KUALA LUMPUR (April 9): Riding on the surge of demand for personal protective equipment (PPE) amid the COVID-19 pandemic, Notion VTec Bhd says it is venturing into the manufacturing of protective face shields and components related to medical ventilators.
Notion VTec, which specialises in the manufacturing of precision-machined components, said it has already made an order for the machineries to produce PPEs.
Subject to approvals being obtained from all relevant authorities, it expects production to start by end-May at its main factory. The products will be sold locally, it said, adding the new business will be financed using internal funds.
“The production of the personal protective equipment will be in accordance with the International Organisation for Standardization and the company is in the midst of applying [for] approval from all the relevant authorities for the production of the PPE,” it added.
It expects the new venture to have a positive impact on its earnings and net asset per share for the financial year ending Sept 30, 2020. “The company will also continue its focus on its core business of supplying high quality and precision-machined component,” it added.
Yesterday, Notion VTec announced that its wholly-owned NotionVenture Sdn Bhd and Notion International (M) Sdn Bhd have obtained approval from the Ministry of International Trade and Industry (MITI) to operate during the Movement Control Order (MCO) period.
Notion VTec is not the first company to venture into making PPE following shortage of such equipment as nations the world over fight the pandemic. Just late last month, thermoform food packaging manufacturer SCGM Bhd said it will be producing face shields at its newly-formed healthcare protection gear pipeline, with mass production targeted in mid-April.
Notion VTec shares closed four sen or 5.67% higher at 74.5 sen today, valuing the company at RM249.2 million. The counter saw a spike in trading volume to 35.68 million shares, five times its 200-day average trading volume of 7.2 million shares.
Year-to-date, the counter has fallen some 22% from 96 sen on Dec 31, 2019.
http://www.theedgemarkets.com/article/notion-vtec-ventures-ppe-amid-demand-surge
