According to a BBC report, the authorities informed that the world's largest maker of latex would close down around 28 plants in stages as it will try to control the Coronavirus outbreak after 2,500 employees tested positive.
It did not specify how many of those were Top Glove workers. Top Glove Corporation Bhd expects its revenue for the current financial year ending August 31, 2021 to be impacted by three per cent following the temporary suspension of manufacturing facilities in Klang, Selangor.
It employs a total of 21,000 workers in its 41 factories in Malaysia and six others in Thailand, Vietnam and China.
In a stock exchange filing on Monday, Top Glove said it had temporarily stopped production at 16 of the 28 facilities since last Wednesday, with the balance of 12 facilities operating at much reduced capacities.More news: Trevor Noah Will Host The 2021 GRAMMY Awards
The company has seen a huge surge in demand for its personal protective gear since the start of the pandemic.
Malaysia itself makes just less than two-thirds of the world's rubber gloves, according to the Malaysian Rubber Glove Manufacturers Association. Hartalega Holdings and Supermax Corp are Malaysia's other two top glovemakers. Its main markets are Europe and North America.
Almost 5,800 workers have been screened so far with 2,453 testing positive, it said.
The government, battling the nation's largest cluster since the pandemic began, erected barbed wire fences in front of the workers' hostels in the Klang district on Tuesday.More news: More meteors in the skies
Teratai cluster which is linked to glove manufacturing company, Top Glove and the workers' dormitories has recorded over 1,000 positive Covid-19 cases so far. Checkpoints were staffed by police and soldiers.
However, tightened supply may also boost prices, cushioning the impact, she said.
The closures have not yet affected the company's orders, Ng said, adding that she is maintaining her earnings estimates for fiscal year 2021. Currently, it has captured 26% share in the world market, exporting rubber gloves to more than 2,000 customers across 195 countries.More news: Stocks rise on still more good vaccine news