Top Glove Corp Bhd expects its production of nitrile gloves to grow rapidly, with volume firmly surpassing that of low-margin latex gloves by the end of the year. According to its group executive chairman Tan Sri Lim Wee Chai, the company is expected to achieve a product mix of 55:45 between nitrile and latex by end-2020, compared with the existing composition of 50:50.
India has extended the transition to new rules for certain medical devices by 12 months. Regulators were due to start treating a clutch of devices as drugs on 1 January, but have given the industry more time to adapt. The delays follow shortly after the Indian government published draft legislation that would increase regulatory oversight of all types of medical device.
On the back of a positive results season, the rubber gloves sector is seeing signs of an uptick in demand in subsequent quarters, says Kenanga research. In a note, the research house said the 3Q results season came within expectations with volume growth of 6% and 14% recorded by Top Glove and Hartalaga respectively. It said its ground checks showed demand for nitrile gloves is picking up again and players' new capacities are being swiftly taken up. Based on its analysis, nitrile gloves market share could experience 30% growth in 2020.