INIX Technologies Holdings Bhd’s wholly-owned subsidiary, iNix Glove Manufacturing Sdn Bhd, inked an agreement with L&S Gloves Sdn Bhd to begin commissioning two additional latex glove production lines to compliment the current two existing ones.

iNix Glove also signed a ten-year agreement for a factory site measuring 2.25 acres (0.91ha) in Beranang, Selangor, as preparation for its proposed venture into glove manufacturing.

L&S Gloves currently has two existing production lines there, and with the new tenancy agreement, both parties will be able to add two more production lines in February, an Inix release yesterday noted.

L&S Gloves director Teoh Yoek Leong announced the group will add two production lines every three months until a total of 14 production lines are commissioned.

L&S Gloves’ daily production of gloves is sold out in advance, and delivery to its customers is done on a daily basis. It has sufficient orders to sustain the group for the next two years for the planned 14 production lines which will have a production capacity of over 110 million pieces of latex gloves a month

Inix chairman Tan Sri Syed Mohd Yusof Syed Nasir said the group’s move to lease the factory and commissioning two out of 12 production lines demonstrate its strong commitment and capabilities.

“The latest additional production lines demonstrate our firm commitment and determination to venture into glove manufacturing, coupled with the expansion of 14 lines within 12 months,” he said.

Inix inked a memorandum of agreement in December 2020 to acquire a 51% stake each in L&S Gloves and World Gloves International Group Sdn Bhd as part of its diversification into the glove industry.

L&S Gloves director Teo Xiong Sheng noted that the total investment from Inix is estimated to be no less than RM50 million.

About 97% of the production would be exported to China and India, and the remaining is for domestic consumption. The company is also eyeing new markets such as Europe

Inix has come under scrutiny due to recent corporate announcements and board changes.

The company moved into the healthcare space via its proposed rubber glove venture and through the marketing of Covid-19 vaccine in the country.

The vaccine plan did not gain much traction, while the proposed glove announcement attracted the attention of the exchange.

Volatility in Inix shares has increased since the diversification plans were announced. The stock hit a high of 89 sen in August last year from 4.5 sen in June. The stock closed at 38.5 sen last Friday, in a week when it appointed a new auditor after the last auditor resigned.

SJ Securities Sdn Bhd was reported to have done a report on the company which the broker later issued a statement denying doing so.

Changes at its boardroom also attracted attention. Inix was pushed into the limelight after its newly appointed independent and non-executive chairman Tan Sri Mohamad Fuzi Harun resigned five days after his appointment.

The former inspector-general of police (IGP) was appointed to the chairman role on Dec 2.

In a bourse filing on Dec 7, Inix said Mohamad Fuzi, 61, resigned to “spend more time on personal interest and ongoing businesses”. Inix shares fell 13% the following morning after the resignation was announced.

Succeeding the former IGP as Inix’s chairman is Syed Mohd Yusof, who was previously chairman of YLI Holdings Bhd — a post he relinquished in January.

Prior to Mohamd Fuzi, Inix appointed Macau tycoon Wan Kuok Koi as its chairman. Wan, who was appointed to the post in August, resigned on Dec 2.

On Dec 10, Reuters reported that Wan has been blacklisted by the US due to his activities at the helm of the 14K Triad — a Chinese organised crime gang with tentacles into most of the Chinese communities across Asia founded in 1945.

The newswire stated that the US slapped sanctions on Wan, who is the leader of the organised crime group involved in drug trafficking, illegal gambling, racketeering, human trafficking and other criminal activities, a claim which a spokeswoman with China’s Foreign Ministry refuted.

Prior to this, Wan served a 14-year sentence for charges including loan-sharking, money laundering and heading a criminal group in Macau prison. He was released in December 2012.

In 2008, the Royal Malaysia Police said it identified the 14K Triad as a local organised crime syndicate involved in illegal drugs, illegal gambling and money laundering activities in Malaysia.

However, in 2015, former IGP, who is also Mohamad Fuzi predecessor, Tan Sri Khalid Abu Bakar, denied that there were members of the 14K Triad in Malaysia while admitting there were Malaysians who joined the group outside the country.

The statement was followed by a controversy over suspected Malaysian gambling kingpin Paul Phua.



Reference:
https://themalaysianreserve.com/2021/01/11/inix-to-expand-glove-venture-capacity/