Supermax's Associate Company To Establish US$50 Mln Medical Glove Facility In Brazil
KUALA LUMPUR, May 28 (Bernama) -- Supermax Corporation Bhd’s associate company, Supermax Brasil Importadora S/A (Supermax Brasil) will establish a medical glove manufacturing facility in the State of Paraná, Brazil, with a total investment commitment of about 250 million Brazilian Real (US$50 million).
In a statement today, it said the strategic investment represents a significant milestone in the group’s long-term international expansion strategy and reinforces Supermax’s commitment to strengthening its presence within the Latin American healthcare and industrial markets.
“The group believes that Brazil presents a compelling long-term growth opportunity due to its large and growing healthcare sector; increasing regional demand for medical and industrial gloves; strategic access to the Mercosur market; and ongoing government initiatives aimed at supporting local manufacturing and reducing import dependency,” it said.
The proposed project will involve the development of an integrated manufacturing facility, installed production capacity, flexible manufacturing capabilities, and target markets.
Supermax Brasil has been actively engaging with the relevant Brazilian authorities and stakeholders in relation to the implementation of the project and the development of a local manufacturing ecosystem.
The group also intends to expand market penetration into Mercosur associate member countries including Chile, Colombia, Ecuador, Guyana, Panama, Peru, and Suriname.
On the funding structure, it said the investment will be implemented in two phases. Phase 1 will involve an initial investment of about 150 million Brazilian Real (US$30 million), to be funded by internally generated funds and retained earnings; and Phase 2 comprises subsequent expansion phase to support future market growth and regional demand expansion.
Meanwhile, Supermax posted a higher net loss of RM41.14 million in the third quarter ended March 31, 2026 (3Q) from RM23.81 million in the same quarter a year ago.
In a Bursa Malaysia filing today, it said revenue decreased to RM126.76 million from RM203.67 million, mainly due to the impact of the strengthening ringgit against the US dollar and lower average selling price (ASP).
For the nine months ended March 31, 2026, net loss widened to RM234.19 million from RM93.35 million in the preceding year’s corresponding period, while revenue fell to RM519.76 million from RM627.11 million previously.
On prospects, it said that overall, the group expects a positive outlook.
“Despite persistent cost headwinds, robust healthcare demand and improved overseas market conditions provide a firm foundation for resilience and sustainable value creation.
“We are working towards the turnaround of the group and remain confident that it will return to profitability in the second half of 2026,” it said.
-- BERNAMA
