Forced labor and Covid issues hit Ansell again

The covid-19 pandemic has again forced the closure of manufacturing facilities operated by global rubber glove maker Ansell and one of its suppliers has been penalized, reportedly for possible forced labor issues.

Nonetheless, a company update on first-half sales of surgical, examination and protective work gloves showed an increase over the prior corresponding period to $1.44 billion ($1.009 billion). ).

Ansell was hit by the Covid-19 shutdowns early in the fiscal year with lost production recovering slower than expected, the company said.

However, since the start of the calendar year, manufacturing facilities are again seeing an increase in covid-919 infections, with an Ansell factory in Malaysia being told to shut down completely for a week in a bid to control the virus.

The company told investors: “It is difficult to anticipate whether the increase in covid-19 infections will force other factories to close or operate at partial levels.”

In a further blow on January 28, U.S. Customs and Border Protection issued a restraint order against contract exam and surgical glove supplier YTY Industries.

The order will prevent its disposable gloves from being imported into the United States, with YTY responding with a “surprise” and a statement that it would demonstrate that it was free from forced labor practices.

Ansell suppliers have faced similar issues for several years.

The company said: “Ansell’s last third-party audit for YTY in April 20231 indicated that it was in compliance with local labor laws with one exception, which YTY publicly stated had been corrected by June. 2021.”

Ansell has a policy of working with its suppliers “rather than reactively canceling supplier contracts in response to specific events or allegations”.

As of 1:00 p.m. today, Ansell shares were down 12% to $27.51.

Photo: Ansel

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