GLOVE manufacturer UG Healthcare Corporation has started work on a new manufacturing facility in Malaysia that will boost its production capacity by 1.2 billion pieces of gloves per annum.
In filings to the Singapore Exchange on Tuesday, the group said it acquired the land for the facility through its acquisition of UG Engineering, a company incorporated for the purpose of buying the property. UG Engineering bought the property in January for RM5 million and remained dormant until UG Healthcare purchased both the subsidiary and property.
The property is a vacant leasehold industrial plot measuring approximately 17,233 square metres. It is located near UG Healthcare's two manufacturing plants in Seremban in the state of Negeri Sembilan, which the company said would boost its economies of scale. UG Healthcare executive director and finance director Lee Jun Yih said work has started on the new facility, which is expected to be completed by the end of June 2021.