AGP Executive Report

Industrial Policy Update (Malaysia): Malaysia’s manufacturing sector kept strengthening under NIMP 2030, with gross value-added rising 5.9% in 1Q 2026 to RM101.3bn (from RM95.7bn a year earlier), led by electrical & electronics, refined petroleum, and chemicals. EV & Mobility Outlook (India): India Ratings & Research expects EV penetration to reach 10–12% of vehicle sales in FY27 (from 8.5% in FY26), with growth driven by ownership economics, but profitability and pace hinging on charging buildout and domestic component localisation. Solar Manufacturing (India): Avaada Electro and UTL Solar added 610 MW and 640 MW, respectively, to India’s ALMM List-II for utility-scale solar cells, lifting total enlisted capacity to 31,758 MW. Supply Chain & Security (Tech): Intel and Fortinet expanded their partnership to develop Fortinet’s next Security Processor 6, aiming to speed ASIC development while improving semiconductor supply-chain resilience. Sustainability & Materials (Wind Energy): EU backing (€48.18m) moves Voodin Blade Technology’s first-of-a-kind wooden wind turbine blade factory toward production, targeting lower CO2 and full recyclability. Right to Repair (US): NFIB urged lawmakers to expand right-to-repair after the FTC settlement with John Deere, pushing for access to tools and critical data for independent repair shops. Macroeconomics (Nigeria): Nigeria’s central bank held rates at 26.5%, but credit to the private sector fell 11.19% by June, keeping borrowing costs high for manufacturers and SMEs.

Tariffs & Pharma Reshoring: President Trump outlined a phased plan for 100% tariffs on imported generic medicines starting Aug. 2028, rising to 200% in 2029, aiming to force U.S. production—though experts warn it may not reliably bring manufacturing home and could raise prices and disrupt supply. Policy & Compliance for Drug Supply: The FDA launched a pilot to boost U.S. manufacturing of animal drugs by giving priority review when both finished products and active ingredients are made domestically, targeting continuity in supply. Industrial Finance & Growth: Graco reported Q2 results with net sales up 3% and operating earnings up 11%, citing tariff refunds and cost control. M&A in Consumer Manufacturing: Utz Brands agreed to be acquired by Intersnack for about $2.9B, taking the snack maker private. Battery & Legal Pressure: LG Energy accused Bosch and others of infringing battery patents in a Texas filing. Aerospace Production Push: Pratt & Whitney Canada will invest C$275M to modernize its Longueuil engine plant, supported by federal and Quebec funding. Skilled Trades Pipeline: BlackRock, Ford, Google and Carhartt launched the Alliance for America’s Skilled Trades to expand apprenticeships amid labor shortages. India Industrial Expansion: India approved two electronics manufacturing clusters in Tamil Nadu totaling over ₹1,012 crore, and expanded the Bharat 6G Alliance to 90 members. EV/Manufacturing Cash Burn Watch: Tesla reported negative free cash flow in Q2 as it ramped AI, battery capacity, robotaxis and next-gen manufacturing.

BESS Manufacturing Deal (India): Advait Battery Ecosystems and Adaptive Engineering will build and commercialize an integrated battery energy storage systems platform in India, covering manufacturing, system integration, EMS and lifecycle optimization. Green Industry Push (China): China is rolling out a nationwide program to create national-level zero-carbon factories, using a trial evaluation system and ongoing carbon-reduction targets rather than one-off certification. AI Tech Rivalry (US-China): The US is reviewing steps to restrict US firms from using Chinese AI models after Moonshot AI’s Kimi K3 release, while China leans on open-source to challenge the US-led AI ecosystem. Tariffs Hit Pharma Supply Chains (US/India): Trump’s plan keeps generic drug imports tariff-free until Aug 1, 2028, then moves to 100% and 200% tariffs unless production shifts to the US—raising pressure on global generic manufacturing networks. OT Cyber Risk (Boardroom Focus): A new warning highlights that operational technology in factories and logistics is a growing attack target, and board governance still often treats cyber as an IT-only issue. Aerospace Orders (GE Aerospace): GE Aerospace won a new engine order from National Airlines for GE90-110B and CF6-80C2 engines, reinforcing demand for freighter powerplants. Food Processing Innovation (Tetra Pak): Tetra Pak is previewing end-to-end innovation and AI-enabled factory tools at foodpro 2026, aiming to help food and beverage manufacturers speed product development and scale.

