Top Glove Bhd : Estimates Temporary Factory Closure to Impact 3% of Fiscal Year 2021 Sales

By Chester Tay

Top Glove Corp. Bhd. said it expects about 3% of its FY 2021 sales to be impacted by the temporary closure of its 28 production plants in Selangor state.

The temporary closure is expected to cause some delay in delivery schedule by about two to four weeks for the facilities affected, the glove maker said in a filing to the stock exchange late Tuesday.

However, the company doesn't anticipate a penalty from the delay in delivery, and said the management had rescheduled production plans for the non-affected facilities to produce urgent orders.

The company said 16 facilities have been temporarily closed since last week, and the 12 facilities, which have been ordered to close for employee testing and sanitization, are operating at about 20% capacity.

Top Glove said the 28 plants being temporarily closed account for about 50% of its total production capacity.

Write to Chester Tay at [e-mail]

(END) Dow Jones Newswires

11-24-20 2003ET