Malaysia’s Supermax will invest $350 million in its first U.S. factory, citing an import restriction.

Despite an ongoing restriction on its imports into the country, Malaysian glove maker Supermax Corp said on Friday that it would invest $350 million to begin construction of its first manufacturing facility in the United States.

The United States Customs and Border Protection (CBP) blocked Supermax’s imports in October due to alleged forced labor abuses, making it the fifth Malaysian company to face such a restriction in the last 18 months.

Supermax stated that it is in contact with CBP to gather further information, and that it will expedite a process that it began in 2019 to satisfy the International Labour Organization’s criteria.

The new plant will enable Supermax to meet at least 10% to 15% of total annual medical glove imports into the United States over the next two to four years, as well as 20% to 25% of U.S. demand over the following four to six years, according to a statement.

Maxter Healthcare Inc, based in the United States, will construct the complex on 215 acres in Texas. Maxter will construct the facility in four phases, each of which is projected to manufacture 400 million gloves per month, giving the factory an annual production capacity of 19.2 billion gloves.

The first phase of production will begin in the fourth quarter of 2022.Last month, Canada’s Public Services and Procurement agency announced that it was delaying Supermax delivery while it awaited the company’s audit report.

Story by : Norvisi Mawunyegah