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Top Glove predicts 3% hit on FY21 sales due to production halt  

KUALA LUMPUR: Top Glove Corp Bhd said that some deliveries from facilities in Klang, Selangor affected by the temporary closure would be delayed by two to four weeks and forecast a 3% hit of its current year annual sales.

The company’s 28 facilities in Meru, representing 50% of the the company;’s total production capacity, are affected by the two weeks enhance movement control order (EMCO) that started on Nov 17.

16 facilities have stopped work since Nov 17, while the remaining 12 facilities are operating at 20% capacity.

The temporary stoppages was facilitate Covid-19 screenings for all its workers at the site.

“Each facility would be able to resume operations in stages after the balance employees in the said facility has been swabbed or tested and the site has been sanitized,” top Glove said today.

“We are now working with the relevant authorities for an orderly screening process to ensure re-opening of the facilities with our employee health safety of utmost importance,” it said.

As a mitigation measure, the Company has rescheduled production plan for those non affected facilities to produce those very urgent orders.

“However, we do not anticipate penalty from this delay in delivery,” Top Glove said.

Reference