19/09/2024

BIZ & FINANCE THURSDAY | SEP 19, 2024

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Airbus expansion bodes well for green aviation in Malaysia

PETALING JAYA: Supermax Corporation Bhd will begin commercialising glove production at its first US manufacturing facility in Texas by January 2025. Through wholly owned subsidiary, Maxter Healthcare Inc, Supermax will commence testing and commissioning its first batch of production lines in December this year. The company anticipates achieving half capacity of Phase 1 operations by next year 2025, producing up to 2.4 billion pieces of gloves per annum. The remaining of Phase 1 is expected to be completed in the fourth quarter of 2025, adding another 2.4 billion pieces per annum for a total of 4.8 billion gloves per annum for its US production capacity. “Our US plant incorporates a ‘smart manufacturing’ process, featuring digital process control and fully automated end-to-end manufacturing. This approach reduces our reliance on bluecollar labour and leverages the latest technology, including artificial intelligence, automation, and robotics,”said Supermax founder and executive chairman Datuk Seri Stanley Thai. The company has plans for Phase 2 of its production to be installed within the next two years, subject to global demand and consumption. Construction of the Supermax’s manu facturing building and warehousing cum distribution centre in Brazoria County, Texas, was completed in December 2023 under the collective efforts of Supermax Healthcare Inc and Maxter Healthcare Inc teams in the US. A team from Malaysia was deployed for installation of equipment and commissioning of the plant. The recently announced decision by the US Trade Representative (USTR) to increase tariffs on Chinese medical glove imports by 50% in 2025 and 100% in 2026 is seen as a crucial advantage for domestic manufacturers in the US. Maxter Healthcare, is part of the board of the American Medical Manufacturers Association. OF CAPITAL A AVIATION ASSETS PETALING JAYA: AirAsia X (AAX) has obtained clearance from Bursa Malaysia Securities for the extraordinary general meeting (EGM) circular for shareholders detailing the proposed acquisition of Capital A Bhd’s aviation business. This brings the company closer to completing the acquisition of AirAsia Aviation Group Ltd and AirAsia Bhd to form a new aviation group. Following the approval, AAX will convene an EGM in about three weeks’ time from the date of despatch of the EGM circular, at a date to be announced soon, where shareholders’approval will be sought for the proposed acquisition. Bursa Malaysia’s clearance of the circular and related share listings represents a pivotal step towards the completion of this transformative acquisition. KUALA LUMPUR: Pekat Group Bhd’s indirect wholly owned unit Pekat Solar Sdn Bhd has bagged a RM115 million engineering, procurement, construction and com missioning (EPCC) contract from MF Solar Tronoh Sdn Bhd. Pekat Solar will be appointed as the EPCC contractor of a 29.99-megawatt AC solar photovoltaic plant for the corporate green power programme in Kinta, Perak. “The commencement date is expected in the fourth quarter of 2024, and the project is expected to achieve the commercial operation date by Dec 31, 2025,” Pekat said in a filing with Bursa Malaysia yesterday. The contract is expected to contribute positively towards the future earnings of the group for the financial year ending Dec 31, 2025. – Bernama Supermax to start glove production at US plant by January 2025 AIRASIA X GETS BURSA NOD FOR EGM ON ACQUISITION PEKAT UNIT BAGS RM115M SOLAR CONTRACT IN PERAK

