Hartalega expects Malaysian glove makers to gain US market share
[KUALA LUMPUR] Despite the threat of high US tariffs, glove maker Hartalega Holdings said Malaysian makers of the latex products are primed to gain further American market share as Chinese competitors face geopolitical headwinds.
Escalating tensions between the US and China are creating an opening for Malaysian glove makers to gain ground in America, Hartalega said in its Tuesday (May 6) earnings statement. The fallout 'is likely to provide positive catalyst' for the country's glove makers such as Hartalega, the company said.
Malaysia is negotiating with the US to bring its tariffs on the nation down to zero, from the 24 per cent that US President Donald Trump pledged to impose. Chinese exporters to the US are grappling with Trump tariffs of 145 per cent.
Malaysia's share of the US glove market surged to around 60 per cent in early 2025 from about 46 per cent in 2024, according to a late April report from Citigroup China's US glove market share dropped to around 5 per cent from 21 per cent in the same period. Chinese companies had made 'significant inroads' in the US medical exam gloves market as a result of the pandemic, it said.
Nonetheless, the US market 'will be challenging in the short to medium term' due to tariffs and competition that will put pressure on prices, particularly amid softer demand in the US during the first half of 2025 following 'earlier front-loading activities,' Hartalega said.
'Global demand has recovered beyond pre-pandemic levels in 2024, and the group anticipates continued healthy growth over the longer term,' the company said.
Hartalega's fourth-quarter net income dipped 2.8 per cent to RM14.5 million (S$4.4 million), weighed down by higher operating expenses according to the Tuesday filing. The company said it will 'continue driving automation and digital transformation initiatives to enhance productivity and cost efficiency across all facilities.' BLOOMBERG
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