Aspen inks RM403m deal to produce and distribute 1b pieces of medical-grade gloves
Published by Edge Prop | 13 Jan 2021
An artist impression of the glove production building (Pic by Aspen)
PETALING JAYA (Jan 13): Penang-based developer Aspen Group Holdings Ltd has secured a sales and distribution agreement valued US$100 million (RM403.75 million) for its glove production business this year, said the company.
In a media statement today, Aspen Glove Sdn Bhd (AGSB), a subsidiary of Aspen Group, said the agreement was signed with a distributor for the offtake of its entire 2021 production, estimated to be approximately 1 billion pieces of nitrile medical grade examination gloves or natural rubber medical grade examination gloves to be produced from May to December this year.
The company added that the gloves will be distributed on an original equipment manufacturing (OEM) basis to the European and US markets with the required licences being in place for the sale and distribution.
Aspen Group president and CEO Datuk M. Murly said the agreement will also allow AGSB to penetrate the EU and US markets.
With the secured deal, AGSB could focus on accelerating the expansion plan under Phase 1b to include an additional six lines, whose production is now expected to commence progressively from Q3 2021 onwards and to also bring forward Phase 2 for another 12 lines, to commence progressively from Q2 2022 onwards.
“With this sales of USD$100 million and acceleration of the additional 18 lines in 2021 and 2022, AGSB is expected to contribute significantly to the growth in revenue and profit of the group for the financial year ending Dec 31, 2021,” he added.
Subsequently, construction of the superstructure for the production building of the manufacturing facility and the glove dipping machineries are underway and expected to complete by March 31, 2021. Production trial commencement is expected from Apr 1, 2021 and full operation by May 1, 2021.
Despite the imposed 14-day Movement Control Order commencing from Jan 13 to Jan 26, 2021, work is expected to go on as scheduled as the glove manufacturing facilities are deemed as essential services.
Aspen’s glovemaking unit secures $132m in sales for 2021
Published by The Straits Times | 13 Jan 2021
The sales and distribution agreement is for the offtake of the entire 2021 production of Aspen’s subsidiary, Aspen Glove. PHOTO: ASPEN GLOVE
SINGAPORE (THE BUSINESS TIMES) – Aspen Holdings on Wednesday (Jan 13) said its newly-established glovemaking venture has agreed to produce US$100 million (S$132 million) worth of medical grade examination gloves for an unnamed third-party distributor.
The sales and distribution agreement is for the offtake of the entire 2021 production of Aspen’s subsidiary, Aspen Glove. This amounts to an estimated one billion pieces of nitrile or natural rubber medical grade examination gloves to be produced from May 1 to Dec 31, 2021, said Aspen in its filing with the Singapore Exchange.
The US$100 million sales value is based on the assumption of a provisional average selling price of US$100 per one thousand pieces of gloves. Aspen added that the distributor has paid a cash deposit amounting to US$2 million, which represents 2 per cent of the value of the secured sales.
Pursuant to the agreement, the gloves will be distributed on an original equipment manufacturing basis to the Europe and US markets with the required licences being in place for sale and distribution.
According to Aspen, the said distributor is a speciality and medical glove distributor and an established player in the glove distribution business, with over 20 years in the industry. Its products are available globally including in the US and Europe.
Aside from distributing gloves, it provides technical and advisory services for setting up glove manufacturing plants within the US, Africa and Malaysia, as well as other parts of Asia.
Murly Manokharan, Aspen’s president and group chief executive, said the new agreement will allow Aspen Glove to penetrate Europe and US markets to capture existing market demand for medical grade examination gloves. In his view, it also relieves the group of the need to manage sales and to negotiate with various parties.
“With this sales of US$100 million and acceleration of the additional 18 lines in 2021 and 2022, Aspen Glove is expected to contribute significantly to the growth in revenue and profit of the group for the financial year ending Dec 31, 2021,” he opined.
Aspen had earlier called for a trading halt before market opened on Wednesday, pending the announcement. The counter rose three cents or 12.5 per cent to 27 cents as at the midday break, after the halt was lifted.
Aspen Group unit secures glove sales deal worth US$100 million
Published by The Sun Daily | 13 Jan 2021
For representation purpose only. – REUTERSPIX
GEORGE TOWN: Aspen (Group) Holdings Ltd’s subsidiary, Aspen Glove Sdn Bhd, has entered into a US$100 million (RM406 million) medical-grade examination glove sales and distribution agreement with an unnamed third-party distributor.
In a statement today, the Penang-based property group said the distributor will offtake its entire 2021 production of approximately one billion pieces of nitrile and/or natural rubber medical-grade examination gloves to be produced from May 1 to Dec 31, 2021.
“With the agreement, Aspen Glove has secured US$100 million in sales value on the assumption of a provisional average selling price of US$100 per 1,000 pieces of gloves.
“The distributor has paid the group a cash deposit amounting to US$2 million or 2% of the secured sales value. The agreement is for the year 2021 production and renewable thereafter,” it said.
Aspen Group, which is listed on the Catalist board of the Singapore Exchange, said the agreement would allow it to penetrate the United States and European markets, as well as expand its customer base globally.
Group president and CEO Datuk M. Murly said the agreement relieves the group of the need to manage sales and negotiate with various parties as it could now focus on accelerating its expansion plans.
“The group’s expansion plan under Phase 1B includes additional six lines, with glove production anticipated to commence progressively from the third quarter of 2021 onwards, while an additional 12 lines under Phase 2 will commence from the second quarter of 2022.
“With these developments, Aspen Glove is expected to contribute significantly to the group’s revenue and profit for the financial year ending Dec 31, 2021,” he said.
Commenting on the 14-day movement control order imposed by the government from today and the nationwide state of emergency declared by the Yang di-Pertuan Agong on Tuesday, the group expects production to go on as scheduled as the group has put in place contingency plans to expedite the construction of its glove manufacturing facilities. – Bernama