:TOPGLOV), has an aggressive expansion plan to increase its capacity to 100.2 billion gloves by end-2021 from its current capacity of 78.7 billion gloves per annum.

Buyers are now paying 50% down payment when they confirm orders and lead time for orders has increased almost 10 times for Top Glove, from 30-40 days to nearly 300 days.

The industry is also seeing substantial monthly growth in average selling price (ASP), with Top Glove raising its ASP by 15% in June and July and a further 30% in August.

Other players

The orders are coming in thick and fast for other players in the industry as well, including VIP Gloves Ltd (ASX:VIP).

VIP manufacturers nitrile gloves, which according to Macquarie Bank, are Type-1 allergy-free, puncture-resistant, have good barrier protection against infection and contamination and are suitable in medical and high-risk tasks.

The company said sales orders had been filled Read More – Source