Supermax Plans Contact Lens Plants In Singapore, US And UK

• Rubber glove producer Supermax Corporation, which aims to increase its contact lens capacity to two billion pieces annually in the next 10 years from 40 million currently, plans to set up contact lens plants in Singapore, the US and the UK.

• Management noted that Malaysia will remain its main manufacturing hub, but note the challenge in getting talent in the country, adding that at least 95 percent of its workforce are engineers with minimum qualification of a university degree.

• The group is in the midst of obtaining approval from the Singapore government to set up its contact lens plant there and expects to get approval by 2017.

• The firm ventured into contact lens manufacturing in 2015, with its Sungai Buloh plant starting production of dry-lens. However, the company is still waiting to get its International Organisation for Standardisation (ISO) certifications to allow registration of its products (expected by 4Q16) before its starts selling the products.

Significance: Supermax has spent RMRM65 million on its new contact lens business, with RM30 million more planned by the end of 2016 in order to increase its contact lens capacity to 70 million pieces annually by 1Q17. While immediate returns are not expected from the contact lens business, management notes that it is for the long-term benefit of the group. Meanwhile, the group will continue to expand its glove business based on demand growth.