AGP Executive Report

India–Slovakia Dealmaking: PM Modi arrived in Bratislava to deepen bilateral ties and expand cooperation, with meetings lined up with Slovakia’s president and prime minister. Automation & Visibility Markets: RPA is forecast to surge to $19.5B by 2027 (36.4% CAGR) and supply chain analytics to $16.8B by 2027 (17.9% CAGR), reflecting demand for faster, data-driven operations. Defense Industrial Crossover: Renault and Thales will build a multi-mission hybrid military vehicle (4 TROOP) for rapid production, signaling how automakers are being pulled into Europe’s rearmament push. Trade & Inflation Pressure: India’s wholesale inflation jumped to 9.68% in May as fuel/power, manufactured goods and food prices rose, tied to West Asia disruption and Strait of Hormuz risks. Auto Demand Snapshot: SIAM reported May PV sales up 27.3% y/y to 4.39 lakh units, with two- and three-wheelers also hitting strong growth. Medical Manufacturing Risk: FDA recall coverage expanded for AI-enabled healthcare devices, with missing clinical study details linked to higher recall likelihood. Corporate/Industrial Finance: QAMCO said it terminated Hydro’s marketing and offtake arrangements for Qatalum, shifting marketing under the JV agreement. Pakistan Industrial Listing: Sino-Pakistani tire JV Service Long March Tyres debuted on the PSX in a record IPO for the country’s private sector.

Semiconductor Push: Bangladesh’s budget proposes tax and duty exemptions for semiconductor raw materials (until 2031) plus specialist labs for AI, semiconductors and robotics, aiming to build a domestic advanced-tech ecosystem. Automation in Logistics: Amazon says it will keep expanding robotics and automation in Indian fulfilment centres, including SLAM systems and more Proteus deployment. EV Manufacturing Reshuffle: Geely plans to assess excess capacity across its units and close, merge or sell redundant factories as it shifts from China’s price war to global competition. Industrial Robotics for Marine Welding: China has put into service its first domestically developed intelligent marine welding robot system for flexible offshore platform manufacturing in Tianjin. Food Safety & Recalls: The FDA reported multiple citations for Custom Analytics, LLC and Dr. Praeger’s Sensible Foods; separately, Nara Organics recalled nationwide infant formula after infant botulism cases. Public Health Trials: KNUST joins the DENSTAR project to run Phase III trials for a dengue vaccine across sub-Saharan Africa. Geopolitics & Supply Chains: U.S. Defense Secretary Pete Hegseth dismissed claims of a munitions stockpile crisis as “manufactured,” while markets watch potential U.S.-Iran truce terms. Infrastructure & Operations: A bridge closure in the UK continues for emergency repairs, adding near-term disruption for commuters.

Central Asia Investment Push: Uzbekistan’s Fergana Region is offering up to 10 years of tax and customs incentives to attract Malaysian manufacturing, pharma, and food-processing investment, with ready-made industrial sites in zones like Kokand Free Economic Zone and chemical technoparks. EU Clean-Tech Funding: The EU launched T-MED to mobilise up to €29bn by 2035 for renewable energy, hydrogen, clean-tech manufacturing, and grid upgrades across the Mediterranean, aiming for 15 GW of new capacity and 100,000 clean-energy jobs. Industrial Supply Pressure: A new analysis argues 2026 is a “supply ceiling” test for silver as AI data centers and solar buildouts drive hard industrial demand. Defence Production Race: The US Air Force is accelerating B-21 Raider production and recapitalisation plans, with production capacity targeted to rise 25% to meet future bomber targets. Manufacturing Under Scrutiny (Environment): Reuters reports Tata’s iPhone parts plant in Tamil Nadu faces a potential shutdown over alleged wastewater discharge harming nearby farmland, after multiple TNPCB inspections. MSME Skills Boost: India will lay the foundation stone for a Rs 170 crore advanced MSME technology centre in Gaya, adding production and training blocks for local manufacturers. Fraud Probe (Manufacturing/Exports): Kerala Police registered cases against VPVV Techno Construction over alleged printing of fake US defence purchase documents and approvals tied to a claimed weapon-manufacturing contract. New UK Defence Manufacturing: TEKEVER will start production at its Swindon drone facility from September, positioning the site as its main European manufacturing base. Food Safety Shock: Nara Organics recalled its whole milk organic powdered infant formula sold at Target after a multistate infant botulism outbreak. Energy Policy for Vehicles: India has cleared regulations enabling 100% ethanol (E100) vehicles, expanding the legal path for flex-fuel adoption.

