Kuala Lumpur, Malaysia – Sheng Tai International Sdn Bhd (STI) has set plans to venture into the fast-growing glove manufacturing market following the company’s collaboration with KenTeam Asia Glove Hub Sdn Bhd (KenTeam), a latex and nitrile gloves manufacturer.
STI inked a memorandum of agreement (MoA) with KenTeam to offtake 110 production lines from the latter’s glove hub.
Founder and chairman Datuk Leong Sir Ley said the partnership marks a significant milestone for the company.
It provides an entry point for STI into the nitrile glove manufacturing industry growing rapidly due to the pandemic.
“This new venture is expected to strengthen STI’s growth prospects and re-energise the economic growth of Malaysia, especially Melaka,” she told reporters at the virtual signing ceremony today.
Leong said STI – a property tourism pioneer- expects demand for nitrile gloves will continue to grow post-Covid-19.
She said the rising prevalence of chronic diseases and the increasing awareness of health protection, especially among the older generation, will continue to trigger the demand for nitrile gloves.
“STI has been working cohesively with the state government to bring in more business opportunities to Melaka through strategic partnerships with international brands, and we will continue to do so.
“We will create more job opportunities for the locals and surrounding communities, especially during these trying times,” said Leong.
KenTeam chief executive officer Datuk Seri Justin Lim said STI would fully develop this project starting this July.
“It will take about six months to complete the first 10 lines. Thus, gradually the whole production needs about 18 months.
“On job opportunities, we will generate an estimated 7,500 jobs with this project. The priority will be given to local Malaysian workers as we know that it is challenging to get foreign workers into Malaysia during this pandemic,” said Lim.
STI will design, construct and build the 110 production lines from KenTeam’s 36.4-hectare glove hub in Jasin, Melaka.
“When completed, the expected production capacity for each production line is three million boxes per annum. Hence the total production capacity for all 110 production lines is 330 million boxes per annum.
Being a partner of KenTeam, STI is inviting companies to collaborate or take up production lines from the Jasin glove hub.
For the past year, STI has brought in multiple international brands like IWG, Memorigin and FashionTV to invest in Melaka through their establishments, Metrasquare and The Sail.
In addition, STI is currently building an RM6.5 billion mixed development, The Sail, located in the heart of the 33-km Melaka Waterfront Economic Zone (M-Wez).
The Sail Phase 1 is set to complete by this year, making it the perfect partner for international anchor brands to enjoy business opportunities available within the development and M-Wez.
Recently, STI has also announced its plans to elevate The Sail Melaka Phase 2 and 3 as an international financial centre and possibly a duty-free hub