KUALA LUMPUR: Hartalega Holdings Bhd's subsidiary Hartalega NGC Sdn Bhd has proposed to acquire a 60.57-acre tract of land in Sepang, Selangor, from Kumpulan Tanjung Balai Sdn Bhd for RM158.31mil.
According to a filing with Bursa Malaysia, the industrial land is a sub-divisional tract that forms part of a larger plot measuring 126.07 acres and is located adjacent to the existing NGC Sepang.
Upon acquisition, the tract will be used for the construction of additional glove manufacturing facilities to increase the group's installed capacity.
Upon completion of the existing expansion in NGC Sepang in 2021, the annual installed capacity will reach 44 billion pieces.
Coupled with the previous acquisition of 95 acres of land in Banting to build NGC 2.0, total annual installed capacity will increase to 95 billion pieces upon completion by year 2027.
Hartalega noted that the the Covid-19 pandemic has created an upsurge in demand for medical gloves.
"As a result, the medical glove industry is expected to undergo a structural step-up in demand with rising awareness on the importance of hand protection.
"The Proposed Acquisition will enable the Company to create greater value and earning potentials for its stakeholders," it said.