Bisnes

Anzo gets US$200 million glove orders from US, Europe

Word has it that Anzo Holdings Bhd has received orders from the United States and Europe valued at about US$200 million to supply more than 1 billion pieces of medical gloves/nitrile gloves.T

This can be expected as demand from the United States and Europe spikes because the widening coronavirus outbreak is exceeding its capacity.

Countries around the world are looking at Malaysia to meet demand and despite the increased production capacity for medical gloves by local glovemakers, there is still shortage.

Anzo recently ventured into glove manufacturing by acquiring a company in Manjung, Perak for RM55 million.

It bought the assets of Wintrade World Sdn Bhd including land and factory that has the capacity to produce up to 1.2 billion pieces of medical and nitrile gloves a year.

From the current 9 production lines (1.2 billion pieces a year) at the factory, Anzo can expand the capacity by adding 12 or 15 production lines to produce more than 2 billion pieces of medical gloves a year.

Should demand exceed 2 billion, Anzo could also acquire land surrounding the factory to make more gloves.

It is learned that Anzo is expected to supply the medical gloves to the United States and Europe as early as the fourth quarter of this year.
This means, the company’s revenue and net profit for the next financial year ending July 31, 2021 is expected to spike up.

The stock has been trading at a high volume in recent weeks due to major announcements by the company.

Anzo is expected to hit limit-up this week. The stock closed 5 sen higher yesterday to 23 sen,  over last Friday’s closing price of 18 seen.

Prior to the announcement that it has acquired Wintrade World, Anzo also announced that it had won a RM1.3 billion contract to supply copper scrap to a South Korean company.

More recently there have been news of a major foreign fund coming into Anzo as a substantial shareholder, and institutional investors are also looking at the company, perhaps to have a share in the glove business of Anzo.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: