US ban on importing Glove high quality

Top Glove looks set to end in 12 months when the world’s largest glove maker was named Asia’s largest employer and its fifth annual magazine in March.

The share of arms manufacturers in Malawi has risen by more than 500% since reports from the coronavirus were released in China last year.

However, the share price was affected by the approval of the vaccine by the end of 2020. Then, the day after the award in March, US Customs and Border Protection ordered a seizure Top Glove sales on arrival at the American ports for reasons the company uses forcibly.

The US allegations have led to the loss of one of the world’s biggest beneficiaries of the epidemic. The rise of the company in the early days of Covid-19 was very rapid Lim Wee Chai, Founder and chair of Top Glove, found his fortune to swell nearly three times in 12 months to April to $ 3.5bn, according to Forbes, making him the eighth richest man in Malaysia.

Today, with the exception of the US takeover system, the company is cracking down on fast-growing vaccines in developed markets, which could reduce the demand for Top Glove products, and increase competition from low-cost Chinese manufacturers.

Top Glove last week also reported a 22% decline in annual sales at RM4.16bn ($ 1.01bn), although it was 147% a year. The company said low prices in the third quarter had risen due to rising prices and a 16% fall in the price of gloves.

“From every peak there will be repairs,” Top Glove CEO Lee Kim Meow told the Financial Times.

The company also said the third quarter inflation was due to a US embargo. Prices for North America – The largest market in Top Glove that pays the highest prices for its gloves – fell by 68% in the third quarter.

The group needs to lower its prices to attract buyers to new markets, says Ng Chi Hoong, a researcher at Affin Hwang Capital in Malaysia. Top Glove “was forced to look for new ways to meet the needs left by the US market”.

U.S. law, which covers labor lawsuits that have been linked to Malaysian industries for years, has also delayed a request from the company for a $ 1bn Hong Kong list by “several months”, Lim’s Top Glove’s call for funding.

The company has spoken out against Customs and Border Protection and is “just waiting” for the agency to review Top Glove’s funding and remedial measures, he said. The U.S. agency told the Financial Times that it was talking to Top Glove, adding that these types of laws were simply abolished unless there was compelling evidence that they were no longer in use.

The US ban on imports came after an employee at Top Glove died of Covid-19 last year when the epidemic broke out through the company’s factories and workplaces, which Malaysian officials at the time described as overcrowded, unpleasant and devoid of air. An explosion occurred.

Top Glove, which has about 12,000 foreign nationals in Malaysia, says it is donating RM200m to 14,200 other dormitories. What has been achieved in its hostels now follows or exceeds the mandate of the Malaysian law on labor housing that went into operation last year, he said.

Norges Bank Investment Management, which manages the $ 1.3tn oil portfolio in Norway, in January voted to select several executives at the annual Top Glove annual general meeting. The fund, which has a 0.89% stake in Top Glove worth $ 109m, declined to comment.

Asked about the vote, Lee said the organizations that sell the companies were “probably not comfortable” with “what happened last year”, adding that the company was working to improve cooperation with its shareholders.

Lim of Top Glove said the ban in the US was “temporary” but experts do not see it lifted until the end of the year.

“Although [Top Glove] added that it can fix all the signs by the International Labor Organization, we just expect the ban to reach by the end of 2021, ”said Ng Affin Hwang Capital.

Patrick Stokvis, vice president of research firm Third Bridge, said in a report reviewing Top Glove’s performance “will continue to raise prices among Malaysian glove manufacturers”. This could jeopardize their profits more than its Chinese competitors.

Lee’s Top Glove, however, predicted that the value of his products would remain strong as countries kept gloves in anticipation of future challenges.

Supramaniam Shanmugam, President of the Malaysian Rubber Glove Manufacturers Association, said drinking gloves would not cure the cause. The epidemic, like the 2003 Sars outbreak, could promote the temporary need for protective equipment, he added.

The agency estimates that the global demand for 2021 will increase by 18-27% to 420bn gloves, while Malaysia produced about two-thirds of them.

While Top Glove appears to have eliminated claims of forced labor, researchers believe, the US ban should be lifted to reduce the concerns of retailers.

“What we’ve done in the past isn’t enough,” admitted Lee of Top Glove.