Kossan Rubber Industries Bhd expects to perform better in the second half of this year despite concerns over rising utility costs and fluctuating rubber prices in the international market.

Its group managing director, Datuk Lim Kuang Sia, said to overcome the concerns, Kossan would produce more synthetic rubber glove.

'At the moment 40 per cent of our production are synthetic gloves and 60 per cent latex gloves. So we would increase synthetic glove production to just below 50 per cent.

'This is one of the group's actions to face the abnormal natural rubber price, such as latex, now hovering at about RM9 per kg after shooting up to RM10.70 per kg two month ago from RM7 before that,' he told a media briefing after the company's annual general meeting in Shah Alam today.

Lim said Kossan's future would be bright once its twonew factories in Klang were completed next year.

'These factories were meant to cater to production of high-end rubber gloves that could be used in clean room industry like the semiconductor sector,' he said.

Fortunately, he said, the company has just acquired 51 per cent stake in CleanEra Pte Ltd this month.

'The Hong Kong-based company has factory in Dongguan, China, producing products for clean room applications like surgical masks and lint free wipers.

'This company will bring synergy to Kossan to penetrate China's huge market,' he said.

For the financial year ended Dec 31, 2010, the company's pre-tax profit increased to RM148.06 million from RM85.82 million in the previous year.

Revenue increased to RM1.047 billion from RM842.13 million previously. -- Bernama