Top Glove shuts down factories amidst rising COVID-19 cases in Malaysia

By Nikita Chaurasia  Date: 2020-11-26

Top Glove shuts down factories amidst rising COVID-19 cases in Malaysia

 

  • The company has reportedly ceased its operations after 2453 employees tested positive for the Coronavirus.
  • The company’s shares plummeted by 7.5% after the Malaysian government ordered to shut down 28 of its factories.

As per reliable sources, Malaysian rubber glove manufacturer, Top Glove Corporation Bhd has temporarily ceased its operations at more than half of its manufacturing facilities in Malaysia amid the rising number of COVID-19 cases.

For the record, Top Glove is the world’s largest manufacturer of rubber and latex gloves with around 46 manufacturing facilities across Malaysia, Vietnam, Thailand and China. Established in 1991, the Shah Alam-headquartered company primarily manufactures dental damns, gloves, condoms, and face masks.

The recent decision comes along the heels after 2,453 Top Glove employees were tested positive for Coronavirus. In this context, the company claimed to have carried out screening of around 5767 workers.

If reports are to be believed, Top Glove’s shares plummeted by 7.5% after the Malaysian government ordered the company to shut down 28 of its factory buildings in stages in order to allow the workers to undergo screening tests and mandatory quarantine procedures.

It is to be noted that the company has been in the global spotlight for garnering high profits in 2020 owing to the escalating demand for rubber gloves amid the pandemic. However, it has also been subjected to allegations of exploitative labor practices.

In fact, Top Glove was accused of imposing hefty recruitment fees and excessive overtime on its workers. Moreover, U.S. authorities reportedly banned the import of the company’s products in July 2020.

Ng Bei Shan, a research analyst at the MIDF Group (Malaysian Industrial Development Finance Berhad) was reported saying that the temporary halt of the manufacturing facilities would reduce the Top Glove’s production capacity by 50% leading to a 4% plunge in its net income for the fiscal year 2021.

Source credits: https://www.abc.net.au/news/2020-11-24/malaysia-to-close-half-factories-of-worlds-top-latex-glove-maker/12916128

About Author

Nikita Chaurasia     aeresearch.net

Nikita Chaurasia

An accomplished professional in the field of content development, playing with words comes naturally to Nikita Chaurasia. After completing her post-graduate MBA degree in Advertising and PR, Nikita worked across numerous content-driven verticals, undertaking diverse r...

Read More

More News By Nikita Chaurasia

Apple unveils 16-inch MacBook Pro with high-performance M1 processors

Apple unveils 16-inch MacBook Pro with high-performance M1 processors

By Nikita Chaurasia

Tech giant Apple, Inc. has recently unveiled the 16-inch MacBook Pro, which promises extraordinary design and performance. The model can be customized with the all-new M1 Pro and M1 Max processors.    These new 10-core processors are ...

Kedrion Biopharma expands to North America with Prometic acquisition

Kedrion Biopharma expands to North America with Prometic acquisition

By Nikita Chaurasia

Prometic Life Sciences has developed the first FDA-approved treatment for Congenital Plasminogen Deficiency. This acquisition will enable easy access to advanced therapies for patients suffering from this rare disease. Kedrion Biopharma Inc. has...

Facebook Pages to reduce focus on Likes and followers for Indian users

Facebook Pages to reduce focus on Likes and followers for Indian users

By Nikita Chaurasia

Facebook Inc. has reportedly removed Likes from Facebook Pages for its Indian users to make the platform more user-friendly and easier to understand. This redesign of Facebook Pages was launched in January 2021 and has been rolled out for Indian user...

Merchant commerce platform Pine Labs eyeing USD 1 Bn Nasdaq listing

Merchant commerce platform Pine Labs eyeing USD 1 Bn Nasdaq listing

By Nikita Chaurasia

India is likely to witness a record number of IPOs this year, with several companies eyeing public listing to raise funds if the market sentiment remains positive. One such company, Pine Labs is reportedly planning to list itself on Nasdaq by October...

European climate group asks EU for tougher CO2 targets for truck makers

European climate group asks EU for tougher CO2 targets for truck makers

By Nikita Chaurasia

According to a recent study conducted by Europe’s Transport and Environment (T&E), the European Union (EU) should implement stricter CO2 targets for truck makers to swiftly transition to zero-emission models as present goals do not provide ...