Top Glove’s raw material costs have doubled due to Middle East tensions, forcing two price hikes totalling 50% as the group focuses on internal efficiency.
SETIA ALAM: Top Glove Corp Bhd is facing supply chain pressure following geopolitical tensions in the Middle East, which have driven up raw material costs, said its executive chairman Tan Sri Dr Lim Wee Chai.
He said the price of raw materials has doubled from about US$700 per metric tonne to US$1,400, placing significant pressure on production costs.
“We have already implemented two rounds of price increases, one at the end of March and another in upcoming April, amounting to about 50%, as raw materials account for roughly half of total production costs.
“Externally we cannot control, internally we must be cost-efficient,” he told reporters today.
Despite the challenges, Lim expressed confidence that the group could continue performing well if it manages operations effectively, highlighting that crises can also present opportunities.
