Voltage IP: Voltage IP targets multi-fold growth in glove manufacturing

Voltage IP's (ASX:VIP) wholly owned subsidiary KLE Products has entered into an agreement to acquire land adjoining its existing conveyor chain and glove line operations in Selangor, Malaysia. The land is vacant and measures about 13,203 square metres. The company has purchased the land for circa $2.24 million, with $375,000 already paid from existing cash resources and the balance to be paid before 16 August 2017. KLE Products has received confirmation of bank financing to fund the balance on settlement. The land acquisition will allow Voltage to expand its existing glove line operations by extending the factory and commissioning new lines in addition to the existing two lines currently in operation. Voltage is presently designing a state of the art manufacturing facility with the capacity to build and commission a further 12 new glove manufacturing lines on the land that has been acquired. If this objective is achieved, Voltage will produce in excess of 3.4 billion pieces of gloves per annum once all lines are fully commissioned and operational. The company aims to be a leading manufacturer of gloves used for the medical and surgical glove industry. Voltage's order book for gloves, since commissioning glove manufacturing lines in October 2016, has been strong and remain ahead of planned volumes. The increase in manufacturing operations will allow the company to increase output and target significant sales contracts for both Europe and Northern American customers. Voltage's share price has doubled over the past one year, last trading at $0.11.