Pharma Manufacturing & Public Health: Dr. Reddy’s says it has launched Bosutinib Tablets 400mg in the US as a first-to-market generic, with MSN Laboratories handling development and manufacturing—aimed at faster access to oncology treatment. Life Sciences Investment: Arcera Life Sciences highlights the UAE’s push to localize more of its life sciences supply chain, noting over 40% of its UAE portfolio is already manufactured locally. Ebola Vaccine Production: India’s Serum Institute is fast-tracking a Bundibugyo-strain Ebola vaccine candidate (ChAdOx1 BDBV) with Oxford/CEPI support, using a platform designed for rapid scale-up. Industrial Policy & Compliance: Qatar’s commerce minister visited pharmaceutical factories to review production tech and expansion plans, tying growth to national industrial strategy. Skills for Manufacturing: Google.org pledges $50m to train 300,000+ workers across US states for skilled trades tied to AI infrastructure buildout. Trade & Security: China protested the US adding major Chinese tech and manufacturing firms (including Alibaba and BYD) to a Pentagon-linked list, warning of countermeasures. Regional Manufacturing Support: Ras Al Khaimah’s delegation toured China to promote advanced construction, green energy and smart logistics partnerships. Regulatory Crackdowns: Assam tightened liquor rules with new minimum guaranteed revenue, outlet distance limits, and license shifting controls.

Space & Capital Markets: Elon Musk became the world’s first trillionaire as SpaceX’s Nasdaq debut surged, with the IPO valuing the company around $2.2tn and shares closing near $161. Semiconductors & Inputs: Japan warned of potential tungsten hexafluoride supply disruptions as export curbs tighten availability, threatening AI chipmaking timelines. Industrial Policy & Trade: India’s Budget 2026-27 cut customs duties on thousands of industrial inputs and machinery lines to lower costs and boost imports, while also exempting cancer-treatment raw materials. Manufacturing Competitiveness: A report says India’s labour productivity gap with China has widened by over $30,000 per worker since 2000, highlighting the need for industry-led productivity gains. Cleanrooms & Electronics Buildout: Sterling and Wilson teamed with South Korea’s Shinsung E&G to bid on semiconductor, battery and display cleanroom projects in India. Pharma Manufacturing: Concord Biotech cleared a Brazilian ANVISA inspection at its Limbasi API facility, while Eugia Pharma received US FDA OAI classification for a Telangana formulation site. Skills & Clusters: Andhra Pradesh’s Nara Lokesh pushed industry-academia links and plans a comprehensive skill portal, alongside industrial cluster development. Defense Industrialization (India): Andhra Pradesh backed a Rs 2,245-crore defence cluster in Udayagiri spanning drones, defence electronics and aerospace components. Energy Manufacturing: Hitachi Energy is investing about INR 2,000 crore in a large power transformer factory in Gujarat to expand local capacity for grid buildout.

