KUALA LUMPUR (Nov 30): Johan Holdings Bhd said its 60%-owned subsidiary, Dynacare Sdn Bhd, started commercial glove production of its first high capacity double-former dipping line last Saturday (Nov 27) after completing the acquisition of a parcel of land in Lumut, Perak.

The group said all approvals for the manufacturing and export of gloves have been obtained, with Dynacare expected to commission subsequent dipping lines in stages with a total of six dipping lines in commercial production by February 2022.

“This Phase 1 will have a production capacity of 1.8 billion pieces of gloves per annum. The glove manufacturing outfit in Lumut Port Industrial Park will have 42 high-capacity dipping lines with a production capacity of 12 billion pieces of gloves per annum when completed," Johan said in a statement on Tuesday.

The group said that with the emergence of the new Covid-19 variant, Dynacare has received "a deluge of enquiries" from glove buyers, including international buyers in North and South America, Europe, Middle East and Asia Pacific.

It said it is currently in talks with potential customers for deliveries in December and January, and expects the sales orders of the gloves business to start contributing to revenue by the second quarter ending Jan 31, 2022.

"The group is confident of a positive contribution to its bottom line by Dynacare," it added.

Johan said ESGloves, Dynacare’s flagship house-brand of nitrile gloves, will be launched in Malaysia and selected countries within the region.

“At the same time, Dynacare will develop its contract manufacturing business for international clients as it believes in building long-term synergistic and sustainable partnerships with global brand owners,” it said.

According to Johan, Dynacare sees an opportunity to develop and grow the ESGloves brand domestically as it believes in the growing demand for nitrile gloves in the local market.

“The brand name ESGloves symbolises our commitment to producing our gloves in the most ethical, responsible and environmentally sustainable manner.

“Dynacare believes in creating products through sustainable processes that minimizes the impact on the environment while enhancing the safety of employees and the community at large,” it added.

Johan said 100% of the glove plant's employees from senior management to factory floor are Malaysians.

“We are proud to be able to provide hundreds and soon thousands of employment to locals. With the adoption of automation initiatives and technologies, Dynacare is looking to offer more higher skilled jobs for its local workforce,” it added.

Johan's share price was trading 0.5 sen higher at nine sen as at 3.35pm, valuing the group at RM99.3 million.