Supermax Corp Bhd (KL) announced on Tuesday that it will begin commercial glove production at its first US manufacturing facility in Texas by January 2025. This marks a significant expansion for the Malaysian glovemaker into the US market.
In its bourse filing, Supermax disclosed that its wholly-owned subsidiary, Maxter Healthcare Inc, based in the US, will commence testing and commissioning of its first batch of production lines in December 2024. The commercialization of glove production is expected to follow in January 2025. The phase one operation has a total production capacity of 4.8 billion pieces of gloves per annum, with plans to achieve half capacity next year.
The remaining production capacity is anticipated to be completed by the fourth quarter of 2025, complementing Supermax’s current production capability of 21 billion pieces of gloves per annum. Notably, 29% of Supermax’s total sales are directed to the US market, according to analysts' data.
"Our US plant incorporates a ‘smart manufacturing’ process, featuring digital process control and fully automated end-to-end manufacturing," stated Datuk Seri Stanley Thai, founder and executive chairman of Supermax. "This approach reduces reliance on blue-collar labor and leverages the latest technologies, including artificial intelligence, automation, and robotics."
Looking ahead, Supermax has plans for phase two of its US production, which could be installed within the next two years, depending on global demand and market conditions. The company recently completed the construction of its manufacturing building (B2A) and warehousing cum distribution center (B5) in Brazoria County, Texas, in December 2023, with a technical team from Malaysia overseeing the installation and commissioning of the equipment.
The announcement comes amid a strategic shift in US trade policy. The US Trade Representative (USTR) has recently decided to increase tariffs on China-based medical glove imports by 50% in 2025 and up to 100% in 2026. This development is viewed as a significant advantage for US-based manufacturers like Maxter Healthcare Inc, a Supermax subsidiary, and a member of the American Medical Manufacturers Association (AMMA).
Following the tariff announcement, shares of glovemakers surged, with the Bursa Malaysia Healthcare Index climbing over 10% on Tuesday. Supermax shares ended the day up 14 sen or 17.7% to 93 sen, raising its market capitalization to RM2.53 billion. This recent rally has nearly offset all of Supermax's losses this year, leaving the counter down just 1.1% year-to-date.
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