Flexidynamic Holdings Berhad has signed a Memorandum of Understanding (MOU) with HARPS Investment Asia Pte. Ltd. for the potential acquisition of shares in Formtech Engineering (M) Sdn. Bhd., a glove former manufacturing company located in Nilai, Negeri Sembilan.
Under the MOU, Flexidynamic plans to acquire all 8,300,000 ordinary shares in Formtech, pending a definitive agreement, to enhance its value chain in glove manufacturing and improve its market position through vertical integration.
This proposed acquisition marks a significant strategic milestone for Flexidynamic as it deepens its vertical integration within the glove manufacturing value chain. Formtech, established in 2011, is known for its technical expertise and strong global presence. With a monthly production capacity of approximately 250,000 glove formers, Formtech serves over 50 customers in 15 countries, reflecting its solid brand equity.
Formtech’s manufacturing capabilities include a range of glove formers for examination and surgical gloves, crafted through an automated process to ensure consistency. Their innovation in ceramic bodies and customised coatings improves glove release and durability. Surgical glove formers are developed in collaboration with clients to meet stringent regulatory standards in the U.S., Europe, and Asia Pacific.
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 glove manufacturing industry’s long-term prospects despite global oversupply challenges. Increased hygiene awareness and demand in emerging markets are expected to drive growth, especially in healthcare. The U.S. Trade Representative’s announcement of rising import tariffs on China-made gloves offers local manufacturers a chance to enhance their systems, which Flexidynamic can support.
Additionally, the company is expanding downstream through its gamma radiation sterilization initiative via Gammatech Sdn. Bhd. This service will benefit existing glove customers and adjacent sectors like pharmaceuticals and food processing.
Flexidynamic is focused on a strategy of vertical integration and market diversification within the glove manufacturing value chain.