Pesticide Liability Fight: Pesticide makers are pushing state “liability shield” laws to block lawsuits tied to cancer-risk warnings for products like glyphosate/Roundup, as the U.S. Supreme Court is set to rule in July 2026 on whether federal law preempts state failure-to-warn claims. Pharma & Biomanufacturing: Perrigo is searching for a new CEO after Patrick Lockwood-Taylor’s exit for “personal conduct,” while Lyell Immunopharma shared updated rondecabtagene autoleucel safety and translational data for large B-cell lymphoma. Industrial Expansion: Kingsbury will break ground on a 120,000 sq ft Oshkosh facility to consolidate operations, and Rheem expanded its commercial packaged heat-pump lineup. Workforce & Skills: Northeast Arkansas schools are building a “human infrastructure” pipeline for an industrial boom, and Honeywell’s CEO warned labor shortages are accelerating automation demand. Semiconductors & Connectivity: Lam Research and peers posted strong Q1 results, and a new report says CBRS is powering most U.S. private 5G networks, including advanced manufacturing. Global Risk & Supply Chains: South African manufacturers face mounting energy, freight, and geopolitical shocks, with risk now “systemic” rather than episodic. Defense & Tech: UK court rulings branded Palestine Action activists “terrorists” over an Elbit factory raid, while Ukraine-linked reporting claims fully autonomous drones killed Russian soldiers in a past test.

Malaysia Manufacturing Sales: Malaysia’s manufacturing sales value rose 9.1% y/y to RM175.0bn in April, led by electrical and electronics (+13.4%) and export-oriented industries (+9.6%), signaling continued demand strength. India Footwear Investment: TKG Taekwang won SEZ clearance for a Rs. 514 crore athletic footwear plant in Tamil Nadu, targeting ~14.98m pairs annually and 13,364 jobs. Qatar-China Insulation Push: Qatar Free Zones Authority signed MoUs to set up advanced cellular glass insulation manufacturing in Umm Alhoul, aiming to deepen GCC supply and localization. EV Policy Incentives (Tanzania): Tanzania’s 2026/27 budget proposes VAT exemptions for EV charging equipment and cuts EV import duty to 10%, plus talks on extra incentives for local assemblers. Renewables After Sugar Collapse (US): California Ethanol + Power is moving into construction at the Sugar Valley Energy campus, using state pre-development funding to restore jobs after the 2025 sugar plant closure. Supply Chain Caution: GEP’s index shows manufacturers are stockpiling and front-loading purchases across North America, Europe and Asia, raising concerns about resilience in H2 2026. Defense Industrialization (Cambodia): Cambodia says its military production is for self-defence and import substitution, with uniforms and protective gear now sourced domestically. Egypt Technical Textiles Deal: SCZONE inked a $27m first-phase technical textiles project in Port Said, targeting exports to US and Europe.

Amazon–Corning Fiber Deal: Amazon and Corning signed a multi-year, multibillion-dollar agreement to scale U.S. fiber optics manufacturing for data centers, with a focus on higher density and scaled connector customization for AI racks. Energy for Manufacturing: Foxconn and Brookfield struck a deal to develop up to 1GW of renewable plus battery storage in Vietnam, aimed at powering Foxconn’s expansion with long-term power purchase agreements. UK Fragrance Manufacturing: Estée Lauder is making the UK its main manufacturing base for luxury candles and home scent diffusers, expanding R&D and quality capabilities at its Whitman site. Industrial AI Quality: Deeply says its industrial acoustic AI hit 99.87% accuracy for connector engagement inspection and is pushing adoption via Automate 2026 in Chicago. Space Materials R&D: EmTDLab and Orbit2Orbit will flight-test an AI-discovered radiation shielding material on a near-space balloon mission, starting with structural performance. Semiconductor/AI Infrastructure: Xbox warned storage and memory costs have surged to roughly 4x since late 2025 and could exceed 5x by the 2027 holiday season, underscoring how AI data centers are reshaping component economics. Manufacturing Capacity Investments: Hendrickson plans a $13M expansion in Somerset, adding space and up to 30 jobs, while IKO North America broke ground on a $50M XPS insulation plant in Brant County. Trade/Policy Push: Bangladesh proposed tax cuts and import duty reductions for ICT hardware and semiconductor-related inputs to boost local tech manufacturing. Defense Industrial Cooperation: GA-ASI and INTEC Group signed an MoU to support mission systems integration and logistics for Germany-focused collaborative combat aircraft work.

