Dipped Products to acquire 70% stake in Hanwella Rubber

RUBBER: The Dipped Products Group (DPL), one of the world's top three non-medical rubber glove manufacturers, has announced plans to increase its local capacity with the acquisition of a 70 per cent stake in Hanwella Rubber Products Ltd.

DPL notified the Colombo Stock Exchange (CSE) this week that it had entered into a Memorandum of Understanding for this purpose with BAM Holdings, the major shareholder in Hanwella Rubber.

The company plans to make a further investment in the production facilities of Hanwella Rubber, a manufacturer of disposable medical gloves, to convert its production lines to manufacture products for the DPL portfolio, DPL Managing Director N.G. Wickremeratne said.

This process, on completion, is expected to add about Rs. 600 million in value to DPL's business, and increase capacity by nearly 20 per cent, he said.

This acquisition will serve DPL's need for increased capacity on its current production portfolio. DPL would also use this facility to supply its own branded medical gloves to the domestic market, he added.