Malaysia is closing down some factories of the world's largest rubber glove maker as more than 2,000 workers tested positive for coronavirus.
Malaysia's Health Ministry reported a sharp rise in cases in the area where Top Glove factories and dormitories are located, with 2,453 workers testing positive for the virus, out of 5,767 screened.
The company, which commands a quarter of the global latex glove market, has racked up record profits this year on sky-rocketing demand for its products and protective gear, thanks to the pandemic. Its shares have surged over four fold this year.
Top Glove's shares were down as much as 7.5 per cent by late morning after the government said 28 factory buildings will be shut in phases.
Research analyst Ng Bei Shan said in a note that the closures will reduce production capacity by half
Top Glove runs 47 factories across Malaysia, Thailand, China and Vietnam, with 36 of them producing gloves. Europe and North America are its biggest markets.
Australian Associated Press