Solar Power for Industry: Simplex Castings signed a 25-year PPA for a 5.5 MWp captive solar project in Chhattisgarh, targeting annual power-cost savings of about INR 2.16 crore. Defense-Driven Manufacturing Uncertainty: Taiwan’s drone makers face a funding freeze after lawmakers removed domestic drone production support from the defense budget, clouding procurement timelines. ERP for Manufacturers: Syspro moved from “Expert” to “Leader” in Nucleus Research’s 2026 SMB ERP Value Matrix, highlighting manufacturing-focused workflows and AI embedded in operations. Industrial Electrical Capacity: Morgan Master Electrician expanded industrial electrical services across Asheville, Greenville, and Spartanburg to support high-load facilities and faster outage response. Solar Policy in Court: India’s Karnataka High Court is set to weigh industry challenges to MNRE’s ALMM List-II solar cell implementation from June 1, with groups asking for a deferral until domestic supply can meet demand. EV Momentum: TVS crossed 1 million cumulative electric scooter retail sales in India, with the last 1 lakh sold in 75 days. Logistics & Heavy Machining: Openex detailed how it handles and ships oversized machined components in China, emphasizing crane capacity, rigging, inspection, and export packaging. Energy Security Debate: Central Asia is increasingly looking at nuclear power to stabilize electricity for manufacturing, data centers, and critical infrastructure. Data-Center Supply Chain: TDK agreed to buy Fabric8Labs for up to $400 million to strengthen data-center technology capabilities. Market Outlook Watch: Allied Market Research forecasts pallets to reach $122.3B by 2030 and flanges to hit $7.39B by 2031, pointing to steady industrial infrastructure demand.

Aerospace Supply-Chain Fix: Deutsche Aircraft says it will design and retrofit its own landing gear for the Dornier 328eco and legacy D328 after Safran replacement delays, with manufacturing planned via a German supplier. Aerospace Compliance Probe: U.S. federal agents and the EPA executed a search warrant at GKN Aerospace in Garden Grove tied to a failed chemical tank that triggered mass evacuations, focusing on methyl methacrylate handling and safety records. Solar Manufacturing Scale-Up: Qcells began solar cell production at its Cartersville, Georgia plant and is ramping module assembly to full capacity, aiming for full production by Q3 2026. EV Energy Security: Kenya’s energy ministry says fuel deliveries are secured through end-July and diesel prices will be reviewed for further cuts. Circular Jobs Funding: BEAM Circular selected four Stanislaus County employers for $2M in grants to expand circular bioeconomy manufacturing and create jobs. Trade & Industrial Policy: UK Steel backs amendments to a provisional steel import quota ahead of a July rollout, citing distorted global competition. Materials & M&A: First Graphene agreed to buy Mito Material Solutions to expand U.S. graphene/graphite functionalization capacity for defense and advanced materials. Sustainability Certification: Apex Footwear earned Recycled Claim Standard (RCS) certification for recycled-content traceability at its manufacturing facility. Automation Push: Serbia’s environment minister says Minth Group will manufacture humanoid robots in Serbia, positioning the country as a European first.

Bioplastics Patent Win: GAIA BioMaterials secured final European patent approval for PLA-free film extrusion materials, positioning the firm for GCC demand as single-use restrictions tighten and conventional resin costs stay high. Robotics for Real-World Factories: Festo launched GripperAI to let robots handle mixed, randomly positioned parts without heavy programming, while IDS and COMI pushed AI label reading to speed goods-in and improve traceability. Supply Chain Digitization: TraceLink won an ISM Supply Chain Trailblazer Award for OPUS, highlighting multienterprise, no-code agent execution across healthcare supply chains. Autonomous Mobility Rollout: WeRide met Slovakia’s PM and outlined plans to commercialize Level 4 robotaxi and multi-product autonomous vehicles, with the first batch arriving this month. Industrial Scale-Up: Röhm reached full industrial scale at its Bay City MMA plant using LiMA tech, strengthening North American supply for automotive, electronics, and medical inputs. Infrastructure Jobs: A new Zimbabwe cement plant is creating ~450 construction jobs and targets ~800,000 tonnes annually on commissioning. Energy & Manufacturing: Egypt opened the El-Gharably Industrial Complex phase one for steel structures and maintenance/overhaul capacity, aiming for export-led expansion.

