Supermax US plant may see losses in early stages

PETALING JAYA: Supermax Corp Bhd’s upcoming 315-acre glove plant in Brazoria County in Texas in the United States will likely be loss-making at the initial stages until certain economies of scale are achieved (all 12 lines commissioned, with over 65% utilisation rate), according to CGS-CIMB Research.

The research unit said on top of higher construction costs (at least 100% more than a similar plant in Malaysia), production cost for a plant in the US would be higher due to higher waste management and labour costs.