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| Sunday, 7 March 2004 |
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Dipped Products enters medical glove industry 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. Managing Director N. G. Wickremeratne, and Technical Director, Dr. Sunil Fernando, signed on behalf of DPL. 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, 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 a 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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