PETALING JAYA: Supermax Corporation Bhd may resume exporting disposable gloves to the US following the lifting of its export ban by the country’s customs authorities.
In a statement yesterday, the US Customs and Border Protection (CBP) said it will allow disposable gloves manufactured by Supermax and its subsidiaries to enter the country, effective immediately.
This is provided that they are in compliance with US laws, said CBP.
In 2021, the CBP had issued a withhold release order (WRO) on Supermax on allegations that the glove manufacturer was involved in forced labour practices.
The agency said there was reasonable evidence indicating the presence of 10 out of 11 indicators of forced labour, as stipulated by the International Labour Organisation, in the group’s supply chain.
The WRO was also issued to its wholly owned subsidiaries – Supermax Glove Manufacturing Sdn Bhd, Maxter Glove Manufacturing Sdn Bhd and Maxwell Glove Manufacturing Bhd.
In today’s statement, CBP senior official Troy Miller said the move emphasises the agency’s effort to counter and eradicate forced labour from the supply chains of companies.
“Everyone is entitled to humane and dignified treatment in the workplace, no matter who they are or where they live, and that’s why this work matters,” he said.
The agency also acknowledged Supermax’s subsequent measures to remediate the forced labour indicators identified in its supply chain in response to the WRO.
In the fourth quarter ended June 30, 2023 (Q4 2023), Supermax posted a net loss of RM7.2 million, down 137% from a net profit of RM19.5 million registered in the same quarter last year.
Revenue dropped 26% to RM223.4 million from RM300.2 million a year ago.
As at 3.40pm, Supermax’s share price was up by four sen or 4.94% at 85 sen, giving it market capitalisation of RM2.31 billion.