Focusing on high end and nitrile gloves Kossan beats competition

As you may recall, I wrote a recent rubber industry (mainly rubber gloves) round-up some weeks ago. Personally I was trying to determine which stock to enter. I finalise to two - Rubberex and Kossan. Then finally chose Kossan.

Kossan has been moving production to nitrile gloves since July 2010. Focusing on powder-free nitrile and surgical gloves, and basically to go higher-end of the glove market.

Nitrile gloves are made of synthetic latex. They contain no latex proteins and offer excellent resistance to punctures and tears. Nitrile gloves are three times more puncture resistant than rubber and can be used to offer superior resistance to many types of chemicals.

Unlike other latex gloves, nitrile gloves have low resistance to friction and are very easy to slide on. There are a few other reasons that nitrile gloves are more popular than other latex or vinyl gloves, including a higher degree of flexibility and superior solvent resistance.

There are several ways these companies now operate.
A mix of both nitrile and natural rubber gloves. Purely rubber. Purely nitrile. Natural rubber gloves have long been contended by synthetic rubber glove. Mainly from US propaganda machine to reduce a dependence on natural rubber products which only several countries in the world produces. Politics aside, going both ways is best. Given the nature that diversification is how financial management and investment should be played.

So you have zoomed in onto the sector. Rubber Gloves. And now choose a company that offers good growth and specialisation - yet enough product diversification.

Watch rubber gloves. Recent bird flu news in HK might bring about a new demand.