Posted by kc888 > 2016-01-09 21:01 | Report Abuse

Luxchem : Leader in supplying nitrile and related chemical additives for glove producers. The emerging trend in the industry is favourable to Luxchem Corp Bhd, which supplies nitrile (synthetic latex) to glove producers, such as Hartalega Holdings Bhd, Top Glove, Supermax, and Kossan Rubber Industries Bhd. Glovemakers are on investors’ radar but not Luxchem. According to its customers, Topglove, Supermax, and Kossan are dedicating more of their production lines to nitrile gloves. >Topglove Topglove is increasing its product mix from purely a latex-based gloves producer into the higher margin nitrile gloves. In its latest quarter report,Top Glove continues to increase its nitrile segment contribution, which grew by 8% pts from 24% in 1QFY15 to 32% in 1QFY16. >Supermax In its latest quarter report,Supermax operating margins helped by stronger USD and better sales mix (i.e. increased sales of higher margin nitrile products). Growth going forward is expected to be driven by two new plants. The building structures for Plant #10 and Plant #11 i.e. Lot 6059 and 6058 in Meru, Klang are up and the first batch of lines has been commissioned. Lot 6059 and 6058 will have 24 and 16 production lines producing 3.2b and 2.2b pieces of nitrile gloves p.a., respectively, bringing the total nitrile production capacity from 6.9b (including the 1.4bn in Lot 6070) to 12.3b pieces p.a. or 52% of the total installed capacity. >Kossan In its latest quarter report,to fulfill strong demand for nitrile gloves, Kossan plans to double its current 22.5bn pcs capacity by 2021. The expansion plan will be executed in 5 phases from end-2015 onwards. The group will continue to focus on light weight nitrile gloves and aim to achieve a product mix of 80:20 - nitrile (SR) and natural rubber latex (NR) in FY16 respectively (YTD - 68:32 SR vs. NR). >Hartalega, leader in nitrile glove market. In its latest quarter report,Hartalega expect its earnings to jump upon the gradual ramp up of the Next Generation Integrated Glove Manufacturing Complex (NGC) (known as Plant 7). Presently, NGC has commissioned 17 lines. Upon full commissioning, the first two plants will add c.8b pieces (+56%) new capacity by 1Q16.