MALAYSIA: Supermax sees price war in gloves sector

Supermax Corp Bhd group managing director Datuk Seri Stanley Thai told reporters average selling prices for rubber gloves would be trending downwards due to intensified competition in the market.

"We expect margins for nitrile gloves to be between 9% to 11% as all the glove manufacturers have increased their production capacity, hence increasing supply," he said after its AGM (Annual General Meeting) on Friday (31 May 2013).

Thai said as for Supermax, production would increase from 17.8 billon pieces of gloves currently to 23 billion pieces this year-end.

While he expected profit margins to be squeezed, he was optimistic to register earnings growth on the back of its enhanced capacity.

Source: Daily "The Star", Kuala Lumpur; 31 May 2013

(Syed Rashid Ali, Karachi, Pakistan)