Company appoints Howellcare as turnkey project partner to kickstart RM59m project
FARAH ADILLA KUALA LUMPUR bt@nst.com.my
MSCM Holdings Bhd executive director Jeff Chong Koon Meng (left) exchanging documents with Howellcare Industries Sdn Bhd director Francis Ho Chia Yao at an agreement signing ceremony recently. With them is MSCM executive chairman Datuk Teoh Hai Hin (centre).
SCM Holdings Bhd is spending RM59 million for its diversifi- cation into the glove manufacturing business.
The loss-making company said it would set up six lines for the production of nitrile gloves.
MSCM has appointed Howell- care Industries Sdn Bhd as its turnkey project partner to kick- start the venture.
Executive chairman Datuk Teoh Hai Hin said the group aimed to transform itself into a formidable listed company by ex- panding into new pillars of busi- ness, namely hire purchase and leasing, manufacturing and healthcare.
“These new ventures will not only contribute positively to- wards the earnings of the group but also complement the existing core segments as well.
“We feel confident that our glove venture with Howellcare will help drive exciting growth for years to come.”
Teoh added that the healthcare and glove industries remained poised for massive growth.
MSCM is currently involved in investment holding, search and advertising, information tech- nology, supply chain manage- ment and moneylending.
On Aug 7, MSCM announced that it had incorporated a new subsidiary called Hong Seng Gloves Sdn Bhd (HSG) and sub- sequently entered into a condi- tional tenancy agreement to set up a glove manufacturing plant in Sungai Petani.
Teoh is also the managing director of HSG.
On Aug 10, MSCM entered into a conditional tenancy agreement to rent four blocks of single-storey factory buildings, a single- storey office building and a sin- gle-storey canteen on a parcel of leasehold land measuring 217,800 sq ft in Sungai Petani.
MSCM executive director Kenny Khow Chuan Wah said the first two production lines were target-ed to go live in about six months from site deployment, with one additional production line added every month or so.
The company is targeting the completion of site deployment, pending licences and approval from its shareholders, in the final quarter of the year.
Meanwhile, Khow said the company was confident of turn- ing around by the end of the fi- nancial year ending March 31, 2022 following its venture into the glove business.
For the first quarter ended June 30, MSCM registered a net loss of RM1,000 compared to a net profit of RM412,000 a year ago.
Revenue plunged 74 per cent to RMS528,000 from RM2.02 million previously, mainly due to the disposal of subsidiaries in Cam- bodia that was completed in March.