Regulatory & Safety: The FDA cleared bemotrizinol as the first new U.S. sunscreen ingredient in 25+ years, with DSM’s Parsol Shield set to launch and other manufacturers following after exclusivity. Product Recalls: Target recalled two Up & Up baby wipe varieties after FDA testing found Burkholderia bacteria linked to life-threatening infections in infants. Industrial Policy (Textiles): Nigeria’s Senate pushed for a total ban on textile imports to revive local mills, boost cotton farming, and create jobs. Energy Storage & Manufacturing: CATL expects battery storage to reach 50% of sales by 2030 as grids lean on wind/solar and need storage to balance supply. Supply Chain Resilience: A freight industry discussion highlighted a shift toward more regional, diversified sourcing and tools like foreign trade zones to manage tariff volatility. Defense Production: Ukraine’s Zelenskyy said the country aims for 600 drones and missiles per day to match Russia’s strike volume, stressing domestic output. Automotive Production: Stellantis issued a second fire-related recall this week for Chrysler Pacifica Plug-in Hybrids over battery-cell thermal runaway risk. Industrial Expansion: OMI started motor production at its new Puebla, Mexico facility, targeting 400K+ motors annually.

Space & Defense Manufacturing: Space42 says its Foresight-3, -4 and -5 SAR satellites are now fully operational, expanding a five-satellite Earth observation constellation built with Finland’s ICEYE—aimed at faster decision-grade geospatial intelligence for governments and industry. Energy Infrastructure: China’s CSSC has started construction of the world’s largest LNG carriers for QatarEnergy under the QC-Max class deal—24 ships worth $8.3B+ and designed for much higher capacity per voyage. Industrial Policy & Renewables (India): India’s MNRE set up an expert committee to handle solar commissioning extensions and ALMM List-II exemptions, while clarifying that PM Surya Ghar “Give It Up” rooftop users can avoid ALMM List-II cell requirements until Mar 31, 2027. EV Manufacturing (India): Hyundai plans to launch two new models from its Chennai plant in 2026, including its first mass-market EV for India, with Tamil Nadu positioned as the EV manufacturing and development hub. Skills & Training: West Georgia Technical College and the College of Manufacturing, Transportation, and Trade launched a six-month apprenticeship at the Dow Jones Printing Plant, blending shop-floor work with digital production training. AI in Manufacturing: Ta Liang Technology’s shift from PCB equipment to AI/advanced packaging cleanroom tools highlights how precision control and vision measurement are pulling traditional machinery makers into the AI supply chain.

AI & Semiconductors: NVIDIA and SK hynix announced a multiyear partnership to co-develop next-generation memory for “AI factories,” aiming to speed semiconductor design and manufacturing for global AI buildouts. Advanced Manufacturing & Supply Chains: Chinese startup Prinano claims it validated mass production of photonic chips without DUV lithography, using nanoimprint lithography to cut costs and reduce reliance on export-restricted tools. Industrial Policy & Skills: UK manufacturers face a skills and adoption gap for AI, with Make UK reporting only 2% have AI widely embedded and over half cite skills shortages as the main barrier. Auto Industry Signals: BMW India will raise prices up to 2% from July, citing rupee and logistics pressures, while Chery denied any direct investment or technology transfer plans in India amid reports tied to Tata’s EV platform. Energy & Materials: Zimbabwe moved to ban exports of unprocessed lithium concentrate to capture more value domestically, while Abu Dhabi’s “Manufacturers 2026” exhibition targets 1,000+ Emirati energy-sector job opportunities. Manufacturing Operations: US manufacturing activity hit a four-year high in May as firms boosted production and built inventories amid supply and cost uncertainty. Regulatory/Compliance: Pakistan’s LPG cylinder “expiry code” rumor was rejected by OGRA, which says cylinders carry manufacturing and inspection details instead. Geopolitics: Taiwan’s COMPUTEX was shadowed by Chinese military activity, underscoring risks around critical tech supply chains.

Energy & Inputs: D&L Industries said crude and coconut oil prices have eased from peaks, helping offset weaker food demand as non-food plastics/packaging/construction customers stock up. Circular Manufacturing Policy: Qatar plans to shift 35% of factories to circular economy practices by 2030 under its National Manufacturing Strategy. Construction Efficiency: Wythe Windows co-CEO Darren Macri was named board president of the Passive House Network, pushing wider adoption of high-performance building standards. Aviation Decarbonization Reality Check: Iata warned the 2050 net-zero aviation goal is unlikely, citing slow SAF scale-up and policy gaps. Egypt Industrial Push: PM Madbouly inaugurated garment and textile expansions (Sahinler Egypt and Jade Textile) and a Coca-Cola Hellenic Egypt $35m PET bottle line, underscoring export-led manufacturing. Trade Disruption: Container rates surged on Asia-to-Europe and Asia-to-US lanes amid congestion and capacity tightness, raising costs for manufacturers and importers. Steel Cost Pressure: Bangladesh steel makers demanded rollback of a 17% industrial electricity tariff hike, warning higher rod costs and project slowdowns. Automation on the Shop Floor: BMW is piloting humanoid robots at its Leipzig plant, building on a US trial. Semiconductor Capital: Japan’s Rapidus said IPA funding lifted total investment to $2.65bn as it scales 2nm logic manufacturing. AI Memory Deal: Nvidia and SK Hynix signed a multiyear partnership for next-gen AI memory and AI infrastructure. Corporate Moves: BRCK agreed to buy Jacksons, expanding into premium fencing and perimeter security systems.

Maritime Energy Shock: Reports of Strait of Hormuz disruption are rattling oil and LNG flows, with knock-on risks for energy prices and manufacturing supply chains—especially for import-heavy economies like India. Auto Industry Reshuffle: Germany’s struggling automakers are weighing cooperation with Chinese partners to use underused plants, highlighting how capacity cuts and EV transition pressure are forcing pragmatic tie-ups. India Cooling Supply Tightening: India’s compressor import curbs for fridges and air-conditioners are raising alarms as heat-wave demand spikes while domestic capacity still lags. Semiconductor/AI Industrial Stakes: Intel’s CPU “revival” push and the broader AI cost reality underscore how chip demand, data-center buildouts, and manufacturing execution are shaping the next cycle. Aviation Supply Chain Strain: IATA chief Willie Walsh warns airline profitability is being hit by aircraft/engine delivery failures, while United’s A350-Rolls-Royce dispute keeps widebody plans in limbo. Food & Consumer Safety: India saw fatal toxic-gas incidents during tank cleaning at a jewellery unit in Surat, while the US recalled 255,000 Vornado tower heaters over fire risk. Industrial Policy & Jobs: Egypt’s PM toured Alexandria projects to boost local manufacturing and exports; Abu Dhabi’s Manufacturers 2026 event targets 1,000+ Emirati energy jobs; Philippines PEZA approvals jumped 88% to P124.84B with manufacturing leading. Trade/Export Pressure: Bangladesh garment exporters face a continued slump, prompting an emergency BGMEA meeting to address tariffs, lead times, and LDC graduation fallout. Tech Supply Chain Hit: Smartphone shipments are forecast to fall sharply in 2026 as memory chip shortages deepen, squeezing low-cost device makers.