Disclaimer: This is not a goreng article but awareness on glove making process and INSAS venture into Glove making which Philip has this to say:

Philip ( buy what you understand) Insas going into gloves now is the silliest thing I have ever heard. Instead of going into gloves last year when no one wanted it, going into gloves now when everyone is building capacity will just prove painful when the pandemics slows down and everyone starts throwing gloves around at cheap prices.
DISSAPOINTMENT.

05/11/2020 12:33 PM

 

INSAS is cash rich and now is an interesting times what will INSAS invest in after sold off Singapore car rental business, Sengenics and 100+ million worth of Inari shares?

Value investing did not work well as many people are chasing after growth stocks so the important question is how INSAS will employed it cash hoard to grow the company?

 

ANALYSIS OF DGSB SHAREHOLDINGS: As at 29 September 2020

THIRTY LARGEST SHAREHOLDERS

(Without aggregating the shares from different securities accounts belonging to the same depositor)

No. Name: No. of ordinary shares: %

1. INSAS TECHNOLOGY BERHAD: 190,000,000: 25.48

2. M & A NOMINEE (TEMPATAN) SDN BHD

MAJESTIC SALUTE SDN BHD FOR HALIM BIN SAAD: 35,950,700: 4.82

 

Dear all,

Watch the video to understand the glove making process and how a glove making plant look like.

https://www.youtube.com/watch?v=I0MWw_zMroE&feature=youtu.be

Note: Vietglove Corporation are equipped with the latest modern production line system from Malaysia . At the moment, the factory has 10 automatic double lines which operate continually, has capacity up to 2.4 billion pieces per year.

 

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3100886

DGSB (25.48% associate company of Insas) together with INSAS TECHNOLOGY BERHAD (Wholly Owned company of Insas).

As at LPD,the total issued share capital of PSSB RM1,000comprising 1,000ordinary shares,of which 600 ordinary shares (60%) are owned by DGSB and 400 ordinary shares (40%) are owned by ITB.

• Proposed acquisition by DGSB via its 60% subsidiary, Paragon Spectrum Sdn Bhd (“PSSB”) from Teow Yen Kim and Lim Yen Chie of 1,289,500 ordinary shares in Duramitt for a cash consideration of RM10.0 million;
• Proposed subscription by PSSB of 1,934,250 new ordinary shares in Duramitt for a cash subscription consideration of RM15.0 million; and
• Proposed subscription by PSSB of RM15.0 million new redeemable preference shares in duramitt;
With the proposal Duramitt will be 50.1% subsidiary company of PSSB

Duramitt is a manufacturer and supplier of coated and uncoated knitted gloves. Its products cover a wide rangeof coated and non-coated gloves such as non-coated knitted gloves made from cotton, nylon, polyester, kevlar and other various types of yarns. Their coated gloves are coated with various type of compounds such as synthetic rubber (NBR), pure latex, water-based polyurethane, and neoprene, to name a few. Duramitt gloves are certified and tested with the European Standards Laboratory Test, and mechanical hazards EN388 tested and marked. Duramitt supplies its gloves to our customers in Europe, America, Australia and New Zealand.

Duramitt is expanding its businesses to include the manufacturing and sale of medical examination gloves.

As a result of the Proposals, Duramitt will receive new cash injection of RM30 million, which will be used to fund the purchase, installation & commissioning of 2 single former nitrate examination glove production lines at the current factory area of 270,830 sq.ft. by early Q1, 2021and another 2 double former nitrate examination gloves production lines by early Q2, 2021. The minimum production capacity based on the 4 production lines is 600 million pieces of examination gloves per annum.

Duramitt has a vacant 3 acres land adjoining its existing factory which can be built as a new factory or as an extension of the existing factory to accommodate an additional 12 examination glove production lines if the demand of examination gloves due to the COVID-19 outpace the supply. This will enable their examination gloves production capacity to generate close to 3.0 billion pieces annually

 

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3102708

Reference is made to the Company’s announcement dated 30 October 2020 in relation to the Proposals. On behalf of the Board, M&A wishes to announce the following additional information with regards to the Proposals.

 

1. The commencement date of production of Duramitt Sdn Bhd (“Duramitt”)’s medical examination glove production lines.

Answer: Duramitt will install & commission 2 single former nitrile examination glove production lines by early 2021 and another 2 double former nitrile examination gloves production lines by the second quarter of 2021. As such, production is expected to commence in the first quarter of 2021.

 

2. The regulatory approvals/permits/licenses required to venture into the production and sale of medical examination glove, the dates on which they were obtained or will applied for.

Answer: Duramitt has obtained the requisite business license on 28 August 2020, manufacturing license from the Ministry of International Trade and Industry on 12 February 2014, customs license on 22 January 2019, and Malaysian Rubber Board license on 1 April 2020. The relevant approvals from the Ministry of Health will be sought in due course.

 

3.  Proposed utilisation by Duramitt of the total proceeds of RM30 million to be raised from the Proposed Investment. 

Answer: RM18 million will be used for the purchase, installation & commissioning of 2 single former nitrile examination glove production lines at the current factory in Kulim, Kedah, and the balance RM12 million will be used as working capital for Duramitt.

 

4. The date on which Duramitt commenced business.

Answer: Duramitt commenced its industrial and specialised glove manufacturing and trading business since 12 May 2000.

 

5. The terms of payment by Paragon Spectrum Sdn Bhd (“PSSB”) of the Share Subscription Consideration.

Answer:The Share Subscription Consideration shall be paid in one lump sum by PSSB to Duramitt within 7 days after the Completion Date, which falls within 30 days after all the conditions precedent of the Share Sale and Subscription Agreement have been fulfilled. The Share Subscription Consideration will be funded by equity capital funds and/or shareholders’ advances which will be contributed proportionately by the shareholders of PSSB in proportion to their respective shareholdings.

 

6. To quantify the amount of the total consideration for the Purchase Consideration, Share Subscription Consideration and RPS Subscription Consideration to be contributed by DGSB, the sources of funding and the breakdown.

Answer: The total sums to be contributed by DGSB based on its 60% shareholding in PSSB is RM24 million. This will be funded by the internally generated funds, equity fundraising and/or bank borrowings of DGSB, the proportions of which will be determined at a later date after taking into consideration of DGSB’s gearing level, interest costs and cash reserves.

 

7. The markets for the medical examination gloves to be produced by Duramitt.

Answer: The markets for the gloves to be produced by Duramitt include the medical, services, hospitality, manufacturing and engineering industries. Duramitt currently has buyers for its existing industrial glove products in the following countries - Spain, Czech Republic, Germany, Norway, Italy, France, USA, Canada, China and Japan. Duramitt plans to market the medical examination gloves to the same customers in these countries initially and will expand to other countries as its manufacturing capacity grows.

 

This announcement is dated 4 November 2020.

 

 

Note:

Amend the correct website: The www.duramitt.com owner is Maxi Support Sdn Bhd.

http://www.2rabond.com/products.html