Latexx defers Medan project

Latexx defers Medan project

KUALA LUMPUR (Reuters): Malaysia's Latexx Partners Bhd said it was indefinitely shelving a plan to build a glove factory in Medan, North Sumatra, due to uncertainties in the neighboring country.

"In light of the recent social unrest in Indonesia, the board of directors has decided that, it is in the best interest of the company to defer the project indefinitely.

"The board of directors will reconsider to resume the project only when the situation in Indonesia improves," the rubber-glove maker said in a statement to the Kuala Lumpur Stock Exchange dated May 25.

The company said it was also deferring a proposed four-for- five rights issue, which was intended to raise money for the Medan project.

Medan was rocked by riots earlier this month.