plays a vital role in Airbus’s global supply chain and business operations,” he pointed out. Currently, about 50 Malaysian companies are part of Airbus’s supplier network, providing a wide range of aerospace parts and components, including Composites Technology Research Malaysia (CTRM), Spirit Aerosystems Malaysia Sdn Bhd and SME Aerospace Sdn Bhd. Airbus has a significant presence in Malaysia, with over 280 commercial aircraft currently in service with Malaysian carriers, including both civil and military helicopters and close to 400 on order for future delivery. “Moreover, Airbus has expressed its commitment to expanding its supplier base in Malaysia, aiming to onboard more local companies in the coming years. This expansion not only enhances Malaysia’s role in Airbus’s supply chain but also boosts the local aerospace industry’s growth and development,” Eldeen Husaini said. In Malaysia, Malaysia Airlines is expecting the delivery of five Airbus A330neo aircraft by the first quarter of 2025 (Q1’25), following the arrival of its first A330neo in October. As for AirAsia, the group expects to receive another five new Airbus A321neo aircraft by the end of this year. Besides Airbus, the ambassador said, Malaysia Airlines’ move to expand its route to Paris would also greatly contribute to the increase of business flow while having a significant impact on promoting con nectivity between Malaysia and France. “I am very happy to note that our national carrier plans to expand here (Paris). “This is in line with the upcoming important events happening in Malaysia, such as the chairmanship of the Asean Summit 2025, Visit Malaysia Year 2026 and SEA Games 2027,” he said. He is optimistic about the traffic flow of tourists, business travellers and officials from France to Malaysia resulting from the Paris route. Malaysia Airlines will offer direct flights to Charles de Gaulle Airport in Paris from Kuala Lumpur International Airport Terminal 1 starting March 22, 2025. The service will operate four weekly flights, and tickets for the route will be available with an introductory all-in return fare of RM3,699. – Bernama

o Ample opportunities for companies in the country to integrate into European planemaker’s global supply chain

KUALA LUMPUR: Airbus’ focus on sustainability presents a promising avenue for Malaysia to contribute to the future of green aviation as the aircraft manufacturer is set to expand its operations and sourcing in the Malaysia, said Malaysia’s ambassador to France, Datuk Eldeen Husaini Mohd Hashim. He believes there are ample opportunities for local companies to integrate into Airbus’s global supply chain. “I have met the Airbus executive vice president international Wouter van Wersch

recently. We discussed the future business for Airbus, and the focus is on sustainability and decarbonisation, areas where Malaysia is poised to play a crucial role,” he said in an interview with Bernama via instant messaging. Malaysia has established a strong and strategic relationship with Airbus, a European multinational aircraft manu facturer, making it one of the key players in the Asia-Pacific aerospace market. “As the third-ranked market for Airbus in the region after China and India, Malaysia

Eldeen Husaini says Malaysia plays a vital role in Airbus’s global supply chain and business operations. – EMBASSY PIC/BERNAMA

BR I E F S

‘CAAM must continuously strengthen capabilities’ KUALA LUMPUR: The Civil Aviation Authority of Malaysia (CAAM) must continuously enhance its capabilities to improve safety, security, and capacity, ensuring it can meet emerging regional and global challenges. Deputy Transport Minister Datuk Hasbi Habibollah said this is crucial for sustaining the forecasted growth of the country’s civil aviation sector. He emphasised that aviation safety planning at international, regional and national levels is vital to managing growth in a safe, efficient, and environmentally responsible manner. “Therefore, addressing key safety and security priorities requires collaboration from multiple stakeholders,” he said. relevant documentation. “Nineteen annexes have been promulgated into Civil Aviation Directives (CAD), and all subsidiary guidance materials associated with CAD have been published as part of the Safety, Security, and Quality Assurance System, whilst continuously working on the Corrective Action Plan,” he said.

In this regard, he highlighted the Transport Ministry’s commitment, through CAAM, to maintaining continuous efforts and cooperation to prioritise aviation safety and security. “This includes carrying out effective safety and security oversight, safety management activities, sharing safety information and fostering a strong and positive safety culture,” he said. Hasbi also said that CAAM has taken progressive action to establish a comprehensive programme to enhance safety and security oversight by revamping

He also added that Malaysia remains steadfast in its commitment to support the International Civil Aviation Organisation’s leadership and guidance in achieving the sustainable growth of the global civil aviation system. Meanwhile, CAAM CEO Captain Norazman Mahmud said that changing regulatory environments require Malaysia to stay flexible and proactive. “As a regulator and service provider, we cannot address aviation safety alone. We need the support and participation of all stakeholders,” he said. – Bernama

Furthermore, he said the Asia-Pacific region has become the world’s largest aviation market and holds the largest share of international revenue passenger kilometres, while continuing to grow with corresponding challenges in air traffic capacity, efficiency, and safety. “Unmanaged air traffic growth can lead to increased safety risks when it outpaces the regulatory and infrastructure development needed to support it,” he said in his speech during the launch of the Malaysia Aviation Safety Seminar (MASS’24) yesterday.