Supermax invests US$350m to build first phase of major manufacturing facility in US

TheEdge Fri, Dec 17, 2021 04:04pm - 11 months View Original


KUALA LUMPUR (Dec 17): Supermax Corp Bhd's US-based subsidiary Maxter Healthcare Inc is planning a major manufacturing facility in Texas to increase glove production.

In a statement, the rubber glove maker said the facility will be built in four phases, with the first one to start in the first quarter of 2022 and production to be possible from this phase by the fourth quarter of the same year.

"Each phase is expected to produce 400 million gloves per month. When all four phases are completed, the total installed capacity will be a whopping 1.6 billion gloves per month or 19.2 billion gloves per annum," Supermax said, adding that its board of directors had approved a total capital spending of US$550 million (about RM2.32 billion) for the capacity expansion.

The investment identified for the first phase will total US$350 million and comprise the group's North America manufacturing headquarters, a research and development centre, a training centre and an employee facility centre, said Supermax.

This project will be Supermax’s 18th manufacturing facility worldwide and its first in the US.

Supermax founder and executive chairman Datuk Seri Stanley Thai said the manufacturing plant will be equipped with world-class capabilities, such as automation, robotic engineering manufacturing with artificial intelligence and Industry Revolution 4.0.

“This manufacturing facility, when operational, will strengthen the US personal protective equipment supply chain by building capacities.

“We will be capable of catering to at least 10% to 15% of annual medical glove imports into the US over the next two to four years. Over the next four to six years, as our capacity increases, we will be able to provide for 20% to 25% of demand and consumption in the US,” he added.

At the time of writing on Friday (Dec 17), Supermax shares had risen eight sen or 6.06% to RM1.40, valuing the company at RM3.81 billion. The stock, however, had fallen 75% year-to-date.

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