Hartalega rolls out €1.4bn expansion plan

Putrajaya, Malaysia – Hartalega Holdings Berhad has progressed a RM7-billion (€1.4 billion) investment plan to build 16 new manufacturing facilities over the next 20 years, the company has announced.

Subsidiary Hartalega NSM Sdn Bhd has acquired around 250 acres of land in Bukit Kayu Hitam, Kedah in a deal with Northern Gateway – developer of the Kota Perdana special border economic zone.

The acquisition, which includes a purchase-option on another 130 acres in the same location, marks a new phase of growth for Hartalega, according to its 10 March statement.

Hartalega claims to be the world’s leading nitrile glove manufacturer, producing 43 billion pieces of gloves per year, from manufacturing sites in Bestari Jaya and Sepang, Selangor.

The Malaysian group expects capacity to reach 63 billion pieces of gloves per year upon completion of the current NGC 1.5 expansion, with the first plant set to come in stream by 2024.

A longer-term expansion plan in Kedah will add another 80 billion pieces per year, eventually bringing Hartalega’s total capacity to 143 billion pieces of gloves per annum.

The company expects to leverage advantages of locating in Kedah in northern Malaysia, including its proximity to the Malaysia-Thailand border as well as to Penang Port.

“Going beyond the current Covid-19 situation and taking a long-term perspective towards the structural step-up in global demand, it is evident that our production capacity must be accelerated,” said Kuan Mun Leong, CEO of Hartalega Holdings.

The expansion plan, he said, will solidify Malaysia as the world’s largest glove manufacturer and help to establish the northern region as an attractive destination for both foreign and domestic direct investment.

“Our aim is to cultivate a robust supply chain as well as upskilling local talents and vendors, to transform the region into an integrated industrial park for medical devices in the future,” concluded the CEO.