Business

Supermax to invest US$350 mil in phase 1 of US manufacturing plant

Four-phase facility to produce 400 million gloves per month for each phase

Updated 4 years ago · Published on 17 Dec 2021 6:00PM

Supermax to invest US$350 mil in phase 1 of US manufacturing plant
Supermax says the project is its 18th manufacturing facility worldwide and the first in the US. – Social media pic, December 17, 2021

KUALA LUMPUR – Rubber glove maker Supermax Corporation Bhd plans to invest US$350 million (RM1.48 billion) in the first phase of its manufacturing facility in the United States.

In a statement to Bursa Malaysia today, the company said the 87-ha manufacturing facility in Brazoria county, Texas, would be undertaken by its US-based subsidiary, Master Healthcare Inc.

It said the four-phase manufacturing facility is expected to produce 400 million gloves per month for each phase, with phase one’s construction to begin in the first quarter of 2022 and to start production by Q4 2022.

“When all the four phases are completed, the total installed production capacity would be a whopping 1.6 billion gloves per month, or 19.2 billion gloves per annum,” it said.

According to Supermax, the phase one facility would consist of the group’s North American manufacturing headquarters, a research and development centre, trading centre and a full-fledged employee facility centre.

“This project will be Supermax’s 18th manufacturing facility worldwide and the first in the US,” it said.

The company said its board of directors had previously approved a capital expenditure of US$550 million for this investment.

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

“Our manufacturing facilities will also emphasise on renewable energy and wastewater management,” he said.

Supermax Healthcare Inc chief executive officer CK Tan said the manufacturing facility, when operational, would strengthen the US personal protective equipment supply chain by building capacities.

“We will be capable of catering to at least 10% to 15% of the total annual medical glove imports into the US over the next two to four years.

“As our capacity increases, we will be able to meet 20% to 25% of the demand and consumption in the US over the next four to six years,” he said.

Supermax Healthcare Inc is also a subsidiary of Supermax based in the US. – Bernama, December 17, 2021

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