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apple developer:Hong Seng to acquire 105 acres in Kedah Rubber City

admin2020-12-29146

KUALA LUMPUR: Hong Seng Consolidated Bhd via its subsidiary Hong Seng Industries Sdn Bhd has proposed to acquire 105 acres of federal land in Kedah Rubber City for RM45.74mil.It said in a statement on Monday that it has accepted a letter issued by Northern Corridor Implementation Authority in relation to its interest to acquire the land, which will be used to set up its nitrile butadiene latex (NBL) manufacturing plant."HS Industries was incorporated with the intention to engage in the business of manufacturing and trading of NBL."NBL which is also referred to as butadiene is the main and crucial raw material used for the production of nitrile gloves which accounted for 70% of the total gloves exported from Malaysia according to Malaysian Rubber Glove Manufacturers Association," said Hong Seng executive chairman Datuk Teoh Hai Hin.The new plant will help to meet the shortage in NBL demand caused by the unprecedented demand and production of nitrile gloves due to the pandemic, he added.Also, the setting up of Hong Seng's own NBL plant could provide constant internal supply to the group's subsidiary, Hong Seng Gloves Sdn Bhd's plant."Ideally, this will enable us to be an integrated glove and NBL manufacturer in Malaysia by having both upstream and downstream segments of the glove manufacturing supply chain,” said Teoh.
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