Domestic PC Production: Japan’s Dynabook says it has started making notebook PCs at home to meet customer demand tied to economic security. Semiconductor Pricing: TSMC is reportedly planning a ~10% price increase for chip production services starting in 2027, citing higher costs for materials, equipment and overseas plant build-outs. Aerospace Additive Manufacturing: Pratt & Whitney Canada’s Quebec engine plant is set for a major upgrade, while RTX and GKN Aerospace aim to certify a large additively manufactured F135 engine structural component by end-2028. Defense Autonomy Testing: Gabler and Flanq completed a sea acceptance test for a torpedo-tube-launched autonomous surface vessel demonstrator. EV & Battery Industrial Push: Pakistan and China signed an EV ecosystem MoU focused on local manufacturing and technology transfer, alongside policy work for battery storage. Regulation & Compliance: The EU adopted a ban on large firms destroying unsold fast-fashion items, pushing reuse and recycling instead. Workforce & Skills: UW-Madison launched a metals casting and forging boot camp to tackle skilled labor shortages. Corporate Dealmaking: Intersnack agreed to take Utz Brands private in a $2.9B deal. Safety Recalls: Hyundai recalled 66,000 Kona SUVs in Canada and the U.S. over a rear seatbelt bracket manufacturing issue.

Southeast Asia Market Expansion: Hyrax Oil signed distributor and technical services deals to expand its ester transformer fluids and industrial lubricants across Thailand, Cambodia, Laos, Myanmar and Vietnam. Policy & Compliance: The Philippines’ BIR issued guidelines clarifying when a 0.5% creditable withholding tax rate applies to wholesale purchases involving top withholding agents, importers and manufacturers. Solar Manufacturing Relief: India extended ALMM List-II exemption for net metering and open-access projects to Dec. 31, 2026, with stakeholders saying it could unlock up to 10 GW of stalled C&I solar. Fire Safety Crackdown: After a deadly helmet-factory fire in Homagama, Sri Lanka, and a separate Ahmedabad firecracker blast, authorities reported deaths, ongoing firefighting, and major illegal stock seizures and inspections. Industrial Automation & Materials: China highlighted AI-enabled production for ultra-thin substrate glass for displays, while modular construction demand is rising for factory-built building modules overseas. Corporate Moves: Ather Energy raised Rs 1,300 crore via QIP; Transition VC launched a Rs 1,500 crore fund targeting energy transition and advanced manufacturing startups.

Plant-Based Food Demand: The global pea protein market is forecast to rise from about US$2.5B in 2026 to US$4.0B by 2033, helped by clean-label and allergen-friendly nutrition. Industrial Policy & Execution: India’s government is reviewing the framework for industrial corridors, parks and manufacturing ecosystems, with NITI Aayog set to hold a stakeholder consultation focused on land, regulation, delivery, logistics and investor experience. Solar Supply Chain Relief: The renewables regulator extended net-metering and open-access relief under ALMM List-II until Dec 31, 2026 to ease the transition for solar PV cell sourcing. Biopharma M&A: Samsung Biologics launched an all-cash tender to buy PolyPeptide for about CHF 1.46B, expanding into peptide CDMO manufacturing. Aerospace & Defense Industrial Base: The U.S. Department of War backed $7.1M for space solar cell coverglass manufacturing in Ohio under DPA Title III. Ukraine Procurement Loop: Zelensky held a face-to-face meeting linking weapons/equipment manufacturers with corps commanders to unblock drones, artillery shells and procurement bottlenecks. Quality & Compliance: Wanbury Limited received a USFDA Form 483 with six observations after a cGMP inspection at its Tanuku facility. Energy Cost Pressure: New Zealand extended support for Golden Bay Cement to keep domestic cement manufacturing running, citing infrastructure needs and supply-chain risk. Supply Chain Resilience: A UK survey highlights manufacturers carrying more stock as lead times rise and just-in-time becomes harder amid shipping and energy volatility. Corporate Moves: GE Aerospace will expand Air France-KLM’s Fuel Insight fuel-optimization tool across the group. Manufacturing Footprint: Redwire opened a new space research and manufacturing facility in southern Indiana. Finance & Liquidity: Commentary argues business liquidity should be a top reform priority as manufacturers struggle with cash tied up in payments and credits. Regulatory Risk in Hemp: Michigan’s upcoming hearing could shape how industrial hemp processing and manufacturing develops in the state. Market Growth Signals: Precision gearbox demand is projected to nearly double from US$3.9B (2026) to US$7.9B by 2033 on robotics and automation adoption.

Industrial Digitalization & Automation: alcemy says it’s moving from plant-level AI pilots to an enterprise “Foundation Partnership” aimed at scaling autonomous cement and concrete production. Energy-Heavy Manufacturing Electrification: Coolbrook and ABB begin the industrial delivery phase of RotoDynamic Heater electrified heat for Adani Cement’s Andhra Pradesh plant, targeting lower fossil fuel use in calcination. Clean Energy Materials: ISSDA and GSSE partner to push stainless steel for green hydrogen and related infrastructure, calling for a National Stainless Steel Policy to strengthen domestic manufacturing. Supply Chain & Trade: China’s equipment manufacturing exports rose 18.2% in H1 2026, with wind and lithium batteries among the fastest growers. Regional Industry Support: Türkiye will provide 187.5 billion lira for manufacturing employment support through 2028. Workforce Pipeline: Roanoke schools’ “Dream it, Build it, Work It” camp trains students in welding and wiring to address manufacturing skills shortages. Regulatory/Market Watch: EU ETS review and electrification plans aim to shape long-term industrial investment certainty, while PFAS-free textile compliance is flagged as a 2026 must for US-facing manufacturers. Corporate/Plant Moves: Redwire expands its Huntsville facility, adding about 150 jobs for defense and space manufacturing. Finance for Equipment: NMB and Mantrac Tanzania sign a financing partnership to help miners, contractors, and manufacturers buy heavy machinery. Safety & Compliance: an Ahmedabad firecracker factory blast death toll climbed to 10, underscoring risks in illegal manufacturing.

Government Support for Domestic Industry: New Zealand’s Fletcher Building agreed a $60m Golden Bay Cement bailout to keep the country’s only cement plant running, citing carbon-cost disadvantages and infrastructure resilience needs. Industrial Safety Crackdown: In Ahmedabad, police arrested the alleged main accused in a firecracker factory blast that killed nine, after investigators found expired licensing and alleged illegal operations. Semiconductor Investment Boom: TSMC signaled AI-driven demand strength with record results and an additional $100bn Arizona expansion, while Tesla’s German output ramp is also in focus ahead of earnings. Advanced Manufacturing & Tech Transfer: Egypt’s AOI inked a deal with China’s CETC International to localise communications equipment, and APPLIED Adhesives bought ISD to expand adhesives and silicone solutions. Workforce Development: Clark State College expanded photonics and laser material processing training with a $3.5m U.S. grant. Automation & Robotics Safety: A new focus emerges on how robots moving beyond cages are forcing faster safety approaches. Defense Manufacturing: Forterra delivered 105 Lancer UGVs to Ukraine under a U.S. program. Corporate Earnings Watch: India’s JSW Steel and several specialty manufacturers reported sharp profit gains in Q1 FY27.

Corporate Earnings: Menon Bearings reported Q1 FY27 net profit up 67.3% YoY to ₹1,410.67 lakhs on strong sales momentum, while BHEL swung back to profit with Q1 FY27 net profit of ₹376.71 crore as power project execution improved. Solar & Materials: Borosil Renewables posted a Q1 FY27 profitability turnaround as domestic solar glass shipments rose, and Alok Industries narrowed its Q1 FY27 net loss to ₹138.25 crore amid steadier textile volumes. Industrial Policy & Investment: Punjab (Pakistan) unveiled a new industrial policy for free zones, offering zero duty on machinery imports and 10-year income tax relief, aiming to attract new manufacturing plants. Supply Chain & Trade Pressure: India’s downstream aluminium makers urged duty cuts on primary aluminium and scrap, saying current import-parity pricing is squeezing MSME margins by up to 70%. Tech & Manufacturing Ecosystems: India’s Semicon 2.0 is set to push advanced chip design investment via grants and equity/co-investment, targeting large-scale funding needs for AI-era chips. Safety & Compliance: Ahmedabad’s firecracker factory blast probe led to arrests over alleged unlicensed operations and safety lapses; PM Modi announced ex gratia support for victims.

Food Safety & Retail: Walmart removed four Taylor Farms bagged iceberg lettuce salads as recalls tied to a cyclosporiasis outbreak broaden, underscoring how quickly produce supply shocks can hit demand. Industrial Ecosystems: Zimbabwe’s Manhize Dinson Iron and Steel Plant is framed as a chance to build a wider steel-and-engineering manufacturing ecosystem, not just export raw metal. Energy Manufacturing: China’s wind turbine market share climbed to nearly 80% as installations surged on demand at home and across Asia/Africa. Defense Supply Chains: The Pentagon awarded $7.1m to expand U.S. production of space-qualified satellite cover glass, highlighting how even small components drive spacecraft resilience. Aerospace Production: CFM International began parts manufacture for its Open Fan ground demonstrator after a key preliminary design review milestone. Workplace Safety: Ahmedabad saw multiple deadly blasts at illegal firecracker factories, with investigations and ex gratia support announced. Digital Manufacturing Skills: Bangladesh’s Ha-Meem Group and Robonauts signed an MoU to accelerate Industry 4.0 adoption in the RMG sector via robotics and automation training. AI & Exports: Poland and Hungary are seeing faster growth in AI-linked exports as supply chains expand beyond traditional manufacturing. Policy Compliance: New Mexico issued manufacturer guidance and FAQs for PFAS labeling/reporting rules effective from July 1, 2026.

Semiconductors & Industrial Policy: India’s Cabinet cleared “Semicon 2.0” with Rs 1.27 lakh crore, shifting the chip push from early wins toward packaging-heavy scale and deeper value capture. EV & Solar Capacity Buildout: Alpex Solar plans August 2026 commercial production at a 2.2 GW TOPCon cell plant in Mathura and is also moving toward 5 GW ingot/wafer expansion. Manufacturing Digitalization: Rockwell Automation says Hadaf Foods is adopting Plex for connected cheese production monitoring in Abu Dhabi. Trade & Supply Chain Risk: India flagged $51B of critical imports and shortlisted ~100 items to prioritize domestic manufacturing, spanning textiles, EVs, solar and industrial components. Compliance & Standards: Nigeria’s SON launched a Digital Standards Platform with up to 35% discounts to cut compliance costs for manufacturers. Workforce & Operations Resilience: Guigang manufacturers resumed after Typhoon Maysak disruptions, highlighting how weather shocks hit production continuity. Regulatory/Quality Pressure: The FDA’s PreCheck Pilot is expanding earlier scrutiny for drug manufacturing readiness, aiming to reduce later approval delays.

Semiconductors in India: India’s Cabinet cleared the Rs 1.27 lakh crore “Semicon 2.0” push, aiming to build out the whole electronics stack from chip design and fabs to advanced packaging, equipment, chemicals, and talent—shifting the bet from intent to execution. Biopharma manufacturing: ICH Q5A (R2) is driving more risk-based, science-led viral clearance work, while continuous bioprocessing is gaining momentum as a way to cut cost and footprint. Digital product data: Loughborough launched a Manufacturing Digital Passport to keep lifecycle information connected and reusable across complex manufacturing supply chains. Solar and energy manufacturing: Unirac bought Terrasmart to expand ground-mount, tracker and canopy solar racking coverage, and Proton Bakery in Zimbabwe is scaling with a $20M+ expansion plus a 1MW solar plant. Industrial expansion and jobs: Iowa approved tax credits for multiple manufacturers and startups, and Quality Companies is expanding in Louisiana to add 348 jobs. Maritime buildout: Saronic picked Brownsville, Texas for its $3B+ Port Alpha shipyard focused on autonomous vessel manufacturing. Policy and compliance: North Carolina’s AG is pressing residents to weigh in on a proposed PFAS settlement involving Chemours, while California faces scrutiny over “non-competitively bid” contracting exemptions. Automation and robotics: Dexterity’s physical-AI superhumanoid robot highlights the push toward more adaptive warehouse automation. Manufacturing equipment: Videojet introduced a new label applicator aimed at steadier, lower-waste labeling runs.

Semiconductor Supply Chain Shift: TSMC is adding another $100B to its Arizona expansion, lifting total planned U.S. investment to $265B and signaling a major long-term reshuffle of AI chip manufacturing capacity. Industrial M&A: ABB agreed to buy Rotork for about $5.5B, aiming to deepen automation and electrification in mission-critical flow control. Energy Storage Manufacturing: Waaree ESS opened a 5.15 GWh BESS container factory in India as the first step toward a 20 GWh roadmap, using Industry 4.0 automation and testing. EV Charging Buildout: BHEL was tasked with manufacturing India’s first locally made 360-kW EV fast chargers for trucks and buses. Renewables Industrial Push: Oman’s Future Fund approved a 6 GW integrated solar cell and module plant in Sohar Freezone, plus LFP cathode manufacturing tied to EV batteries. Aerospace Additive Manufacturing: Guaranteed and Lockheed Martin signed an MoU to explore large-scale metal additive manufacturing in Belgium for molds and near-net-shape components. Food & Materials Innovation: Panzani opened a Durum Lab in France to speed ingredient-to-application testing for durum wheat performance. Policy & Markets: Malaysia’s Q2 2026 GDP rose 5.8%, with manufacturing strengthening to 7.5% on export-oriented electronics and chemicals.

