PETALING JAYA: AE Multi Holdings Bhd is eyeing a business turnaround this year as its new engineering, procurement, construction and commissioning (EPCC) business is banking on providing turnkey solutions to the growing number of new entrants into glove manufacturing.
The group expects the EPCC segment to deliver a significant order book in FY2021, allowing AE Multi to leap back into profitability following losses for the last three financial years since 2017.
With global demand for gloves expected to remain high throughout 2021-2022 amid the increasing Covid-19 vaccination programmes globally, many companies have been venturing into glove manufacturing to meet the shortage in glove supply.
AE Multi, via its wholly owned subsidiary AE Multi Industries Sdn Bhd, is capitalising on this new business opportunity by working with new glove makers to set up their production facilities.
A filing with Bursa Malaysia today showed that AE Multi has won a contract from PNE PCB Bhd, which follows a contract secured by the group on Dec 2, 2020 from Fintec Global Bhd’s wholly owned subsidiary, Fintec Glove Sdn Bhd.
AE Multi group executive director Choong Lee Aun said it is moving fast to collaborate with as many new glove makers as possible.
“Our immediate target markets are Malaysia and Thailand, which are the two major markets for glove production. The first two contracts announced by AE Multi are just the beginning and we are in talks with other potential customers,” he said.
The EPCC business is a strategic move by AE Multi to diversify its income stream and to enter a viable business segment that sees high demand, he added.