Supermax invests US$350mil to build the first phase of a manufacturing facility in the United States

NST Fri, Dec 17, 2021 02:55pm - 2 years View Original


KUALA LUMPUR: Supermax Corporation Bhd's US-based affiliate Maxter Healthcare Inc (MHI) plans to construct a big manufacturing complex on a 215-acre land in Brazoria County, Texas.

The new manufacturing plant will boost production in four phases, the first of which will begin in the first quarter of 2022 and end in the fourth quarter of 2022.

In an announcement to Bursa Malaysia today, Supermax said each phase is expected to produce 400 million gloves per month for each phase.

When all four phases are completed, the total installed production capacity would be 1.6 billion gloves per month or 19.2 billion gloves per annum.

Supermax founder and executive chairman Datuk Seri Stanley Thai said this manufacturing capacity would aid the US in its ability to respond to the current pandemic and help safeguard the country in the future.

"In addition, through the establishment of our research and development centre and collaborations with the local and regional education institutions, we will be developing innovative new products and technologies," he said in a separate statement.

Supermax board of directors had previously approved a total capital expenditure of US$550 million for this investment.

The total investment identified for phase one of this facility is US$350 million.

It will consist of its North America manufacturing headquarter, a research and development centre, a training centre and an employee facility centre. 

Buildings at this headquarter will comprise an engineering building, maintenance building and a distribution warehouse for other personal protective equipment (PPE) products.

This project will be Supermax's 18th manufacturing facility worldwide and the first one in the United States.

"The manufacturing plant will be equipped with capabilities such as automation, robotic engineering manufacturing with Artificial Intelligence and Industry Revolution 4.0.

"Our manufacturing facilities will also emphasize renewable energy and wastewater management.

"We are also proud to collaborate with American companies in the area of automation and robotic engineering," Stanley said.

Supermax Healthcare Inc (SHI) chief executive officer CK Tan said this manufacturing facility, when operational, will strengthen the US PPE supply chain by building capacities.

"We will be capable of catering to at least 10 per cent to 15 per cent 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 per cent to 25 per cent of the demand and consumption in the US," he said.

SHI is Supermax's other subsidiary based in the US.

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