Komarkcorp to make, sell 3-ply surgical and KN95 face masks

PETALING JAYA: Komarkcorp Bhd has announced that is it diversifying into the manufacturing and sale of 3-ply surgical and KN95 face masks.

The diversification will include up to 30 production lines in the manufacturing of face masks, particularly 3-ply surgical face masks and KN95 masks with annual production capacity of up to 522 million masks and 120 million masks respectively within 24 months.

In a filing with Bursa Malaysia, Komarkcorp said it will start with setting up six production lines within four months, estimated to have a yearly production capacity of approximately 104.4 million 3-ply surgical face masks and 24 million KN95 face masks and the remaining production lines are to be gradually set up.

“The group is looking to leverage on its existing expertise in the manufacturing sector of close to 40 years and embark on the manufacturing of face masks after identifying an attractive business opportunity in exporting face masks to countries with high Covid-19 infection rates,” it said.

Komarkcorp has targeted countries with high infection rates such as the US and India, and countries in Europe, Africa, and South America as its principal export markets.

To facilitate the export of face masks to the countries, the group will apply for certification with the European Conformity and the US Food and Drug Administration after obtaining the necessary certifications in Malaysia.

The group forecasts the new venture will enjoy attractive profitability margins with a relatively short payback period from commencement of full operations

To undertake the new business, the group intends to invest up to RM20 million in total estimated costs, which will be funded via a private placement of up to 30% of the total number of issued shares of the company, internally generated funds and/or bank borrowings to be obtained.

“Based on the above, the proposed diversification allows the group to capitalise on a booming segment with favourable long-term prospects and is expected to materially contribute to the future earnings of the group as well as significantly improve the group’s financial performance in the coming years,” it added.

source https://www.thesundaily.my/business/komarkcorp-to-make-sell-3-ply-surgical-and-kn95-face-masks-IC2589956