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Dipped
products enters medical glove history
-05-03-2004-
Lays
foundation stone for US $ 9 million Thailand project
Plans by Dipped Products (DPL) to diversify into the manufacture of
medical examination gloves have reached the final phase of
implementation, with the laying of a foundation stone and the
commencement of construction in Thailand of the company's first overseas
manufacturing facility. This is DPL's entry into the medical glove
sector.
Construction of the US $ 9 million plant, located on 12 acres of land in
the Songkhla Province in Southern Thailand, is expected to be completed
in four months, and machinery and equipment installed by September this
year, the company said.
On the 17th February, Dipped Products (Thailand) Ltd, the subsidiary
which will undertake the project entered into an agreement for a long
term loan of Baht 150 million (US $ 4 million) and a working capital
loan of Bhat 30 million (US $ 0.75 million) with the Industrial Finance
Corporation of Thailand, one of the largest development finance
institutions in the country.
DPL Managing Director N G Wickremeratne and Technical Director Dr. Sunil
Fernando signed on behalf of the Company. Mr. Wickremeratne said a
significant aspect of the loan was the fact that it was provided without
a corporate guarantee from DPL, signifying the confidence placed by the
lending institution. DPL is a member of the Hayleys Group.
Following the signing of the loan agreement, the foundation stone for
the facility was laid on February 19, at which nine Head Priests of
Temples in the locality participated. Construction work on the factory
commenced in the final week of February Mr. Wickremeratne said.
One of the world's largest non-medical rubber glove manufacturers, DPL
established its Thailand project Dipped Products (Thailand) Limited in
January 2002 with the approval of the controller of exchange. The Board
of Investment of Thailand granted an attractive package of concessions
to the company to locate its plant in the Songkhla province. The medical
gloves project is expected to generate annual revenues of more than US $
10 million, and will greatly add to DPL’s product range and create
synergies with its distribution company ICO Guanti SpA of Italy, which
it acquired in May 2002.
The DPL Group comprising rubber glove manufacturing, distribution and
marketing and plantations, reported turnover of Rs 3.6 Billion and
pre-tax profit of Rs 287 million for the nine months ending December 31,
2003.
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