UNDETERRED by the withhold release order (WRO) imposed by the US Customs and Border Protection (CBP) on its glove products, Supermax Corp Bhd is planning a major manufacturing facility located on a215-acre site in Brazoria County, Texas.
The project undertaken by the group’ US-based subsidiary Maxter Healthcare Inc will spur production across four phases of build out with phase one beginning in 1Q 2022 and production commencing by 4Q 2022.
Each phase is expected to produce 400 million gloves per month for each phase. 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.
Supermax’s board of directors had previously approved a total capex (capital expenditure) of US$550 mil (RM2.32 bil) for this investment.
The total investment identified for phase one of the said facility is US$350 mil (RM1.48 bil) and will consist of the group’s North America manufacturing headquarters, a research & development (R&D) centre, a training centre and a full-fledged employee facility centre.
Edifices at the headquarters comprise an engineering building, maintenance building and a distribution warehouse for other PPE (personal protection equipment) products.
This project will be Supermax’s 18th manufacturing facility worldwide and the first one in the US.
“This manufacturing capacity will aid the US in its ability to respond to the current pandemic and help safeguard the US in the future,” commented Supermax’s founder and executive chairman Datuk Seri Stanley Thai Kim Sim.
“In addition, through the establishment of our R&D center and collaborations with the local and regional education institutions, we will be developing innovative new products and technologies.”
According to Thai, the manufacturing plant will be equipped with world-class capabilities such as automation, robotic engineering manufacturing with artificial intelligence (AI) and Industry Revolution 4.0 (IR 4.0).
“Our manufacturing facility will also emphasise on renewable energy and waste water management. We are also proud to collaborate with American companies in the area of automation and robotic engineering,” he added.
When operational, the manufacturing facility will strengthen the PPE supply chain in the US vis-à-vis capacity building.
“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,” projected CK Tan, CEO of Supermax Healthcare Inc, another subsidiary of Supermax Group which is based in the US.
“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.”
At the close of today’s trading, Supermax was up 15 sen or 11.81% to RM1.42 with 33.58 million shares traded, thus valuing the company at RM3.86 bil. – Dec 17, 2021
