Mölnlycke invests EUR 50 million in a new surgical gloves plant to meet future demand on supply and sustainability
Mölnlycke® is investing EUR 50 million in a new plant in Kulim, Malaysia, to meet future demand for high-quality surgical gloves. The new plant will start production in September 2022 and will generate 500 new local job positions. With sustainable manufacturing as one of the main drivers for the initiative, Mölnlycke is partnering with ENGIE for energy solutions and Veolia Water Technologies for wastewater treatment solutions to ensure best-in-class energy and waste water management at the new plant.
“The new plant is a key part of our future plans for sustainable growth within the surgical gloves business. It will enable us to expand production to meet projected demand. But the best part is that we will achieve this in a less resource-intensive way, while creating a state-of-the-art working environment for our colleagues in Malaysia,” says Zlatko Rihter, the CEO of Mölnlycke.
As part of our commitment to reduce our operational carbon emissions by 50% by 2030 (baseline 2016), and in support of Malaysia’s national agenda to achieve net-zero emissions by 2050, Mölnlycke is focused on driving continuous energy efficiency to transition to 100% renewable electricity across all our sites globally.
We intend to optimise the new plant’s energy consumption by tapping digital energy management to monitor how energy is being used and where it is being lost. This increased transparency will help us optimise our efforts to reduce consumption.
Four out of Mölnlycke’s 14 plants are already operating fully on renewable electricity; and as of March 2022, additionally three of the surgical gloves manufacturing plants in Malaysia could be added to the list of factories fully powered by green electricity.
Mölnlycke’s journey to become a zero waste company by 2050 at the latest continues with focusing on both promoting a circular economy to reduce waste in all our manufacturing processes and recycling and reusing process water both on-site, or via third parties. For instance, the new plant in Kulim is equipped with a state-of-the art solution for wastewater treatment provided by Veolia.
“The surgical gloves manufacturing process is resource intensive. By partnering with experts in the fields of energy management and water management, we are ensuring we act to realise our ambition to become a global leader in sustainable healthcare. I am very pleased with the partnerships with ENGIE and Veolia – they are important in bringing ‘WeCare’, Mölnlycke’s sustainability transformation agenda for the Gloves business area, to life”, says Katriina Öberg, EVP Gloves, Mölnlycke.
ENGIE, a global leader in providing low-carbon energy, will support Mölnlycke’s production operations by providing sustainable energy solutions to the new Kulim plant under a long-term power-purchase agreement spanning over 15 years.
Thomas Baudlot, ENGIE’s CEO of Energy Solutions APAC and Country Head for Southeast Asia says: “ENGIE is proud to be the chosen long-term sustainability partner to Mölnlycke in accelerating their low-carbon journey in Malaysia. This will be an important milestone for our partnership, helping the Kulim plant use as little energy as possible. More broadly, the project exemplifies how industry players can reap economic benefits by accelerating their energy transition with low-carbon solutions."
Veolia Water Technologies, a leading supplier of proprietary wastewater treatment technologies, will provide wastewater treatment solutions enabling water recovery and reuse, while minimising the discharged quantity. The solution also includes digital monitoring services, as well as a tailored chemical conditioning program. These services will allow the plant to further optimise energy and chemical use during treatment as well as water consumption.
Olivier Estienne, Country Director, Malaysia for Veolia Water Technologies, says: “Veolia is firmly committed to championing ecological transformation. We are excited to partner with companies like Mölnlycke, who seek to establish sustainable practices and integrate a green mindset into their business. Our team is proud to be part of Mölnlycke's expansion plans in Malaysia and we look forward to more avenues to support their endeavour for greater sustainability and improved performance.”
For more information, please contact:
Strategic Communications Specialist
Phone: +46 737 73 38 14
ENGIE South East Asia
Senior Manager, Marketing & Communications
Phone: +65 9155 5600
Veolia Water Technologies
Press Relations Manager
Phone: +1 418 573 2735
Facts about Mölnlycke´s new plant in Kulim, Malaysia
- Commercial production will start in September 2022, official inauguration will take place 20 September 2022
- When running at full capacity, 800 people, of which 500 are new positions, will be working at the site
- Land area: 29,164 m2, building: 14,620 m2
- Production capacity/year: 50 million pairs of surgical gloves from opening. 200 million pairs of surgical gloves when running at full capacity in 2026
- Mölnlycke has three additional manufacturing sites in Malaysia, two for production of surgical gloves and one for packing
- By the opening of the Kulim site Mölnlycke, has made an investment of close to EUR 50 million for land, construction, and equipment
Mölnlycke is a world-leading medical products and solutions company that equips healthcare professionals to achieve the best patient, clinical and economic outcomes. The core business is within the four Business Areas Wound Care, Operation Room Solutions (ORS), Gloves and Antiseptics.
Mölnlycke employs around 8,400 people. The company headquarters are in Gothenburg, Sweden and we operate in more than 100 countries worldwide. Since 2007, the company has been part of Investor AB, an engaged owner of high-quality, global companies founded by the Wallenberg family in 1916. www.molnlycke.com
About ENGIE South East Asia
ENGIE group is a global reference in low-carbon energy and services. Together with our 170,000 employees, our customers, partners and stakeholders, we are committed to accelerate the transition towards a carbon-neutral world, through reduced energy consumption and more environmentally-friendly solutions. Inspired by our purpose ("raison d’être"), we reconcile economic performance with a positive impact on people and the planet, building on our key businesses (gas, renewable energy, services) to offer competitive solutions to our customers.
Turnover in 2021: 57.9 billion Euros. The Group is listed on the Paris and Brussels stock exchanges (ENGI) and is represented in the main financial indices (CAC 40, Euronext 100, FTSE Eurotop 100, MSCI Europe) and non-financial indices (DJSI World, DJSI Europe, Euronext Vigeo Eiris - Eurozone 120/ Europe 120/ France 20, MSCI EMU ESG screened, MSCI EUROPE ESG Universal Select, Stoxx Europe 600 ESG, and Stoxx Global 1800 ESG). www.engie-sea.com
Veolia group aims to be the benchmark company for ecological transformation. With nearly 220,000 employees worldwide, the Group designs and provides game-changing solutions that are both useful and practical for water, waste and energy management. Through its three complementary business activities, Veolia helps to develop access to resources, preserve available resources, and replenish them.
In 2021, the Veolia group supplied 79 million people with drinking water and 61 million people with wastewater service, produced nearly 48 million megawatt hours of energy and treated 48 million metric tons of waste.
Veolia Environnement (listed on Paris Euronext: VIE) recorded consolidated revenue of EUR 28.508 billion in 2021. www.veolia.com