Kossan targets halal cert for second factory this year

Posted by DagangHalal Sdn Bhd on 5 Jun 2018

Kossan is the first glove manufacturer in the world to be awarded the halal certification by the Malaysian Islamic Development Department (Jakim) in November 2017.

Kossan managing director and CEO Tan Sri Lim Kuang Sia said the potential for halal gloves is big, looking at future requirements and areas of application.

“For gloves, to keep competing on prices is not the right way to go. You’ve to compete on your product quality and product having special feature for specific application. We have a wider range of product, we’re able to service different sectors in the market and different parts of the world. As we grow, these are more stable and you must have specific facilities for manufacturing specific product. That way you won’t lose out on your efficiency,” he told a media and analyst briefing after its AGM and EGM today.

However, he noted that the price points for halal and non-halal gloves are similar.

“Even when your product is unique, you can’t raise your price a lot. Volume is key, but if your product is unique, you get additional small profit margin... that’s good enough.”

With 17 factories now, executive director Lim Siau Tian said Kossan’s direction is, it wants all factories to be certified halal and is looking at halal compliance for its new plants.

“We’re the first (glove) company to be granted this certification. We recognise the needs of the market and (halal) system. This is the area that we have that advantage,” he added.

Siau Tian said halal is another hygiene and safety assurance, adding that Kossan’s first halal glove brand Confidenz is available in Malaysia via online purchase.

Kossan’s Plant 16 is estimated to be completed in early July, Plant 17 in two to three months, Plant 18 in early next year, and Plant 19 in mid-2019.