KUALA LUMPUR (March 27): Rubber glove solutions provider Flexidynamic Holdings Bhd (KL:FLEXI) has proposed to expand its business in the industry by acquiring a manufacturer of glove formers.

In a bourse filing on Thursday, the group said it has entered into a memorandum of understanding (MOU) with HARPS Investment Asia Pte Ltd (HIA) for the acquisition of Formtech Engineering (M) Sdn Bhd. 

Formtech, located in Nilai, Negeri Sembilan, manufactures a range of glove formers, including those used for examination gloves, surgical gloves and energy-saving applications.     

It has a monthly production capacity of 250,000 glove formers and serves more than 50 customers across 15 countries.

"The MOU allows Flexidynamic and HIA to negotiate for a period of three months and sets out the understanding and intention of both parties in respect of the proposed acquisition," added Flexidynamic.

The group expressed optimism about the long-term prospects of the glove manufacturing industry, despite challenges such as global oversupply and ongoing capacity rationalisation.

“We are excited about the prospect of bringing Formtech into the Flexidynamic family. Together, we will continue to deliver best-in-class solutions while building an even more resilient and integrated supply chain,” Flexidynamic’s managing director Tan Kong Leong said in a statement.

The group noted that the recent decision by the US to raise import tariffs on China-made medical and surgical gloves to 50% in January 2025, with potential increases up to 100% by January 2026, presents an opportunity for local manufacturers.

Founded in 2012, Flexidynamic is a key player in the rubber glove manufacturing sector, with a presence in markets such as Vietnam, Indonesia and Sri Lanka, supported by offices in Malaysia and Thailand.

At the closing bell, Flexidynamic’s shares were one sen or 6.1% lower at 15.5 sen, valuing the group at RM46 million.