Malaysian Billionaire Stanley Thai Invests $350 Million To Build Supermax’s Glove Manufacturing Plant In Texas

Supermax Corp, controlled by Malaysian billionaire Stanley Thai, said its U.S. unit Maxter Healthcare will invest $350 million to build a manufacturing facility for medical gloves in Brazoria County in Texas.

The facility, which was detailed in a filing to the Kuala Lumpur Stock Exchange on Tuesday, will be Supermax’s 18th plant worldwide and the first in the United States. Construction will start in the second quarter and the first production of medical nitrile gloves is expected in 2023’s second quarter.

“Manufacturing within the U.S. has always been a desire of Supermax because it reinforces our high standards for quality and achievement,” Stanley Thai, founder and executive chairman of Supermax said in a statement.

The facility will span 215 acres (87 hectares) and comprise eight buildings. Supermax said the first phase of production will be able to meet up to 15% of U.S. demand over the next two to four years, and the second phase up to 25% over the next four to six years.

The Covid-19 pandemic has increased demand for single-use nitrile gloves globally. According to a report by U.S.-based Global Industry Analysts in March, the nitrile gloves market in the U.S. will reach $12.8 billion this year, and account for 33.5% of the global market.

Supermax said it exports to 165 countries. Last year, U.S. customs authorities banned imports of Supermax gloves from Malaysia due to alleged forced labor practices. Several other Malaysian producers have faced similar U.S. bans. Supermax did not respond immediately to requests for comment on Wednesday as to whether the company is still barred from exporting to the U.S.

In 1987, Supermax was founded by Thai and his wife Cheryl Tan, who together were ranked No. 20 on last year’s list of Malaysia’s 50 Richest, with a net worth of $1.1 billion.