According to Tan Sri Dr Lim Wee Chai, Top Glove Corporation Bhd is expected to resume operations at all 28 glove factories in Meru, Klang, in the next two to three weeks.
He added that a total of 7 factories have re-operated in the first phase of the operational recovery which started yesterday, while the second stage will involve 7 more factories that will be operational again next weekend.
In addition, he gave the impression that all the factories will be operational again and all will return to normal within the next 2 to 3 weeks.
Previously, Top Glove had to temporarily close 28 factories in Klang due to the surge in Covid-19 infection cases among its employees there which represents about 50% of the company's production capacity.
However, the closure of factories in Klang since November this year is expected to affect only 4% of the company's revenue for this financial year ending 31 August 2021.
Next, to reduce dependence on foreign workers and create employment opportunities for locals, Top Glove plans to recruit 7,000 local workers in FY21 from nearly 5,000 in FY20.
In addition, following the company's breach of the Employees Housing and Minimum Facilities Act 1990 (Act 446), Top Glove claimed that they had not yet received any statement from the relevant authorities.
Although the Covid-19 vaccine is expected to affect the company's growth next year, they remain optimistic that the demand for gloves will remain strong despite the vaccine.
This is because demand for Top Glove products remained strong in Q1 FY21. It is driven by Asia except Japan, which jumped 72.9% year-on-year and Western Europe which jumped 70.2%.
However, demand from North America declined by 2% in Q1 FY21 from the previous year, influenced by the import ban issue related to the U.S. Tax and Border Protection.
