LKL and AT Systematization Sign Distribution Agreement to Sell Gloves

Nov 2020

Healthcare equipment supplier LKL International Bhd has entered into a distribution agreement with AT Systematization Bhd to market, sell, and distribute natural rubber latex gloves and nitrile gloves. It targets volume sales of up to 2.6 billion pieces per year.

The deal has been signed specifically between LKL’s wholly-owned LKL Advance Metaltech Sdn Bhd and AT Systemization’s wholly-owned ATS Glove Engineering Sdn Bhd (ATS Glove).

The agreement is for an initial period of one year from the agreement date and is renewable, in line with the expected commencement of ATGE’s glove manufacturing production in early December 2020.

The agreement will allow AT Systematization to tap into the LKL’s extensive distribution network and client base within the healthcare industry, both in Malaysia and abroad. Meanwhile, the strategic partnership will allow AT Systematization to become a leading glove player. The company has also begun preliminary planning works for additional glove production lines to facilitate additional demand.

AE Multi Holdings Bhd has also recently signed an agreement with Ripcol Engineering Sdn Bhd to be a turnkey solutions provider for companies that intend to venture into glove manufacturing, covering design, fabrication, installation, testing, and commissioning of the glove-making facility.

According to the report “The Disposable Gloves Market – Global Outlook and Forecast 2020-2025” by Research and Markets, the disposable gloves market size is expected to grow at a compound annual growth rate (CAGR) of over 14% from 2019-2025.

(Sources: New Straits Times; The Edge Markets)

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