ASPEN GROUP TO DIVERSIFY INTO MANUFACTURING OF RUBBER GLOVES

GEORGE TOWN, Aug 13 -- Penang-based property development and real estate investment company Aspen Group has intended to diversify its business into the manufacturing of rubber gloves in Kedah.

In a statement today, Aspen Group Holdings Limited announced that its wholly-owned subsidiary, Aspen Vision All Sdn Bhd (AVA) has agreed to participate in a joint-venture agreement with investment holding company CMY Capital Sdn Bhd to diversify Aspen Group’s existing business.

According to Aspen, the proposed diversified business comprises the manufacturing and distributing of rubber gloves and other related activities at the Kulim Hi-Tech Park. 

"AVA has agreed to participate in a joint-venture arrangement with CMY, in which Aspen Glove Sdn Bhd (AGSB) shall act as the special purpose vehicle for the operations of the proposed new business," it said.

It  said AGSB expects to initially invest approximately RM105 million to complete Phase 1A of the rubber glove manufacturing business, which targets to produce a total capacity of 1.1 billion pieces of gloves per annum from the third quarter of 2021.

"For Phase 1B, AGSB intends to ramp-up the capacity to 3.5 billion pieces of gloves per annum by  the second quarter of 2022. AGSB anticipates a further investment of RM40 million to complete Phase 1B," it added.

Aspen Group is also a co-developer of Aspen Vision City at Batu Kawan Penang with IKEA Southeast Asia.

Meanwhile, AGSB has accepted a letter of offer from Kulim Technology Park Corporation to lease a piece of industrial land measuring 29.331 acres (11.870 hectares) at the Kulim Hi-Tech Park, as well as a first right of refusal for the lease of a piece of land measuring 37.021 acres (14.982 hectares) to construct an industrial factory to manufacture latex and nitrile gloves.

A Memorandum of Understanding was also signed yesterday with Invest Kedah Bhd, a state government-linked company, to provide AGSB the necessary support and facilitation for the establishment and operation of the new venture.

-- BERNAMA