Supermax invests US$350m to build first US glove manufacturing facility

MALAYSIAN glove maker Supermax Corporation is investing US$350 million into building phase 1 of its first glove manufacturing facility in the US, through its US-based subsidiary Maxter Healthcare.

Phase 1 of 4 of the facility located in Brazoria County, Texas will begin construction in the first quarter of 2022 and will be in production by the fourth quarter of 2022. Supermax expects each phase to produce 400 million gloves per month. When all 4 phases are completed, the facility will produce 19.2 billion gloves per year.

The company noted that its board of directors had previously approved a total capital expenditure of US$550 million for the investment. The project will be Supermax's 18th manufacturing facility worldwide.

The facility will allow the company to cater to at least 10-15 per cent of the total annual medical glove imports into the US over the next 2-4 years, and provide 20-25 per cent of the demand and consumption in the US over the next 4-6 years, said CK Tan, chief executive of Supermax Healthcare, another US-based subsidiary.

Phase 1 will consist of the group's North America manufacturing headquarters, a research and development centre, a training centre and an employee facility centre.

Supermax's founder and executive chairman Stanley Thai added that the manufacturing plant will include capabilities such as automation and robotic engineering, and that the company will collaborate with American companies in these areas.

Glove makers were largely beneficiaries at the beginning of the coronavirus pandemic, when demand for their products surged amid rising concerns over infections.

However, in early December, Top Glove - one of the world's largest glove makers - noted that sales volume fell due to weaker demand as well as an increased competition and ramped-up supply by existing and new players.

In October, the US banned imports from Supermax over alleged forced labour practices relating to the abuse of foreign workers at the company.

Shares of Supermax ended Friday (Dec 17) at RM1.42, up RM0.15 or 11.8 per cent, on Bursa Malaysia.

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