LKL and AT Systematization ink deal to market and distribute gloves
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KUALA LUMPUR (Nov 6): Medical and healthcare equipment provider LKL International Bhd has inked an agreement with AT Systematization Bhd to market, sell and distribute natural rubber latex gloves and nitrile gloves.
In a joint statement today, the firms said the agreement was signed between LKL unit LKL Advance Metaltech Sdn Bhd (LKLAM) and AT Glove Engineering Sdn Bhd (ATGE).
The agreement is for an initial period of one year from the agreement date and renewable thereafter, in line with the expected commencement of ATGE’s glove manufacturing production in early December 2020.
The gloves would be mainly distributed to hospitals and healthcare providers, with a targeted volume of up to 2.6 billion pieces per year.
LKL managing director Lim Kon Lian said AT Systematization would be able to tap into the former’s extensive distribution network within the healthcare industry, both in Malaysia and internationally.
“This is also timely as it enhances our capabilities in fulfilling urgent market requirements for gloves as we continue to receive increasing enquiries from existing and potential customers,” he said.
Meanwhile, AT Systematization executive director Mak Siew Wei said the strategic partnership with LKL will bolster the firm’s pursuit to become a leading glove player, given LKL’s experience in distribution and its good client base.
“We are on track to reach a production capacity of 2.6 billion glove pieces per annum. On top of these, we have begun preliminary planning works for additional glove production lines that would further raise our production capacity to facilitate additional demand.
“We are positive that this will pave the way for greater collaboration with LKL International in the near future,” he said.
At the midday break today, LKL was unchanged at RM1.04, while AT Systematization added half a sen to 12.5 sen.
http://www.theedgemarkets.com/article/lkl-and-systematization-ink-deal-market-and-distribute-gloves
