KUALA LUMPUR (June 28): Pasukhas Group Bhd has secured a RM46.2 million deal to develop Fintec Global Bhd's medical grade nitrile glove manufacturing facility in Chepor, Perak.

Fintec said the engineering, procurement and construction agreement (EPCA) was inked between its unit Fintec Glove Sdn Bhd and Pasukhas' wholly-owned subsidiary Pasukhas Sdn Bhd.

"Pasukhas' scope of works under the EPCA encompasses designing, building, testing and commissioning the new glove manufacturing facility to contain the production area, packaging and warehouse area, stacking and stripping area, latex storage area, waste water sump, as well as other ancillary areas. The gross build-up area totals 18,746 square metres," said Fintec in a statement.

The technology and investment holding group said the duration of the contract is from Feb 1, 2021 to Feb 28, 2022, adding that the contract would enable the group to commence the manufacturing and sale of medical grade nitrile gloves in the first quarter of 2022.

Fintec said the facility would comprise a single storey rubber glove factory, and four storeys of machinery platform cum parking area with the capacity to house up to 14 glove-dipping lines.

Fintec managing director Steven Tan added: "With Covid-19's continued evolution and varying speeds of vaccination programmes worldwide, we foresee that demand for medical gloves would remain high, exacerbating the current shortage.

"During this construction period of our glove factory, we aim to build our customer networks further by targeting more distribution agreements and partnerships.

"We have continued receiving enquiries from several parties, most notably signing a memorandum of agreement in January 2021 to supply medical grade nitrile examination gloves to a distributor based in Warsaw, Poland and Eastern Europe."

Tan said the glove manufacturing venture broadens Fintec's revenue base towards enhancing the group's profitability.

Shares of Fintec closed half a sen or 14.29% lower at three sen, valuing the group at RM103.57 million.

Pasukhas was down one sen or 4.65% at 20.5 sen, giving the group a market capitalisation of RM231.95 million.