PETALING JAYA: Top Glove Corp Bhd and Japan’s Fimatec Limited will jointly manufacture rubber reinforcing agent for use in the manufacturing of gloves by Top Glove group of companies.

In a filing with Bursa Malaysia yesterday, the group said its wholly-owned subsidiary Top Glove Sdn Bhd (TGSB) had entered into a joint venture (JV) agreement with Fimatec, a company involved in the manufacturing of industrial inorganic chemicals.

“The JV is a long-term investment plan for Top Glove group of companies. It aims to reduce the overall glove production cost, improve glove quality and production efficiency through the supply of good and consistent quality of rubber reinforcing agent,” it said.

Techniglove Asia Sdn Bhd, which will be renamed TG FMT Sdn Bhd, is the proposed JV company that will carry on the business of manufacturing rubber reinforcing agent for supply to Top Glove group of companies, targeted for operation by first quarter of 2018.

Under the JV agreement, TGSB and Fimatec will subscribe to the paid-up capital of Techniglove for up to RM4.2 million and RM1.8 million respectively or 70% and 30% stake respectively.

TGSB will fund its subscription via internally generated funds of the group and/or borrowings.