- Management is still positive on the demand for gloves and expects it to remain firm moving forward. Currently, Kossan’s average utilisation rate stands at approximately 90% and this has been rather consistent over the past few years despite the increase in production capacity.
- The capacity expansion at its new factory in Jalan Meru is ongoing, and upon completion, this new factory will house a total of 32 double-former lines. This factory currently houses 8 double-former lines, which will start commercial production in Sep’10. All-in, Kossan’s annual production capacity would increase by 20.8% from 12bn pieces currently to 14.5bn pieces by end-2010 and further by 3.5% in 2011 to 15bn pieces.
RHB Equity 360° - 6 July 2010 (Kossan, IOIC, Faber, Mah Sing; Technical: Supermax)
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