Maiden US plant underway!
? SUCB announced the construction of Phase 1 (4.8bn pcs p.a.) of its 315-acre US glove facility will begin in 2QCY22, with commercial output by 2QCY23.
? Despite its higher production cost (vs. SUCB’s other plants), this plant allows SUCB to cater to US-based demand with minimal social compliance issues.
? Overall, we are slightly positive on this news assuming: i) strong execution, ii) no delays in construction, and iii) no cost overruns.