Hartalega’s Plan to Expand Capacity Welcomed by Analysts

Analysts are upbeat on Hartalega Holdings Bhd's ambitious plans to triple its current annual production capacity with a RM1.5bil plant to be built over two four-year phases.

On Friday, Hartalega, via its wholly-owned subsidiary, Hartalega NGC Sdn Bhd (HNGC), revealed more details it had put in place to set up a new major rubber glove manufacturing project.

Affin Investment Bank, in a report, said it was positive on the HNGC project, as it clarified Hartalega's expansion plan beyond Plant 6, which was slated to commence its first phase of production in September 2012.

Image on the left shows a robotic glove-dipping simulator developed and used by Hartalega. Maybank says the company’s plant expansion, coupled with ongoing automation, will greatly improve economies of scale and enable Hartalega to come up with more competitive prices.


“Funding is not an issue, we gather that the project will be financed via a combination of borrowings and internally generated funds, considering its net cash of RM136mil as at December 2011,” it said........CLICK HERE to read more.