Flexidynamic Holdings Berhad (“Flexidynamic” or the “Company”), an established solutions provider for the rubber glove manufacturing industry, is pleased to announce that it has entered into a Memorandum of Understanding (“MOU”) with HARPS Investment Asia Pte. Ltd. (“HIA”), a subsidiary of HARPS Global Pte. Ltd. for the proposed acquisition of shares in Formtech Engineering (M) Sdn. Bhd. (“Formtech”), a glove former manufacturing company based in Nilai, Negeri Sembilan.
Under the terms of the MOU, Flexidynamic intends to acquire up to 8,300,000 ordinary shares in Formtech, representing the entire equity interest of the company, subject to the terms of a definitive share sale agreement to be entered into between the parties. The proposed acquisition is aimed at expanding Flexidynamic’s value chain in the glove manufacturing ecosystem and strengthening its market position through vertical integration.
This proposed acquisition marks a significant strategic milestone for Flexidynamic as it seeks to deepen its vertical integration within the glove manufacturing value chain. Formtech, established in 2011, is recognised for its technical expertise, consistent quality, and strong global presence. With a monthly production capacity of approximately 250,000 glove formers, Formtech currently serves more than 50 customers across 15 countries, demonstrating its solid brand equity and international customer confidence. Its commitment to quality and innovation has made Formtech one of the trusted suppliers to many of the world’s leading glove producers.
Formtech’s core manufacturing capabilities cover a comprehensive range of glove formers, including those used for examination gloves, surgical gloves, and energy-saving applications. Each former is crafted through a highly automated production process that ensures consistency in shape, thickness, and performance. Their in-house development of ceramic bodies and customised coatings sets them apart in the industry. The coatings, tailored for different glove applications, offers superior surface properties, improving glove release during the dipping process and enhancing the formers’ durability. The company’s surgical glove formers are developed in collaboration with clients to meet stringent regulatory standards in the United States, Europe and Asia Pacific, further underscoring its commitment to quality.
Mr. Tan Kong Leong, Managing Director of Flexidynamic Holdings Berhad, commented, “We are excited about the prospect of bringing Formtech into the Flexidynamic family. Formtech’s well-established track record, deep technical capabilities, and strong customer relationships make it a natural fit within our long-term strategy. We look forward to welcoming Formtech’s talented team into our Group and are confident that their expertise will strengthen our collective capacity to serve the global glove manufacturing industry. Together, we will continue to deliver best-in-class solutions while building an even more resilient and integrated supply chain.”
Flexidynamic remains optimistic about the long-term prospects of the glove manufacturing industry, despite challenges posed by global oversupply and capacity rationalisation. The Company is confident that increased global hygiene awareness and demand in emerging markets with low glove consumption will drive long-term growth, particularly in the healthcare sector. The recent announcement by the Office of the United States Trade Representative to raise import tariffs on China-made medical and surgical gloves to 50% in January 2025 and up to 100% by January 2026 presents a timely opportunity for local glove manufacturers to upgrade their systems and equipment in preparation for returning global demand—an opportunity that Flexidynamic is well-positioned to support.
In addition to this proposed upstream expansion, the Company is also moving downstream through its gamma radiation sterilisation initiative via Gammatech Sdn. Bhd., its 51%-owned subsidiary. Currently in the planning stages, this service will cater not only to its existing glove industry customers, but also to adjacent sectors such as pharmaceuticals, food processing, and packaging.
Looking ahead, Flexidynamic is executing on a clear strategy of vertical integration and market diversification within and beyond the glove manufacturing value chain.
