Chemical Company of Malaysia Berhad Annual Report 2019

centralised warehouse and support office. The relocation exercise was completed in February 2019 and today the centralised location is enabling more effective customer support through better materials management and raw materials coordination. A new production capacity is currently being added at the new centralised site which will double the cleaners production capacity from 9,000 MT/pa to 18,000 MT/pa. Ongoing efforts are also underway to improve the production process by leveraging on automation to enhance cost efficiencies and product quality. This will certainly add value to our business and give us a competitive edge over other players. Works on the Kleeners facility is scheduled for completion by the fourth quarter of 2020. Apart from that, the Polymers Division is already embarking on tapping the government’s Net Energy Metering or NEM Scheme under the Ministry of Energy and Natural Resources which will see us taking advantage of solar energy solutions for our own consumption. September 2019 saw the launch of an advanced new ultra-modern laboratory for Polymers R&D which will enable the Division to intensify new product development as well as testing and developmental activities for industries beyond the gloves sector. We have also made an investment in cutting edge lab equipment which will help us fast-track our R&D efforts. With demand growth for polymers on the rise, new players continue to be drawn to an already highly-competitive polymers market. To mitigate the effects of this, the Polymers team has introduced several innovative and cost-effective products with advanced features into the market to diversify its product offering. These products also feature the latest technology, are user-friendly in the glove manufacturing process, and have a reduced impact on the environment. The Polymers Division is continually working to ensure that all its product development processes are in line with the stringent regulatory and environmental requirements of each individual country that it supplies. It is the Group’s vision that, one day, our Polymers business will become a one-stop centre for all glove manufacturing needs. Moving Forward According to MARGMA, global demand for gloves is projected to expand at a healthy annual growth rate (CAGR) of between 8%-10% per annum over the next few years. This will fuel glove manufacturers’ demand for polymer coatings for glove production, particularly powder-free gloves. This is a huge opportunity for CCM to grow our market share in the glove manufacturing industry despite the intensified competition from other polymers suppliers and raw materials cost increases. CCM Polymers new facility at Bangi 25 ANNUAL REPORT 2019 BUSINESS OVERVIEW GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION