After the United States (US), now it's Canada's turn.
Supermax Corp Bhd confirmed that the Canadian government has terminated the contract for the supply of nitrile gloves following allegations of forced labor.
According to Exchange filings, Supermax Canada Inc., a subsidiary of Supermax in Canada has agreed to terminate a joint agreement with the Canadian government on 2 existing contracts for the supply of nitrile gloves.
Meanwhile, Supermax added the contract to supply other personal protective equipment (PPE) products in Canada would not be affected.
For the record, Supermax has faced import restrictions by U.S. Customs and Border Protection (GST) which has issued a Detention Release Order (WRO) after finding the company was practicing forced labor practices in October last year.
As a result, Supermax's net profit for the 1st quarter ended September 30, 2021 (1QFY22) fell 1/3 to RM638.52 million from RM958.71 million recorded in the previous quarter (4QFY21).
In addition, Supermax's quarterly revenue declined 22.4% to RM1.45 billion quarter -on -quarter from RM1.88 billion in 4QFY21.
On an annual basis, its quarterly net profit fell 19% from RM789.52 last year and revenue was 7.62% higher than RM1.35 billion in the previous corresponding quarter.
Supermax said it recorded an increase in sales from additional capacity generated by its latest plant that was commissioned that year.
Meanwhile, Supermax also stated that they have begun efforts to comply with International Labor Organization (ILO) standards on foreign workers since 2019.
As proof, the company has launched a new and comprehensive foreign worker management policy such as providing the same salary structure and benefits for foreign workers in Malaysia besides resetting the minimum wage to RM1,400 used for each category.
