Green Ocean Corporation Bhd plans to diversify its business by venturing into the gloves industry via its wholly-owned subsidiary, G Rubber Sdn Bhd (GRSB).
It intends to commission up to 12 double former glove-dipping lines in stages over 36 months. These 12 lines are expected to yield a combined production capacity of up to two billion pieces of gloves per annum.
According to Green Ocean, the venture into the gloves business allows it to capitalise on the burgeoning demand for gloves mainly due to the Covid-19 pandemic. The venture into the gloves business will also provide an alternative source of income to its current core business of production of crude palm kernel oil (CPKO) as well as trading of refined palm oil products and CPKO.
As a start, the company intends to acquire, install and commission six double former glove-dipping lines.
These six lines are expected to yield a combined production capacity of up to one billion pieces of gloves per annum.
It intends to refurbish part of its existing factory buildings to a glove-dipping facility in order to facilitate the venture into the gloves business. The production of medical gloves is expected to commence in the first half of 2021.
The company is proposing a private placement exercise and a renounceable rights issue with free detachable warrants exercise to fund the glove venture.