1 week ago
1 
PETALING JAYA: Jiankun International Bhd has inked a memorandum of understanding (MoU) with Chuanplus Industries Sdn Bhd to invest RM50 million to produce nitrile rubber (NBR) for the rubber glove industry.
The MoU was reached after the helm of Jiankun was handed to Tan Sri Mohamed Apandi Ali, the former attorney-general, Datuk Tan Choon Hwa, a well-known and highly connected entrepreneur in the corporate world and Edwin Silvester Das, an ex-banker.
The company issued a statement announcing the appointment of Apandi as its new chairman as well as Tan and Das as executive directors. The trio are highly optimistic to turn the company around and improve the company’s business prospects in the near future.
According to the MoU, Jiankun and Chuanplus, currently a NBR producer in Nilai, Negri Sembilan, agreed to form a special purpose company (SPV) to build a new NBR production plant and enter the upstream production of nitrile gloves.
Jiankun will be responsible for raising funds while Chuanplus has the technology know-how to produce NBR.
Chuanplus CEO Chuan Tuck Soon said it has all the technology for the production of nitrile latex, and can produce the highest-grade nitrile latex, which is a high-demand raw material for all glove factories.
“The factory invested by Jiankun and Chuanplus is expected to produce 40,000 tons of nitrile latex per year,” Chuan added.
Tan said the SPV company would require an investment of RM50 million for the purchase of machinery, reactors, installations and equipment. Jiankun will hold 80% of the SPV, and Chuanplus will hold the rest. All these are still subject to further negotiation before a joint venture agreement is finalised.
It is expected that the land cost for the factory will be RM70 million, bringing the total investment to RM120 million. The alternative is to rent a factory.
“If everything goes as planned, it is estimated that after the first year of production, the order book will top RM175 million,” said Chuan.
English (United States)