KUALA LUMPUR (Sept 22): Precision parts maker Notion Vtec Bhd has bagged a contract to supply disposable nitrile examination gloves for US$82 million or RM337.8 million.
In a bourse filing, the group announced that its wholly owned Notion Venture Sdn Bhd has inked a sales contract with a European company, which is in the personal protection equipment (PPE) supply chain, for the rubber gloves.
Notion Vtec added that it is to supply the gloves in two tranches. However, it did not identify the European customer to whom it will be supplying the gloves to, nor the amount of gloves involved.
The group also did not disclose how the supply will be met, for it does not currently have any rubber production facility. While it ventured into the PPE business recently, it has only announced the start of face mask production in June.
“This (the contract) is a result of the PPE marketing team’s efforts following the company’s financial result announcement for the third quarter ended June 30, 2020 commentary [which stated] that the group will be looking at trading and manufacturing opportunities in disposable nitrile gloves besides the face mask business,” it said.
It noted that the sales contract is expected to have a positive impact on its earnings and net assets per share starting from its first quarter ended Dec 31, 2020 (1QFY21), until the expiry of the sales contract.
At the time of writing, shares in Notion Vtec were up 20 sen or 20% at RM1.20, valuing the company at RM563.93 million. It saw 49.12 million shares traded.