Supermax to commence construction on US manufacturing facility in 1Q2022

KUALA LUMPUR: Supermax Corp Bhd is planning to start construction on the first phase of its new US-based manufacturing facility in Texas, US, in 1Q2022.

In a statement, the group said it would invest US$350mil in the first phase of the facility, which is expected to begin production by the fourth quarter of the same year.

The new manufacturing facility, located on 215 acres in Brazoria County, will be undertaken by Supermax's US-based subsidiary Maxter Healthcare Inc and will be completed in four phases. The group's board of directors had previously approved a total capex of US$550mil for the project.

Each of the four phases of the facility is expected to produce 400 million gloves per month.

"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,” said Supermax in a statement.

According to the statement, phase one will comprise the group's North America manufacturing headquarters, an R&D centre, a training centre and a full-fledged employee facility centre.

Supermax founder and executive chairman Datuk Sri Stanley Thai said the manufacturing capacity from the facility will aid the US in its ability to respond to the current pandemic.

He added that the facility will develop innovative new products and technologies via the its R&D centre and collaborations with the local and regional education institutions.

"The manufacturing plant will be equipped with world-class capabilities such as automation, robotic engineering manufacturing with artificial intelligence and industry revolution 4.0," he said.

CK Tan, CEO of another US-based Supermax subsidiary, Supermax Healthcare inc, added that the facility will be able to cater to at least 10% to 15% of the total 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 20% to 25% of the demand and consumption in the US," he added.