The Supermax board of directors had previously approved a total investment of $550 million for the project, the Malaysian group said.
Costed at $350 million, phase one will include the setup of the group's North America manufacturing HQ and a research and development center among other facilities.
"This manufacturing capacity will aid the U.S. in its ability to respond to the current pandemic and help safeguard the U.S. in the future," said Dato' Seri Stanley Thai, founder and executive chairman.
The plant, he stated, will be equipped with "world-class capabilities," such as automation, robotic manufacturing, AI and Industry 4.0 technologies.
"We will be capable of catering to at least 10-15 percent of the total annual medical glove imports into the U.S. over the next two to four years," said CK Tan, CEO of Supermax Healthcare Inc., another subsidiary of Supermax Group that is based in the U.S.
"Over the next four to six years, as our capacity increases, we will be able to provide 20-25 percent of the demand and consumption in the U.S.," the CEO added.
In October, the U.S. placed a "withhold release order" on disposable gloves produced by Supermax Corp. and its subsidiaries for alleged forced labor.
The order, issued by U.S. Customs and Border Protection, was based on "information that reasonably indicates their use of forced labor in manufacturing operations."
