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KUALA LUMPUR: Hong Seng Consolidated Bhd
Through its subsidiary Hong Seng Industries, Sdn Bhd has proposed to acquire 105 acres of federal land in Kedah Rubber City for RM45.74 thousand.
It said in a statement on Monday that it accepted a letter issued by the Northern Corridor Implementation Authority regarding its interest in acquiring the land, which will be used to install its nitrile butadiene latex (NBL) manufacturing plant.
“HS Industries was incorporated with the intention of participating in the manufacturing and marketing business of NBL.
“NBL, which is also known as butadiene, is the main and crucial raw material used for the production of nitrile gloves, accounting for 70% of the total gloves exported from Malaysia according to the Malaysian Rubber Glove Manufacturers Association” said Hong Seng Chief Executive Datuk. Teoh Hai Hin.
The new plant will help meet the demand shortage for NBL caused by the unprecedented demand and production of nitrile gloves due to the pandemic, he added.
Furthermore, the installation of Hong Seng’s own NBL plant could provide a steady domestic supply to the group’s subsidiary, the Hong Seng Gloves Sdn Bhd plant.
“Ideally, this will allow us to be an integrated glove manufacturer and NBL in Malaysia by having upstream and downstream segments of the glove manufacturing supply chain,” said Teoh.
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