KUALA LUMPUR (March 9): Komarkcorp Bhd said it has received a letter of intent from Poland-based Robayu Corp to export 48 million pieces of three-ply medical-grade masks to the US.

The order is expected to be valued at US$4.8 million to mirror European pricing counterparts, and will be carried out over 12 months, the group said in a bourse filing today.

Komarkcorp said the letter of intent follows the US Food and Drug Administration (FDA) certification received by its unit Komark Mask (M) Sdn Bhd for its three-ply disposable medical masks, which are now fully certified and listed on the FDA website.

"Without a doubt, the effect of constant masking and sanitising has brought about less ailments like flu, cough, and other menial sicknesses that normally affect humans," said the group’s chief executive officer CJ Koh.

He added: "What we are seeing in our dealings with overseas and export discussions, is the reluctance to rely on Chinese-made products, due to the leftover angst from the trade war during Donald Trump's regime. As such, being locally manufactured in Malaysia, with internationally authenticated registration and certification, and priced attractively to supplant United States own manufacturing of N-95 and three-ply masks, we are expecting more and more export orders to Western Economies."

Komarkcorp said the letter of intent is subject to various commercial conditions to be finalised such as logistics, payment terms, deliverables and regulatory export approvals to the US.

The definitive agreement and purchase order are expected to be finalised and confirmed within 60 days, with initial delivery slated to commence in the third quarter of the year.   

The group currently manufactures its masks at its flagship Balakong plant with a built-up area of 150,000 square feet.

It said there are immediate plans to revamp its other manufacturing sites in Bangkok, Indonesia and Johor to cater for additional output, as the company expects demand to scale higher over the next 12 months.

Shares of Komarkcorp closed 0.5 sen or 1.52% higher at 34 sen, for a market capitalisation of RM161.18 million.