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Selasa, 24 November 2020

World's top latex glove maker Top Glove closes factories in Malaysia due to coronavirus outbreak - ABC News

The world's largest rubber glove maker has temporarily halted production at more than half of its factories while it screened and quarantined its workforce after more than 2,000 employees tested positive for COVID-19.

Top Glove's shares were down as much as 7.5 per cent by late Tuesday morning after the Malaysian Government said 28 factory buildings would be shut in phases.

The company, which commands a quarter of the global latex glove market, has racked up record profits this year on skyrocketing demand for its products and protective gear, thanks to the pandemic.

Despite Tuesday's slump, its shares have surged more than fourfold this year.

Malaysia itself makes just under two-thirds of the world's rubber gloves, according to the Malaysian Rubber Glove Manufacturers Association.

Malaysia's Health Ministry reported a sharp rise in cases in the area where Top Glove factories and dormitories are located, with 2,453 workers testing positive for the virus, out of 5,767 screened.

Remaining factories to operate at reduced capacity

In a stock exchange filing on Monday, Top Glove said it had temporarily stopped production at 16 of the 28 facilities since last Wednesday, with the balance of 12 facilities operating at much-reduced capacities.

The company did not immediately respond to questions seeking details, including the impact on production.

MIDF Research analyst Ng Bei Shan said the closures would reduce production capacity by 50 per cent, adding that a two-week closure could hurt net income by 4 per cent in fiscal 2021 if average selling prices remain the same.

However, tightened supply may also boost prices, cushioning the impact, she said.

Top Glove accused of labour abuses

Top Glove runs 47 factories across Malaysia, Thailand, China and Vietnam, with 36 of them producing gloves.

Europe and North America are its biggest markets.

The company has been accused of labour abuses in recent years.

In a 2018 ABC investigation, migrant workers accused the company of imposing excessive overtime and hefty recruitment fees that kept them in debt bondage.

The US imposed a detention order on Top Glove's products earlier this year. The import ban is to stay in place until the company can demonstrate its goods are not produced with forced labour.

Unlike the US, Australia does not require importers to prove there is no forced labour in their supply chain.

Reuters/ABC

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https://news.google.com/__i/rss/rd/articles/CBMicGh0dHBzOi8vd3d3LmFiYy5uZXQuYXUvbmV3cy8yMDIwLTExLTI0L21hbGF5c2lhLXRvLWNsb3NlLWhhbGYtZmFjdG9yaWVzLW9mLXdvcmxkcy10b3AtbGF0ZXgtZ2xvdmUtbWFrZXIvMTI5MTYxMjjSASdodHRwczovL2FtcC5hYmMubmV0LmF1L2FydGljbGUvMTI5MTYxMjg?oc=5

2020-11-24 06:54:00Z
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