Rubber Journal Asia Gloves Industry
Latex that befits the gloves sector The healthcare and food industries, which
rubber gloves, around 63% of the wo r l d ’ s s u p p l y to 180 countries, and the industry is e x p e c t e d t o are amongst the top recession-proof hit US$3 trillion by 2015. But things a r e n o t a l l that rosy according to market analys t s . industries, have rubbed on their luck to the Malaysian research house RHB Research is giving gloves sector. While the Eurozone crisis Malaysia’s glove sector an optimistic review, citing weighs down on revenues for many industry that the market conditions are favourable. It says that Hartalega’s next generation integrated glove segments, demand for rubber gloves has complex (NGC) will commence in August 2014, with remained stable throughout the global an expected increase in total capacity to 43 billion pieces/year by 2020. Meanwhile, Supermax has also economic ordeal. Nonetheless, the gloves posted a healthy second quarter financial result and sector is also undergoing its own “paradigm has two new plants that will be fully commissioned by 2014 to further boost its sales. shift”, in terms of materials used and the Nonetheless, there are major bottlenecks the level of safety and efficiency, says Angelica manufacturers have to deal with, including labour shortage, fluctuating rubber prices and the imposition Buan in this report. of minimum wage levels in the country. Meanwhile, Thailand and Indonesia, which are two top rubber producers, are also catching up in the manufacture of rubber gloves. Recently, the Public Health Minister of Thailand, Pradit Sintawanarong, ccording to the latest report from Indian was quoted as having said that gloves exports will market research firm Konsept Analytics (KA), ramp up from 20 billion baht to 50 billion baht the rubber gloves sector remained unperturbed over the next five years, making the country a close in 2012, despite the Eurozone crisis. There were contender to Malaysia. some regions that were previously reported to have Since more than 12 billion gloves o f c a p a c i t y low penetration for gloves but with health and has been added in the last 10 months i n A s i a safety regulations being imposed on the healthcare (with several new projects currently a r e u n d e r and food industries, use of gloves has become way and expect ed t o come online soon ) , t h e imperative. sect or will experience an overcapacit y si t ua t i on . The research firm says that other key factors This is furt her affirmed b y t he lar gest that generated demand for gloves were increasing maker of gloves in the world, Top G l o v e , t h a t healthcare reforms that are adopting more stringent said recent ly it is consolidat ing it s o pera t i on s regulations in the light of emerging diseases like in China where it has two vinyl fact o r i e s . the H1N1 as well as decreasing material costs. With According t o C h a i rma n natural rubber having posted Tan Sri Lim W e e C h a i , significant price increases “…key factors that t he firm will be more over the last two years, generated demand for caut ious ab ou t expa n d i n g manufacturers have turned to it s b usiness a n d w o ul d the use of nitrile rubber, says gloves were increasing inst ead focus on KA. improving th e q u a l i t y The report cites Malaysia healthcare reforms…” of its product s a n d m i x as still dominating the global rat her t han ramping up product ion c a pa c i t y i n glove market, with the presence of the four top t he 2014 financial y ear. The compan y’ s c urren t rubber gloves manufacturers globally namely Top utilisation rates are 90% for nitrile g l o v e s , 8 0 % Glove, Supermax, Kossan and Hartalega. for latex gloves and 50% for vinyl gl o v e s . I t w i l l The report says that the country, being one of the also readjust it s hig h surg ical g love pro d uc t i o n largest producers of natural rubber, affords these volume as it has fulfilled a supply c o n t r a c t t o manufacturers an advantage in terms of raw material Africa. Nit rile g loves cont inue t o b e t h e grow t h availability as well as access to R&D capabilities as driver, t houg h t he firm had a 40% gro w t h part of the support given by the government. volume this year, slower than last y e a r ’ s 6 5 % Me a n w h i l e ac c ord in g to A mRes earc h , in growth. 2 0 1 2 , Ma l a y si a ex p orted 100 billion p iec es of
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5 November / December 2013
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