KUALA LUMPUR, July 16 — The detention order issued by the US Customs and Border Protection (CBP) on its goods will definitely affect supplies to the US, glove manufacturing giant Top Glove Corp Bhd said.
It however assured that the effect is not serious as it can still ship to the US.
Executive chairman Tan Sri Lim Wee Chai said the company will continue to ship but will park at the free trade zone as they are allowed to do so for a period of two weeks — the minimum amount of time that Lim said is needed to resolve the issue.
“If they (CBP) are willing to settle (the recruitment fees issue) then they can release the shipment.
“Otherwise, the shipment can be diverted to other countries like Latin America, Canada and even the Middle East countries,” Lim told reporters during a virtual press conference today.
Lim had earlier said that the reason for Top Glove’s detention order is likely the reimbursement needed to be given to workers who previously paid recruitment agent fees to get a job at Top Glove.
According to Lim, sales to the US represent 25 per cent of its total sales, where two of the subsidiaries that have been issued the detention order hold about 12.5 per cent of the 25 per cent business.
“Other countries can take up these orders easily.
“We have other plans as well if the US does not allow the shipment to enter into their country,” he said.
When asked about losses due to the detention order, Lim said while selling price to the US is high, the selling price to other countries is still good.
“It could be less, but still good. If the Covid-19 period is prolonged, it should not be an issue,” he said, citing the Covid-19 situation in Brazil, Peru and a few other Latin American countries.
He added that two weeks to a month is “nothing” as the US’ demand for disposable gloves is higher than what it currently has.
When asked about share prices, Lim said they will be temporarily affected but it is not as bad as what was previously experienced due to a legal dispute with rubber glove manufacturer Aspion Sdn Bhd.
In addition, managing director Datuk Lee Kim Meow said the situation is different from when glove manufacturing company WRP Asia Pacific Sdn Bhd was faced with a similar matter.
“During WRP’s detention order, there was no Covid-19.
“As for those who have already paid deposits for their orders, we’re not worried about them knocking on our door, demanding a refund.
“Because they know that they will have to be on another waiting list if they were to order from another manufacturer. They would rather wait for us to resolve this matter,” he said.
