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Dipped Products to acquire 70% stake in Hanwella Rubber
-31-05-2006-
The Dipped
Products Group (DPL), one of the world's top three non-medical rubber
glove manufacturers, has announced plans to increase its local capacity
with the acquisition of a 70 per cent stake in Hanwella Rubber Products
Ltd.
DPL notified the Colombo Stock Exchange (CSE) this week that it had
entered into a Memorandum of Understanding for this purpose with BAM
Holdings, the major shareholder in Hanwella Rubber.
The company plans to make a further investment in the production
facilities of Hanwella Rubber, a manufacturer of disposable medical
gloves, to convert its production lines to manufacture products for the
DPL portfolio, DPL Managing Director N. G. Wickremeratne said.
This process, on completion, is expected to add about Rs 600 million in
value to DPL's business, and increase capacity by nearly 20 per cent, he
disclosed.
This acquisition will serve DPL's need for increased capacity on its
current product portfolio, and will in the short term, help supply the
company's smaller customers for medical gloves by adding to the
production from DPL Thailand, the company's maiden venture into the
medical gloves market, Mr. Wickremeratne said.
DPL would also use this facility to supply its own branded medical
gloves to the domestic market, he added.
In 2005-06, Dipped Products and its subsidiaries comprising world class
hand protection manufacturing companies and tea plantations reported a
turnover of Rs 7,109 million, up 16 per cent over 2004-05, with revenues
from the Hand Protection sector growing 18 per cent and 10 per cent in
the Plantation sector.
DPL's hand protection business comprises of several non-medical rubber
glove manufacturing plants in Sri Lanka that together make it one of the
top three global players in the segment.
It’s first medical gloves plant located in Thailand, recently completed
the commissioning of all six of its manufacturing lines, and is
approaching full capacity utilisation.
Hanwella Rubber Products Limited was incorporated as a Private Limited
Liability Company in December 1987 and converted to a Public Limited
Liability Company in May 1991. As a BOI registered company, Hanwella
Rubber enjoys a tax exemption period up to 2011.
The Board of Directors of Dipped Products Limited comprises Messrs R.
Yatawara (Chairman), N. G. Wickremeratne (Managing Director), H. A.
Peiris, R. W. Soysa, J. A. G. Anandarajah, Dr. W. S. E. Fernando, G. K.
Seneviratne, A. D. B. Talwatte, N. Y. Fernando, N. B. Weerasekera and R.
K. Witanachchi.
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