KUALA LUMPUR, Oct 6 (Bernama) -- Top Glove Corporation Bhd is targeting to increase its running production capacity to 78 billion pieces annually by the end of financial year 2027 (FY2027), subject to operational requirements and resource availability.
Corporate director Lim Cheong Guan said the glove manufacturer has an installed production capacity of approximately 95 billion pieces annually, with its running capacity standing at 72 billion pieces as at Aug 26, up from 64 billion pieces a year earlier.
He said the increase in running capacity aligns with improving demand, with capacity utilisation rising to 77 per cent in FY2026 from 64 per cent in FY2025.
“Even with an additional eight billion pieces put in during FY2026, utilisation has increased to 77 per cent. For September 2026, we achieved a utilisation rate of 79 per cent.
“Our manpower availability remains a key constraint as we seek to increase production. We are focused on optimising existing facilities, improving productivity and enhancing automation, while ensuring that any additional capacity is supported by sustainable demand and acceptable returns,” he said during the group’s fourth quarter of 2026 results briefing today.
Meanwhile, on the FY2027 outlook, Top Glove executive chairman Tan Sri Dr Lim Wee Chai said the company’s profit performance is expected to remain sustainable and could grow by about 10 per cent, in line with the market growth rate.
“FY2027 should be able to sustain and do better. During the pandemic, we performed exceptionally well and had taken the profit way ahead, so now we are back to the normal trend,” it said.
Wee Chai said profit growth could exceed 10 per cent if the company improves performance by working harder and smarter.
On the other hand, commenting on Budget 2027 expectations, he said the government could consider reducing the 0.2 per cent export cess on rubber glove exports to 0.1 per cent.
He said the industry had already contributed significantly and noted that some countries provided incentives to encourage exports.
On global demand for the glove industry, Cheong Guan said the outlook remains cautiously positive and is expected to exceed 400 billion pieces in calendar year 2026.
More importantly, demand and supply growth are now becoming more balanced, contributing to a healthier market environment and providing a more stable foundation for margin recovery after several challenging years.
Natural gas prices are also expected to increase by around 30 per cent from Oct 1, 2026, creating additional pressures on energy costs.
To mitigate these energy cost pressures, Cheong Guan said the company will continue to pursue cost-saving initiatives, including heat energy efficiency and advanced automation.
“On pricing, we will continue to adjust our average selling prices (ASP) in line with movement in raw material costs while maintaining competitive pricing for our customers.
“Our pricing approach will remain disciplined and responsive to market conditions. We will closely monitor raw material prices, customer demand and geopolitical developments to ensure that we respond in a timely manner,” he added.
-- BERNAMA