KUALA LUMPUR: Kuala Lumpur Kepong Bhd (KLK), which owns 19 per cent of Yule Catto & Co plc, is set to grab a bigger share of the world's nitrile latex supply as its unit continue to expand output.
London stock exchange listed-Yule Catto, which currently controls 40 per cent of the world's nitrile latex supply, is spending RM110 million to expand its factory in Pasir Gudang, Johor.
Global annual demand for nitrile latex is reportedly around 550,000 tonnes.
The world's six nitrile latex producers, including Yule Catto, are ramping up output to satisfy rising global demand for nitrile latex used in the manufacture of medical examination and industrial gloves.
Yule Catto is making its latest expansion in Malaysia through wholly-owned Synthomer Group.
Synthomer said in a statement that the expansion will continue to strengthen its presence in the synthetic nitrile glove market. Currently, the company runs 100,000-tonne a year nitrile latex plant in Pasir Gudang and another 130,000-tonne plant in Kluang. Earlier this year, it had already expanded its Kluang facility.
Synthomer Asia managing director Dr Brendan Catlow said that by 2013, Synthomer's combined capacity at Kluang and Pasir Gudang will be 300,000 tonnes per year.