KUALA LUMPUR (Nov 22): Top Glove Corp Bhd (KL:TOPGLOV) has entered into a joint venture (JV) with US glove importer Tronex (Asia) Ltd, and Polywel International Trade Co Ltd for the production and distribution of high-density polyethylene (HDPE) gloves.

The JV involves Top Quality Glove Sdn Bhd (TQG), a wholly owned subsidiary of Top Glove, that focuses on manufacturing and trading gloves, rubber products, and cast polyethylene products, the group said in a bourse filing on Friday.

Under the agreement, TQG will hold a 60% stake in JV company TG Meditech Sdn Bhd, while Tronex and Polywel will each own 20%. Business operations are expected to commence by December 2024.

Furthermore, Tronex is engaged in importing and servicing US national and international glove brands for medical and food service industries, while Polywel specialises in manufacturing and trading HDPE gloves and related products.

On contribution, the parties will collectively invest RM2.4 million, with TQG contributing RM1.44 million and Tronex and Polywel each providing RM480,000. 

TG Meditech will oversee the project, focusing on manufacturing and distributing HDPE gloves to support Top Glove’s expansion strategy.

Meanwhile, the JV board will comprise five members, with three nominated by TQG and one each from Tronex and Polywel.

Top Glove also noted that the JV is a long-term strategic initiative aimed at enhancing its product portfolio and market presence. 

At the close of trade, Top Glove's share price was down a sen or 0.87% at RM1.14, valuing the group at RM9.36 billion. The counter is up nearly 27% this year.