Advanced Battery Procurement: India’s Ministry of Heavy Industries invited global bids for 10 GWh of Advanced Chemistry Cell (ACC) battery manufacturing under the PLI scheme, aimed at grid-scale stationary storage; bids open July 15 with a pre-bid conference set for July 29. Semiconductor Expansion: TSMC pledged an additional $100B for Arizona chipmaking and packaging, lifting its total U.S. commitment to $265B and expanding fabrication and advanced packaging capacity. EV Supply Chain Shock: SK Siltron will wind down its Bay County silicon carbide wafer operations in Michigan over the next 60 days, citing sustained EV market challenges after repaying a $544M DOE loan. Shipbuilding & Defense Industrial Base: JPMorganChase will provide $24M to strengthen Philadelphia’s shipbuilding and maritime manufacturing ecosystem, while Pennsylvania’s defense summit highlighted nearly $10B in new defense investments and jobs. Manufacturing Deals & Capacity: Metro will sell the Première Moisson commercial bakery manufacturing facility in Quebec to FGF Brands for $90M, with employees transferring at closing. Regulatory/Legal: A customs fraud case ended with a $7.3M settlement over alleged misrepresentation of plastic bag origin to evade duties. Workforce & Training: Louisiana’s Nunez Community College secured $4M to expand aerospace, welding and advanced manufacturing programs, targeting a new $9M aerospace facility.

Semiconductor Push (India): India’s Union Cabinet approved Semicon 2.0 with INR 1.27 lakh crore to build chips end-to-end, from design and fabs to advanced packaging, materials, equipment and talent. Mobile Manufacturing (India): The Cabinet also cleared a ₹62,500 crore mobile phone manufacturing scheme aimed at boosting domestic value-add, supply-chain resilience and exports, with incentives tied to sales and local sourcing. EV & Battery Scale-Up (India): Amara Raja Advanced Cell Technologies commissioned a Customer Qualification Plant in Telangana (initial 60 MWh) to help OEMs test lithium-ion cells before commercial 2 GWh production. Logistics Automation (Malaysia): Jabil opened an AI-enabled Intelligent Logistics Hub in Penang to improve inventory visibility, traceability and autonomous material flow for electronics supply chains. Industrial Decarbonisation (Belgium): Ecocem trialed its ACT low-carbon cement in industrial precast production near Antwerp, cutting concrete carbon footprint by 67.5% without changing factory processes. Trade & Tariffs (US–Brazil): The US imposed a 25% tariff on Brazilian exports under Section 301, with some 2,000 items exempted. Energy Efficiency Rules (India): India circulated draft CAFE-III norms proposing tighter fuel-efficiency targets and new carbon-neutrality factors for ethanol and biofuels. Robotics Manufacturing (Malaysia): A Johor firm plans to manufacture AI-powered cleaning robots via a China tech-transfer partnership for export and domestic sales. Defense Manufacturing (US): Trump outlined plans to raise US defense spending to $1.5 trillion next year, linking it to domestic manufacturing jobs.

Automotive Industry Pressure: Toyota’s top executive Koji Sato urged Japan’s automakers to unite as Chinese rivals intensify, arguing shared resources can cut costs and improve sustainability. AI-Driven Engineering: A Q&A highlights how manufacturers are using AI, simulation, and quality-by-design to speed product development without sacrificing reliability or compliance. Defense Manufacturing Scale-Up: Sierra Space won a $798M U.S. Department of Defense contract for 18 Golden Dome missile warning/tracking satellites, with availability targeted by end-2028. Semiconductor Onshoring: Bosch secured $225M in CHIPS funding to convert its Roseville plant into silicon carbide chip production, aiming to boost U.S. supply resilience. Industrial Policy (India): India’s Cabinet approved a Rs 62,500-crore mobile phone manufacturing scheme with production-linked incentives and added support for local component sourcing. Pharma Supply Chain & Compliance: FDA issued a CGMP warning letter to Spa De Soleil, while multiple U.S. states announced a $29.6M Glenmark antitrust settlement tied to alleged generic drug price-fixing. Africa Manufacturing Focus: South Africa’s Manufacturing Indaba pushed for better execution of industrial policy, and African officials urged lessons from China’s long-term industrial planning and ecosystem building.