Hartalega Case Study Report

1.5 Recommendations and Suggestions This report reflects the company’s position of Top Glove Bhd, Hartalega Bhd, and Kossan Bhd. Based on the financial and non-financial aspects; we recommend that the Hartalega Bhd is the best company to invest in. First of all, the key of success for Hartalega Holding Bhd is their capacity of production. Since year 2008, Hartalega had construct Plant 4 in Bestari Jaya, Selangor. Before the Plant 4 is completed, Hartalega’s production capacity is 2.9 billon gloves per years. The construction of Plant 4 was completed in year 2009 and their production capacity had boosted to 6.2 billion gloves per year. In year 2011, Hartalega completed the construction of plant 5 which having 10 production line. Shortly after,

The production of vinyl gloves in china has been badly hit and many buyers decided to switch to use latex and nitrile gloves, this causes the surge of demand of Malaysian gloves as a result of the shortage supply in China. The supply disruption is resulting from the China’s fight against polluting industries, these industries is forced to either close down or upgrade their facilities to comply with China’s environmental regulation relating to pollution. As the result, this contributed to a large demand for rubber gloves produced by Malaysian companies. Moreover, the cost of production of glove industries in China may rising and causes the price glove price move up again in China in the second half year. This will provide some advantage in terms of a level playing field. In addition, the total export value of the rubber gloves from China was expected to increase by about RM 3 billion to RM 16.2 billion. The growth could be sustained and improved mainly due to the closure of come vinyl factories in China. Hartalega will gain largest benefits among three glove manufacturer in this situation. This is because Hartalega has largest production line to produce glove to meet up the demand of rubber gloves by China. Besides, Hartalega was spreading its wings to market in Middle East, Japan and

Hartalega was awarded due to its outstanding profits, growth, modest, debts and excellent prospect for the year. Besides, under the leading of Mr Kuan Kam Hon, the company once broke a record for being first to launch the lightest and thinnest nitrile powder-free medical glove. Although Mr Kuan Kam Hon had passed some day-to-day running of the business to his two sons, but he still playing as an integral role as Executive Chairman and primarily responsible for the overall business, strategic planning all entire operation of the company, including research and