ICONIC TO DIVERSIFY INTO PPE PRODUCTION WITH RM155.51 MLN INVESTMENT

KUALA LUMPUR, Sept 2 -- Iconic Worldwide Bhd intends to diversify its existing core businesses to include the manufacture and trading of personal protective equipment (PPE), which includes disposable face masks and gloves, with a total investment of RM155.51 million.

In a statement, the group said the RM155.51 million investment will be used for land cost and construction of a new facility, installation and commission of production lines, other equipment and working capital.

"It will be funded via a combination of internally generated funds, bank borrowings, and/or fund-raising exercise," it said. 

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The group has identified and plans to acquire a parcel of land measuring approximately 2.4 hectares located in Batu Kawan, Penang for the construction of the new manufacturing facility. 

A total of 22 production lines comprising 12 glove dipping lines and 10 mask production lines will be installed and commissioned over the course of 12 months, for a total cost of RM78.2 million. 

"The group plans to install and commission glove and disposable face mask production lines which are expected to yield a minimum production capacity of approximately 3.1 billion pieces of gloves per annum and approximately 222.7 million pieces of face masks per annum," it said.

The group said the proposed diversification is expected to be completed by the second half of 2020, with the new factory expected to be completed within 12 months from the commencement of construction and operate by the second half of 2021.

Currently, Iconic is involved in the development and sale of commercial and residential properties and provision of tourism and other related services such as hospitality management. 

For the financial year ended March 31, 2020 (FY2020), property development and tourism contributed 67.2 per cent and 30.4 per cent to its revenue respectively. 

Meanwhile, managing director of Iconic Worldwide, Datuk Tan Kean Tet, said the proposed diversification will provide an alternative income stream to the group, reducing its business concentration risk and mitigating its reliance on the existing core businesses. 

He said it will also provide an opportunity for the group to grow its revenue and enhance its business portfolio to drive improved financial performance.

"We intend to manufacture and trade latex and nitrile gloves for household, industrial and medical use, as well as two main types of disposable face masks namely three-ply disposable medical face masks and N95 disposable medical face masks,” he added.

-- BERNAMA